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The tax cost of a new investment

Tax rates on paper do not show the whole cost of a new plant or machine. The OECD models a test project to compare 105 places.

Modeled effective average tax rates, 2025

Time covered: 2025

Canada
23.9%
Places shown
105
Bahamas: 0%Cayman Islands: 0%Guernsey: 0%Isle of Man: 0%Jersey: 0%Turks & Caicos Islands: 0%British Virgin Islands: 0%Mauritius: 5.7%Bulgaria: 9.1%Qatar: 9.1%Bosnia & Herzegovina: 9.2%North Macedonia: 9.3%Paraguay: 9.4%Andorra: 9.5%Liechtenstein: 10.2%Hungary: 10.3%Macao SAR China: 11.2%Cyprus: 11.4%Ireland: 12.4%Hong Kong SAR China: 14.3%Romania: 14.4%Serbia: 14.4%Lithuania: 14.6%Albania: 14.7%Poland: 15%Singapore: 16.1%Croatia: 16.2%Ukraine: 16.7%Latvia: 17%Armenia: 17.6%Vietnam: 18.1%Tunisia: 18.2%Switzerland: 18.4%Thailand: 18.4%Saudi Arabia: 18.6%Estonia: 18.7%Iceland: 18.8%Sweden: 19.5%Finland: 19.8%Slovenia: 20.1%Czechia: 20.3%Egypt: 20.7%Azerbaijan: 21%Greece: 21%Curaçao: 21.2%Norway: 21.4%Israel: 21.5%Denmark: 21.6%Indonesia: 21.6%Austria: 21.9%Slovakia: 22.1%United States: 22.1%Türkiye: 22.3%Luxembourg: 22.5%United Kingdom: 22.5%China: 23%Seychelles: 23.2%Spain: 23.3%Panama: 23.3%Ecuador: 23.3%Guatemala: 23.4%Belgium: 23.4%Malaysia: 23.4%Chile: 23.4%France: 23.6%Angola: 23.7%Canada: 23.9%India: 24%Jamaica: 24.2%Uruguay: 24.2%South Africa: 24.4%Netherlands: 24.5%Antigua & Barbuda: 24.7%South Korea: 24.9%Dominican Republic: 25.6%Eswatini: 25.7%Italy: 25.7%Bolivia: 26.6%Nigeria: 26.7%Germany: 26.8%Nicaragua: 26.9%New Zealand: 26.9%Kenya: 27.2%El Salvador: 27.5%Portugal: 27.5%Congo - Kinshasa: 27.6%Mexico: 27.6%Benin: 28%Costa Rica: 28.2%Honduras: 28.3%Montserrat: 28.3%Japan: 28.4%Australia: 28.5%Senegal: 28.6%Malta: 28.8%Peru: 29.2%Liberia: 29.7%Papua New Guinea: 30.1%Botswana: 31.3%Namibia: 31.4%Argentina: 32.4%Brazil: 32.5%Colombia: 32.9%Zambia: 42.1%Cameroon: 46.6%

Modeled effective average tax rate (%)

Each dot is one place in the source.

See every place

Shown from low to high · Modeled effective average tax rate (%)

050
  1. Bahamas0%
  2. Cayman Islands0%
  3. Guernsey0%
  4. Isle of Man0%
  5. Jersey0%
  6. Turks & Caicos Islands0%
  7. British Virgin Islands0%
  8. Mauritius5.7%
  9. Bulgaria9.1%
  10. Qatar9.1%
  11. Bosnia & Herzegovina9.2%
  12. North Macedonia9.3%
  13. Paraguay9.4%
  14. Andorra9.5%
  15. Liechtenstein10.2%
  16. Hungary10.3%
  17. Macao SAR China11.2%
  18. Cyprus11.4%
  19. Ireland12.4%
  20. Hong Kong SAR China14.3%
  21. Romania14.4%
  22. Serbia14.4%
  23. Lithuania14.6%
  24. Albania14.7%
  25. Poland15%
  26. Singapore16.1%
  27. Croatia16.2%
  28. Ukraine16.7%
  29. Latvia17%
  30. Armenia17.6%
  31. Vietnam18.1%
  32. Tunisia18.2%
  33. Switzerland18.4%
  34. Thailand18.4%
  35. Saudi Arabia18.6%
  36. Estonia18.7%
  37. Iceland18.8%
  38. Sweden19.5%
  39. Finland19.8%
  40. Slovenia20.1%
  41. Czechia20.3%
  42. Egypt20.7%
  43. Azerbaijan21%
  44. Greece21%
  45. Curaçao21.2%
  46. Norway21.4%
  47. Israel21.5%
  48. Denmark21.6%
  49. Indonesia21.6%
  50. Austria21.9%
  51. Slovakia22.1%
  52. United States22.1%
  53. Türkiye22.3%
  54. Luxembourg22.5%
  55. United Kingdom22.5%
  56. China23%
  57. Seychelles23.2%
  58. Spain23.3%
  59. Panama23.3%
  60. Ecuador23.3%
  61. Guatemala23.4%
  62. Belgium23.4%
  63. Malaysia23.4%
  64. Chile23.4%
  65. France23.6%
  66. Angola23.7%
  67. Canada23.9%
  68. India24%
  69. Jamaica24.2%
  70. Uruguay24.2%
  71. South Africa24.4%
  72. Netherlands24.5%
  73. Antigua & Barbuda24.7%
  74. South Korea24.9%
  75. Dominican Republic25.6%
  76. Eswatini25.7%
  77. Italy25.7%
  78. Bolivia26.6%
  79. Nigeria26.7%
  80. Germany26.8%
  81. Nicaragua26.9%
  82. New Zealand26.9%
  83. Kenya27.2%
  84. El Salvador27.5%
  85. Portugal27.5%
  86. Congo - Kinshasa27.6%
  87. Mexico27.6%
  88. Benin28%
  89. Costa Rica28.2%
  90. Honduras28.3%
  91. Montserrat28.3%
  92. Japan28.4%
  93. Australia28.5%
  94. Senegal28.6%
  95. Malta28.8%
  96. Peru29.2%
  97. Liberia29.7%
  98. Papua New Guinea30.1%
  99. Botswana31.3%
  100. Namibia31.4%
  101. Argentina32.4%
  102. Brazil32.5%
  103. Colombia32.9%
  104. Zambia42.1%
  105. Cameroon46.6%

This table has the same values as the chart. You can scroll the table sideways.

