The CouponVálido platform recently published a survey on the tax burden in different countries, based on data from the OECD (Organization for Economic Co-operation and Development) for the year 2021. In it, Brazil emerges as the second country to collect the most taxes from companies, with a tax burden of 34%.
The survey provides data for 111 countries. The corporate tax champion is Malta, at a cost of just one percentage point above the Brazilian: 35%. Some of our Latin American neighbors also appear at the top of the ranking, such as Argentina, Colombia and Costa Rica, with a 30% corporate tax rate.
On the other hand, developed countries seem to have much lower tax burdens. The UK, for example, charges at a rate of 19% and the US at 25%. Additionally, 93 countries have a tax burden of less than 30% on corporations.
With regard to Brazil, the survey takes into account only two taxes: the corporate income tax (IRPJ) and the social contribution on net income (CSLL). Taxes on goods and services, such as ICMS (Goods and Services Circulation Tax), ISS (Taxes on Services), and IPI (Industrial Product Tax) are excluded.
The survey also brings other data about the business environment around the world. The average tax burden for corporations among the 111 countries surveyed is 20%. In 2000, it was 28.3%. In this 21-year period, the tax burden has decreased in 94 countries, stayed the same in 13 and increased in only 5, with China ranking first in this last group.
The survey also indicates that 12 countries currently maintain tax haven status, that is, with low taxes and little regulation to attract foreign assets. Andorra, for example, got out of this state during the analyzed period and today has a 10% load.
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Other studies also indicate that the tax burden in Brazil is high compared to other countries. A survey conducted by the Brazilian Institute of Tax Planning (IBPT) in October 2021 indicated that Brazil ranks 14th in terms of the tax burden for the entire population.
Other countries charge much higher rates, but manage to give a greater return to the population in terms of public services and quality of life. Denmark, for example, has a tax burden of 45.2% of GDP, the highest in the world, but has the tenth best Human Development Index (HDI), according to 2020 United Nations data.
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