Brazil ranks second in the list of countries that tax companies the most

RIO DE JANEIRO, BRAZIL – Brazil ranks second in the list of countries that tax companies the most, second only to Malta. A study by the CupomVálido platform based on OCDE (Organization for Economic Cooperation and Development) data disclosed the information.

According to the survey, Brazilian companies pay, on average, a tax rate of 34% when considering all taxes. The percentage is 70% higher than the world average and only one percentage point lower than Malta’s (35%).

The calculation considers the collection of two taxes on companies in Brazil, the Corporate Income Tax (25%) and the Social Contribution on Net Profit (9%).

Among the 111 nations surveyed, the average corporate tax rate is 20%, and only 18 countries charge companies rates above 30%. Brazilian rates, in turn, are higher than those in developed countries such as the United Kingdom (19%), the United States (25%), Canada (27%), and Japan (30%).

Comparing the period between 2000 and 2021, the study shows that most countries have reduced the tax rate on companies, a movement that contributed to the reduction of 8.3 percentage points in the average collection, from 28.3% to 20%.

Over the 21 years, 94 countries reduced taxation, while 13 countries kept the same rates, and only Andorra, Hong Kong, China, Maldives, and Oman increased their rates.

According to the CupomVálido survey, 12 countries were considered tax havens, with a non-taxation regime for companies. Since 2000, Andorra and Maldives have abandoned the title and presented a balance in the charges, currently at 10% and 15%, respectively.