Corporate Tax Rates across G-20 countries

The G-20 economies comprising of 19 countries, the EU and the African Union, account for almost 85% of the global GDP, 75% of the global trade, 2/3rd of the world population and approximately 60% of the world land area. India held the Presidency of the G-20 from 1 December 2022 to 30 November 2023. Considering the significance of these economies and in order to provide an indicative overview of the prevailing tax rates in these key economies, a brief comparative matrix is tabulated below:

Sr. No.	Country	Corporate Tax Rate [Note 1]	Personal Tax Rate [Notes 1 & 2]
1.	Argentina	35%	35%
2.	Australia	30%	47%
3.	Brazil	34%	27.50%
4.	Canada	31%	54.80%
5.	China	25%	45%
6.	France	25%	45% plus surtax and social charge
7.	Germany	15.83% plus trade tax	45% plus surcharge
8.	India [Notes 3, 4 & 5]	17.16%(New manufacturing companies) 25.17%(New Tax regime) 29.12%( Companies opting for old regime subject to higher tax rate) 34.94%	39.00%( Individuals opting for old regime subject to higher tax rate) 42.74%
9.	Indonesia	22%	35%
10.	Italy	27.9%	47.23%
11.	Japan [Note 6]	23.20%	55.95%
12.	Mexico	30%	35%
13.	Russia	25%	22%
14.	Saudi Arabia [Note 7]	(20%) 0%	0%
15.	South Africa	27%	45%
16.	South Korea	24%	49.5%
17.	Turkey	25%	40%
18.	United Kingdom	25%	45%
19.	United States of America [Note 8]	21%	37%

Notes:

The above tax rates are MMR and inclusive of provincial or local taxes as may be applicable to domestic companies / resident individuals in respective countries.
The taxation regime for corporate taxes is flat rate for all the G-20 economies except Argentina and South Korea. The taxation regime for personal taxes is progressive for all the G-20 economies except Russia and Saudi Arabia.
The concessional tax rate for certain domestic companies is 22% (the effective tax rate is 25.17%). For manufacturing companies set up between 1 October 2019 to 31 March 2024, the tax rate is 15% (effective rate 17.16%).
The Bill has not proposed any changes in the tax rates for domestic companies. For domestic companies not opting for concessional tax regime, the corporate tax rate is 25% (the effective tax rate is 29.12%) in case of such companies having total turnover not exceeding Rs. 400 crores during FY 2023-24 and corporate tax of 30% (the effective tax rate is 34.94%) in case of total turnover exceeding Rs. 400 crores during FY 2023-24.
The MMR for individuals is 39% in the new tax regime and 42.74% for individuals opting for old tax regime. For details, please refer ‘Chapter 3: Tax Rates’.
Corporate tax @ 23.20% is indicative effective rate of tax. In addition, size-based business tax is also levied on companies. Personal tax rate is inclusive of 2.1% surtax and 10% local income taxes applicable to a resident of Japan.
Corporate Tax @ 20% is payable on the pro-rata income to the extent of non resident shareholding. Saudi and the Gulf Cooperation Council nationals or companies owned by them have to pay Zakat (i.e. a religious tax) at 2.5%.
In USA, Corporate tax comprises of federal tax (21%) as well as state and local government taxes which vary from state to state. Personal tax comprises of federal tax (37%) and further each state and local government can also levy tax on income.

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G-20 Countries – Comparative Corporate and Personal Tax Rates