1 

Table 1. 2018 OECD Overall Effective Tax Rates (in Percent) 

Combined

Statutory 

Corporate 

Tax Rate

PDV of Depreciation Overall Effective Tax 

Rates (Corporate Level)

Machinery Industrial 

Buildings EMTRs EATRs 

Australia 30.0 81.5 46.2 18.9 26.6

Austria 25.0 76.7 32.9 16.9 22.6

Belgium 29.6 81.5 52.6 20.8 26.8

Canada 26.8 84.7 56.5 25.2 26.3

Chile 25.0 60.3 32.9 31.4 27.3

Czech Republic 19.0 75.4 52.3 13.1 17.3

Denmark 22.0 77.9 46.2 19.3 21.2

Estonia 20.0 0.0 0.0 3.4 15.7

Finland 20.0 77.9 49.6 19.3 19.8

France 34.4 82.8 52.6 29.8 32.8

Germany 29.8 74.4 38.0 22.9 27.6

Greece 29.0 69.9 46.2 22.8 27.0

Hungary 11.1 73.2 22.1 12.4 11.5

Iceland 20.0 80.9 57.6 19.2 19.8

Ireland 12.5 74.4 46.2 13.0 12.7

Israel 23.0 81.8 52.6 20.6 22.2

Italy 27.8 71.9 44.7 18.4 24.7

Japan 29.7 75.7 34.3 37.8 33.0

Korea 27.5 86.4 52.6 11.4 23.0

Latvia 20.0 0.0 0.0 10.6 17.4

Lithuania 15.0 84.9 77.9 12.2 14.2

Luxembourg 26.0 82.0 46.2 16.3 23.1

Mexico 30.0 69.9 52.6 24.3 28.1

Netherlands 25.0 76.7 32.9 17.1 22.6

New Zealand 28.0 69.3 0.0 27.6 27.8

Norway 23.0 73.8 36.0 18.3 21.6

Poland 19.0 69.9 32.9 16.2 18.2

Portugal 31.5 83.4 52.6 19.6 27.8

Slovak Republic 21.0 82.1 52.6 13.7 18.9

Slovenia 19.0 81.8 38.0 12.1 17.0

Spain 25.0 73.5 38.0 20.0 23.4

Swedena 21.5 80.9 46.2 14.8 18.9

Switzerland 21.1 80.9 53.0 11.3 18.4

Turkey 22.0 81.5 46.2 -8.3 15.0

United Kingdom 19.0 71.7 0.0 27.9 22.1

United States 25.8 93.6 33.5 27.2 26.3

OECD Average 26.4 82.3 37.8 23.9 25.8

OECD Average Excl. U.S. 26.7 76.4 40.0 22.1 25.5

G-7 Average 27.1 84.9 34.8 27.9 27.5

G-7 Average Excl. U.S. 28.4 76.2 36.0 28.5 28.6

Source: U.S. Department of the Treasury, Office of Tax Analysis

Notes: PDV = present discounted value; EMTRs = effective marginal tax rates; EATRs = effective average tax rates. 

The EMTRs and EATRs shown include real estate taxes and net wealth taxes on corporations.

a. The corporate income tax rate for Sweden takes account of the profit periodization reserve (tax allocation

reserve), which allows companies to allocate to a reserve up to 25percent of net profits.

U.S. Department of the Treasury 

Office of Tax Analysis

May, 2022
2 

Table 2. 2018 OECD Effective Marginal Tax Rates (in Percent) at the Corporate Level

