Governments from 130 countries have agreed to overhaul to create a minimum global corporation tax rate of at least 15%. The talks were led by the Organisation for Economic Co-operation and Development (OECD), which revealed that $150 billion (£109bn) could be generated by the new rules. Notably, three EU countries with low corporation tax rates – Ireland, Hungary and Estonia – have not agreed to the deal. 

The OECD negotiations follow the historic agreement announced by G7 leaders after they met in the UK on 5 June. The new rules will also ensure big online businesses pay tax not only in the countries where their headquarters are located, but in other countries where they operate too.

But what do different countries charge businesses today? Click or scroll through the corporate tax rates of 30 major countries.

Governments from 136 countries have agreed to create a minimum global corporation tax rate of at least 15%. The talks were led by the Organisation for Economic Co-operation and Development (OECD), which revealed that $150 billion (£109bn) could be generated by the new rules to help economies recover from COVID-19. Although Ireland previously resisted the move, it agreed to raise its corporate tax rate from 12.5% in October 2021. But what do different countries charge businesses today? Click or scroll through the corporate tax rates of 30 major countries.

Belgium was one of Europe’s pricier locations when it came to corporate tax, with a rate of 33% before the Belgian Government reduced it down to 29% in 2018. In 2020 the country cut taxes by another 4%, and so its corporate rate currently sits at 25%. However, Trading Economics has predicted that corporate tax rates could reclimb to 34% by the end of 2021 before levelling out at 29% in 2023. The new regulations come with counterbalance measures, such as a minimum taxation on companies making more than €1 million ($1.2m/£913k) in profits. 

Previously a low corporate tax trailblazer, Turkey reduced the levy to just 20% back in 2006, before increasing it to 22% in 2018. The rate was set to go back down to 20%, but remained at 22% in 2020. However, a draft bill in April 2021 proposed that corporate tax rate be increased to 25% for the 2021 tax year and 23% for 2022. Despite bouts of political instability, the country is still an attractive location for multinationals, who benefit from various incentives.

In 2018, the corporate tax rate rose by 3% in South Korea, bringing the standard rate to 25%. The additional money was due to pay for social welfare programmes and new public sector jobs, but the negative impacts were quickly felt elsewhere, with the move causing domestic investment to fall by an incredible 20 trillion won ($17.1bn/£13.1bn) that year.

Rather than impose a flat corporate tax rate that can penalise small businesses, Israel cuts tech companies some slack by taxing them at just 6% on their annual profit. Otherwise, firms in the country pay the higher rate of 23%, which was reduced from 24% in 2018.

Denmark offers a lot more for foreign investors besides a low corporate tax rate of 22%. Incentives stretch beyond the low corporate tax rate, and wealthy foreign workers benefit from virtually no social security contributions and a special taxation scheme for high-salaried expats, who pay just 27% income tax for the first seven years spent working in the country (although there is an 8% labour market contribution to pay as well), which is quite the bargain compared to the standard rate of up to 56.5%.

The Trump administration lowered the corporate tax rate to 21% from 35% in 2017, saying that the reform would allow for an annual increase of $4,000 (£3.1k) in income per household on average through stimulating wage growth, among other benefits. Business investment did increase following the cut, but not on the scale originally anticipated. The US Treasury Secretary Janet Yellen had been calling for a global minimum corporate tax rate as a means to end the "race to the bottom" of countries seeking to attract businesses via competitive corporate tax rates, and the G7 and OECD deals have seen her proposal become a reality.

Estonia is considered one of the most attractive countries for foreign companies. Its low corporate tax rate of 20% only applies to distributed profits, and any profits generated abroad are totally exempt from taxation. Since 2019, companies can also apply for a reduced tax rate of 14% if their taxable profit is equal to, or less than, that of the last three years. Estonia is one of three EU nations that rejected the proposal for a global minimum corporation tax rate back in July 2021, but has since signed the agreement. 

