U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

1 

Table 1. 2022 OECD Overall Effective Tax Rates (in Percent) 

Combined

Statutory 

Corporate Tax 

Rate

PDV of Depreciation Overall Effective Tax 

Rates (Corporate Level)

Machinery Industrial 

Buildings

Acquired 

Patents EMTRs EATRs 

Australia 30.0 81.5 46.2 52.6 25.4 28.5

Austria 25.0 76.7 39.3 69.9 18.3 23.0

Belgium 25.0 81.8 52.6 94.4 16.9 22.6

Canada 26.2 95.4 60.4 80.5 20.0 24.3

Chile 10.0 60.3 32.9 79.2 15.6 11.7

Colombia 35.7 69.9 32.9 81.8 29.2 33.4

Costa Rica 30.0 69.9 27.3 81.8 24.3 28.1

Czech Republic 19.0 75.4 52.3 69.9 14.1 17.6

Denmark 22.0 77.9 46.2 93.4 14.6 19.8

Estonia 20.0 0.0 0.0 0.0 3.4 15.7

Finland 20.0 87.6 49.6 69.9 17.3 19.2

France 25.8 82.8 52.6 81.8 19.6 23.9

Germany 29.8 80.2 38.0 81.8 20.9 27.0

Greece 22.0 69.9 46.2 69.9 19.7 21.3

Hungary 11.1 73.2 22.1 73.2 10.4 10.6

Iceland 20.0 80.9 57.6 81.8 17.7 19.3

Ireland 12.5 74.4 46.2 69.9 14.7 14.8

Israel 23.0 69.9 52.6 74.4 21.9 22.6

Italy 27.8 71.9 44.7 90.3 14.7 23.3

Japan 29.7 75.7 34.3 74.4 37.7 32.9

Korea 27.5 86.4 52.6 76.7 15.3 23.9

Latvia 20.0 0.0 0.0 0.0 7.9 16.7

Lithuania 15.0 84.9 77.9 90.4 10.0 13.6

Luxembourg 24.9 82.0 46.2 81.8 14.7 21.9

Mexico 30.0 69.9 52.6 77.5 23.6 27.9

Netherlands 25.8 76.7 32.9 69.9 19.5 23.8

New Zealand 28.0 69.3 22.0 52.6 27.7 27.9

Norway 22.0 73.8 36.0 69.9 18.0 20.8

Poland 19.0 69.9 32.9 81.8 8.5 16.1

Portugal 31.5 83.4 52.6 69.9 -12.8 21.7

Slovak Republic 21.0 82.1 52.6 81.8 13.6 18.8

Slovenia 19.0 81.8 38.0 69.9 13.7 17.5

Spain 25.0 73.5 38.0 69.9 20.6 23.6

Sweden 20.6 80.9 46.2 80.9 13.9 18.7

Switzerland 19.7 80.9 53.0 84.9 11.6 17.4

Turkey 23.0 81.5 46.2 67.4 -25.2 13.4

United Kingdom 19.0 97.5 38.0 69.9 19.2 19.1

United States 25.8 93.6 33.5 60.3 26.8 26.1

OECD Average 25.7 84.4 39.9 70.7 21.1 24.6

OECD Average Excl. U.S. 25.7 79.4 43.2 76.1 18.2 23.8

G-7 Average 26.3 88.3 37.8 69.4 25.3 26.1

G-7 Average Excl. U.S. 26.9 82.5 42.3 79.1 23.7 26.0

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.
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

2 

Table 2. 2022 OECD Effective Marginal Tax Rates (in Percent) at the Corporate Level