Machinery Industrial Buildings Inventories

Retained 

Earnings

New 

Equity Debt Overall Average

Retained 

Earnings

New 

Equity Debt Overall Average

Retained 

Earnings

New 

Equity Debt Overall Average

Australia 26.3 26.3 -31.6 12.9 27.2 27.2 -28.7 14.1 37.4 37.4 0.0 27.9

Austria 25.9 25.9 -13.0 15.7 29.3 29.3 -5.3 20.1 25.0 25.0 -15.0 14.6

Belgium 22.3 22.3 -30.8 9.5 40.9 40.9 13.9 33.6 26.4 26.4 -19.7 14.9

Canada 20.2 20.2 -34.6 6.9 44.0 44.0 21.0 37.6 33.8 33.8 0.0 24.9

Chile 41.2 41.2 19.0 34.9 37.2 37.2 11.1 30.0 36.3 36.3 9.4 28.9

Czech 

Republic 20.6 20.6 -7.2 12.7 17.3 17.3 -13.4 8.6 24.6 24.6 0.0 17.5 

Denmark 21.9 21.9 -12.6 12.5 31.3 31.3 5.7 24.1 28.2 28.2 0.0 20.3

Estonia 0.0 25.8 0.0 3.4 0.0 25.8 0.0 3.4 0.0 25.8 0.0 3.4

Finland 19.9 19.9 -11.0 11.3 32.9 32.9 12.1 26.8 25.8 25.8 0.0 18.4

France 28.9 28.9 -16.5 17.7 41.6 41.6 13.6 34.1 42.2 42.2 15.5 35.0

Germany 32.9 32.9 -3.3 23.5 34.4 34.4 0.1 25.5 29.8 29.8 -10.8 19.5

Greece 35.6 35.6 -1.6 26.1 34.4 34.4 -4.9 24.5 29.0 29.0 -19.1 17.3

Hungary 13.1 13.1 0.9 9.2 20.0 20.0 9.7 16.7 14.8 14.8 3.2 11.1

Iceland 17.7 17.7 -15.3 8.5 34.1 34.1 14.2 28.3 25.8 25.8 0.0 18.4

Ireland 14.2 14.2 -3.5 8.7 22.8 22.8 8.7 18.4 16.6 16.6 0.0 11.4

Israel 19.7 19.7 -20.6 9.0 35.6 35.6 11.7 28.9 29.4 29.4 0.0 21.3

Italy 28.0 28.0 2.4 20.7 27.7 27.7 1.6 20.3 22.3 22.3 -8.4 13.8

Japan 43.1 43.1 14.0 35.5 44.7 44.7 17.4 37.4 46.9 46.9 22.4 40.3

Korea 18.8 18.8 -42.0 4.5 24.7 24.7 -25.1 12.5 27.5 27.5 -17.5 16.3

Latvia 0.0 25.8 0.0 3.4 20.1 37.7 20.1 22.3 0.0 25.8 0.0 3.4

Lithuania 10.7 10.7 -14.4 3.3 27.4 27.4 11.5 22.5 15.0 15.0 -7.4 8.3

Luxembourg 22.1 22.1 -25.8 10.1 31.7 31.7 -2.9 22.6 26.0 26.0 -16.0 15.3

Mexico 36.7 36.7 -1.7 27.1 29.3 29.3 -22.4 17.1 37.4 37.4 0.0 27.9

Netherlands 25.9 25.9 -13.0 15.7 29.7 29.7 -4.4 20.7 25.0 25.0 -15.0 14.6

New Zealand 35.0 35.0 -0.4 25.8 38.7 38.7 8.1 30.6 35.1 35.1 0.0 26.0

Norway 26.0 26.0 -6.8 17.1 25.5 25.5 -8.0 16.4 29.4 29.4 0.0 21.3

Poland 24.1 24.1 -0.9 16.9 27.2 27.2 4.3 20.5 19.0 19.0 -10.1 10.7

Portugal 25.5 25.5 -42.3 10.6 29.6 29.6 -28.4 16.4 39.0 39.0 0.0 29.4

Slovak 

Republic 17.6 17.6 -18.5 7.8 22.0 22.0 -9.7 13.2 27.0 27.0 0.0 19.4 

Slovenia 16.1 16.1 -15.5 7.2 19.1 19.1 -10.0 10.8 24.6 24.6 0.0 17.5

U.S. Department of the Treasury 

Office of Tax Analysis

May, 2022
3 

Table 2. 2018 OECD Effective Marginal Tax Rates (in Percent) at the Corporate Level, Cont’d.

Machinery Industrial Buildings Inventories

Retained 

Earnings

New 

Equity Debt Overall Average

Retained 

Earnings

New 

Equity Debt Overall Average

Retained 

Earnings

New 

Equity Debt Overall Average

Spain 28.4 28.4 -7.2 19.0 27.4 27.4 -9.6 17.7 31.7 31.7 0.0 23.2

Sweden 19.1 19.1 -17.0 9.3 24.1 24.1 -7.0 15.5 26.8 26.8 -1.1 19.0

Switzerland 21.1 21.1 -16.6 11.0 19.4 19.4 -20.3 8.8 23.3 23.3 -11.8 13.9

Turkey -16.4 -16.4 -18.8 -17.2 -9.6 -9.6 -11.7 -10.3 1.7 1.7 0.0 1.1

United 

Kingdom 23.0 23.0 -2.9 15.6 46.9 46.9 35.5 43.4 24.6 24.6 0.0 17.5 

United States 22.6 22.6 -7.6 14.2 45.8 45.8 28.4 40.7 29.8 29.8 -1.8 21.2

OECD 

Average 25.2 25.3 -8.1 16.4 36.9 36.9 11.3 30.0 30.4 30.4 -0.3 22.2 

OECD 

Average 

Excl. U.S

26.6 26.7 -8.4 17.6 32.2 32.2 2.4 24.4 30.7 30.8 0.4 22.7 

G-7 Average 27.3 27.3 -5.0 18.6 43.0 43.0 21.3 36.9 32.5 32.5 1.7 24.2

G-7 Average 

Excl. U.S. 32.0 32.0 -2.4 23.1 40.2 40.2 14.2 33.2 35.1 35.1 5.2 27.1 

Source: U.S. Department of the Treasury, Office of Tax Analysis 

Notes: EMTRs = effective marginal tax rates; EATRs = effective average tax rates. The EMTRs and EATRs shown include real estate taxes and net wealth taxes 

on corporations.

U.S. Department of the Treasury 

Office of Tax Analysis

May, 2022
4 

Table 3. 2018 OECD Effective Average Tax Rates (in Percent) at the Corporate Level

Machinery Industrial Buildings Inventories

Retained 

Earnings

New 

Equity Debt Overall Average

Retained 

Earnings

New 

Equity Debt Overall Average

Retained 

Earnings

New 

Equity Debt Overall Average

Australia 28.74 28.74 18.29 25.08 29.04 29.04 18.60 25.38 32.94 32.94 22.50 29.29

