Lower corporate tax rates attract foreign investment
Big GDP and low tax rates are key to foreign direct investment
Big GDP and low tax rates are key to foreign direct investment
LOWER CORPORATE TAX rates increases the amount of foreign investment into a country, a report by fDi Magazine, from the Financial Times, has found.
Although a country’s GDP is the biggest determining factor in attracting inward investment, the sample of 46 countries found that corporate tax rates also correlated with inward investment.
With the OECD and G7 looking at ways to counter multinational tax avoidance, changes to tax rates could directly impact on inward investment, the report suggested.
The UK performed slightly better than other European countries, increasing its market share of foreign direct investment to 20.87%, the highest in Europe. The UK and Germany accounted for 45% of foreign direct investment in Western Europe.
While investment declined globally, there were some exceptions: Chile; Spain, Indonesia; Poland and Oman experienced strong growth. Chile has seen 5%+ GDP growth rates, and attracted renewable energy investment attracted to the weather conditions that are ideal for solar power – and electricity demand from the mining sector.
More about:
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resource61% say providing financial support for their family is of importance to them, with 77% currently doing so Read More...
View articleA survey conducted by accountancy bodies ACCA (the Association of Chartered Certified Accountants) and Chartered Accountants Australia and New Zealand...
View articleNew data shows consolidation within the mid-market as firms, while M&A activity among the top 20 firms remains steady. Brought to you in partnershi...
View articleFrom battling underground invoice frauds in China to navigating bribery risks in the Middle East, Mazars' Nigel Layton shares essential insights on co...
View articlePwC's Australia tax scandal has led to significant changes, including over 300 job cuts and the refusal to share a crucial report with Australian parl...
View articleGlobal spend on accountancy outsourcing up by 40% in the space of five years. News comes as accountancy outsourcing specialist AdvanceTrack reports en...
View articleThe numbers you crunch tell a story. Your expertise shapes the future. Accountancy Age 35 Under 35 Awards recognize and celebrate the brilliant minds ...
View resourceFollowing the Chancellor’s Spring Budget on March 6, the Association of Chartered Certified Accountants (ACCA) surveyed its members for their insight ...
View article