Ranking
Best Low-Tax Countries
Combined corporate-and-distribution tax burden ranking — corporate income tax weighted three-quarters and dividend withholding tax weighted one-quarter.
Ranking
| Rank | Country | Score | Corporate tax | VAT |
|---|---|---|---|---|
| #1 | United Arab Emirates | 86.5 | 9% | 5% |
| #2 | Singapore | 74.5 | 17% | 9% |
| #3 | Estonia | 63.5 | 22% | 22% |
| #4 | United Kingdom | 62.5 | 25% | 20% |
| #5 | Poland | 62.0 | 19% | 23% |
| #6 | Czech Republic | 61.0 | 21% | 21% |
| #7 | Portugal | 59.0 | 19% | 23% |
| #8 | Netherlands | 53.8 | 25.8% | 21% |
| #9 | United States | 53.5 | 21% | 0% |
| #10 | Spain | 53.0 | 25% | 21% |
| #11 | France | 50.0 | 25% | 20% |
| #12 | Canada | 47.8 | 26.5% | 5% |
| #13 | Germany | 41.8 | 30% | 19% |
How we calculate this ranking
Combined corporate-and-distribution tax burden: weighs corporate income tax more heavily than dividend withholding tax to reflect the dominant cost on retained earnings.
| Factor | Weight | Rationale |
|---|---|---|
| Corporate income tax rate | 75% | The primary tax on corporate profits. |
| Dividend withholding tax (default, non-treaty) | 25% | Reflects the cost of distributing profit to non-resident shareholders. |
Normalization: Score = clamp(100 - corporateTaxRate * 1.5 - dividendTaxRate * 0.5, 0, 100). Lower combined rates score higher.
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Sources
- OECD — OECD — economic and tax statistics (accessed )
- PricewaterhouseCoopers — PwC Worldwide Tax Summaries (accessed )
- European Commission — European Commission — policy and country information (accessed )
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