Austria 25.30 25.30 16.60 22.25 26.52 26.52 17.81 23.47 25.00 25.00 16.30 21.95

Belgium 27.25 27.25 18.04 24.03 34.38 34.38 25.03 31.11 28.50 28.50 19.29 25.27

Canada 24.7 24.7 15.4 21.5 34.5 34.5 25.0 31.1 29.4 29.4 20.1 26.2

Chile 31.9 31.9 23.1 28.8 29.9 29.9 21.1 26.8 29.4 29.4 20.7 26.4

Czech 

Republic 19.5 19.5 12.9 17.2 18.5 18.5 11.9 16.2 20.9 20.9 14.3 18.5 

Denmark 22.0 22.0 14.3 19.3 25.4 25.4 17.7 22.7 24.2 24.2 16.5 21.5

Estonia 15.0 22.0 15.0 15.7 15.0 22.0 15.0 15.7 15.0 22.0 15.0 15.7

Finland 20.0 20.0 13.0 17.5 24.8 24.8 17.8 22.3 22.0 22.0 15.0 19.5

France 32.5 32.5 23.5 29.3 37.5 37.5 28.4 34.3 37.8 37.8 28.8 34.7

Germany 31.0 31.0 21.8 27.8 31.6 31.6 22.4 28.4 29.8 29.8 20.7 26.6

Greece 31.6 31.6 21.5 28.0 31.1 31.1 20.9 27.5 29.0 29.0 18.9 25.5

Hungary 11.7 11.7 8.5 10.6 13.9 13.9 10.7 12.8 12.2 12.2 9.0 11.1

Iceland 19.3 19.3 12.3 16.9 25.4 25.4 18.3 22.9 22.0 22.0 15.0 19.5

Ireland 13.0 13.0 8.6 11.5 15.8 15.8 11.5 14.3 13.7 13.7 9.4 12.2

Israel 22.0 22.0 14.0 19.2 27.9 27.9 19.8 25.1 25.3 25.3 17.3 22.5

Italy 27.6 27.6 21.3 25.4 27.5 27.5 21.2 25.3 25.8 25.8 19.5 23.6

Japan 35.6 35.6 25.2 32.0 36.5 36.5 26.0 32.8 37.8 37.8 27.4 34.2

Korea 24.8 24.8 15.3 21.5 26.6 26.6 17.0 23.2 27.5 27.5 17.9 24.2

Latvia 15.0 22.0 15.0 15.7 20.0 27.1 20.0 20.7 15.0 22.0 15.0 15.7

Lithuania 13.8 13.8 8.6 12.0 19.3 19.3 14.0 17.4 15.0 15.0 9.8 13.2

Luxembourg 24.8 24.8 15.7 21.6 28.1 28.1 19.0 24.9 26.0 26.0 17.0 22.8

Mexico 32.7 32.7 22.2 29.0 29.8 29.8 19.3 26.1 32.9 32.9 22.5 29.3

Netherlands 25.3 25.3 16.6 22.3 26.7 26.7 18.0 23.6 25.0 25.0 16.3 22.0

New Zealand 30.7 30.7 20.9 27.3 32.3 32.3 22.6 28.9 30.7 30.7 21.0 27.3

Norway 24.0 24.0 16.0 21.2 23.8 23.8 15.8 21.0 25.3 25.3 17.3 22.5

Poland 20.7 20.7 14.1 18.4 21.8 21.8 15.2 19.5 19.0 19.0 12.4 16.7

Portugal 29.5 29.5 18.5 25.7 30.8 30.8 19.8 27.0 34.6 34.6 23.6 30.8

Slovak 

Republic 20.0 20.0 12.7 17.4 21.3 21.3 14.0 18.8 23.1 23.1 15.8 20.5 

Slovenia 18.1 18.1 11.5 15.8 19.0 19.0 12.4 16.7 20.9 20.9 14.3 18.5

U.S. Department of the Treasury 

Office of Tax Analysis

May, 2022
5 

Table 3. 2018 OECD Effective Average Tax Rates (in Percent) at the Corporate Level, Cont’d.

Machinery Industrial Buildings Inventories

Retained 

Earnings

New 

Equity Debt Overall Average

Retained 

Earnings

New 

Equity Debt Overall Average

Retained 

Earnings

New 

Equity Debt Overall Average

Spain 26.2 26.2 17.5 23.1 25.8 25.8 17.1 22.8 27.5 27.5 18.8 24.4

Sweden 20.2 20.2 12.9 17.7 21.8 21.8 14.5 19.3 22.3 22.3 15.0 19.8

Switzerland 21.1 21.1 13.1 18.3 20.6 20.6 12.5 17.8 21.9 21.9 13.8 19.0

Turkey 13.8 13.8 13.4 13.6 14.8 14.8 14.5 14.7 16.8 16.8 16.5 16.7

United 

Kingdom 20.3 20.3 13.7 18.0 32.1 32.1 25.4 29.8 20.9 20.9 14.3 18.5 

United States 24.8 24.8 18.1 22.4 35.0 35.0 26.7 32.1 27.2 27.2 19.1 24.4

OECD 

Average 26.4 26.4 18.6 23.7 31.4 31.4 23.1 28.5 28.1 28.1 19.9 25.2 

OECD 

Average 

Excl. U.S

27.2 27.2 18.9 24.3 29.4 29.5 21.1 26.5 28.6 28.6 20.3 25.7 

G-7 Average 27.4 27.4 19.6 24.7 34.3 34.3 25.8 31.3 29.3 29.3 20.8 26.4

G-7 Average 

Excl. U.S. 30.0 30.0 21.2 26.9 33.7 33.7 24.8 30.6 31.4 31.4 22.6 28.3 

Source: U.S. Department of the Treasury, Office of Tax Analysis 

Notes: EMTRs = effective marginal tax rates; EATRs = effective average tax rates. The EMTRs and EATRs shown include real estate taxes and net wealth taxes 

on corporations.

U.S. Department of the Treasury 

Office of Tax Analysis

May, 2022
6 

Table 4. 2018 OECD Overall Effective Tax Rates (in Percent) 

Combined

Statutory 

Corporate 

Tax Rate

PDV of Depreciation Overall Effective Tax 

Rates (Corporate Level)

Machinery Industrial 

Buildings EMTRs EATRs 

Australia 30.0 81.5 46.2 18.9 26.6

Austria 25.0 76.7 32.9 15.7 22.2

Belgium 29.6 81.5 52.6 10.7 24.3

Canada 26.8 84.7 56.5 13.9 23.1

Chile 25.0 60.3 32.9 23.7 24.6

Czech Republic 19.0 75.4 52.3 12.4 17.1

Denmark 22.0 77.9 46.2 14.5 19.8

Estonia 20.0 0.0 0.0 3.4 15.7

Finland 20.0 77.9 49.6 12.7 17.9

France 34.4 82.8 52.6 24.4 31.1

Germany 29.8 74.4 38.0 20.9 27.0

Greece 29.0 69.9 46.2 19.4 26.0

Hungary 11.1 73.2 22.1 10.0 10.8

Iceland 20.0 80.9 57.6 11.0 17.5

Ireland 12.5 74.4 46.2 8.5 11.4

Israel 23.0 81.8 52.6 13.1 20.2

Italy 27.8 71.9 44.7 15.3 23.9

Japan 29.7 75.7 34.3 22.8 27.5

Korea 27.5 86.4 52.6 10.4 22.7

Latvia 20.0 0.0 0.0 3.4 15.7

Lithuania 15.0 84.9 77.9 3.3 12.0

Luxembourg 26.0 82.0 46.2 12.5 22.1

Mexico 30.0 69.9 52.6 22.7 27.6

Netherlands 25.0 76.7 32.9 15.7 22.2

New Zealand 28.0 69.3 0.0 27.6 27.8

Norway 23.0 73.8 36.0 17.6 21.4

Poland 19.0 69.9 32.9 13.4 17.4

Portugal 31.5 83.4 52.6 18.1 27.4

Slovak Republic 21.0 82.1 52.6 11.8 18.4

Slovenia 19.0 81.8 38.0 12.1 17.0

Spain 25.0 73.5 38.0 19.1 23.2

Swedena 21.5 80.9 46.2 12.8 18.4

Switzerland 21.1 80.9 53.0 9.4 17.9

Turkey 22.0 81.5 46.2 -9.9 14.7

United Kingdom 19.0 71.7 0.0 18.1 18.7

United States 25.8 93.6 33.5 11.5 21.8

OECD Average 26.4 82.3 37.8 14.9 23.1

OECD Average Excl. U.S 26.7 76.4 40.0 16.7 23.8

G-7 Average 27.1 84.9 34.8 15.9 23.8

G-7 Average Excl. U.S. 28.4 76.2 36.0 20.2 25.8

Source: U.S. Department of the Treasury, Office of Tax Analysis

See notes to Table 1. The EMTRs and EATRs shown exclude real estate taxes and net wealth taxes on corporations.