Machinery Industrial Buildings

New Equity

and Retained 

Earnings

Debt Overall 

Average 

New Equity 

and Retained 

Earnings

Debt Overall 

Average 

Australia 26.3 -31.6 12.9 27.2 -28.7 14.1

Austria 25.9 -13.0 15.7 27.6 -9.2 17.9

Belgium 21.5 -23.6 10.0 40.7 17.8 34.3

Canada 6.9 -49.3 -7.3 42.5 19.0 36.0

Chile 22.2 11.5 18.8 25.0 15.1 21.8

Colombia 42.9 -2.2 32.4 41.4 -7.2 30.4

Costa Rica 36.7 -1.7 27.1 35.8 -4.2 25.8

Czech Republic 20.6 -7.2 12.7 16.3 -15.3 7.4

Denmark 21.9 -12.6 12.5 31.3 5.7 24.1

Estoniaa 25.8 0.0 3.4 25.8 0.0 3.4

Finland 12.3 -26.3 1.8 33.8 13.8 28.0

France 21.2 -27.4 9.1 36.5 7.9 28.8

Germany 27.5 -16.6 16.5 34.5 0.3 25.6

Greece 27.6 -1.1 19.6 28.6 0.5 20.8

Hungary 13.1 0.9 9.2 18.6 8.0 15.2

Iceland 17.7 -15.3 8.5 37.2 19.2 31.9

Ireland 14.2 -3.5 8.7 23.2 9.2 18.8

Israel 28.8 -1.2 20.6 36.7 13.8 30.2

Italy 28.7 2.4 21.3 28.0 1.0 20.4

Japan 43.1 14.0 35.5 44.7 17.4 37.4

Korea 18.8 -42.0 4.5 24.7 -25.1 12.5

Latviaa 25.8 0.0 3.4 37.7 20.1 22.3

Lithuania 10.7 -14.4 3.3 27.4 11.5 22.5

Luxembourg 15.3 -39.1 1.9 30.9 -1.8 22.1

Mexico 36.7 -1.7 27.1 29.7 -21.3 17.6

Netherlands 26.7 -13.6 16.3 30.3 -5.2 21.0

New Zealand 35.0 -0.4 25.8 33.0 -5.2 23.2

Norway 25.0 -6.4 16.3 24.5 -7.3 15.8

Poland 16.0 -0.9 10.8 21.3 6.4 16.6

Portugal -40.5 -42.3 -41.1 -26.9 -28.4 -27.4

Slovak Republic 17.6 -18.5 7.8 22.0 -9.9 13.2

Slovenia 16.1 -15.5 7.2 19.1 -10.0 10.8

Spain 28.4 -7.2 19.0 27.4 -9.6 17.7

Sweden 18.3 -16.0 8.8 23.4 -6.1 15.1

Switzerland 19.8 -14.9 10.3 18.2 -18.2 8.3

Turkey -62.6 -20.1 -44.7 -49.7 -12.9 -34.3

United Kingdom 2.6 -32.1 -7.3 43.6 30.6 39.6

United States 21.7 -6.4 13.7 44.1 27.2 39.2

OECD Average 20.0 -11.6 11.9 33.6 10.2 27.5

OECD Average Excl. U.S. 19.1 -14.3 10.9 28.0 1.1 21.3

G-7 Average 23.2 -10.0 14.2 41.5 19.9 35.4

G-7 Average Excl. U.S. 24.7 -13.9 14.7 38.6 12.2 31.5

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

Treasury Office of Tax Analysis

October, 2023

3 

Table 2. 2022 OECD Effective Marginal Tax Rates (in Percent) at the Corporate Level, Cont’d. 

Acquired Patents Inventories

New Equity 

and Retained 

Earnings

Debt Overall 

Average 

New Equity 

and Retained 

Earnings

Debt Overall 

Average 

Australia 45.3 18.8 38.2 37.4 0.0 27.9

Austria 29.0 -5.9 19.7 25.0 -15.0 14.6

Belgium 7.1 -63.4 -9.4 25.0 -15.0 14.6

Canada 22.0 -26.9 9.9 33.1 0.0 24.3

Chile 15.4 2.6 11.3 19.5 8.0 15.8

Colombia 29.1 -56.4 12.3 43.5 0.0 33.4

Costa Rica 24.1 -38.7 9.8 37.4 0.0 27.9

Czech Republic 22.3 -4.1 14.7 24.6 0.0 17.5

Denmark 7.1 -46.3 -6.5 28.2 0.0 20.3

Estoniaa 25.8 0.0 3.4 25.8 0.0 3.4

Finland 23.4 -4.4 15.6 25.8 0.0 18.4

France 20.5 -29.3 8.1 32.6 0.0 24.0

Germany 24.0 -26.1 11.7 29.8 -10.8 19.5

Greece 25.7 -5.0 17.2 28.2 0.0 20.3

Hungary 12.0 -0.5 8.0 14.8 3.2 11.1

Iceland 15.6 -19.4 6.0 25.8 0.0 18.4

Ireland 14.9 -2.5 9.5 16.6 0.0 11.4

Israel 23.8 -11.6 14.3 29.4 0.0 21.3

Italy 6.3 -45.0 -6.9 23.1 -8.4 14.4

Japan 42.4 12.3 34.5 46.9 22.4 40.3

Korea 26.4 -20.3 14.9 27.5 -17.5 16.3

Latviaa 25.8 0.0 3.4 25.8 0.0 3.4

Lithuania 6.5 -21.4 -1.7 15.0 -7.4 8.3

Luxembourg 19.8 -27.6 7.8 24.9 -15.0 14.6

Mexico 28.2 -25.6 15.6 37.4 0.0 27.9

Netherlands 29.9 -6.2 20.4 25.8 -15.8 15.1

New Zealand 42.9 17.3 36.0 35.1 0.0 26.0

Norway 25.7 -5.0 17.2 28.2 0.0 20.3

Poland 4.5 -18.0 -2.3 9.8 -10.1 3.7

Portugal -7.3 -8.4 -7.7 0.9 0.0 0.6

Slovak Republic 16.5 -20.9 6.3 27.0 0.0 19.4

Slovenia 22.3 -4.1 14.7 24.6 0.0 17.5

Spain 29.0 -5.9 19.7 31.7 0.0 23.2

Sweden 16.8 -18.9 7.0 25.8 -1.1 18.2

Switzerland 15.7 -23.5 5.1 21.9 -10.6 12.9

Turkey -31.0 -1.9 -19.1 -27.8 0.0 -16.5

United Kingdom 22.3 -4.1 14.7 24.6 0.0 17.5

United States 36.0 13.2 29.5 29.0 -0.3 20.9

OECD Average 26.3 -5.2 18.2 27.7 -0.9 20.2

OECD Average Excl. U.S. 21.2 -14.9 12.3 27.1 -1.2 19.8

G-7 Average 30.8 -1.1 22.3 31.0 0.8 22.8

G-7 Average Excl. U.S. 25.2 -16.4 14.6 33.1 2.0 24.8

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

Treasury Office of Tax Analysis

October, 2023

4 

Table 2. 2022 OECD Effective Marginal Tax Rates (in Percent) at the Corporate Level, Cont’d.

