In this piece, we will take a look at the five countries with the lowest corporate tax rates. For more countries, head on over the 25 Countries with the Lowest Corporate Tax Rates.
5. Republic of Vanuatu
Latest & Lowest Corporate Tax Rate: 0%
The Republic of Vanuatu is an island nation in the South Pacific Ocean. It is also known as a ‘flag of convenience’ country since most shipping companies fly with its flag due to tax benefits. This isn’t surprising, as there are few taxes in the country, which also has a 0% corporate tax rate.
4. Commonwealth of The Bahamas
Latest & Lowest Corporate Tax Rate: 0%
The Commonwealth of The Bahamas is an island nation in the Atlantic ocean. Banking and offshore financial services are one of the largest sectors of its economy, and the Bahamas is thought to have the most offshore companies in the world. The Bahamas does not have an income or corporate tax and generates revenue from property and import taxes. Bahamas was at the center of a scandal recently, when the cryptocurrency exchange FTX collapsed due to revelations of alleged financial impropriety at the firm and a massive drop in the value of its self launched FTT token on the open market. FTX founder, Sam Bankman-Fried was living in the country, since FTX was also registered there. This led to speculation that his extradition would take a long time, as Bahaman laws limit extradition and require court hearings. However, the matter was resolved when Bankman-Fried decided to return to his home country on his own.
3. Kingdom of Bahrain
Latest & Lowest Corporate Tax Rate: 0%
The Kingdom of Bahrain, or simply Bahrain, is a Western Asian country. There are no taxes on most corporate incomes in the country. However, exceptions such as those operating in the oil and gas sector are present, with Bahrain taxing these companies a whopping 46% tax on net profits (net income).
2. Guernsey
Latest & Lowest Corporate Tax Rate: 0%
Guernsey is an island country in the English channel. The financial services sector is its largest industry and lends the country a high per capita income as well. The standard corporate income tax rate in the country is 0%, while some, such as the banking businesses pay a 10% tax and others, such as property companies pay a 20% tax.
1. Isle of Man
Latest & Lowest Corporate Tax Rate: 0%
The Isle of Man is a self governing U.K. territory whose Lieutenant Governor is elected by the British Crown. The standard corporate tax in the country is 0%; however, banks are taxed at 10% while rental income is taxed at 20%. This has led to the country having a per capita income of a whopping $84,600 despite being one of the smallest nations in the world.
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