 

U.S. Department of the Treasury 

Office of Tax Analysis

May, 2022
7 

Table 5. 2018 Components of Combined Statutory Corporate Tax Rates 

Central

Government

Corporate 

Tax Rate 

Surcharge Local Profit 

Tax Rate 

Combined

Statutory 

Corporate 

Tax Rate 

Australia 0.3000 0.0000 0.0000 0.3000

Austria 0.2500 0.0000 0.0000 0.2500

Belgium 0.2900 0.0200 0.0000 0.2958 

Canada 0.1500 0.0000 0.1180 0.2680

Chile 0.2500 0.0000 0.0000 0.2500

Czech Republic 0.1900 0.0000 0.0000 0.1900

Denmark 0.2200 0.0000 0.0000 0.2200

Estoniaa 0.2000 0.0000 0.0000 0.2000

Finland 0.2000 0.0000 0.0000 0.2000

Franceb 0.3333 0.0330 0.0000 0.3443

Germanyc 0.1500 0.0550 0.1400 0.2983

Greece 0.2900 0.0000 0.0000 0.2900

Hungaryd 0.0900 0.0000 0.0230 0.1109

Iceland 0.2000 0.0000 0.0000 0.2000

Ireland 0.1250 0.0000 0.0000 0.1250

Israel 0.2300 0.0000 0.0000 0.2300

Italye 0.2400 0.0000 0.0381 0.2781

Japanf 0.2320 0.1730 0.0347 0.2974

Koreag 0.2500 0.0000 0.0250 0.2750

Latviaa 0.2000 0.0000 0.0000 0.2000

Lithuania 0.1500 0.0000 0.0000 0.1500

Luxembourgh 0.1800 0.0700 0.0675 0.2601

Mexico 0.3000 0.0000 0.0000 0.3000

Netherlands 0.2500 0.0000 0.0000 0.2500

New Zealand 0.2800 0.0000 0.0000 0.2800

Norway 0.2300 0.0000 0.0000 0.2300 

Poland 0.1900 0.0000 0.0000 0.1900

Portugal 0.2100 0.0900 0.0150 0.3150

Slovak Republic 0.2100 0.0000 0.0000 0.2100

Slovenia 0.1900 0.0000 0.0000 0.1900 

Spain 0.2500 0.0000 0.0000 0.2500

Swedeni 0.2200 0.0000 0.0000 0.2200

Switzerlandj 0.0850 0.0000 0.1445 0.2115

Turkey 0.2200 0.0000 0.0000 0.2200 

United Kingdom 0.1900 0.0000 0.0000 0.1900

United Statesk 0.2100 0.0000 0.0612 0.2584

U.S. Department of the Treasury 

Office of Tax Analysis

May, 2022
8 

Sources: OECD Tax Database, International Bureau of Fiscal Documentation Global Corporate Tax 

Handbook 2018

a. Estonia and Latvia do not tax retained profits. Corporate profits are only taxed if they are 

distributed.

b. From 2014, 75 percent of net interest expenses are deductible. A safe harbor rule applies under 

which the first EUR 3 million of net interest are deductible. But if net interest expenses exceed EUR

3 million the restriction applies to the entire amount of the net interest expenses. 

c. Since 2008, the local profit tax (the municipal trade tax) is not deductible for trade tax purposes or 

for federal corporate income tax purposes. In addition, 25 percent of all interest payments exceeding 

a threshold of EUR 100,000 are not deductible from the local trade tax base.

d. Hungary has a local business tax with a maximum rate of 2 percent and an innovation tax with a 

rate of 0.3 percent. Both local taxes are deductible for corporate income tax purposes. However, the 

tax base for the local tax is not reduced by interest paid. 

e. The combined statutory corporate tax rate for Italy includes a 3.9 percent regional tax on 

production activities (IRAP), 10 percent of which is deductible for corporate income tax purposes. 

Interest expenses are not deductible when calculating the tax base for the IRAP.

f. Japan’s surcharge and local profit tax rate include the prefectural inhabitant tax, the municipal 

inhabitant tax, and the local enterprise tax.

g. The maximum local income tax rate for corporations is 2.5 percent. The local income tax is not 

deductible for corporate income tax purposes. 

h. The municipal business tax in the city of Luxembourg is 6.75 percent, or a basic rate of 3 percent

multiplied by a coefficient of 2.25. The municipal business tax is not deductible for corporate income 

tax purposes.

i. Sweden imposes a flat 22 percent corporate income tax. However, companies can create a profit 

periodization reserve by allocating to a reserve up to 25 percent of net profits. The reserve must be 

dissolved (and added to taxable income) no later than the sixth year after the allocation has been 

made. Since 2005, notional income from the reserve is taxable. The notional taxable income is 

calculated by multiplying the total amount of the allocations to the reserve fund by 72 percent of the 

interest rate on long-term government bonds as of the end of November in the previous tax year. The 

profit periodization reserve reduces Sweden’s combined corporate tax rate to 21.48 percent.

j. The local profits tax rate is obtained by multiplying a basic rate of 8.0 percent for the canton of 

Zurich by the sum of a cantonal coefficient (1.00), a municipal coefficient (1.19), and a parish 

coefficient (0.10) for the city of Zurich.

k. The Tax Cuts and Jobs Act (TCJA) limits interest deductions to 30 percent of adjusted taxable 

income for corporate debt. From 2018 through 2021, adjusted taxable income is calculated as 

earnings before interest, tax, depreciation, and amortization (EBITDA); beginning in 2022, it is 

computed as earnings before interest and tax (EBIT). Using the nonpublic IRS corporate study tax 

file, the average C-corporation disallowance share (or the share of interest paid that cannot be 

deducted) for all industries is calculated to be 9.2 percent between 2018 and 2021 and 15.2 percent

between 2022 and 2027.

U.S. Department of the Treasury 

Office of Tax Analysis

May, 2022
9 

Table 6. 2018 Real Estate and Net Wealth Tax Rates for Corporations 

Real Estate Tax Effectivea Net Wealth Tax

Nominal Effectivea Machinery Buildings Inventory

Australia 0.0000 0.0000

Austria 0.0025 0.0019 

Belgium 0.0205 0.0145

Canada 0.0251 0.0184

Chileb 0.0060 0.0045 0.0038 0.0038 0.0038

Czech Republic 0.0013 0.0011

Denmark 0.0100 0.0078

Estonia 0.0000 0.0000

Finland 0.0136 0.0109

Francec 0.0054 0.0035 0.0000 0.0061 0.0000

Germany 0.0047 0.0033

Greece 0.0058 0.0057

Hungary 0.0044 0.0039

Iceland 0.0165 0.0132

Ireland 0.0081 0.0071

Israel 0.0154 0.0119

Italy 0.0049 0.0047

Japand 0.0170 0.0119 0.0098 0.0000 0.0098

Korea 0.0018 0.0013

Latvia 0.0150 0.0120

Lituania 0.0150 0.0128

Luxembourg 0.0075 0.0055

Mexico 0.0041 0.0029

Netherlands 0.0029 0.0022

New Zealand 0.0000 0.0000

Norway 0.0016 0.0012

Poland 0.0056 0.0046

Portugal 0.0032 0.0022

Slovak Republic 0.0037 0.0029

Slovenia 0.0000 0.0000

Spain 0.0020 0.0015

Sweden 0.0038 0.0029

Switzerlande 0.0000 0.0000 0.0014 0.0014 0.0014

Turkey 0.0020 0.0016

United 

Kingdom 0.0240 0.0194 

United Statesf 0.0223 0.0166 0.0068 0.0000 0.0027

Sources: International Bureau of Fiscal Documentation Global Corporate Tax Handbook 2018, PwC 

Worldwide Tax Summaries, Spengel, et al. (2018), various country-specific sources.

