National corporate tax rates could decrease after the US decision to cut it to 15%
The US congress will vote on the new Trump proposal to cut the corporate taxation rate to 15%. The OECD as a minimum, recommends a corporate tax rate of 15%.
For example, the highest tax rate is 35%. You can see a comparison of corporate tax rates in various other countries:
- France – 33.3%
- Australia – 30%
- China – 25%
- UK – 19%
- Singapore – 17%
- Hong Kong – 16.5%
- Cyprus – 12.5%
- UAE – 0%.
It looks like a trend for countries to compete for businesses by reducing their corporate tax rate. It is expected that other countries will follow suit in order to keep jurisdiction competitiveness and attract more business. The EU is working on harmonisation of tax across EU countries in order to eliminate “harmful competition” in this area and allow only marginal variation of corporate tax rates in EU.