Financial Assets

New Equity 

and Retained 

Earnings

Debt Overall 

Average 

Australia 37.4 0.0 27.9

Austria 31.7 0.0 23.2

Belgium 31.7 0.0 23.2

Canada 33.1 0.0 24.3

Chile 13.4 0.0 9.1

Colombia 43.5 0.0 33.4

Costa Rica 37.4 0.0 27.9

Czech Republic 24.6 0.0 17.5

Denmark 25.2 -5.9 16.7

Estoniaa 25.8 0.0 3.4

Finland 25.8 0.0 18.4

France 32.6 0.0 24.0

Germany 37.2 6.5 29.0

Greece 28.2 0.0 20.3

Hungary 12.1 0.0 8.2

Iceland 25.8 0.0 18.4

Ireland 31.7 0.0 23.2

Israel 29.4 0.0 21.3

Italy 26.4 0.0 18.9

Japan 46.9 22.4 40.3

Korea 34.6 0.0 25.6

Latviaa 25.8 0.0 3.4

Lithuania 19.7 0.0 13.8

Luxembourg 31.6 0.0 23.1

Mexico 37.4 0.0 27.9

Netherlands 32.6 0.0 23.9

New Zealand 35.1 0.0 26.0

Norway 28.2 0.0 20.3

Poland 16.7 0.0 11.5

Portugal 0.9 0.0 0.6

Slovak Republic 27.0 0.0 19.4

Slovenia 24.6 0.0 17.5

Spain 31.7 0.0 23.2

Sweden 26.5 0.0 19.0

Switzerland 27.3 0.0 19.7

Turkey -27.8 0.0 -16.5

United Kingdom 24.6 0.0 17.5

United States 32.6 6.9 25.4

OECD Average 30.4 4.6 23.5

OECD Average Excl. U.S. 29.3 3.4 22.5

G-7 Average 33.8 6.9 26.4

G-7 Average Excl. U.S. 35.2 6.9 27.5

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

Notes: EMTRs = effective marginal tax rates. The EMTRs shown include real estate taxes and net wealth taxes on corporations.

a. Estonia (since 2000) and Latvia (since 2018) have split-rate tax systems. In the absence of real estate and net wealth taxes, this 

means that the EMTR on retained earnings is 0 percent while the EMTR on new equity is 25.8 percent. For all other OECD 

countries, the EMTR on retained earnings equals the EMTR on new equity.
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

5 

Table 3. 2022 OECD Effective Average Tax Rates (in Percent) at the Corporate Level

Machinery Industrial Buildings

New Equity 

and Retained 

Earnings

Debt Overall 

Average 

New Equity 

and Retained 

Earnings

Debt Overall 

Average 

Australia 28.7 18.3 25.1 29.0 18.6 25.4

Austria 25.3 16.6 22.3 25.9 17.2 22.8

Belgium 23.9 15.2 20.8 31.6 22.8 28.5

Canada 21.0 13.6 18.4 33.3 24.0 30.0

Chile 13.9 10.4 12.7 15.0 11.5 13.8

Colombia 38.8 26.4 34.5 38.1 25.7 33.8

Costa Rica 32.7 22.2 29.0 32.3 21.8 28.6

Czech Republic 19.5 12.9 17.2 18.2 11.6 15.9

Denmark 22.0 14.3 19.3 25.4 17.7 22.7

Estoniaa 22.0 15.0 15.7 22.0 15.0 15.7

Finland 17.8 10.8 15.4 25.2 18.2 22.8

France 24.4 15.4 21.2 30.0 21.0 26.9

Germany 29.0 19.9 25.8 31.6 22.4 28.4

Greece 23.9 16.3 21.3 24.3 16.6 21.6

Hungary 11.7 8.5 10.6 13.4 10.3 12.3

Iceland 19.3 12.3 16.9 26.8 19.8 24.4

Ireland 13.0 8.6 11.5 16.0 11.6 14.4

Israel 25.0 17.0 22.2 28.4 20.3 25.6

Italy 27.9 21.1 25.5 27.6 20.8 25.2

Japan 35.6 25.2 32.0 36.5 26.0 32.8

Korea 24.8 15.3 21.5 26.6 17.0 23.2

Latviaa 22.0 15.0 15.7 27.1 20.0 20.7

Lithuania 13.8 8.6 12.0 19.3 14.0 17.4

Luxembourg 22.1 13.4 19.1 27.1 18.4 24.0

Mexico 32.7 22.2 29.0 29.9 19.4 26.2

Netherlands 26.1 17.1 23.0 27.4 18.4 24.3

New Zealand 30.7 20.9 27.3 29.8 20.1 26.4

Norway 23.0 15.3 20.3 22.8 15.2 20.2

Poland 18.1 14.1 16.7 19.7 15.6 18.3

Portugal 18.7 18.5 18.6 20.0 19.8 19.9

Slovak Republic 20.0 12.7 17.4 21.3 14.0 18.7

Slovenia 18.1 11.5 15.8 19.0 12.4 16.7

Spain 26.2 17.5 23.1 25.8 17.1 22.8

Sweden 19.9 12.7 17.4 21.5 14.3 19.0

Switzerland 19.7 12.1 17.0 19.2 11.6 16.6

Turkey 9.8 14.0 11.3 10.9 15.1 12.3

United Kingdom 14.8 9.3 12.9 29.9 23.2 27.5

United States 24.5 18.2 22.3 34.0 26.3 31.3

OECD Average 24.8 17.6 22.2 30.0 22.2 27.3

OECD Average Excl. U.S. 24.9 17.3 22.2 27.9 20.1 25.1

G-7 Average 25.6 18.3 23.1 33.0 24.8 30.1

G-7 Average Excl. U.S. 26.8 18.4 23.9 31.9 23.1 28.9

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

Treasury Office of Tax Analysis

October, 2023

6 

Table 3. 2022 OECD Effective Average Tax Rates (in Percent) at the Corporate Level, Cont’d.

