Corporate Tax Calculator for US-Based Companies
United States corporate tax is 27%. See how much you could save.
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How United States companies reduce their corporate tax
US corporations pay a federal corporate income tax of 21%, with most states adding between 4% and 12% in state income taxes, bringing the combined effective rate to approximately 27% for the average US business. The US operates a worldwide taxation system, meaning US corporations and citizens pay tax on global income. However, foreign corporations owned by US founders may qualify for legal international structuring under Subpart F and GILTI rules introduced by the Tax Cuts and Jobs Act of 2017. Singapore and Hong Kong are the most commonly used jurisdictions for US-connected founders establishing operating entities outside the US, with effective corporate tax rates of 8.5% and 8.25% respectively. Proper structuring of IP holding arrangements, transfer pricing documentation, and 5472 disclosure compliance are essential. Our calculator provides a conservative estimate of potential savings for non-US operating companies of US-connected founders.
Top tax corridors for United States companies
Singapore Operating Entity (8.5%)
9% effectiveSingapore's headline rate is 17%, but startup tax exemptions and partial exemptions reduce effective rates to 8.5–11% for the first several years. Singapore has no capital gains tax, no withholding tax on dividends, and an extensive treaty network including the US–Singapore treaty.
Hong Kong Territorial (8.25%)
8% effectiveHong Kong taxes only income sourced within Hong Kong. Offshore income — revenue generated from customers outside Hong Kong — is not taxed. For the first HK$2 million of assessable profits, the rate is 8.25%. This territorial system is particularly attractive for e-commerce and digital product companies.
Singapore IP Structure (8.5%)
9% effectiveSingapore's Development and Expansion Incentive (DEI) and IP Development Incentive (IDI) can further reduce tax on qualifying IP income. For SaaS companies, holding IP in a Singapore entity and licensing back creates a royalty stream taxed at reduced Singapore rates.
Savings example: 🇺🇸 United States → 🇸🇬 Singapore Operating Entity (8.5%)
Annual Revenue
€2.0M
assumed
Tax in United States
€540K
at 27%
Tax Optimised
€170K
at 9%
Indicative estimate based on statutory rates. Actual savings depend on structure, substance, and individual circumstances.
Frequently asked questions — United States corporate tax
Can a US citizen use international corporate structures legally?
Yes, with proper compliance. US citizens are subject to GILTI (Global Intangible Low-Taxed Income) rules which tax certain foreign income. However, with proper structuring — including maintaining adequate returns in the US entity and using the GILTI high-tax exclusion where applicable — international structures remain viable for US founders with genuine foreign operations.
What is GILTI and how does it affect international tax planning for US companies?
GILTI is a minimum tax on foreign income introduced in 2017. It applies a 10.5% (increasing to 13.125% in 2026) minimum tax on income earned by controlled foreign corporations above a routine return on tangible assets. High-substance foreign operations — those with real employees and physical assets — are partially shielded from GILTI.
Does Forma Flaga work with US-connected founders?
Yes. Forma Flaga structures international holding and operating arrangements for founders from any country, including the US. We work alongside your US tax counsel to ensure structures are compliant with both US and local jurisdiction requirements, including FBAR, Form 5471, and FATCA reporting obligations.
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