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Countries with low corporate taxes

Countries with the lowest corporate taxes in 2021

2020-12-29
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Currently, many businesspeople are faced with choosing the country with the lowest corporate tax in 2021. Doing business in a low-tax country allows profitable cost optimization. To open a company abroad, contact our experts at IT-OFFSHORE.

Peculiarities of tax payments abroad

The tax climate has a significant impact on the competitiveness of a country. The higher the rates of mandatory payments and fees, the lower the investment flows from abroad.

When opening a company in a low-tax country in 2021 it is important to pay attention not only to corporate tax rates but also to indirect taxes and levies, the number of duties on assets, etc.

Top 10 countries with the lowest corporate taxes

When registering a firm in a low-tax country in 2021, it is recommended to pay attention to Estonia. This state is quite popular among foreign investors. The income tax rate is 20%, this fee is paid for distributed types of income, while profits from abroad are not taxed. A reduced rate of 14% may apply to dividends.

In Thailand, all firms that have resident status must pay a corporate tax of 20%. Some firms that have relatively small share capital and income can take advantage of the benefits and pay a fee of 15%.

Portugal is an interesting country for entrepreneurs with a complex system of taxation. The level of the tax burden can vary depending on where the firm is located. It is possible to set up a business in an EEZ, where you only have to pay 5%. Corporate tax averages from 16.8% to 21%.

In Hong Kong, the amount of corporate tax is calculated on the basis of turnover. Charges can range from 8.25% to 16.5%. Local young companies can get benefits for the contribution of the tariff.

Lithuania is considered a low-tax country, where the corporate tax rate is 15%. The government actively supports the development of entrepreneurship in the field of agriculture. Using incentives, it is possible to reduce the tax burden to 5%.

In Georgia, companies with resident status are required to pay a tax rate of 15%. All profits are subject to the tax. Non-resident firms pay only income earned in this country. It is possible to optimize the payment by registering a company in FEZ.

The level of taxation in Bulgaria is considered one of the lowest and is only 10%. For some types of activities, there can be higher rates, reaching up to 15% - these include the gaming industry, and provision of telecommunications services.

Doing business in the UAE is quite profitable. The rate of fees can range from 0% to 55%, depending on the federation. There are free economic zones in the jurisdiction, which makes it possible to legally save on tax payments.

The corporate tax rate in Singapore is only 17%. At the same time, all profits are taxable. There are some tax exemptions - this measure was developed by the government to attract investors.

In Germany, the average corporate tax rate is just over 15%. This is an excellent choice for experienced entrepreneurs, as the country is distinguished by its prestige and developed economy.

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