Acquired Patents Inventories

New Equity 

and Retained 

Earnings

Debt Overall 

Average 

New Equity 

and Retained 

Earnings

Debt Overall 

Average 

Australia 37.0 26.5 33.3 32.9 22.5 29.3

Austria 26.4 17.7 23.4 25.0 16.3 22.0

Belgium 20.2 11.5 17.1 25.0 16.3 22.0

Canada 24.9 15.7 21.7 28.8 19.7 25.6

Chile 11.6 8.1 10.4 12.9 9.5 11.7

Colombia 33.3 20.9 29.0 39.1 26.7 34.8

Costa Rica 28.1 17.6 24.4 32.9 22.5 29.3

Czech Republic 20.1 13.5 17.8 20.9 14.3 18.5

Denmark 18.0 10.3 15.3 24.2 16.5 21.5

Estoniaa 22.0 15.0 15.7 22.0 15.0 15.7

Finland 21.1 14.2 18.7 22.0 15.0 19.5

France 24.2 15.2 21.0 28.4 19.4 25.2

Germany 27.9 18.7 24.7 29.8 20.7 26.6

Greece 23.2 15.6 20.6 24.2 16.5 21.5

Hungary 11.3 8.2 10.2 12.2 9.0 11.1

Iceland 18.7 11.7 16.3 22.0 15.0 19.5

Ireland 13.2 8.9 11.7 13.7 9.4 12.2

Israel 23.3 15.2 20.5 25.3 17.3 22.5

Italy 21.8 15.0 19.4 26.0 19.5 23.7

Japan 35.2 24.8 31.6 37.8 27.4 34.2

Korea 27.1 17.6 23.8 27.5 17.9 24.2

Latviaa 22.0 15.0 15.7 22.0 15.0 15.7

Lithuania 12.7 7.5 10.9 15.0 9.8 13.2

Luxembourg 23.3 14.6 20.3 24.9 16.3 21.9

Mexico 29.4 18.9 25.7 32.9 22.5 29.3

Netherlands 27.2 18.3 24.1 25.8 16.8 22.7

New Zealand 34.5 24.8 31.1 30.7 21.0 27.3

Norway 23.2 15.6 20.6 24.2 16.5 21.5

Poland 15.2 11.2 13.8 16.4 12.4 15.0

Portugal 22.5 22.3 22.4 23.8 23.6 23.7

Slovak Republic 19.6 12.3 17.1 23.1 15.8 20.5

Slovenia 20.1 13.5 17.8 20.9 14.3 18.5

Spain 26.4 17.7 23.4 27.5 18.8 24.4

Sweden 19.5 12.3 17.0 22.6 15.4 20.0

Switzerland 18.5 10.9 15.8 20.4 12.8 17.7

Turkey 12.7 16.9 14.2 13.1 17.3 14.5

United Kingdom 20.1 13.5 17.8 20.9 14.3 18.5

United States 29.8 22.2 27.1 26.9 19.3 24.3

OECD Average 26.7 19.0 24.0 27.0 19.3 24.3

OECD Average Excl. U.S. 25.1 17.3 22.3 27.0 19.2 24.3

G-7 Average 28.4 20.2 25.5 28.2 20.1 25.4

G-7 Average Excl. U.S. 26.8 18.1 23.8 29.6 20.9 26.5

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

Treasury Office of Tax Analysis

October, 2023

7 

Table 3. 2022 OECD Effective Average Tax Rates (in Percent) at the Corporate Level, Cont’d.

Financial Assets

New Equity 

and Retained 

Earnings

Debt Overall 

Average 

Australia 32.9 22.5 29.3

Austria 27.5 18.8 24.4

Belgium 27.5 18.8 24.4

Canada 28.8 19.7 25.6

Chile 11.0 7.5 9.8

Colombia 39.1 26.7 34.8

Costa Rica 32.9 22.5 29.3

Czech Republic 20.9 14.3 18.5

Denmark 23.1 15.4 20.4

Estoniaa 22.0 15.0 15.7

Finland 22.0 15.0 19.5

France 28.4 19.4 25.2

Germany 32.8 23.6 29.5

Greece 24.2 16.5 21.5

Hungary 9.9 6.8 8.8

Iceland 22.0 15.0 19.5

Ireland 27.5 18.8 24.4

Israel 25.3 17.3 22.5

Italy 24.8 18.0 22.4

Japan 37.8 27.4 34.2

Korea 30.2 20.6 26.8

Latviaa 22.0 15.0 15.7

Lithuania 16.5 11.3 14.6

Luxembourg 27.4 18.7 24.3

Mexico 32.9 22.5 29.3

Netherlands 28.3 19.4 25.2

New Zealand 30.7 21.0 27.3

Norway 24.2 16.5 21.5

Poland 18.3 14.3 16.9

Portugal 23.8 23.6 23.7

Slovak Republic 23.1 15.8 20.5

Slovenia 20.9 14.3 18.5

Spain 27.5 18.8 24.4

Sweden 22.6 15.5 20.1

Switzerland 22.3 14.7 19.7

Turkey 13.1 17.3 14.5

United Kingdom 20.9 14.3 18.5

United States 28.3 20.7 25.7

OECD Average 27.9 20.2 25.2

OECD Average Excl. U.S. 27.7 19.9 25.0

G-7 Average 29.2 21.0 26.3

G-7 Average Excl. U.S. 30.1 21.3 27.0

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

Notes: EATRs = effective average tax rates. The EATRs shown include real estate taxes and net wealth taxes on corporations.

