10th July 2016

WEF/OECD: Czech Republic has 6th lowest corporate income tax rate in OECD area

The following chart shows the lowest corporate tax rates in OECD economies. It is based on their own calculations combining national and local rates, allowing for any surtax on the national rate as a result of a local tax. In the case of the US, a weighted average of state rates is used.

Country Combined corporate income tax rate, 2016
Ireland                                                                 12.5%
Latvia 15%
Slovenia  17%
Poland 19%
Hungary 19%
Czech Republic 19%
Estonia 20%
Finland 20%
Iceland 20%
Turkey 20%
United Kingdom 20%


Ireland has the lowest rate, at 12.5%. The low tax level has seen Ireland become a popular location for start-ups and major multinationals, from Facebook to Pfizer.

The UK’s proposed rate of below 15% would see it take second place in the list, just ahead of Latvia. The eastern European nation was invited to join the OECD in May 2016, and has a corporate tax rate of 15%.

Other nations with a rate below 20% include Poland, the Czech Republic and Slovenia.

At the other end of the scale, the United States, France and Belgium have the highest rates among OECD economies, all in excess of 30%, an article published by the World Economic Forum portal says.

OECD data are available here.



Members of the American Chamber of Commerce in the Czech Republic