EU competition drives down tax rates

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.’

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