Taxes: SMB effective tax rate

In addition to the standard direct corporate and VAT taxes outsourcing businesses can be subjected to a range of other potentially costly expenses. The annual Doing Business survey calculates an all inclusive tax rate borne by companies in their second year of operation. The tax calculation includes profit or corporate income tax, social contributions and labor taxes paid by the employer, property taxes, turnover/ revenue taxes, and other taxes (such as municipal fees and vehicle and fuel taxes).

Chile comes in with the lowest overall rate at 25% of profit. The United States is in the middle of the pack with an all inclusive rate of 46%. The Philippines, India and China are all at the higher end with rates of 49%, 65% and 78% respectively.

Data is sourced from the annual Doing Business survey copublished by the World Bank, IFC and Palgrave MacMillan.