The combined statutory corporate income tax rates among OECD, G20, and EU countries dropped in parallel from 2000–2021, 10 percentage points in each group, while broadly maintaining their positions relative to each other, according to a September 8 OECD tax database update.
The average EU rate, which fell from 32.2% to 22.0%, remains slightly below the average OECD rate, which fell from 32.3% to 22.9%. The average G20 rate, which dropped from 36.5% to 26.2%, is still a few percentage points higher than the OECD and EU averages.
The OECD notes that the rate decreases were most pronounced in the first half of the period (2000–2010) – particularly during the 2007–08 financial crisis – but the decreases continued in the second half as well (2011–2021). Top personal income tax rates also dropped over the same period, although by a smaller margin – 2.5 percentage points among OECD counties.
The “combined statutory corporate income tax rate” in the database combines each jurisdiction’s headline rates at the central and sub-central government levels (less deductions for sub-national taxes) and reflects the top marginal rate where such rates are progressive. The combined corporate rates among the reviewed jurisdictions ranged from a low of 9% in Hungary to a high of 31% in Portugal.
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