An income tax taxes taxable income. Bulgaria’s corporate tax rate fell from 40% in 1997 to 10% in 2007. In 2016, the revenue from the corporate income tax, with a 10% rate, was 2.24%. In 2016, the combined U.S. Federal and State corporate tax rate was nearly 40% -- the highest in the OECD, and also, almost exactly where Bulgaria started its journey. Ministry of Finance, BulgariaThe interesting thing is: that this seems to work even with a tax rate as low as 10%.

Source: Forbes January 26, 2018 20:26 UTC