HC Deb 28 April 1975 vol 891 cc66-72W
Mr. Knox

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.

Dr. Gilbert

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
Australia … … … 30 30 30 25 25 30 35 35 35 35 35
Austria … … … 40 40 40 40 40 44 44 44 44 44 44
Belgium … … … 48.88 48.88 48.88 36.78 36.78 36.78 36.78 40 40 40 40
Canada … … … 40 40 30 30 33 38 45.6 49 47 47 45
Denmark(4) … … … — — — — — — — — — — —
Finland … … … 27 27 32 32 50 50 32 32 32 38 32
France … … … 24 24 24 28.8 24 34 34 34 36 38 41.8
Germany … … … 65 65 65 50 50 50 60 60 30/60 30/45 30/45
Greece(3) … … … — — — — — — — 30 — — 35
Iceland … … … — — — — — — — — — — —
Republic of Ireland (6) … … … 37.5 32.5 32.5 35 32.5 32.5 32.5 37.5 37.5 37.5 37.5
Italy(2) … … … — — — — 18 18 18 18 18 18 18
Japan … … … — — — — — — 35 42 42 — 40
Luxembourg … … … — — — 40 40 40 40 40 40 40 40
Nethrtlands … … … 33.33 33.33 33.33 — 36 40 52 52 46 46 43
New Zealand … … … 49⅚ 49⅚ 495⅚ 49⅚ 49⅚ 47⅔ 45½ 445/12 43⅓ 43⅓ 43⅓
Norway … … … — 15/22 15/22 20/27 20/27 20/30 20/30 30/40 30/40 30/40 30/40
Portugal … … … See Table 2
Spain … … … 1945–1950: 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.
Sweden … … … 32 32 40 40 40 40 40 40 40 40 40
Switzerland (1) … … … 1945–1958: % x rate which is ratio of taxable profit to capital and reserves, applied to taxable profit.
Turkey … … … — — — — — — — — — 23.5 —
United States of America … … … 40 38 38 38 38 42 50.75 52 52 52 52
united Kingdom(7) … … … 5 5 25 25 25 30 50 22½ 22½ 22½ 22½

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
Australia … … … 40 37.5 37.5 37.5 40 40 40 40 42.5 42.5 42.5
Austria … … … 44 44 44 44 44 44 44 44 44 44 44
Belgium … … … 40 40 40 40 40 40 40 30/35 30/35 30/35 30/35
Canada … … … 45 45 45 47 47 47 47 47 47 47 47
Denmark (4) … … … — — — — — — 44 44 44 44 44
Finland … … … 32 38 38 45 38 38 38 38 45 42/48 42/48
France … … … 45.6 45.6 50 50 50 50 50 50 50 50 50
Germany … … … 30/45 30/45 15/51 15/51 15/51 15/51 15/51 15/51 15/51 15/51 15/51
Greece (3) … … … — — — — — 35 35 35 35 35 35
Iceland … … … — — — — — — 20 20 20 20 20
Republic of Ireland … … … 37.5 37.5 37.5 35 35 31.67 31.67 31.67 31.67 31.67 35
Italy (2) … … … 18 18 18 20 20 20 24 24 24 25 25
Japan … … … 40 40 38 38 38 28/38 28/38 28/38 26/38 26/37 26/35
Luxembourg … … … 40 40 40 40 40 40 40 40 40 40 40
Netherlands … … … 43 47 47 47 47 47 47 45 45 45 47
New Zealand … … … 43⅓ 42½ 42½ 42½ 42½ 42½ 42½ 42½ 42½ 42½ 42½
Norway … … … 30/40 30/38 30/38 30/38 30/38 30 30 30 30 30 30
Portugal … … … 1951–1963: 35% of capital plus 6% of income less the Industrial Tax 1964–1967: 15% plus 8%
Spain … … … 1958–1963:30% on slice of income in excess of 4% of capital 30 30 30
Sweden … … … 45 50 50 50 50 40 40 40 40 40 40
Switzerland (1) … … … — — — 8 8 8 8 8 8 8 8
Turkey … … … — — — — — 36 36 36 36 36 36
United States of America … … … 52 52 52 52 52 52 52 52 50 48 48
United Kingdom (7) … … … 30 30 10 10 12½ 15 15 15 40 40 40

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
Australia … … … 42.5 45 45 47.5 47.5 47.5 47.5 45 —
Austria … … … 44 44/22 44/22 44/22 44/22 44/22 55/27½ 55/27½ 55/27½
Belgium … … … 30/35 30/35 30/35 30/35 30/35 30/35 30/35 42 48
Canada … … … 47 47 47 47 47 50 49 48 47
Denmark (4) … … … 44 36 36 36 36 36 36 37 —
Finland … … … 47/49 47/49 43 43 43 43 43 43 43
France … … … 50 50 50 50 50 50 50 50 50
Germany … … … 15/51 15/51 15/51 15/51 15/51 15/51 15/51 15/51 15/51
Greece (3) … … … 35 35 35 35 35 35 35 35 35
Iceland … … … 20 20 20 20 20 20 20 20 20
Republic of Ireland … … … 35 35 35 35 35 35 35 35 35
Italy (2) … … … 25 25 25 25 25 25 25 35 35
Japan … … … 26/35 26/35 26/35 26/36.75 26/36.75 26/36.75 26/36.75 28/40 30/40
Luxembourg … … … 40 40 40 45 40 40 40 40 40
Netherlands … … … 47 46 46 46 46 46 48 48 48
New Zealand … … … 42½ 42½ 50 50 45 45 45 45 —
Norway … … … 30 30 30 26.5 (3) 26.5 (3) 26.5 (3) 26.5 (3) 26.5 (3) —
Portugal … … … 1968 and 1969: 18% plus 8% 1970–1975: 15% plus 8%
Spain … … … 30 30 30 30 30 30 30 30 30
Sweden … … … 40 40 40 40 40 40 40 40 40
Switzerland (1) … … … 8 8 8 8 8 8 8 8 8
Turkey … … … 36 36 40 40 40 40 40 40 40
United States of America … … … 48 48 48 48 48 48 48 48 48
United Kingdom (7) … … … 42.5 45 42.5 40 40 40 52 52 —
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.

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