a. Estonia (since 2000) and Latvia (since 2018) have split-rate tax systems. In the absence of real estate and net wealth taxes, this 

means that the EATR on retained earnings is 15 percent while the EATR on new equity is 22 percent. For all other OECD 

countries, the EATR on retained earnings equals the EATR on new equity.
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

8 

Table 4. 2022 OECD Overall Effective Tax Rates (in Percent) 

Combined

Statutory 

Corporate Tax 

Rate

PDV of Depreciation Overall Effective Tax 

Rates (Corporate Level)

Machinery Industrial 

Buildings

Acquired 

Patents EMTRs EATRs 

Australia 30.0 81.5 46.2 52.6 25.4 28.5

Austria 25.0 76.7 39.3 69.9 17.6 22.8

Belgium 25.0 81.8 52.6 94.4 10.6 21.0

Canada 26.2 95.4 60.4 80.5 12.9 22.4

Chile 10.0 60.3 32.9 79.2 9.7 9.9

Colombia 35.7 69.9 32.9 81.8 28.1 33.0

Costa Rica 30.0 69.9 27.3 81.8 23.7 27.9

Czech Republic 19.0 75.4 52.3 69.9 13.9 17.5

Denmark 22.0 77.9 46.2 93.4 11.4 19.0

Estonia 20.0 0.0 0.0 0.0 3.4 15.7

Finland 20.0 87.6 49.6 69.9 12.8 17.9

France 25.8 82.8 52.6 81.8 15.5 22.8

Germany 29.8 80.2 38.0 81.8 19.7 26.7

Greece 22.0 69.9 46.2 69.9 17.6 20.7

Hungary 11.1 73.2 22.1 73.2 9.2 10.3

Iceland 20.0 80.9 57.6 81.8 11.7 17.6

Ireland 12.5 74.4 46.2 69.9 12.1 14.1

Israel 23.0 69.9 52.6 74.4 17.4 21.3

Italy 27.8 71.9 44.7 90.3 12.8 22.8

Japan 29.7 75.7 34.3 74.4 29.5 29.6

Korea 27.5 86.4 52.6 76.7 14.8 23.8

Latvia 20.0 0.0 0.0 0.0 3.4 15.7

Lithuania 15.0 84.9 77.9 90.4 4.7 12.3

Luxembourg 24.9 82.0 46.2 81.8 12.3 21.3

Mexico 30.0 69.9 52.6 77.5 22.5 27.6

Netherlands 25.8 76.7 32.9 69.9 18.7 23.6

New Zealand 28.0 69.3 22.0 52.6 27.7 27.9

Norway 22.0 73.8 36.0 69.9 17.6 20.7

Poland 19.0 69.9 32.9 81.8 6.1 15.6

Portugal 31.5 83.4 52.6 69.9 -14.5 21.5

Slovak Republic 21.0 82.1 52.6 81.8 12.4 18.5

Slovenia 19.0 81.8 38.0 69.9 13.7 17.5

Spain 25.0 73.5 38.0 69.9 20.1 23.5

Swedena 20.6 80.9 46.2 80.9 12.7 18.4

Switzerland 19.7 80.9 53.0 84.9 10.4 17.1

Turkey 23.0 81.5 46.2 67.4 -26.5 13.2

United Kingdom 19.0 97.5 38.0 69.9 11.5 16.9

United States 25.8 93.6 33.5 60.3 19.1 23.7

OECD Average 25.7 84.4 39.9 70.7 16.4 23.1

OECD Average Excl. U.S. 25.7 79.4 43.2 76.1 14.9 22.8

G-7 Average 26.3 88.3 37.8 69.4 18.9 24.0

G-7 Average Excl. U.S. 26.9 82.5 42.3 79.1 18.6 24.4

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

October, 2023

9 

Table 5. 2022 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 0.2500 0.0000 0.0000 0.2500

Canada 0.1500 0.0000 0.1121 0.2621

Chile 0.1000 0.0000 0.0000 0.1000

Colombia 0.3500 0.0000 0.0100 0.3565

Costa Rica 0.3000 0.0000 0.0000 0.3000

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

France 0.2500 0.0330 0.0000 0.2583

Germanyb 0.1500 0.0550 0.1401 0.2983

Greece 0.2200 0.0000 0.0000 0.2200

Hungaryc,k 0.0900 0.0000 0.0230 0.1109

Iceland 0.2000 0.0000 0.0000 0.2000

Irelandk 0.1250 0.0000 0.0000 0.1250

Israel 0.2300 0.0000 0.0000 0.2300

Italyd,k 0.2400 0.0000 0.0381 0.2781

Japane 0.2320 0.1730 0.0347 0.2974

Koreaf 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

Luxembourgg 0.1700 0.0700 0.0675 0.2494

Mexico 0.3000 0.0000 0.0000 0.3000

Netherlands 0.2580 0.0000 0.0000 0.2580

New Zealand 0.2800 0.0000 0.0000 0.2800

Norway 0.2200 0.0000 0.0000 0.2200

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

Swedenh 0.2060 0.0000 0.0000 0.2060

Switzerlandi 0.0850 0.0000 0.1282 0.1965

Turkey 0.2300 0.0000 0.0000 0.2300

United Kingdom 0.1900 0.0000 0.0000 0.1900

United Statesj 0.2100 0.0000 0.0609 0.2581
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

10 

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

Handbook 2022

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

distributed.

b. 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 200,000 are not deductible from the local trade tax base.

c. 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. 

d. 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.

