Total tax rate (% of commercial profits) - Country Ranking

Definition: Total tax rate measures the amount of taxes and mandatory contributions payable by businesses after accounting for allowable deductions and exemptions as a share of commercial profits. Taxes withheld (such as personal income tax) or collected and remitted to tax authorities (such as value added taxes, sales taxes or goods and service taxes) are excluded.

Source: World Bank, Doing Business project (http://www.doingbusiness.org/).

See also: Thematic map, Time series comparison

Find indicator:
Rank Country Value Year
1 Comoros 216.50 2017
2 Argentina 106.00 2017
3 Bolivia 83.70 2017
3 Eritrea 83.70 2017
5 Equatorial Guinea 79.40 2017
6 Palau 75.50 2017
7 Central African Republic 73.30 2017
8 Afghanistan 71.40 2017
9 Mauritania 71.30 2017
10 Colombia 69.70 2017
11 Brazil 68.40 2017
12 China 67.30 2017
13 Algeria 65.60 2017
14 Tajikistan 65.20 2017
15 Venezuela 65.00 2017
16 Tunisia 64.10 2017
17 Chad 63.50 2017
18 Puerto Rico 63.40 2017
19 France 62.20 2017
20 Guinea 61.40 2017
21 Nicaragua 60.20 2017
22 Costa Rica 58.30 2017
23 Cameroon 57.70 2017
24 Benin 57.40 2017
25 Belgium 57.10 2017
26 India 55.30 2017
27 Sri Lanka 55.20 2017
28 Dem. Rep. Congo 54.60 2017
29 Congo 54.30 2017
30 Belarus 52.90 2017
31 Mexico 52.10 2017
32 Austria 51.80 2017
33 Greece 51.70 2017
34 Slovak Republic 51.60 2017
35 The Gambia 51.30 2017
36 Côte d'Ivoire 50.10 2017
37 Czech Republic 50.00 2017
38 Morocco 49.80 2017
39 St. Kitts and Nevis 49.70 2017
40 Sweden 49.10 2017
40 Angola 49.10 2017
42 Germany 48.90 2017
43 Dominican Republic 48.80 2017
44 Estonia 48.70 2017
45 Togo 48.50 2017
46 Grenada 48.40 2017
47 Mali 48.30 2017
48 Italy 48.00 2017
49 Russia 47.50 2017
49 Australia 47.50 2017
51 Japan 47.40 2017
52 Niger 47.30 2017
53 Spain 46.90 2017
54 Gabon 46.80 2017
55 Hungary 46.50 2017
56 Guinea-Bissau 45.50 2017
56 Liberia 45.50 2017
58 Sudan 45.40 2017
59 Egypt 45.30 2017
60 Senegal 45.10 2017
61 Iran 44.70 2017
62 Honduras 44.40 2017
63 Tanzania 44.10 2017
64 Malta 43.90 2017
65 United States 43.80 2017
66 Philippines 42.90 2017
67 Haiti 42.80 2017
68 Syrian Arab Republic 42.70 2017
68 Lithuania 42.70 2017
70 Antigua and Barbuda 41.90 2017
71 Uruguay 41.80 2017
72 Burundi 41.50 2017
73 Burkina Faso 41.30 2017
74 Turkey 41.10 2017
75 Netherlands 40.70 2017
76 Poland 40.50 2017
76 Moldova 40.50 2017
78 Azerbaijan 39.80 2017
78 Portugal 39.80 2017
80 Serbia 39.70 2017
81 Papua New Guinea 39.30 2017
81 St. Vincent and the Grenadines 39.30 2017
83 Malaysia 39.20 2017
84 Ethiopia 38.60 2017
85 Romania 38.40 2017
85 Finland 38.40 2017
87 Uzbekistan 38.30 2017
88 Vietnam 38.10 2017
88 Madagascar 38.10 2017
90 Ukraine 37.80 2017
91 Djibouti 37.70 2017
92 Norway 37.50 2017
93 Kenya 37.40 2017
94 Albania 37.30 2017
95 Panama 37.20 2017
96 São Tomé and Principe 37.00 2017
97 Cabo Verde 36.60 2017
98 Trinidad and Tobago 36.20 2017
99 Mozambique 36.10 2017
100 Latvia 35.90 2017
101 Peru 35.60 2017
102 El Salvador 35.50 2017
103 San Marino 35.40 2017
104 Bhutan 35.30 2017
104 Barbados 35.30 2017
106 Guatemala 35.20 2017
106 Dominica 35.20 2017
106 Swaziland 35.20 2017
109 Paraguay 35.00 2017
110 Nigeria 34.80 2017
111 St. Lucia 34.70 2017
112 New Zealand 34.50 2017
112 Malawi 34.50 2017
114 Pakistan 33.80 2017
115 Uganda 33.70 2017
116 Bangladesh 33.40 2017
117 Rwanda 33.20 2017
117 Ghana 33.20 2017
119 Jamaica 33.10 2017
119 Korea 33.10 2017
121 Fiji 33.00 2017
121 Chile 33.00 2017
123 Kiribati 32.70 2017
124 Libya 32.60 2017
125 Ecuador 32.50 2017
126 Guyana 32.30 2017
127 Solomon Islands 32.00 2017
128 Zimbabwe 31.60 2017
129 The Bahamas 31.50 2017
130 Myanmar 31.20 2017
131 Belize 31.10 2017
132 Sierra Leone 31.00 2017
132 Slovenia 31.00 2017
134 Iraq 30.80 2017
135 United Kingdom 30.70 2017
136 Lebanon 30.30 2017
137 Seychelles 30.10 2017
138 Indonesia 30.00 2017
139 Iceland 29.70 2017
140 Nepal 29.60 2017
141 Kazakhstan 29.20 2017
142 Kyrgyz Republic 29.00 2017
143 South Africa 28.90 2017
144 Switzerland 28.80 2017
145 Thailand 28.70 2017
146 Jordan 28.10 2017
147 Suriname 27.90 2017
148 Tonga 27.50 2017
149 Bulgaria 27.10 2017
150 Israel 27.00 2017
151 Yemen 26.60 2017
152 Lao PDR 26.20 2017
153 Ireland 26.00 2017
154 Botswana 25.10 2017
155 Mongolia 24.70 2017
156 Denmark 24.20 2017
157 Oman 23.90 2017
158 Bosnia and Herzegovina 23.70 2017
159 Hong Kong SAR, China 22.90 2017
160 Cyprus 22.70 2017
161 Montenegro 22.10 2017
162 Mauritius 21.90 2017
163 Cambodia 21.70 2017
164 Canada 20.90 2017
165 Namibia 20.70 2017
166 Croatia 20.60 2017
167 Luxembourg 20.50 2017
168 Singapore 20.30 2017
169 Samoa 19.30 2017
170 Armenia 18.50 2017
171 Georgia 16.40 2017
172 United Arab Emirates 15.90 2017
173 Saudi Arabia 15.70 2017
174 Zambia 15.60 2017
175 Bahrain 13.80 2017
176 Lesotho 13.60 2017
177 Macedonia 13.00 2017
177 Kuwait 13.00 2017
179 Qatar 11.30 2017
180 Timor-Leste 11.20 2017
181 Vanuatu 8.50 2017
182 Brunei 8.00 2017

