These conclusions are in the OECD report on corporate income tax statistics for 2025, according to a report by ECO.
“From 2024 to 2025, corporate taxes decreased by one percentage point in three jurisdictions (Iceland, Luxembourg, and Portugal), while there were four increases across the 145 countries covered in this analysis (France, Gibraltar, Tunisia, and Slovakia),” explains the organisation, noting that the increase in France was due to the application of an extraordinary tax.
In Portugal, the government moved forward with a reduction in the corporate income tax rate from 21% to 20%. This proposal was approved in Parliament with votes in favour from the parties supporting the executive branch, the Liberal Initiative, and PAN, and abstentions from PS and Chega. The government’s stated objective is to continue this path of progressive reduction in the coming years.
The same document also reveals that “the last few years have seen a stabilization of corporate tax rates in most of the jurisdictions covered” by this analysis. “Between 2019 and 2025, the average rate remained relatively stable, standing at 21.7% in 2019 and 21.2% in 2025,” a “slight increase compared to 21.1% in 2024,” details the OECD.
Of the 145 jurisdictions covered by the data for this year, “26 had a tax rate equal to or above 30%, with Colombia, Malta, and France presenting the highest rate,” standing at 35% in the first two countries and 36.1% in the third case.
The report also shows that, this year, “11 jurisdictions had no corporate tax or had a zero rate.” Comparing the rates between 2000 and 2025, it is possible to conclude that “114 jurisdictions had lower rates this year, while 15 jurisdictions had the same rate and 16 had higher rates.” “Highs.”
The annual report on tax reforms, published by the OECD in September, indicated that Portugal was also one of the countries to cut corporate taxes in 2024, alongside Austria and Luxembourg. The Czech Republic, Iceland, Slovenia, Slovakia, and Lithuania were the five countries that decided to increase corporate taxes in 2024.
The same analysis also concluded that Portugal is one of the countries that offers the most tax incentives to companies, particularly small and medium-sized enterprises, for research and development (R&D), along with France and Poland.
