These 29 Countries Have All Introduced Corporate Tax Cuts Lately

Dateline: Kuala Lumpur, Malaysia

I read a recent headline that suggested that while some Malaysians are concerned about the country’s ongoing lowering of tax rates on individuals and businesses, most (not all, of course) realize it’s a way to bring more business to an increasingly competitive Asian economy.

Other countries, of course, are not so interested in reducing taxes, whether it is good for the country or not.

A decade ago, Swiss voters voted to end the ‘forfait’ tax: essentially a negotiated flat tax based on living expenses, not on income, of those who live but don’t work in Switzerland.

The Swiss cantons of Vaud, Valais, Geneva and Ticino previously allowed French and other foreigners to live there and enjoy a low tax bill under the premise that the presence of more wealthy people creates economic benefits besides tax.

Considering the downfall of Switzerland, it was only a matter of time before someone was bound to make it a big issue.

Meanwhile, politicians in the Land of the Free are so upset that tax rates aren’t low enough that they are actually trying to stop US companies from moving their operations overseas. Politicians like Chuck Schumer have gotten so butthurt over both individuals like Eduardo Saverin and companies deciding US tax rates were too high and going elsewhere.

We always discuss how the countries that think they are entitled to continually extort more money out of you are the countries whose long-term fate is not good. It doesn’t matter whether politicians wish it was still 1812 and there were no opportunities in the global economy. The truth is companies can and should go where they are treated best .

The United States, for instance, has the highest corporate tax rate in the world . It doesn’t matter that some companies use a network of Double Irish Dutch Sandwiches to park their capital
overseas.

The US and the EU successfully shut down a number of tax shelters including the Double Irish,
and those shelters are largely unavailable to millions of companies that don’t control intellectual property or have global operations.

Rather than encouraging new businesses to set up shop in the United States, US politicians are too busy demonising Apple and turning the public against ‘big business’.

They practice a defensive, not an offensive strategy, and are far more concerned with saddling their tax slaves – US companies they figure can’t leave – than attracting new business that would generate revenues.

These Countries Have All Introduced Corporate Tax Cuts

I did a little research and found 29 countries that have lowered their tax rates on business to attract more investment. All in just the last few years.

The list includes countries one might derisively label as ‘communist’, ‘socialist’, ‘backward’, or ‘run by warlords’.

They all have one thing in common… lower corporate taxes.

Botswana Corporate Tax Cuts

One of the most developed and promising economies in Africa recently reduced taxes from 25% to 22%.

Brazil Corporate Tax Cuts

Brazil has its fair share of problems, no doubt, but the country reduced its headline corporate tax rate to 15%.

Canada Corporate Tax Cuts

While corporate tax rates increased by a fraction of a percent this year, the country has overseen five drops in its corporate tax rate in the last decade. This signals Canada becoming more open for business than The Land of the Free to the south.

Denmark Corporate Tax Cuts

Perhaps the most socialist and most politically correct country on earth. Denmark may be an extremely expensive place to live (think US$15 for a small beer) but tax rates continue to decline, down recently to 22%.

Ecuador Corporate Tax Cuts

The South American country lowered corporate taxes by 1% a year until reaching the current rate of 22%.

Estonia Corporate Tax Cuts

Estonia’s tax rate declined to 21% several years ago and has since fallen again to 20%. However, Estonia has the unique benefit of only taxing distributions, allowing company owners to accumulate business capital tax-free until they take money out of the company.

Guatemala Corporate Tax Cuts

While part of Guatemala deserves its bad rap, cities such as Antigua are unfairly targeted. Tax rates are down to 25%.

Honduras Corporate Tax Cuts

In addition to nascent special economic zones, Honduras lowered tax rates to a mediocre 25% recently, down from 30%.

Hong Kong Corporate Tax Cuts

One of my favourite places to set up a legitimate ‘offshore’ company, Hong Kong companies now benefit from a slight reduction in taxes down to 16.5%.

Of course, companies that don’t have any actual business in Hong Kong can pay zero tax thanks to the country’s territorial tax policy .

