The 18 countries with the lowest tax rates in the world

When looking at where to locate themselves, international businesses pay a lot of attention to the tax rates in different countries. Governments also often compete to one-up each other on their business taxes.

The World Economic Forum’s recent global competitiveness report uses “total tax rate” as one measure of how competitive a country is, with lower figures being better.

The total tax rate is actually defined by the World Bank. Here’s how it works:

The total amount of taxes is the sum of five different types of taxes and contributions payable after accounting for deductions and exemptions: profit or corporate income tax, social contributions and labour taxes paid by the employer, property taxes, turnover taxes, and other small taxes.

So it includes any taxes on labour that fall on the employer, but not ones like income tax that fall on the employee.

Take a look at the countries with the very lowest rates in the world.

15. Canada: 21%. This is one of the few large, advanced economies that makes it into the upper ranks. The Canadian province Manitoba has a 0% corporation tax rate for small businesses.

Julian Finney/Getty Images

10. Singapore: 18.4%. With such low tax rates, many companies from around the world choose Singapore as a base for their Asian operations.

achresis khora, Wikipedia

9. Georgia: 16.4%. Since the end of the Soviet Union, Georgia is one of the states that had embraced a low tax model, repeatedly slashing the number of taxes and their rates.

(AP Photo/Seth Wenig)
Georgia's Prime Minister Irakli Garibashvili speaks during the 70th session of the United Nations General Assembly at U.N. headquarters, Thursday, Oct. 1, 2015.

7 (joint). Zambia: 14.8%. The mining hub recently raised royalties on open mines to 20%, before cutting it back to 9% following protests from major commodity companies.

Vadim Petrakov/Shutterstock
Victoria Falls, Zambia.

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