The accountancy firm said the current corporation tax rate in the UK was 21% on taxable profits of $1m (£693,496) in 2015, which accounts for just a fifth of company profits.
Russia was the only major global economy with a lower rate at 20%, while the global average corporate tax rate was 27% and the G7 average was 32.8%.
UHY Hacker Young said low corporation taxes can help countries create competitive advantage by freeing up more profits available to investments.
This can also discourage companies from moving investment overseas and attract foreign companies to move to the UK, the firm said.
After a cut by 3% in 2013/14, the rate is expected to decrease even further to 18% by 2020, in a bid to recover the economy and create a more company-friendly environment.
The United Arab Emirates was the country with the lowest corporate taxes, as it does not charge corporation tax at all.
The Republic of Ireland came second, with corporate taxes at 12.5%, followed by Romania (16%), Poland and Czech Republic (19%) and Russia and Croatia (20%).
Ireland announced in October it will cut its corporate tax to companies investing in research and development to 6.25%.
The UK was the 8th country with the lowest tax rate.
The US came out on top as the country with the highest corporate tax rate at 41.1%, followed by Japan (38.6%) and France (37.8%).
Roy Maugham, tax partner at UHY in London, said, “There is a global competition amongst countries to offer a lower corporation tax rate.
“It is not easy for a cash-strapped economy to do well in that competition but there are enormous advantages for those that can put themselves ahead of the pack.”
Maugham said the UK now has one of the most competitive tax regimes in the world, benefitting UK-based companies of all sizes.