Indonesia Corporate Tax Cuts

This southeast Asian country may have a disastrous currency, but it remains an emerging real estate hub for some frontier investors. Indonesia benefits from recently lowered tax rates, now down to 22%.

Jamaica Corporate Tax Cuts

Call the place a mess propped up only by tourism if you want, but the Jamaican government lowered corporate rates from 33.33% to 25%.

Japan Corporate Tax Cuts

One of the world’s most indebted, easy-money nations , Japan lowered tax rates to 35.64% after spending years at the top of the charts.

Kuwait Corporate Tax Cuts

Not that long ago, the tiny Middle Eastern nation lowered taxes from 55% to an astonishing 15%.

Libya Corporate Tax Cuts

While paying taxes probably isn’t the top priority in Tripoli these days, the country did half its corporate tax rate a few years back.

North Macedonia Tax Cuts

This small nation is one of a few breakaway states from the old Yugoslavia competing to lower taxes. North Macedonia tax rates are down to a low, flat 10% rate.

Malaysia Corporate Tax Cuts

I’m a big fan of Malaysia. While the country isn’t a tax haven for local businesses, they are continuing to reduce corporate tax rates a little bit at a time here.

The rate is currently 24%. Malaysia is also home to Labuan, one of the world’s least known tax havens that comes with all the benefits of Malaysia.

Netherlands Corporate Tax Cuts

Rates in this high-tax European country are down a few points, where they now stand at around 25%.

Norway Corporate Tax Cuts

The very socially conscious, ‘for the greater good’ Scandinavian country lowered tax rates by one point to 22%.

Panama Corporate Tax Cuts

Anyone with no business in Panama can set up an offshore company in Panama and avail themselves of zero tax. For those doing local business on the ground, tax rates are down 5% to 25%.

Portugal Corporate Tax Cuts

Portugal hasn’t just created one of the best immigrant investor programs . The PIIGS country held off on reducing tax rates, but came through and lowered corporate taxes to 21% in recent years.

Russia Corporate Tax Cuts

In addition to a low flat 13% personal income tax rate, ‘evil Russia’ has reduced its corporate rate to 20%.

Singapore Corporate Tax Cuts

A popular onshore/offshore jurisdiction, Singapore has lowered its headline tax rate from 20% down to 17% in recent years. For those who run a small business with six-figure revenues, tax exemptions and write-offs can get that rate darn close to zero .

South Africa Corporate Tax Cuts

One of the world’s largest gold producers has its fair share of issues, but tax rates are down from levels that once rivaled the United States to a mediocre 28%.

Sweden Corporate Tax Cuts

Think Sweden is a bastion of uber-socialism? They may love to celebrate big government, but their tax rates are down to 20.6%.

Switzerland Corporate Tax Cuts

While rates are partially determined by the local cantons, Swiss tax rates are down to below 18%.

Syria Corporate Tax Cuts

It may be on every watch list, but the Syrians saw fit to lower taxes from 28% to 22%.

Ukraine Corporate Tax Cuts

Rates in the troubled country have dropped from 25% to 21% to 19% to their current level of 18% this year.

Vietnam Corporate Tax Cuts

The socialist republic has dropped corporate tax rates from 28% to 20% in recent years.

Yemen Corporate Tax Cuts

Tax rates in this Arab nation have dropped from 35% to only 20%.

Add that to the list of countries where taxes were never that high to start with, including some surprises like Hungary, and you’ve got a real recipe for success by doing business overseas.

Frequently Asked Questions About Corporate Tax Cuts

Make the Most of Lower Corporate Tax

Corporate tax cuts across these 29 nations highlight a strategic global shift toward business-friendly policies aimed at attracting international companies and stimulating economic growth. Countries from Singapore to Brazil are creating appealing tax landscapes, drawing businesses eager to optimise their operations.

These changes show the clear advantage of adapting to a dynamic global tax environment, allowing entrepreneurs to reduce overhead, invest in growth and maximise profits.

If you’re interested in leveraging these tax advantages for your own business, Nomad Capitalist can guide you in navigating the best global opportunities. Get in touch with our team to discover where your business can be treated best.