U.S. Department of the Treasury 

Office of Tax Analysis

May, 2022
10 

a. The effective tax rate allows for the deductibility of real estate taxes and other net wealth taxes from corporate 

income taxes. See the country notes explaining calculation of the real estate tax rates.

b. The net wealth tax shown for Chile is an annual municipal license fee on capital registered on the balance sheet. 

The rate varies by municipality and location within the municipality. It ranges from 0.25 percent to 0.5 percent. An 

average tax rate of 0.375 percent is assumed.

c. The net wealth tax shown for France, the Cotisation Fonciere des Entreprises (CFE), is assumed to apply only to 

buildings. The CFE is based on the rental value of assets that are subject to the real estate tax. The CFE tax rate is 

determined by the municipality. The 2018 CFE tax rate for Paris is 16.52 percent. The rental value of buildings is 

assumed to amount to 8 percent of acquisition costs. PwC Worldwide Tax Summaries indicates that for industrial 

buildings the taxable base for CFE is reduced by 30 percent. Hence, the nominal other profit tax rate for France is 

obtained by taking 70 percent of the product of 16.52 percent and 8 percent.

d. The municipal fixed asset tax in Japan consists of a standard tax rate of 1.4 percent and a city planning tax of 0.3 

percent. The standard tax rate is assumed to apply to machinery and inventories. The city planning tax component of 

the municipal fixed assets tax is not assumed to apply to machinery and inventories.

e. In Zurich, the net worth tax has a basic rate of 0.075 percent. This basic rate is multiplied by the sum of a cantonal 

coefficient (1.00) for Zurich, a municipal coefficient (1.19) for the city of Zurich, and a parish coefficient (0.10).

f. The net wealth tax shown for the United States is a weighted-average of state and local personal property tax rates. 

State and local personal property tax rates apply to machinery and inventories.

Country Notes:

Australia: Australia has no real estate tax.

Austria: The real estate tax is levied at a basic federal rate of 0.2 percent. This basic federal rate is multiplied by a 

municipal coefficient that can reach a maximum of 500 percent. The real estate tax is levied on the assessed value of 

the property; the assessed value is assumed to equal 25 percent of market value.

Belgium: The nominal real estate tax rate is the sum of an “immovable withholding tax” rate of 1.25 percent (for the 

Brussels regions) and a municipal surcharge of 3000 multiplied by the withholding tax rate. The real estate tax is 

levied on the rental value of the property. Spengel, et al. (2018) assume that the rental value is 5.3 percent of the 

market value.

Canada: The nominal real estate tax rate is a population-weighted average of nonresidential (commercial) property 

tax rates in 8 major Canadian cities—Calgary, Edmonton, Vancouver, Winnipeg, Ottawa, Toronto, Montreal, and 

Halifax.

Chile: The general real estate tax rate is 1.2 percent for urban property. The taxable base is the cadastral value. The 

cadastral value is assumed to equal 50 percent of market value.

Czech Republic: The ground floor area of a building determines the taxable base. For flats and nonresidential spaces, 

the area in square meters is multiplied by a coefficient of 1.2. Tax rates depend on the use of the building. For 

business premises, the rate is CZK 10 per square meter. The nominal real estate tax rate is multiplied by a coefficient 

of 4.5 for buildings located in Prague. Prague may increase the coefficient up to a maximum of 5.

Denmark: The municipal real estate tax on buildings used for business purposes may not exceed 1 percent.

Estonia: Estonia has no real estate tax.

Finland: The nominal real estate tax is the mean of a minimum real estate tax rate of 0.92 percent and a maximum real 

estate tax rate of 1.8 percent.

France: The real estate tax (Taxe Fonciere sur les Proprietes Baties) is calculated by applying city/department 

property tax rates to half the notional rental value of a commercial property as defined by a local land registry. The 

tax rate is determined annually by local authorities. The rental value of industrial buildings is assumed to amount to 8 

percent of the acquisition cost. Property tax rates are for Paris, which has lower local property tax rates than do some

other French cities. For 2018, the local property tax rate in Paris is a combination of a city (ville) rate of 8.37 percent 

and a department rate of 5.13 percent. Hence, the nominal real estate tax equals 100 ∙ �0.08 ∙ 0.5 ∙

(0.0513 + 0.0837)�. 

Germany: The real property tax (Grundsteuer) is calculated by multiplying a real property tax rate of 0.35 percent and 

a municipal multiplier (Hebesatz) by the assessed value of a real property. Federal fiscal authorities establish the 

assessed value, which Spengel, et al. (2018) assume amounts to 25 percent of the acquisition cost, and the basic 

federal rate. Municipalities determine the multiplier. The nominal real estate tax rate is calculated using a populationweighted average multiplier for German cities with a population over 20,000.

Greece: The nominal real estate tax is the sum of a supplementary unified annual real estate ownership tax and a local 

real estate tax rate. The supplementary tax is imposed on the total value of the real estate property at a rate of 0.55 

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percent for legal entities. The local real estate tax rate varies between 0.025 percent and 0.035percent; a mean of 0.03

percent is assumed.

Hungary: The real estate tax is either a maximum of HUF 1852/m2 or a maximum of 3.6 percent of the fair market 

value of the building.

Iceland: Municipalities levy a property tax based on the assessed value of immovable property. The commercial (Ctax) property tax in Reykjavik is 1.65 percent of assessed value. The assessed value is assumed to equal market value.

Ireland: The local tax on immovable property (the commercial “rates”) is calculated by multiplying a rateable 

valuation by an annual rate of valuation. The annual rate of valuation is set annually by the local government. For 

Dublin, the annual rate of valuation (the rate multiplier) is 0.258 for 2018. Spengel, et al. (2018) assume a rateable

valuation (the estimate of the annual rental value of the property) for Dublin of 63 percent. They also assume that the 

annual rental value amounts to 5 percent of the acquisition cost. 

