2024 Corporate Income Tax Rates in Europe

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European international locations—like virtually all international locations around the world—require companies to pay company earnings taxes on their earnings. The quantity of taxes a enterprise in the end pays on its earnings is dependent upon each the company tax baseThe tax base is the entire quantity of earnings, property, belongings, consumption, transactions, or different financial exercise topic to taxation by a tax authority. A slender tax base is non-neutral and inefficient. A broad tax base reduces tax administration prices and permits extra income to be raised at decrease charges.
and the company taxA tax is a compulsory fee or cost collected by native, state, and nationwide governments from people or companies to cowl the prices of common authorities companies, items, and actions.
price. Right now’s map exhibits how statutory corporate income taxA company earnings tax (CIT) is levied by federal and state governments on enterprise earnings. Many corporations should not topic to the CIT as a result of they’re taxed as pass-through companies, with earnings reportable underneath the individual income tax.

charges examine throughout European OECD and EU international locations.

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Taking into consideration central and subcentral taxes, Malta has the best statutory company earnings tax price, at 35 p.c. Portugal, Germany, and Italy observe, at 31.5 p.c, 29.9 p.c, and 27.8 p.c, respectively. Hungary (9 p.c), Ireland (12.5 p.c), and Lithuania (15 p.c) have the bottom company earnings tax charges.

On common, the European international locations analyzed at present levy a company earnings tax price of 21.3 p.c. That is barely beneath the worldwide common which, measured throughout 181 jurisdictions, was 23.45 percent in 2023.

Like most regions around the globe, European international locations have skilled a decline in company earnings tax charges over the previous 4 many years, however the common company earnings tax price has leveled off lately. In 2024, Austria lowered its company earnings tax price, finalizing a 2022 scheduled tax lower. However, of all European international locations, solely Turkey and the United Kingdom elevated their company earnings tax price within the final yr, a pattern anticipated to carry regular as international locations have more efficient tax varieties to show in the direction of.