An appealing place for international investors, the Czech Republic has a low corporate tax rate of 19%. Before 2021, income was taxed at a flat rate of 15%, which was a major plus for high-salaried executives looking to relocate to the country. However, as of this year the country has adopted a progressive income tax system, where the basic tax rate would remain 15% but income over CZK 1.7 million ($77.9k/£56.4k) is now taxed at 23%.

In Luxembourg, companies with taxable income of over €200,001 are taxed at 17%. But for companies based in Luxembourg City, other taxes – such as the solidarity surtax of 7% and the 6.75% municipal business tax rate  – mean they can end up paying a rate of 24.94% overall.

Businesses in Germany pay corporate tax at a rate of 15% but this isn't the full story. Companies are also subject to a solidarity surcharge of 5.5%, which takes the tax rate up to 15.825% on average. However, companies are also liable for trade tax, which varies depending on the city in which a business is based.

Canada's low corporate tax rate of 15% had enticed countless US firms, but the country's appeal to American companies started to wane following the Trump administration's dramatic corporate tax cut. Capital started to head south and the country has struggled to hold on to companies, particularly in the oil and gas sector where new regulations have driven out more than $30 billion (£23bn) of foreign investment. The new G7 and OECD agreements mean it's now unlikely to drop further in Canada.

Now read: The millionaires and billionaires who want to pay more tax

Ireland’s low corporate tax rate of 12.5% transformed its economy and attracted major companies from far and wide, and so it's unsuprising that the nation has rejected the deal for a global minimum as it seeks to continue its appeal to those businesses. Ireland is currently responsible for 30% of the EU’s digital exports, with heavyweights such as Google, Facebook and Apple choosing the country as the base for their European operations. While the Emerald Isle’s model for attracting inward investment had been imitated by several nations worldwide, by rejecting a higher rate Ireland could avoid a tech exodus and actually attract more businesses.

Ireland’s low corporate tax rate of 12.5% transformed its economy and attracted major companies from far and wide, so it's unsuprising that the nation rejected the deal for a global minimum for so long. Ireland is currently responsible for 30% of the EU’s digital exports, with heavyweights such as Google, Facebook and Apple choosing the country as the base for their European operations. On 7 October 2021, however, the Emerald Isle agreed to comply with the 15% minimum tax rate under certain conditions. Companies with a turnover of over €750 million will be taxed at 15% from 2023, a move that will affect 56 Irish multinational businesses and 1,500 foreign-owned multinationals, according to The Independent. More than 160,000 other companies won't be affected by the change. 

In 2017, Hungary reduced its corporate tax rate from 19% to 9%, and now has the lowest rate in the EU. The move came as part of Prime Minister Viktor Orbán's mission to attract significant foreign investment. Hungary has also rejected the OECD deal for a minimum corporation tax rate. However, the nation's authorities have been talking about its desire to rein in big tech and in January this year its Justice Minister Judit Varga had expressed its intention to submit a bill to regulate businesses such as Facebook in the country.

In 2017, Hungary reduced its corporate tax rate from 19% to 9%, which meant that it had the lowest rate in the EU. The move came as part of Prime Minister Viktor Orbán's mission to attract significant foreign investment. Like Ireland, Hungary has resisted previous calls for a 15% minimum global tax rate. But after securing several key changes to the text of the agreement, including the introduction of a 10-year transition period, the country has agreed to implement the change. Finance minister Mihaly Varga said the country "would only adopt a global minimum tax that does not lead to a tax increase in Hungary, does not endanger the competitive advantage of the Hungarian economy, and protects the workplaces of the Hungarian people." The new rules will only affect multinational businesses. 

Switzerland currently boasts the lowest corporate tax rate in the world on paper, with company profits being taxed at just 8.5% at the federal level. However, the country's cantons impose further taxes, which typically leads a firm’s corporate tax to somewhere between 11.9% and 21.6%, depending on its turnover. Although Switzerland has signed the OECD agreement, it's said the 2023 implementation date will "not be possible." Like Hungary, the country wants longer to bring about the changes and aims to protect the interests of "small, robust economies." The Swiss finance ministry will reportedly submit the new proposals to the government by the first quarter of 2022. 

Now read about the countries where people pay low taxes