Israel: A municipal tax (Arnona) is levied annually on buildings by local authorities in Israel. For 2018, the nominal 

real estate tax is calculated using an average of three rates for industrial plants set by the municipal government in 

Jerusalem. The three rates, expressed as NIS (shekels) per square meter, are 135.51, 100.54, and 81.61; the average of 

the three rates is 105.9. 

Italy: In January 2012, the unified municipal tax (IMU) replaced the municipal tax on immovable property (ICI). The 

basic IMU rate is 0.76 percent. However, local authorities can raise the IMU rate to a maximum of 1.06 percent or 

lower the IMU rate to a minimum of 0.46 percent. The taxable value for the IMU is the cadastral value, or the 

standard value attributed to a property in the official register. The cadastral value is assumed to equal 65 percent of 

the acquisition cost. Twenty percent of the IMU is deductible for income tax purposes.

Japan: The municipal fixed assets tax consists of a standard tax rate of 1.4 percent and a city planning tax of 0.3 

percent. The tax base corresponds to the market value.

Korea: Real estate taxes in Korea vary by property type and location. Buildings are taxed at rates between 0.25

percent and 4 percent. Factories are assumed to be taxed at a rate of 0.25 percent. However, if the factory is in a 

designated metropolitan area and is new or expanded, the property tax rate is 1.25 percent, or 5 times the standard 

rate, for 5 years. Property tax is levied on 70 percent of the current standard value of land and buildings, which is

assumed to correspond to acquisition cost.

Latvia: Real estate tax is levied on immovable property such as land and buildings at a basic rate of 1.5 percent of the 

cadastral value. Spengel, et al. (2018) assume that the cadastral value equals the acquisition cost. 

Lithuania: An annual property tax on immovable property ranges from 0.3 percent to 3 percent of the taxable value. 

The nominal real estate tax is 1.5 percent assuming that the taxable value is 50 percent of the acquisition cost 

(Spengel, et al. (2018)).

Luxembourg: The real estate tax is based on the unitary value of real estate, or the estimated value in 1941. The basic 

tax rate is between 0.7 percent and 1 percent. It is multiplied by a municipal coefficient that equals 750 percent for

Luxembourg City. The municipal coefficient for Luxembourg City is applied to a basic rate of 1 percent. Spengel, et 

al. (2018) assume that the unitary value is 10 percent of the acquisition cost.

Mexico: The real estate tax is levied by the Federal District and all states at rates that range from 0.05 percent to 1.2

percent. An average value is calculated for the Federal District. The taxable base for the property tax is the cadastral 

value, which is assumed to equal 50 percent of market value.

Netherlands: The real estate tax rate for immovable nonresidential property in Amsterdam is 0.29 percent. The real 

estate tax is deductible for corporate income tax purposes. The basis for the real estate tax is the property value.

New Zealand: New Zealand has no real estate tax.

Norway: Immovable property is subject to a municipal real estate tax. The taxable base is the assessed value, which is 

between 20 percent and 50 percent of market value. The real estate tax is levied at fixed rates ranging from 0.2

percent to 0.7 percent. The nominal real estate tax is calculated assuming an average fixed rate of 0.45 percent and an

average assessed value of 35 percent.

Poland: The taxable base for the real estate tax is the floor area of the building. For buildings used for business, the 

maximum tax rate for 2017 is PLN 22.66/m2

. 

Portugal: The tax base for the municipal real estate tax (IMI) is 80 percent to 90 percent of the market value of a 

property. IMI rates are 0.3 percent to 0.45 percent for urban buildings registered or owned from December 2003. An 

average market value of 85 percent and an average IMI rate of 0.38 percent are assumed.

Slovak Republic: The immovable property tax is based on the area of the real estate, its location, and its type. In the 

city of Bratislava, real estate taxes are divided into three bands. The real estate tax for industrial buildings and 

warehouses is EUR 3/m2 for band 1, EUR 4/m2 for band 2, and EUR 5 /m2 for band 3. The real estate tax for 

buildings used for other business activities is EUR 5 /m2 for band 1, EUR 6 /m2 for band 2, and EUR 8.3 EUR/m2 for 

band 3. An average of real estate taxes for industrial buildings and other buildings is used.

Slovenia: Slovenia has no real estate tax.

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Spain: For 2018, the real estate tax is levied by municipalities at a general rate of 0.4 percent for urban property. The 

taxable base is the cadastral value, which in Spengel, et al. (2018) is assumed to equal 50 percent of the acquisition 

cost.

Sweden: A national real estate tax is levied on all immovable commercial and industrial property. The tax rate is 1 

percent for commercial premises and 0.5 percent for industrial property. Spengel (2018), et al. assume that the taxable 

base equals 75 percent of the acquisition cost.

Switzerland: Zurich has no real estate tax on immovable property.

Turkey: The real estate tax for buildings is 0.2 percent.

United Kingdom: Local municipal taxes are levied on the occupiers of business property by reference to a deemed 

annual rental value (the rateable value) determined by the Valuation Office Agency of HM Revenue & Customs. 

Spengel, et al. (2018) assume that the rateable value amounts to 5 percent of the acquisition cost. It is multiplied by 

the “rate in pound.” The rate in the pound (also called the multiplier) is set by the Communities and Local 

Government. Between revaluations (every 5 years), the rate in the pound adjusts annually by the rate of inflation. In 

2017, it is 49.7 percent. 

United States: The Minnesota Center for Fiscal Excellence and the Lincoln Institute of Land Policy annually publish a 

50-State Property Tax Comparison Study that includes average effective commercial property tax rates and industrial 

property tax rates for all 50 states and the District of Columbia. (The April 2018 report is available at 

https://www.lincolninst.edu/sites/default/files/pubfiles/50-state-property-tax-comparison-for-2017-full_1.pdf, 

accessed May 16, 2022.) Real and personal property tax rates and net tax amounts from Table 3a and Table 4a of the 

April 2018 report are combined with municipal data on statutory property tax rates and the taxable base to obtain

average effective property tax rates for commercial buildings, industrial buildings, machinery, and inventories in the 

largest urban areas in each state plus the District of Columbia.

Spengel, Christoph, Frank Schmidt, Jost Heckemeyer, and Katharina Nicolay, 2018, “Project for the EU Commission, 

Effective Tax Levels Using the Devereux/Griffith Methodology,” TAXUD/2018/DD/307, Intermediary Report 2018, 

available at https://ec.europa.eu/taxation_customs/system/files/2019-

03/final_report_2018_effective_tax_levels_revised_en.pdf (accessed May 16, 2022).