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

inhabitant tax, and the local enterprise tax.

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

deductible for corporate income tax purposes. 

g. 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.

h. Sweden imposes a flat 20.6 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 100 percent of the 

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

i. The local profits tax rate is obtained by multiplying a basic rate of 7.0 percent for the canton of 

Zurich by the sum of a cantonal coefficient (0.99), a municipal coefficient (1.19), and a parish 

coefficient (0.10) for the city of Zurich.

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

income for corporate debt. Beginning in 2022, adjusted taxable income is computed as earnings 

before interest and tax (EBIT). Using the nonpublic IRS corporate study tax file, the average Ccorporation disallowance share (or the share of interest paid that cannot be deducted) for all industries 

is calculated to be 15.4 percent from 2022.

k. The combined corporate statutory tax rate does not apply to financial assets in Hungary, Ireland, 

and Italy. In Hungary and Italy, only the central government corporate tax rate applies. In Ireland, 

nontrading income is subject to a 25 percent corporate income tax rate.
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

11 

Table 6. 2022 Real Estate and Net Wealth Tax Rates for Corporations 

Real Estate Tax Effectivea Net Wealth Tax

Nominal Effectivea Machinery Buildings Patents Inventories

Australia 0.0000 0.0000

Austria 0.0025 0.0019

Belgium 0.0205 0.0154

Canada 0.0243 0.0180

Chileb 0.0060 0.0054 0.0038 0.0038 0.0038 0.0038

Colombia 0.0050 0.0034

Costa Rica 0.0025 0.0018

Czech Republic 0.0006 0.0005

Denmark 0.0100 0.0078

Estonia 0.0000 0.0000

Finland 0.0147 0.0117

Francec 0.0054 0.0040 0.0000 0.0069 0.0000 0.0000

Germany 0.0048 0.0033

Greece 0.0058 0.0057

Hungary 0.0034 0.0030

Iceland 0.0160 0.0160

Ireland 0.0084 0.0074

Israel 0.0167 0.0129

Italy 0.0058 0.0044

Japand 0.0170 0.0119 0.0098 0.0000 0.0098 0.0098

Korea 0.0018 0.0013

Latvia 0.0150 0.0120

Lithuania 0.0150 0.0128

Luxembourg 0.0075 0.0056

Mexico 0.0044 0.0031

Netherlands 0.0027 0.0020

New Zealand 0.0000 0.0000

Norway 0.0016 0.0012

Poland 0.0068 0.0055

Portugal 0.0032 0.0022

Slovak Republic 0.0037 0.0029

Slovenia 0.0000 0.0000

Spain 0.0020 0.0015

Sweden 0.0038 0.0030

Switzerlande 0.0000 0.0000 0.0014 0.0014 0.0014 0.0014

Turkey 0.0020 0.0015

United Kingdom 0.0256 0.0207

United Statesf 0.0198 0.0147 0.0063 0.0000 0.0000 0.0021
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

12 

Sources: International Bureau of Fiscal Documentation Global Corporate Tax Handbook 2022, PwC Worldwide Tax 

Summaries, Spengel et al. (2021), various country-specific sources. Net wealth taxes are not assumed to apply to 

financial assets.

Spengel, Christoph, Frank Schmidt, Jost Heckemeyer, and Katharina Nicolay, 2021, “Project for the EU Commission, 

Effective Tax Levels Using the Devereux/Griffith Methodology,” TAXUD/2021/DE/303, Final Report 2021, available 

at https://taxation-customs.ec.europa.eu/system/files/2022-03/final_report_2021_effective_tax_levels_revised_en.pdf

(accessed January 20, 2023). 
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

13 

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 2022 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, inventories, patents, and financial assets. The city 

planning tax component of the municipal fixed assets tax is not assumed to apply to machinery, inventories, patents, 

and financial assets. 

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 (0.99) 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. (2021) 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.

Colombia: Property tax is a municipal tax and deductible for corporate income tax purposes. PwC Worldwide Tax 

Summaries indicates that property tax rates depend on the nature and usage of the property and range between 0.5

percent and 1.2 percent. 

Costa Rica: An annual property tax rate of 0.25 percent applies throughout Costa Rica. Property tax applies to the 

appraised or declared value of all land and permanent buildings.

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 0.93 percent and a maximum real 

estate tax rate of 2.0 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 2022, 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 
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

14 

assessed value, which Spengel, et al. (2021) 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 

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 2050/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 1.60 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 0.268 for 2022. Spengel, et al. (2021) 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 2022, 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 146.80, 108.91, and 88.39; the average of 

the three rates is 114.7. 

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

basic IMU rate is 0.86 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 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 68 percent of the 

acquisition cost. From 2022, 100 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. (2021) assume that the cadastral value equals the acquisition cost. 

