Taxes are a major business consideration when deciding where to locate their operations. Corporate taxes have a large impact on the economy of a country and can have wide-ranging implications for businesses, both large and small. Different countries have different corporate tax rates, some of which can be significantly higher or lower than others. However, it is important for governments to determine the right taxation level for businesses to remain competitive in the global market.

This article will explore the highest and lowest corporate tax rates among countries worldwide. Use it as a short overview of the fiscal climate in each jurisdiction. Understanding these rates will help companies decide where to set up shop or even whether to move their operations from one country to another.

Highest Corporate Tax Rates

Comoros. Tax Rate: 50% Population: 852,000+

Comoros is an archipelago of volcanic islands located off the eastern coast of Africa, between Mozambique and Madagascar. With a population of around 852,000 people and a tax rate of 50%, it ranks among the countries with the highest corporate tax rates in the world. The country’s economy relies mainly on agriculture, fishing, and tourism.

Puerto Rico. Tax Rate: 37% Population: 3,260,000+

Puerto Rico, a territory of the United States, may need to be a more beautiful location for businesses due to its high corporate tax rate of 37%. This rate is significantly higher than the average corporate tax rate in the mainland United States, which currently stands at 25%. Furthermore, Puerto Rico's status as a US territory allows businesses operating on the island to take advantage of certain federal tax incentives and exemptions.

Puerto Rico's high tax rate may be a stop sign for many companies. In addition to that, it's worth noting that the island has faced numerous economic challenges in recent years. In particular, a significant debt crisis has left many businesses struggling against high levels of government debt and sluggish economic growth.

Suriname. Tax Rate: 36% Population: 623,000+

Suriname is a small country located on the northeastern coast of South America, with just over 623,000 people. Suriname has a relatively high corporate tax rate of 36% in terms of its economy. This places Suriname among the countries with the highest corporate tax rates.

This means that businesses operating in Suriname must pay a significant portion of their profits to the government, impacting their bottom line.

Sudan. Tax Rate: 35% Population: 48,109,006

Sudan has a population of over 48 million people and a corporate tax rate of 35%, which is very high. This tax rate applies to businesses operating within Sudan, and it's important for companies to be aware of this when considering investment opportunities in the country. While the high tax rate may deter some investors, it's important to note that Sudan has a rapidly growing economy.

Also, it possesses a wealth of natural resources that make it an attractive destination for businesses looking to expand in the region.

Argentina. Tax Rate: 35% Population: 45,773,884

Argentina is a country in South America with over 45 million people. Argentina, similar to Sudan, is among the countries with the highest corporate tax rates in the world at 35%. This rate applies to domestic and foreign companies operating in Argentina, although certain exemptions or deductions may be available.

Lowest Corporate Tax Rates

United Arab Emirates. Tax Rate: 0% Population: 9,516,000+

The United Arab Emirates is one of the countries with the lowest corporate tax rates in the world, at 0%. With a population of over 9.5 million people, the UAE has attracted significant foreign investment in recent years. The country's strategic location at the crossroads of Europe, Asia, and Africa, along with its modern infrastructure and business-friendly policies, have made it a popular destination. Millions of entrepreneurs and multinational corporations want to establish a presence in the Middle East. While the UAE has other taxes, such as a 5% VAT, its lack of corporate tax is a major draw for businesses looking to maximize profits.

Barbados. Tax Rate: 5.5% Population: 281,000+

Barbados is a small Caribbean island nation known for its beautiful beaches, warm climate, and the low corporate tax rate of just 5.5%. With a population of over 281,000, Barbados has been attracting foreign businesses and investors looking to take advantage of its favorable tax policies. The country has a relatively stable economy and a well-educated workforce, which makes it an attractive destination for companies looking to expand or establish a presence in the Caribbean region.

Uzbekistan. Tax Rate: 7% Population: 35,163,000+

Uzbekistan is a country that is becoming increasingly attractive to businesses due to its low corporate tax rates. With a tax rate of just 7%, it is one of the most competitive countries in terms of the tax rate. This is a significant advantage for companies looking to establish a regional presence. It allows them to keep more profits and reinvest them in their business.

Turkmenistan. Tax Rate: 8% Population: 6,516,000+

Turkmenistan has low corporate tax rates of just 8%. It has become an attractive destination for businesses expanding into Central Asia. It has a government that has been actively promoting foreign investment and trade. Many businesses find that Turkmenistan offers a stable and supportive environment to operate. Many companies are choosing to shop in this dynamic and rapidly evolving country. And with such a low corporate tax rate, it's easy to see why.

Montenegro. Tax Rate: 9% Population: 626,000+

Montenegro is a country with a relatively small population. It has been making waves in business and finance thanks to its low corporate tax rates. At just 9%, Montenegro's corporate tax rate is one of the lowest in the world. It is an attractive destination for entrepreneurs and companies looking to minimize their tax burden. This low tax rate, combined with Montenegro's beautiful natural scenery and strategic location, has helped to spur investment and growth.