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OECD TAX DATABASE EXPLANATORY ANNEX Part IITaxation of corporate and capital income Document updated September 2020
2Table of contents Part II Taxation of corporate and capital income 11 Table 2.1. Corporate income tax rates 4II.1. BELGIUM 4II.1. CANADA 5II.1. CHILE 5II.1. ESTONIA 5II.1. FRANCE 6II.1. GERMANY 7II.1. GREECE 8II.1. ISRAEL 11II.1. ITALY 11II.1. KOREA 17II.1. LATVIA 17II.1. LITHUANIA 18II.1. LUXEMBOURG 18II.1. MEXICO 18II.1. NETHERLANDS 19II.1. NORWAY 19II.1. POLAND 19II.1. SLOVAK REPUBLIC 20II.1. SLOVENIA 20II.1. SWITZERLAND 21II.1. TURKEY 21II.1. UNITED STATES 212 Table 2.2. Targeted corporate income tax rates 22II.2. BELGIUM 22II.2. CANADA 24II.2. CHILE 24II.2. CZECH REPUBLIC 25II.2. FRANCE 25II.2. GREECE 26II.2. HUNGARY 26II.2. ISRAEL 26II.2. IRELAND 27II.2. ITALY 27II.2. KOREA 27II.2. LATVIA 27II.2. LITHUANIA 27II.2. MEXICO 29
3II.2. NETHERLANDS 30II.2. NORWAY 30II.2. POLAND 31II.2. PORTUGAL 31II.2. SLOVAK REPUBLIC 31II.2. SPAIN 32II.2. UNITED KINGDOM 32II.2. UNITED STATES 333 Table 2.3. Sub-central corporate income tax rates 34II.3. CANADA 34II.3. GERMANY 35II.3. KOREA 35II.3. LUXEMBOURG 36II.3. NORWAY 36II.3. PORTUGAL 36II.3. SWITZERLAND 36II.3. UNITED STATES 374 Table 2.4. Overall statutory tax rates on dividend income 39II.4. AUSTRIA 39II.4. BELGIUM 39II.4. CANADA 39II.4. CHILE 40II.4. ESTONIA 40II.4. FINLAND 41II.4. FRANCE 41II.4. GERMANY 42II.4. GREECE 42II.4. HUNGARY 44II.4. IRELAND 45II.4. ISRAEL 46II.4. ITALY 46II.4. JAPAN 47II.4. KOREA 47II.4. LATVIA 48II.4. LITHUANIA 48II.4. MEXICO 49II.4. NETHERLANDS 49II.4. NORWAY 50II.4. POLAND 50II.4. PORTUGAL 50II.4. SLOVAK REPUBLIC 50II.4. SLOVENIA 51II.4. SWITZERLAND 51II.4. UNITED STATES 51
4II.1. BELGIUM Starting from 2018 the allowance for corporate equity (ACE) only applies to the increase of corporate equity compared to the average size of equity in the previous 5 years. More specifically, the base of the ACE is the difference between two moving averages: the average equity of periods “t-4” to “t” minus the average of periods “t-5” to “t-1. For income year 2018 the standard ACE-rate is 0.746% for non-SMEs and 1.246% for SMEs. However, in the years 2006-2017 the ACE applied to the size of equity itself, hence it could substantially lower the effective CIT rate. The amount of this allowance was neither related to the behaviour nor to the results of the company, but depended only upon the amount of qualifying corporate equity and the yield on long term government bonds. There was however an upper limit. The original upper limit (of 6.5 % for non-SMEs) was first temporarily reduced to 3.8% in 2010 and 2011 and then permanently lowed to 3% from 2012 onwards. The effectively applied ACE-rates are listed in the table below. Stricter carry forward rules concerning unused ACE-deductible amounts were implemented from 2013 onwards. Notional interest rate (ACE-rate) Size of qualifying equityNon-SMEs Small and medium enterprises (SMEs) 2006 stock of equity3.442% 3.942% 2007 stock of equity3.781% 4.281% 2008 stock of equity4.307% 4.807% 2009 stock of equity4.473% 4.973% 2010 stock of equity3.8% 4.3% 2011 stock of equity3.425% 3.925% 2012 stock of equity3% 3.5% 2013 stock of equity2.742% 3.242% 2014 stock of equity2.63% 3.13% 2015 stock of equity1.63% 2.13% 2016

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