TaxCorporate TaxUK corp tax stays high against rest of world

UK corp tax stays high against rest of world

UK’s corporate tax remains high against declining tax in the rest of the world, the latest KPMG study shows

Corporate tax rates across the world have continued to decline, dropping an
average 0.9% to 25.9% from last year’s 26.8 %, according to
KPMG’s
Global Corporate and Indirect Tax Rate survey 2008.

Although not a single country raised its corporate tax rate in the year, for
the first time since 1994, at 28%, the UK’s corporate tax rate – despite a 2%
cut this year – remains higher than the latest global average and also against
the EU average rate which fell 1% on year-ago figures, to 23.2%.

KPMG in the UK warns the continued downward pressure on worldwide and
European corporate tax rates will add to the pressure on UK authorities to deal
with the UK’s perceived lack of corporate tax competitiveness.

‘The challenge to the UK authorities is to find a way to improve the
country’s tax competitiveness that is genuinely revenue-neutral,’ Chris Morgan,
KPMG head of international corporate tax in the UK, said. ‘The only way to find
an acceptable solution is for all parties to really engage in the debate. It’s
important that the various working groups established have a mandate to make
real proposals and are not just talking shops.’

Further reading:

Hold off on overseas exodus, firms warned

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

2m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

2m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

3m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

4m Emma Rawson