Companies' tax burden has remained stable in the past three years
The tax burden on companies has remained stable according to an OECD analysis in the past three years. The average rate was 21.1%, the Organization for Economic Co-operation and Development (OECD) announced on Thursday in Paris, after examining more than 160 countries. Previously, the rates had been falling for two decades - from 28% in the year 2000 to around 21% in 2021.
The global minimum tax for larger companies at 15% could have contributed to stabilization, according to the OECD. It was agreed upon by over 140 countries and is currently being implemented in some of them. However, it is being delayed in important economies such as the USA.
In Germany, the corporate tax rate is around 30%. Many economic associations consider this too high and have repeatedly called for a reduction to 25%, the level of many comparable countries. However, a majority for this within the parliament is not in sight. FDP and Union are generally in favor, while SPD and Greens are rather against it.
The OECD-Analysis suggests that the Tax burden on companies has remained stable despite the implemented global minimum tax for larger companies at 15%. Over the past years, this stability contrasts the decade-long decrease in company tax rates, as highlighted in the OECD's analysis.
The OECD's findings also reveal that despite the stability in tax burden, Companies in some countries, like Germany, continue to face high corporate tax rates, which have been a subject of debate among economic associations for years.