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Development Relevance: The total tax rate payable by businesses provides a comprehensive measure of the cost of all the taxes a business bears. It differs from the statutory tax rate, which is the factor applied to the tax base. In computing business tax rates, actual tax payable is divided by commercial profit. Taxes are the main source of revenue for most governments. The sources of tax revenue and their relative contributions are determined by government policy choices about where and how to impose taxes and by changes in the structure of the economy. Tax policy may reflect concerns about distributional effects, economic efficiency (including corrections for externalities), and the practical problems of administering a tax system. There is no ideal level of taxation. But taxes influence incentives and thus the behavior of economic actors and the economy's competitiveness.

Limitations and Exceptions: To make the data comparable across countries, several assumptions are made about businesses. The main assumptions are that they are limited liability companies, they operate in the country's most populous city, they are domestically owned, they perform general industrial or commercial activities, and they have certain levels of start-up capital, employees, and turnover. The Doing Business methodology on business taxes is consistent with the Total Tax Contribution framework developed by PricewaterhouseCoopers (now PwC), which measures the taxes that are borne by companies and that affect their income statements. However, PwC bases its calculation on data from the largest companies in the economy, while Doing Business focuses on a standardized medium-size company.

Statistical Concept and Methodology: The data covering taxes payable by businesses, measure all taxes and contributions that are government mandated (at any level - federal, state, or local), apply to standardized businesses, and have an impact in their income statements. The taxes covered go beyond the definition of a tax for government national accounts (compulsory, unrequited payments to general government) and also measure any imposts that affect business accounts. The main differences are in labor contributions and value added taxes. The data account for government-mandated contributions paid by the employer to a requited private pension fund or workers insurance fund but exclude value added taxes because they do not affect the accounting profits of the business - that is, they are not reflected in the income statement.

Aggregation method: Unweighted average

Periodicity: Annual

General Comments: Data are presented for the survey year instead of publication year.