18 countries with the lowest taxes

International companies are paying ever more attention to what taxes exist in different countries. And even more: governments often compete with each other in terms of introducing tax rates on business.

More recently, the published report, which highlights the ability of states to compete with each other globally, uses the total tax rate to illustrate which countries have the lowest tax rates.

How are calculations performed

The total tax rate is actually determined by the World Bank. It is calculated on the basis of several types of taxes. In total there are five of them, including labor taxation of employers, but excluding workers' income tax.

Countries with a low tax rate

18. Hong Kong: 22.8%. This is one of the most attractive places for business, the tax rate which has been preserved since the 1960s.

17. Montenegro: 22.3%. The profit tax in this small country is only 9%.

16. Canada: 21%. For small businesses, taxes here are unprecedentedly low - they actually are not.
15. Cambodia: 21%. Over the past 20 years, Cambodia has received a lot of foreign investment, and a low tax rate is a reasonable reason for this phenomenon.

14. Namibia: 20.7%. The second African country on this list.

13. Armenia: 20.4%. Armenia has no difficulties with the system of taxes, but it causes difficulties in determining profitability.

12. Luxembourg: 20.2%. In 2014 there was even a scandal involving the mass scale of the country's private tax agreements with the largest companies around the world.

11. Croatia: 18.8%. After accession to the EU, Croatia quickly reduced tax rates.

Top 10

10. Singapore: 18.4%. Many operations of leading Asian countries are conducted through Singapore, thanks to its well-established low taxation system.

9. Georgia: 16.4%. One of the countries of the post-Soviet space, which not only left low tax rates, but also reduced the very amount of taxes.

8-7 (together). United Arab Emirates: 14.8%. The UAE ranks 4th in the same list for the Middle East.

8-7 (together). Zambia: 14.8%. Although the government tried to raise the tax on profitability from 9 to 20%, after the protests of the population, it was forced again to cut the rate to its former value.
6. Saudi Arabia: 14.5%. The oil giant, allowing itself to keep a low tax rate with high yield.

5. Lesotho: 13.6%. Ironically, Lesotho is a very poor country. But she does not intend to raise taxes because of this. At least for now.

4. Bahrain: 13.5%. Not so rich in oil, but at the same time "no tax on income."

Top Three

3. Kuwait: 12.8%. The state recently did not listen to the IMF's advice on introducing a tax on business profits to solve the problem of its financial deficit.

2. Qatar: 11.3%. Qatar pressed many other countries in the rating, but still loses the tax rate of another country, being in second place. 1. The former Yugoslav Republic of Macedonia: 7.4%. Being the only country with a tax rate of less than 10% for its business, Macedonia has a significant public debt, according to the International Monetary Fund, which has doubled since 2008. In part this is the result of low taxes.