Here’s what corporate tax rate looks like in different countries around the world

• Finance Minister Nirmala Sitharaman today announced a slash in corporate tax rates.
• A domestic company can pay income tax at 22% if they don’t seek any exemption.
• Sensex and Nifty saw their highest ever single day gain in 10 years.

The Indian government today announced a major cut in corporate taxes which saw the markets cheer.

Finance Minister Nirmala Sitharaman today announced that a domestic company can pay income tax at 22% if they don’t seek any exemption or incentives and inclusive of surcharge, the effective tax on Indian firms will be 25.17%.

The result of the decision was seen in the markets as Sensex and Nifty saw their highest ever single day gain in 10 years.

Earlier the corporate tax rate was fixed at 25% for companies with a gross turnover of less than ₹250 crores, while it was 30% for companies with a higher gross turnover.

This will have a positive impact on the Indian economy which has been in the midst of a slowdown.

What is Corporate Tax and how it differs across countries

Corporate Tax is a direct tax levied on the net income or profit that corporate enterprises make from their businesses.

Here are the effective corporate tax rates across different countries.