EU competition drives down tax rates
New KPMG survey suggests EU corporate tax rates are lower than the rest of the world
Tax competition within Europe has forced corporate tax rates down to levels
below the rest of the world, according to a new survey by KPMG.
Average corporate tax rates in the EU were 25% in 2005, compared with 28%
across the OECD.
The accession of new member states has meant increased competition. Loughlin
Hickey, KPMG’s global head of tax, said: ‘It is much easier now to transfer
people, manufacturing and services within the European region.’