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Table 7. 2018 Tax Treatment of Inventories

Proportion of Inventories Valued by FIFO

Australia 1.0000

Austria 0.0000

Belgium 0.0000

Canada 1.0000

Chile 1.0000

Czech Republic 1.0000

Denmark 1.0000

Estoniaa ---

Finland 1.0000

France 1.0000

Germany 0.0000

Greece 0.0000

Hungary 1.0000

Iceland 1.0000

Ireland 1.0000

Israel 1.0000

Italy 0.0000

Japan 1.0000

Korea 0.0000

Latviaa ---

Lithuania 0.0000

Luxembourg 0.0000

Mexico 1.0000

Netherlands 0.0000

New Zealand 1.0000

Norway 1.0000

Poland 0.0000

Portugal 1.0000

Slovak Republic 1.0000

Slovenia 1.0000

Spain 1.0000

Sweden 1.0000

Switzerland 0.0000

Turkey 1.0000

United Kingdom 1.0000

United States 0.0000

Sources: International Bureau of Fiscal Documentation Global Corporate Tax Handbook 2018, PwC Worldwide Tax 

Summaries, and Ernst & Young Worldwide Corporate Tax Guide.

Notes: FIFO = first-in-first-out; LIFO = last-in-first-out. A value of 0 indicates that 100 percent of inventories are valued by 

LIFO accounting methods. A value of 1 indicates that 100 percent of inventories are valued by FIFO accounting methods.

a. Estonia and Latvia tax distributed profits instead of corporate income.

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Table 8A. 2018 Tax Depreciation for Machinery

Kind of 

Allowance

Acceleration

Factorc

Allowance 

Rate (in 

Percent)

Length of 

Period (in 

Years)

Optimal 

Switching 

Time (in 

Years)

Australia DBSL 2.00 28.57 (DB) 7 4.00 

8.68 (SL)

Austria SL 14.29 7.00

Belgium DBSL 2.00 28.57 (DB) 7.00 4.00

8.68 (SL)

Canadaa,b DB 50.00 ufd

Chile SL 6.67 15

Czech Republicd DB 10.00 10.00

Denmark DB 25.00 ufd

Estoniae --- --- --- --- ---

Finland DB 25.00 ufd

France DBSL 2.25 32.14 (DB) 7.00 4.00

7.07 (SL)

Germany SL 12.50 8.00

Greece SL 10.00 10

Hungary SL 50.00 2.00

Iceland DB 30.00 ufd

Ireland SL 12.50 8.00

Israel SL 20.00 5.00

Italy SL 6.25 1.00

12.50 7.00

6.25 1.00

Japan DBSL 2.00 20.00 (DB) 10.00 5.00

6.55 (SL)

Korea DB 45.10 ufd

Latviae --- --- --- --- ---

Lithuania DB 40.00 ufd

Luxembourg DBSL 2.10 30.00 (DB) 7.00 4.00

8.00 (SL)

Mexico SL 10.00 10.00

Netherlands SL 14.29 7.00

New Zealand DB 16.00 ufd

Norway DB 20.00 ufd

Poland SL 10.00 10.00

Portugal DB 35.71 ufd

Slovak Republicd DB 16.67 6.00

Slovenia SL 20.00 5.00

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Table 8A. 2018 Tax Depreciation for Machinery, Cont’d.

Kind of 

Allowance

Acceleration

Factorc

Allowance 

Rate (in 

Percent)

Length of 

Period (in 

Years)

Optimal 

Switching 

Time (in 

Years)

Spain SL 12.00 8.00

4.00 1.00

Sweden DB 30.00 ufd

Switzerland DB 30.00 ufd

Turkey DBSL 2.00 28.57 (DB) 7.00 4.00

8.68 (SL)

United Kingdom DB 18.00 ufd

United Statesa,b DBSL 2.00 28.57 (DB) 7.00 4.00

8.92 (SL)

4.46 (SL)f

Sources: Spengel, et al. (2018), the Oxford University Centre for Business Taxation (2017), International Bureau of 

Fiscal Documentation Global Corporate Tax Handbook 2018, PwC Worldwide Tax Summaries, and Ernst & Young 

Worldwide Corporate Tax Guide. 

Notes: SL = straight line; DB = declining balance; DBSL = declining balance with a switch to straight line; ufd = 

until fully depreciated; EMTRs = effective marginal tax rates; EATRs = effective average tax rates. 

a. Depreciation is reduced by half in the first year (half-year convention).

b. For 2018, temporary stimulus measures are included for Canada and the United States. In Canada, machinery and 

equipment purchased after 2015 and before 2026 can be depreciated using 50-percent DB depreciation. In the United 

States, a first-year, bonus depreciation deduction is allowed for qualifying property (primarily machinery and 

equipment). For 2018, the bonus depreciation rate is 100 percent. For the United States, the calculation of the 

EMTRs and EATRs treats immediate expensing/bonus depreciation as elective. We assume that only roughly 70

percent (and not 100 percent) of qualified property placed in service in 2018 is expensed. This 70 percent is based on 

an average bonus take-up rate calculated using U.S. tax data. 

c. For those countries where machinery can be depreciated using the DBSL method, the DB depreciation rate shown 

is obtained by dividing the acceleration factor by the length of period (in years) shown. 

d. The Czech Republic and the Slovak Republic use either the SL method or an accelerated depreciation method. 

This accelerated method is a DB method that uses the same periods as the SL method. In the Czech Republic, assets 

are divided into 6 categories based on useful life. Machinery and equipment used in specified industrial processes are

in category 3 and have a useful life of 10 years. Buildings other than office buildings, hotels, and shopping malls are 

in category 5 and have a useful life of 30 years. In the Slovak Republic, assets are also divided into 6 categories 

based on useful life. Machinery and equipment are in category 2 and have a useful life of 6 years. Certain buildings 

are in category 5 and have a useful life of 20 years. From 2015, accelerated depreciation is applicable only to assets 

in categories 2 and 3.

e. Estonia and Latvia tax distributed profits instead of corporate income.

f. Machinery is depreciated at an allowance rate of 8.92 percent in years 5 through 7. The remaining balance is

depreciated at an allowance rate of 4.46 percent in a final half year.

Oxford University Centre for Business Taxation, 2017, CBT Tax Database, available at 

https://ora.ox.ac.uk/objects/uuid:81f28d9a-fe6e-445b-8d34-a641b573d986 (accessed December 14, 2021). 

