Full Definition
Corporate Income Tax (CIT) is levied on a company's taxable profits. Rates range from 0% (UAE Free Zones) to 35%. The OECD's 15% Global Minimum Tax (Pillar Two, from 2024) applies to MNEs with revenue >€750M. SME concessions are common: Ireland 12.5%, Hungary 9%, Bulgaria 10%. Effective rates after deductions, R&D credits, and loss carryforwards often fall well below statutory rates.
Global Rates at a Glance
Ireland
12.5%
Corporate Tax Rate
Hungary
9%
Corporate Tax Rate
Singapore
17%
Corporate Tax Rate
United States
21%
Corporate Tax Rate
France
25%
Corporate Tax Rate
Germany
30%
Corporate Tax Rate
Switzerland
14.9%
Corporate Tax Rate
Key Facts for Expats & Digital Nomads
Corporate tax affects entrepreneurs who operate through a company. Low-tax jurisdictions (Ireland 12.5%, Hungary 9%, UAE Free Zones 0%) can dramatically reduce tax on retained profits. However, CFC rules in your country of personal residency may attribute the company's passive income directly to you.
Frequently Asked Questions
What is Corporate Tax?
Tax on a company's net profits, applied before distribution to shareholders. Corporate Income Tax (CIT) is levied on a company's taxable profits. Rates range from 0% (UAE Free Zones) to 35%. The OECD's 15% Global Minimum Tax (Pillar Two, from 2024) applies to MNEs with revenue >€750M. SME concessions are common: Ireland 12.5%, Hungary 9%, Bulgaria 10%. Effective rates after .
Which countries have the lowest Corporate Tax?
0% corporate tax: UAE Free Zones, Cayman Islands, BVI, Bermuda. Among OECD jurisdictions: Ireland 12.5%, Hungary 9%, Bulgaria 10%. The OECD Global Minimum Tax sets a 15% floor for large multinationals (revenue >€750M).
How does Corporate Tax affect expats and digital nomads?
Corporate tax affects entrepreneurs who operate through a company. Low-tax jurisdictions (Ireland 12.5%, Hungary 9%, UAE Free Zones 0%) can dramatically reduce tax on retained profits. However, CFC rules in your country of personal residency may attribute the company's passive income directly to you.
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Disclaimer: This information is for educational purposes only and does not constitute tax advice. Tax laws change frequently. Consult a qualified tax professional before making any decisions.