UK tax rate drops down leaderboard
KPMG survey shows UK is now in 21st place in EU out of 27 countries
The UK’s tax rate is not as competitive as it was, KPMG has said.
The UK had the 4th lowest corporate tax rate of the 15 member countries in
the EU in 1997 but is in 21st place (out of 27 EU countries) in 2007, the firm’s
survey of global tax rates showed.
In a separate survey of tax competitiveness, it added that tax rates were not
everything in terms of attractiveness: ‘It’s not just about tax rates – clarity
and consistency are still the most important factors for business in making a
tax regime attractive. But a low tax rate is growing in importance – cited by 84
percent of respondents, up from 68 percent last year,’ the firm said.
The news comes as the government is moving to make the UK more attractive for
multi-nationals by dropping the
taxation of inbound
dividends.
Further reading
UK changes ‘will outdo
Luxembourg’