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Table 8B. 2018 Tax Depreciation for Industrial Buildings

Kind of Allowance Allowance Rate (in 

Percent)

Length of Period (in 

Years)

Australia SL 4.00 25 

Austria SL 2.50 40.00

Belgium SL 5.00 20.00

Canadaa DB 10.00 ufd

Chile SL 2.50 40.00

Czech Republicb DB 3.33 30.00

Denmark SL 4.00 25.00

Estoniac --- --- ---

Finland DB 7.00 ufd

France SL 5.00 20.00

Germany SL 3.00 33.33

Greece SL 4.00 25.00

Hungary SL 2.00 50.00

Iceland SL 6.00 16.67

Ireland SL 4.00 25.00

Israel SL 5.00 20.00

Italy SL 2.00 1.00

4.00 24.00

2.00 1.00

Japan SL 2.63 38.00

Korea SL 5.00 20.00

Latviac --- --- ---

Lithuania DB 25.00 ufd

Luxembourg SL 4.00 25.00

Mexico SL 5.00 20.00

Netherlands SL 2.50 40.00

New Zealandd --- --- ---

Norway DB 4.00 ufd

Poland SL 2.50 40.00

Portugal SL 5.00 20.00

Slovak Republicb SL 5.00 20.00

Slovenia SL 3.00 33.33

Spain SL 3.00 33.33

Sweden SL 4.00 25.00

Switzerland DB 8.00 ufd

Turkey SL 4.00 25.00

United Kingdome SL 2.00 50.00

United Statesf SL 2.46 1.00

2.56 38.00

0.11 1.00

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Sources: Spengel, et al. (2018), the Oxford University Centre for Business Taxation (2017), International 

Bureau of Fiscal Documentation Global Corporate Tax Handbook 2018, PwC Worldwide Tax Summaries, and

Ernst & Young Worldwide Corporate Tax Guide.

Notes: SL = straight-line; DB = declining-balance; ufd = until fully depreciated.

a. Depreciation is reduced by half in the first year (half-year convention).

b. The Czech Republic and the Slovak Republic use either the SL method or an accelerated depreciation method. 

This accelerated method is a DB method that uses the same periods as the SL method. In the Czech Republic, 

assets are divided into 6 categories based on useful life. Machinery and equipment used in specified industrial 

processes are in category 3 and have a useful life of 10 years. Buildings other than office buildings, hotels, and 

shopping malls are in category 5 and have a useful life of 30 years. In the Slovak Republic, assets are also 

divided into 6 categories based on useful life. Machinery and equipment are in category 2 and have a useful life 

of 6 years. Certain buildings are in category 5 and have a useful life of 20 years. From 2015, accelerated 

depreciation is applicable only to assets in categories 2 and 3.

c. Estonia and Latvia tax distributed profits instead of corporate income.

d. From 2012, the allowance rate is 0 percent (3 percent prior to 2012) for buildings with an estimated useful life 

of 50 years or more. See also Inland Revenue (2018), General Depreciation Rates, IR265, July, available at 

https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/types-of-businessexpenses/depreciation (accessed May 16, 2022). 

e. The SL allowance rate for buildings was reduced at a rate of 1 percentage point per year beginning in 2008

(from 4 percent in 2007). Capital allowances for buildings were phased out after April 2011 so that no capital 

allowances were allowed. However, beginning in October 2018, a new Structures and Buildings Allowance 

applies to new nonresidential buildings and structures (excluding land). Under the Structures and Buildings 

Allowance, industrial buildings are depreciated on a SL basis at an annual rate of 2 percent. The new allowance 

applies to contracts for construction works entered into on or after October 29, 2018. From April 2011 through 

October 2018, no capital allowances were allowed for buildings. 

f. The mid-month convention is used for nonresidential real property and residential real property. Under the 

mid-month convention, all property placed in service during a month is treated as placed in service at the midpoint of the month. This means that one-half of depreciation is allowed for the month that the property is placed 

in service. Assuming that the property is placed in service in the first month of the year, the SL depreciation rate 

is 2.461 percent in the first year, 2.564 percent in years 2 through 39, and 0.107 percent in year 40. 

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Table 9. Economic and Other Parameters Assumed for 

OECD Countries

Real Rate of Return 5.00

Inflation Rate 2.00

Economic Depreciation Rate

 Machinery 17.50

 Industrial Buildings 3.10

 Acquired Patents 15.35

 Inventories 0.00

Proportion of New Investment Financed with:b

 Equity (and Retained Earnings) 65.00

 Debt 35.00

Sources: Devereux, et al. (2008) and Spengel, et al. (2018). 

a. The same economic parameters are assumed for all OECD countries so 

that any differences in effective tax rates reflect differences in tax regimes.

b. The overall effective marginal tax rates in Table 1 and Table 4 are 

calculated using the difference between an average cost of capital across 

type of asset (machinery, industrial buildings, inventories) and type of 

finance (retained earnings, debt, equity) and an after-tax real rate of return. 

Devereux, et al. (2008) use a combined weight of 65 percent for equity

and retained earnings and a weight of 35 percent for debt. 

Devereux, Michael P., Christina Elschner, Dieter Endres, Jost H. 

Heckemeyer, Michael Overesch, Ulrich Schreiber, and Christoph Spengel, 

2008, “Project for the EU Commission,” TAXUD/2005/DE/3 10, Final 

Report, available at

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.353.2752&rep=

rep1&type=pdf (accessed May 16, 2022). 

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19.0

25.8

26.8

27.8

29.7

29.8

34.4

28.4

0 5 10 15 20 25 30 35 40

United Kingdom

United States

Canada

Italy

Japan

Germany

France

G-7 Average Excl. U.S.

Figure 1. 2018 Effective Statutory Profit Tax Rate (in Percent)

U.S. Department of the Treasury 

Office of Tax Analysis

May, 2022
20 

27.2

25.2

18.4

27.9

22.9

37.8

29.8

28.5

11.5

13.9

15.3

18.1

20.9

22.8

24.4

20.2

0 5 10 15 20 25 30 35 40

United States

Canada

Italy

United Kingdom

Germany

Japan

France

G-7 Average Excl.

U.S.

Figure 2. 2018 Overall G-7 Effective Marginal Tax Rates (in Percent)

Without Property Taxes and Net Wealth Taxes

With Property Taxes and Net Wealth Taxes

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22.1

26.3

26.3

24.7

27.6

33.0

32.8

28.6

18.7

21.8

23.1

23.9

27.0

27.5

31.1

25.8

0 5 10 15 20 25 30 35 40

United Kingdom

United States

Canada

Italy

Germany

Japan

France

G-7 Average Excl.

U.S.

Figure 3. 2018 Overall G-7 Effective Average Tax Rates (in Percent)

Without Property Taxes and Net Wealth Taxes

With Property Taxes and Net Wealth Taxes

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22 U.S. Department of the Treasury 

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