Modeled effective average tax rates, 2025 · Modeled effective average tax rate (%)
PlaceName in the sourceTimeRate
BahamasBahamas20250
Cayman IslandsCayman Islands20250
GuernseyGuernsey20250
Isle of ManIsle of Man20250
JerseyJersey20250
Turks & Caicos IslandsTurks and Caicos Islands20250
British Virgin IslandsVirgin Islands, British20250
MauritiusMauritius20255.7496
BulgariaBulgaria20259.099
QatarQatar20259.1021
Bosnia & HerzegovinaBosnia and Herzegovina20259.2086
North MacedoniaNorth Macedonia20259.2996
ParaguayParaguay20259.4448
AndorraAndorra20259.5032
LiechtensteinLiechtenstein202510.1813
HungaryHungary202510.3099
Macao SAR ChinaMacau, China202511.15
CyprusCyprus202511.4014
IrelandIreland202512.3582
Hong Kong SAR ChinaHong Kong, China202514.2767
RomaniaRomania202514.4119
SerbiaSerbia202514.4366
LithuaniaLithuania202514.5867
AlbaniaAlbania202514.7325
PolandPoland202514.9999
SingaporeSingapore202516.0871
CroatiaCroatia202516.1526
UkraineUkraine202516.682
LatviaLatvia202517
ArmeniaArmenia202517.589
VietnamViet Nam202518.1352
TunisiaTunisia202518.1883
SwitzerlandSwitzerland202518.4235
ThailandThailand202518.4468
Saudi ArabiaSaudi Arabia202518.5915
EstoniaEstonia202518.7
IcelandIceland202518.7916
SwedenSweden202519.549
FinlandFinland202519.798
SloveniaSlovenia202520.1278
CzechiaCzechia202520.3061
EgyptEgypt202520.6806
AzerbaijanAzerbaijan202520.952
GreeceGreece202521.0481
CuraçaoCuraçao202521.1561
NorwayNorway202521.4152
IsraelIsrael202521.4706
DenmarkDenmark202521.5556
IndonesiaIndonesia202521.5573
AustriaAustria202521.9495
SlovakiaSlovak Republic202522.0949
United StatesUnited States202522.1434
TürkiyeTürkiye202522.326
LuxembourgLuxembourg202522.5432
United KingdomUnited Kingdom202522.5452
ChinaChina202523.0143
SeychellesSeychelles202523.2
SpainSpain202523.2942
PanamaPanama202523.3275
EcuadorEcuador202523.342
GuatemalaGuatemala202523.375
BelgiumBelgium202523.3931
MalaysiaMalaysia202523.424
ChileChile202523.4437
FranceFrance202523.6126
AngolaAngola202523.6819
CanadaCanada202523.8914
IndiaIndia202524.0027
JamaicaJamaica202524.2215
UruguayUruguay202524.2434
South AfricaSouth Africa202524.3822
NetherlandsNetherlands202524.4712
Antigua & BarbudaAntigua and Barbuda202524.6667
South KoreaKorea202524.8685
Dominican RepublicDominican Republic202525.5947
EswatiniEswatini202525.6988
ItalyItaly202525.7412
BoliviaBolivia202526.6376
NigeriaNigeria202526.7392
GermanyGermany202526.7791
NicaraguaNicaragua202526.8539
New ZealandNew Zealand202526.8593
KenyaKenya202527.1752
El SalvadorEl Salvador202527.4876
PortugalPortugal202527.5302
Congo - KinshasaCongo, The Democratic Republic of the202527.5763
MexicoMexico202527.6306
BeninBenin202528.0488
Costa RicaCosta Rica202528.2427
HondurasHonduras202528.2938
MontserratMontserrat202528.3017
JapanJapan202528.3627
AustraliaAustralia202528.4989
SenegalSenegal202528.6412
MaltaMalta202528.7996
PeruPeru202529.1652
LiberiaLiberia202529.747
Papua New GuineaPapua New Guinea202530.1372
BotswanaBotswana202531.3232
NamibiaNamibia202531.4204
ArgentinaArgentina202532.3522
BrazilBrazil202532.5273
ColombiaColombia202532.9277
ZambiaZambia202542.1212
CameroonCameroon202546.6018
Download the full comparison table ↓

The OECD’s model compares the tax cost of a new investment in 105 places. Canada is marked.

Checked:

Why this matters

We want it to cost less to build and grow a firm. Compare the rules on costs and tax breaks as well as headline rates.

What we want to change

Lower the tax cost of useful new work. Show the budget cost and test what changes after each reform.

Back a plan for change

Sources

  1. OECD · Corporate Tax Statistics 2026, figure 4.1 ↗

    Source released:

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The tax cost of a new investment

Tax rates on paper do not show the whole cost of a new plant or machine. The OECD models a test project to compare 105 places.

Keep the source, date and notes with the image.

Checked:

What this does not show: These are model results, not tax bills paid by firms. This chart uses effective average rates. Marginal rates test a different kind of project. Do not mix them or splice in Finance Canada’s separate model.

wakeupcanada.ca/en/data/taxes-on-new-investment/
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