Australia Has The Eighth Highest Corporate Tax Rate In The World

Photo: Shutterstock

Australian businesses are suffering from high employment costs and the eighth highest corporate tax rate in the world, a study has found.

Accounting firm UHY Haines Norton calculated taxes on corporate profits of US$100,000 (AUD$104,000), of which the Australian Taxation Office would claim 30 percent, compared with a global average of about 25 percent.

Japan had the highest corporate tax rate of countries studied, at 43.02 percent, while the US and Irish governments claimed 24.05 percent and 12.5 percent of corporate profits respectively.

Tax partner Michael Coughtrey said Australia’s relatively high tax rate put businesses at a disadvantage in the global market and could hinder economic growth.

Follow Business Insider Australia on Facebook and Twitter

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In

australian stories