 |
|
|
|
|
|
 |
|
|
|
| Corporate tax rates fall worldwide, says KPMG study |
| World, 29.09.2008 |
|
| International Tax Review
Corporate tax rates have fallen by just under one percentage point worldwide this year with not a single country raising its rates for the first time since 1994, says a report from KPMG.
Global corporate tax rates have continued to decline from 26.8% in 2007 to 25.9% in 2008. The EU has the lowest average rates. They are down to 23.2% from 24.2%. The Latin American rate is down half a point to 26.6% and the Asia Pacific rate is down 0.8% to 28.4%.
"As corporate tax rates fall worldwide and corporations become more fleet of foot in relocating to favourable jurisdictions, national governments can no longer rely on corporate tax receipts," said Sue Bonney, head of tax at KPMG Europe.
"But they still need to collect revenues and they are looking towards indirect taxes to do this," she said.
Despite average indirect tax rates remaining steady at 15.7%, the survey says the number of governments which have adopted or are planning to adopt a Value Added Tax (VAT) or Goods and Services Tax (GST) has increased this year.
There are 135 jurisdictions with these taxes, and the countries either considering them, or with firm plans to introduce them include India and the UAE. India has VAT but it is not applied across all states. The US has also begun the debate on whether to introduce a federal VAT system. It is the only OECD country not to have one.
"Although indirect tax rates on the whole have not changed, while corporate tax rates have been pushed steadily down, more and more governments are introducing indirect tax systems," Bonney said.
"There is also a steady expansion of the transactions that these taxes are applied to, and a new focus from tax authorities on efficient collection of indirect taxes through corporate tax departments," she said.
The report also shows an expansion of the indirect tax base, a process already familiar to businesses operating in the EU and now in other parts of the world. KPMG says this is partly because governments may want to make use of the flexibility and stability that indirect taxation offers in order to protect their revenues.
KPMG's Corporate and Indirect Tax Rate Survey 2008 covers 106 countries, including the 30 member countries of the OECD, the 27 EU countries, 20 countries in the Asia Pacific region and 20 countries in the Latin America region. Tax professionals from across KPMG's global network of member firms contributed to the survey.
This article is FREE access as part of ITR Week. Take a two week trial to International Tax Review and find many more related articles
odkaz na stránku |
|
|
|
|
|
|
|
|
|
|
|
|
Address : Euro-Brew Ltd., Hlboká 22, 917 01 Trnava, Slovakia
Tel. : +421 33 53 418 53, Fax : +421 33 53 418 52, E-mail : info@eurobrew.sk |
|
|
