Highest and lowest taxes for businesses around the world

Taxes are one of the main factors that determine where businesses choose to invest and operate. According to recent studies, our country — Bulgaria — ranks among the European leaders in terms of low tax burden. Personal income tax (PIT) and corporate tax (CIT) are 10%, and for sole proprietors — 15%.
These levels significantly deviate from global peaks.

Highest tax burden

• Côte d’Ivoire: Individuals staying more than 183 days a year pay personal income tax in the range of 10-60% depending on income. Corporate tax is 25%, VAT — 18%.
• Finland: Personal income tax 12-57%, corporate income tax 20%, VAT 25.5%. Thanks to these revenues, the country offers comprehensive public services.
• Japan: For individuals, the tax reaches 56%, while VAT remains low — around 10%.
• Austria: Progressive personal income tax up to 55%, corporate income tax 23%. Supporting a model with free higher education and healthcare.
• Denmark: Again very high levels — personal income tax up to 55% and a total tax burden for households over 45%.

Lowest tax burden

• Antigua and Barbuda: A minimal tax regime for companies and individuals — popular with entrepreneurs and businesses.
• Bahrain: No personal income tax; corporate tax only applies to certain sectors (e.g. oil and gas).
• United Arab Emirates: One of the lowest corporate taxes (9%), which applies after reaching certain profits.
• Bahamas: Corporate tax only 3% of turnover; VAT between 0 and 12%.
• Monaco: Corporate tax 33%, VAT 20% — nevertheless remains a desirable jurisdiction among the business elite.

Business Perspectives and Strategic Implications

For an investment and entrepreneurial context, these data offer several key insights:

• Countries with high taxes often compensate with a high standard of public services — healthcare, education, infrastructure, which can mean higher initial costs, but also a stable environment.
• Countries with low taxes can offer a competitive advantage for business — higher after-tax profits, lower fixed costs, but there can also be trade-offs (e.g. weaker social/infrastructural base).
• For multinational companies, the choice of jurisdiction significantly influences the structure of tax planning and operating costs.

What does it mean for Bulgaria?

With a personal income tax rate of 10% and a corporate income tax rate of 10%, Bulgaria is in a favorable position to attract investment and develop companies with relatively low taxes. This can be an argument for potential investors and international companies looking for a favorable tax environment.

At the same time, however, it is important to consider additional factors — infrastructure, regulatory environment, workforce, social stability — which are significantly more developed in high-tax countries and can justify the higher tax burden.

TPA Bulgaria

+359 2 981 66 45/46/47

office@tpa-group.bg

128, G.S. Rakovski str, floor 2

1000 Sofia