Lithuania: An annual property tax on immovable property ranges from 0.5 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. (2021)).

Luxembourg: The real estate tax is based on the unitary value of real estate. 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. (2021) 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 3 

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 0.27 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 2022 is PLN 25.74/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 valued according to the IMI code. An average 

market value of 85 percent and an average IMI rate of 0.38 percent are assumed.
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

15 

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 four bands. The real estate tax for industrial buildings and 

warehouses is EUR 5.75/m2 for band 1, EUR 6/m2 for band 2, EUR 6.5/m2 for band 3, and EUR 7/m2 for band 4. The 

real estate tax for buildings used for other business activities is EUR 7/m2 for band 1, EUR 7.5/m2 for band 2, EUR

8.5 EUR/m2 for band 3, and 9 EUR/m2 for band 4. An average of real estate taxes for industrial buildings and other 

buildings is used.

Slovenia: Slovenia has no real estate tax.

Spain: For 2022, 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. (2021) 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 (2021), 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. (2021) 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 

2022, it is 51.2 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 July 2022 report is available at 

https://www.lincolninst.edu/publications/other/50-state-property-tax-comparison-study-2021, accessed January 20, 

2023.) Real and personal property tax rates and net tax amounts from Table 3a and Table 4a of the July 2022 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. 
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

16 

Table 7. 2022 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

Colombia 1.0000

Costa Rica 1.0000

Czech Republic 1.0000

Denmark 1.0000

Estoniaa ---

Finland 1.0000

France 1.0000

Germany 0.0000

Greece 1.0000

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 2022, 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.
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

17 

Table 8A. 2022 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) 7.00 4.00 

8.68 (SL)

Austria SL 14.29 7.00

Belgium SL 20.00 5.00

Canadaa,b DB 50.00 ufd 

Chile SL 6.67 15.00

Colombia SL 10.00 10.00

Costa Rica SL 10.00 10.00

Czech Republicd DB 10.00 10.00

Denmark DB 25.00 ufd

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

Finlandb DB 50.00 ufd

France DBSL 2.25 32.14 (DB) 7.00 4.00

7.07 (SL)

Germanyb DBSL 1.75 25.00 7.00 3.00

10.55

Greece SL 10.00 10.00

Hungary SL 50.00 2.00

Iceland DB 30.00 ufd

Ireland SL 12.50 8.00

Israel SL 10.00 10.00

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
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

18 

Table 8A. 2022 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)

Slovenia SL 20.00 5.00

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 Kingdomb 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. (2021), the Oxford University Centre for Business Taxation (2017), International Bureau of 

Fiscal Documentation Global Corporate Tax Handbook 2022, 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 2022, temporary stimulus measures are included for Germany, Finland, Canada, the United States, and the 

United Kingdom. Germany temporarily reintroduced the declining-balance method with enhanced depreciation rates 

for movable assets acquired after December 31, 2019 and before January 1, 2023; the enhanced depreciation rates are 

up to 2.5 times higher than the currently applicable depreciation rates, up to a maximum of 25 percent. For tax years 

2020 through 2023, Finland increased the rate of annual depreciation for any new machinery and equipment from 25

percent to 50 percent. In Canada, businesses can immediately expense 100 percent of qualifying assets (machinery 

and equipment used to manufacture goods) in the year they become available for use. One-hundred percent expensing 

is phased out beginning in 2024. In the United States, a first-year, bonus depreciation deduction is allowed for 

qualifying property (primarily machinery and equipment). For 2022, the bonus depreciation rate is 100 percent. The 

United Kingdom has introduced a “super-deduction” capital allowance that offers 130 percent first-year relief on 

qualifying new plant and machinery assets between April 2021 and March 2023. For Canada, the United States, and 

the United Kingdom, 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 

2022 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 January 20, 2023).
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

19 

Table 8B. 2022 Tax Depreciation for Industrial Buildings

Kind of Allowance Allowance Rate (in 

Percent)

Length of Period (in 

Years)

Australia SL 4.00 25.00

Austriaa SL 2.50 40.00

Belgium SL 5.00 20.00 

Canadab DB 10.00 ufd

Chile SL 2.50 40.00

Colombia SL 2.50 40.00

Costa Rica SL 2.00 50.00

Czech Republicc DB 3.33 30.00

Denmark SL 4.00 25.00

Estoniad --- --- ---

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

Latviad --- --- ---

Lithuania DB 25.00 ufd

Luxembourg SL 4.00 25.00

Mexico SL 5.00 20.00

Netherlands SL 2.50 40.00

New Zealand DB 2.00 ufd

Norway DB 4.00 ufd

Poland SL 2.50 40.00

Portugal SL 5.00 20.00

Slovak Republicc 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 3.00 33.33
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

20 

Table 8B. 2022 Tax Depreciation for Industrial Buildings, Cont’d.

Kind of Allowance Allowance Rate (in 

Percent)

Length of Period (in 

Years)

United Statesf SL 2.46 1.00

2.56 38.00

0.11 1.00

Sources: Spengel, et al. (2021), the Oxford University Centre for Business Taxation (2017), International 

Bureau of Fiscal Documentation Global Corporate Tax Handbook 2022, PwC Worldwide Tax Summaries, and

Ernst & Young Worldwide Corporate Tax Guide.

