Effective tax rates for expenditure based tax incentives - Corporate tax statistics — Effective average tax rate by country
This table reports synthetic tax policy indicators that capture the effect of expenditure-based R&D tax incentives on firms’ investment costs: The EATR for R&D measures the impact of taxation on R&D investments that earn an economic profit. the user cost of capital for R&D measures the return that a firm needs to...
What the numbers show
Effective tax rates for expenditure based tax incentives - Corporate tax statistics — Effective average tax rate is currently reported for 52 countries. The highest value is 32.14 Percentage of taxable income in Colombia; the lowest is -4.94 Percentage of taxable income in Ireland.
The median across all reporting countries is 13.79 Percentage of taxable income, and the mean is 14.09 Percentage of taxable income.
The gap between the highest and lowest reporting country is a factor of about 7.
Over the past decade 9 countries rose and 28 fell. The largest increase was in Hungary (up 125.2%), and the largest decrease in Poland (down 163.6%).
Effective tax rates for expenditure based tax incentives - Corporate: full country ranking
| # | Country | Latest | Year | 10-year change | Trend |
|---|---|---|---|---|---|
| 1 | Colombia | 32.14 Percentage of taxable income | 2025 | up 103.9% | rising |
| 1 | Türkiye | 19.81 Percentage of taxable income | 2025 | up 16.2% | rising |
| 2 | Argentina | 32.12 Percentage of taxable income | 2025 | up 16.7% | rising |
| 2 | Viet Nam | 10.42 Percentage of taxable income | 2025 | down 42.8% | falling |
| 3 | Costa Rica | 27.57 Percentage of taxable income | 2025 | unchanged | flat |
| 4 | Malta | 27.51 Percentage of taxable income | 2025 | unchanged | flat |
| 5 | Mexico | 25.94 Percentage of taxable income | 2025 | unchanged | flat |
| 6 | India | 22.99 Percentage of taxable income | 2025 | down 37.9% | falling |
| 7 | Australia | 22.69 Percentage of taxable income | 2025 | unchanged | flat |
| 8 | Luxembourg | 21.89 Percentage of taxable income | 2025 | down 4.3% | flat |
| 9 | Israel | 21.07 Percentage of taxable income | 2025 | unchanged | flat |
| 10 | Italy | 20.2 Percentage of taxable income | 2025 | down 0.6% | rising |
| 11 | Indonesia | 20.15 Percentage of taxable income | 2025 | down 12.0% | falling |
| 12 | Brazil | 20.01 Percentage of taxable income | 2025 | unchanged | flat |
| 13 | United States of America | 19.93 Percentage of taxable income | 2025 | down 1.5% | flat |
| 14 | Japan | 19.19 Percentage of taxable income | 2025 | unchanged | flat |
| 15 | Denmark | 19.1 Percentage of taxable income | 2025 | down 3.9% | rising |
| 16 | Switzerland | 18.03 Percentage of taxable income | 2025 | down 7.3% | falling |
| 17 | Latvia | 18 Percentage of taxable income | 2025 | unchanged | flat |
| 18 | Estonia | 17.73 Percentage of taxable income | 2025 | down 1.5% | falling |
| 19 | New Zealand | 17.45 Percentage of taxable income | 2025 | down 1.7% | flat |
| 20 | Canada | 17.44 Percentage of taxable income | 2025 | down 5.0% | flat |
| 21 | Germany | 17.3 Percentage of taxable income | 2025 | down 37.2% | falling |
| 22 | South Africa | 17.15 Percentage of taxable income | 2025 | down 3.6% | flat |
| 23 | Netherlands | 16.73 Percentage of taxable income | 2025 | up 5.1% | rising |
| 24 | Belgium | 15.32 Percentage of taxable income | 2025 | down 20.5% | falling |
| 25 | United Kingdom of Great Britain and Northern Ireland | 14.46 Percentage of taxable income | 2025 | up 21.5% | rising |
| 26 | Sweden | 13.12 Percentage of taxable income | 2025 | down 21.7% | falling |
| 27 | Austria | 12.74 Percentage of taxable income | 2025 | down 13.2% | falling |
| 28 | Finland | 12.69 Percentage of taxable income | 2025 | down 30.7% | falling |
| 29 | Croatia | 12.57 Percentage of taxable income | 2025 | unchanged | flat |
| 30 | Peru | 11.42 Percentage of taxable income | 2025 | down 18.5% | falling |
| 31 | Portugal | 10.17 Percentage of taxable income | 2025 | down 8.0% | falling |
| 32 | Malaysia | 10.08 Percentage of taxable income | 2025 | unchanged | flat |
| 33 | Romania | 9.96 Percentage of taxable income | 2025 | down 0.2% | flat |
| 34 | Cyprus | 9.75 Percentage of taxable income | 2025 | down 13.1% | falling |
| 35 | Chile | 9.45 Percentage of taxable income | 2025 | up 1.8% | flat |
| 36 | Norway | 9.41 Percentage of taxable income | 2025 | down 5.7% | flat |
| 37 | Thailand | 9.19 Percentage of taxable income | 2025 | unchanged | flat |
| 38 | Bulgaria | 9.15 Percentage of taxable income | 2025 | unchanged | flat |
| 39 | Spain | 8.41 Percentage of taxable income | 2025 | unchanged | flat |
| 40 | France | 8.03 Percentage of taxable income | 2025 | down 41.8% | falling |
| 41 | Greece | 7.76 Percentage of taxable income | 2025 | down 56.8% | falling |
| 42 | Slovenia | 7.63 Percentage of taxable income | 2025 | up 15.8% | rising |
| 43 | Czechia | 7.4 Percentage of taxable income | 2025 | up 13.3% | rising |
| 44 | Hong Kong, China | 6.12 Percentage of taxable income | 2025 | unchanged | flat |
| 45 | Iceland | 3.23 Percentage of taxable income | 2025 | down 48.8% | falling |
| 46 | Singapore | 2.08 Percentage of taxable income | 2025 | unchanged | flat |
| 47 | Hungary | 0.51 Percentage of taxable income | 2025 | up 125.2% | volatile |
| 48 | Poland | -2.66 Percentage of taxable income | 2025 | down 163.6% | volatile |
| 49 | Lithuania | -2.76 Percentage of taxable income | 2025 | down 6.6% | flat |
| 50 | Ireland | -4.94 Percentage of taxable income | 2025 | down 31.7% | falling |
Regions and income groups
Aggregates are excluded from the country ranking above so that a region can never outrank a country.
- Korea 21.37 Percentage of taxable income
- China (People's Republic of) 8.01 Percentage of taxable income
- Slovak Republic 7 Percentage of taxable income
About this data
This table reports synthetic tax policy indicators that capture the effect of expenditure-based R&D tax incentives on firms’ investment costs: The EATR for R&D measures the impact of taxation on R&D investments that earn an economic profit. the user cost of capital for R&D measures the return that a firm needs to realise on an R&D investment before tax to offset all costs and taxes that arise from the investment, making zero economic profit. Further methodological information is available in the explanatory annex.