New research has revealed that the tax system in six countries with no or no corporate tax has revealed the secret to the success of the world’s largest corporations and their profits.
While Ireland seems to be the king of the crop when it comes to the lowest corporate tax rates, there are nine countries in the world that have absolutely no corporate tax. The International Monetary Fund (IMF), which reports on the world’s 10 largest tax havens and their tax systems, has booked 10 countries where the lower available corporate tax rate averages 0.54%.
These 10 jurisdictions alone are part of a Corporate Tax Oven Index that measures the tax treatment of companies in the United States, Canada, Australia, New Zealand, South Africa and the United Kingdom. Moreover, the IMF – which reports in its annual report on global tax avoidance and evasion – has booked only ten countries that pay no tax at all on corporate profits of more than $1 billion a year.
Add in countries where taxes have never been higher from the outset, including Hungary’s surprise, and you have a real recipe for success when doing business abroad.