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

a. Austria has introduced accelerated depreciation for buildings acquired or constructed after June 2020. The 

depreciation rate in the first year of acquisition is 7.5 percent; the depreciation rate in the following year is 5 

percent. Thereafter, the applicable depreciation rate is 2.5 percent.

b. Depreciation is normally reduced by half in the first year (the half-year convention). However, for assets other 

than machinery, Canada’s Accelerated Investment Incentive (AII) suspends the half-year convention and allows 

businesses to deduct three times what can be deducted in the first year under the half-year convention. (For an 

asset with a DB rate of 10 percent, the first-year depreciation rate is 15 percent under AII.) The AII is phased out 

beginning in 2024 and does not apply after 2027.

c. 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.

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

e. 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 3 percent from April 2020. 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 midmonth convention, all property placed in service during a month is treated as placed in service at the mid-point 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. 
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

21 

Table 8C. 2022 Tax Depreciation for Acquired Patents

Kind of 

Allowance

Acceleration 

Factor 

Allowance Rate 

(in Percent)

Length of 

Period (in 

Years)

Optimal 

Switching 

Time (in 

Years)

Australia SL 5.00 20.00 

Austria SL 10.00 10.00

Belgiuma SL 20.00 5.00

Canadab DB 25.00 ufd

Chile SL 16.67 6.00

Colombia SL 20.00 5.00

Costa Rica SL 20.00 5.00

Czech Republic SL 10.00 10.00

Denmarkc SL 14.29 7.00

Estoniad --- --- ---

Finland SL 10.00 10.00

France SL 20.00 5.00

Germany SL 20.00 5.00

Greece SL 10.00 10.00

Hungary SL 50.00 2.00

Iceland SL 20.00 5.00

Ireland SL 10.00 10.00

Israel SL 12.50 8.00

Italy SL 50.00 2.00

Japan SL 12.50 8.00

Korea SL 14.29 7.00

Latviad --- --- ---

Lithuania DB 66.67 ufd

Luxembourg SL 20.00 5.00

Mexico SL 15.00 6.00

10.00 1.00

Netherlands SL 10.00 10.00

New Zealand SL 5.00 20.00

Norway SL 10.00 10.00

Poland SL 20.00 5.00

Portugal SL 10.00 10.00

Slovak Republic SL 20.00 5.00

Slovenia SL 10.00 10.00

Spain SL 10.00 10.00

Sweden DB 30.00 ufd

Switzerland DB 40.00 ufd
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

22 

Table 8C. 2022 Tax Depreciation for Acquired Patents, Cont’d.

Kind of 

Allowance

Acceleration 

Factor 

Allowance Rate 

(in Percent)

Length of 

Period (in 

Years)

Optimal 

Switching 

Time (in 

Years)

Turkey DBSL 2.00 13.33 (DB) 15.00 8.00

4.55 (SL)

United Kingdom SL 10.00 10.00

United States SL 6.67 15.00

Sources: Spengel, et al. (2021), the Oxford University Centre for Business Taxation (2017), International Bureau 

of Fiscal Documentation Global Corporate Tax Handbook 2022, PwC Worldwide Tax Summaries, and Ernst & 

Young Worldwide Corporate Tax Guide.

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

a. An additional special investment deduction of 13.5 percent applies in 2022. 

b. Depreciation is normally reduced by half in the first year (half-year convention). However, for assets other than 

machinery (including patents), Canada’s Accelerated Investment Incentive (AII) suspends the half-year convention 

and allows businesses to deduct three times what can be deducted in the first year under the half-year convention. 

(For an asset with a DB rate of 25 percent, the first-year depreciation rate is 37.5 percent under AII.) The AII is 

phased out beginning in 2024 and does not apply after 2027.

c. The acquisition cost of patents and acquired "know-how" may be deducted in the year of purchase or depreciated

over 7 years using the SL method.

d. Estonia and Latvia tax distributed profits instead of corporate income.
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

23 

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

 Financial Assets 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. (2021). 

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, acquired patents,

inventories, financial assets) 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.
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

24 

19.0

25.8

25.8

26.2

27.8

29.7

29.8

26.9

0 5 10 15 20 25 30 35

United Kingdom

United States

France

Canada

Italy

Japan

Germany

G-7 Average Excl. U.S.

Figure 1. 2022 Effective Statutory Corporate Tax Rate (in Percent)
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

25 

19.2

14.7

20.0

19.6

26.8

20.9

37.7

23.7

11.5

12.8

12.9

15.5

19.1

19.7

29.5

18.6

0 5 10 15 20 25 30 35 40

United Kingdom

Italy

Canada

France

United States

Germany

Japan

G-7 Average Excl.

U.S.

Figure 2. 2022 Overall G-7 Effective Marginal Tax Rates (in Percent)

Without Property Taxes and Net Wealth Taxes

With Property Taxes and Net Wealth Taxes
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

26 

19.1

24.3

23.9

23.3

26.1

27.0

32.9

26.0

16.9

22.4

22.8

22.8

23.7

26.7

29.6

24.4

0 5 10 15 20 25 30 35 40

United Kingdom

Canada

France

Italy

United States

Germany

Japan

G-7 Average Excl.

U.S.

Figure 3. 2022 Overall G-7 Effective Average Tax Rates (in Percent)

Without Property Taxes and Net Wealth Taxes

With Property Taxes and Net Wealth Taxes
U.S. Department of the 

Treasury Office of Tax Analysis

October, 2023

27