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Corporation Tax

Volume 891: debated on Monday 28 April 1975

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asked the Chancellor of the Exchequer if he will publish in the Official Report a table showing for each member country of the OECD the rate of corporation tax or its equivalent for each year since 1945.

The information is set out in the table below. Nominal rates are, however, a misleading guide to the comparative weight of company taxation in different countries. Rates differ according to the system of corporation tax in force; and the actual burden of tax depends on a number of other factors, such as the generosity or otherwise of depreciation provisions, and differences in tax rules and accounting standards.

TABLE 1 (%)

1945–46

1946–47

1947–48

1948–49

1949–50

1950–51

1951–52

1952–53

1953–54

1954–55

1955–56

1945

1946

1947

1948

1949

1950

1951

1952

1953

1954

1955

Australia3030302525303535353535
Austria4040404040444444444444
Belgium48·8848·8848·8836·7836·7836·7836·7840404040
Canada40403030333845.649474745
Denmark(4)
Finland2727323250503232323832
France24242428·824343434363841·8
Germany656565505050606030/6030/4530/45
Greece(3)3035
Iceland
Republic of Ireland (6)37·532·532·53532·532·532·537·537·537·537·5
Italy(2)18181818181818
Japan35424240
Luxembourg4040404040404040
Nethrtlands33·3333·3333·3336405252464643
New Zealand49⅚49⅚495⅚49⅚49⅚47⅔45½445/1243⅓43⅓43⅓
Norway15/2215/2220/2720/2720/3020/3030/4030/4030/4030/40
Portugal See Table 2
Spain1945–1950: 15% of capital plus 25% on income in excess of 15% of capital.1955–1957: 37% on slice of income in excess of 15% of capital.
Sweden3232404040404040404040
Switzerland (1)1945–1958: % x rate which is ratio of taxable profit to capital and reserves, applied to taxable profit.
Turkey23·5
United States of America40383838384250·7552525252
united Kingdom(7)55252525305022½22½22½22½

TABLE 2(%)

1956–57

1957–58

1958–59

1959–60

1960–61

1961–62

1962–63

1963–64

1964–65

1965–66

1966–67

1956

1957

1958

1959

1960

1961

1962

1963

1964

1965

1966

Australia4037·537·537·54040404042·542·542·5
Austria4444444444444444444444
Belgium4040404040404030/3530/3530/3530/35
Canada4545454747474747474747
Denmark (4)4444444444
Finland32383845383838384542/4842/48
France45·645·6505050505050505050
Germany30/4530/4515/5115/5115/5115/5115/5115/5115/5115/5115/51
Greece (3)353535353535
Iceland2020202020
Republic of Ireland37·537·537·5353531·6731·6731·6731·6731·6735
Italy (2)1818182020202424242525
Japan404038383828/3828/3828/3826/3826/3726/35
Luxembourg4040404040404040404040
Netherlands4347474747474745454547
New Zealand43⅓42½42½42½42½42½42½42½42½42½42½
Norway30/4030/3830/3830/3830/38303030303030
Portugal1951–1963: 35% of capital plus 6% of income less the Industrial Tax1964–1967: 15% plus 8%
Spain1958–1963:30% on slice of income in excess of 4% of capital303030
Sweden4550505050404040404040
Switzerland (1)88888888
Turkey363636363636
United States of America5252525252525252504848
United Kingdom (7)3030101012½151515404040

TABLE 3 (%)

1967–68

1968–69

1969–70

1970–71

1971–72

1972–73

1973–74

1974–75

1975–76

1967

1968

1969

1970

1971

1972

1973

1974

1975

Australia42·5454547·547·547·547·545
Austria4444/2244/2244/2244/2244/2255/27½55/27½55/27½
Belgium30/3530/3530/3530/3530/3530/3530/354248
Canada474747474750494847
Denmark (4)4436363636363637
Finland47/4947/4943434343434343
France505050505050505050
Germany15/5115/5115/5115/5115/5115/5115/5115/5115/51
Greece (3)353535353535353535
Iceland202020202020202020
Republic of Ireland353535353535353535
Italy (2)252525252525253535
Japan26/3526/3526/3526/36·7526/36·7526/36·7526/36·7528/4030/40
Luxembourg404040454040404040
Netherlands474646464646484848
New Zealand42½42½505045454545
Norway30303026·5 (3)26·5 (3)26·5 (3)26·5 (3)26·5 (3)
Portugal1968 and 1969: 18% plus 8%1970–1975: 15% plus 8%
Spain303030303030303030
Sweden404040404040404040
Switzerland (1)888888888
Turkey363640404040404040
United States of America484848484848484848
United Kingdom (7)42·54542·54040405252

Notes:

(1) Federal taxes only.
(2) Up to 1973 described as Movable Wealth Tax. There was an additional company tax for the years 1955–1973 of 18 per cent. on income in excess of 6 per cent. of capital.
(3) On undistributed profits only.
(4) Prior to 1962–63 there was a rather complicated company tax system based on the ratio of income to paid up share capital.
(5) Rate charged on undistributed profits up to 10% of paid up capital and on distributed profits in excess of that.
(6) Rate of income tax. In addition Corporation Profits Tax is charged currently 7½ per cent. on first £2,500 and 23 per cent. on balance.
(7) Profits Tax rates 1945–1963; in addition income tax charged on company profits for those years. Non-distribution relief allowed 1947–1955.
Where two rates are shown the lower applies to distributed profits and the higher to undistributed profits.
Where no rate is shown no details are available.
Most countries also have local income taxes on business profits.