UK corporate tax above global average
News Article - 10 September 2008
Category:
Business
Corporate tax rates have continued to lower globally but the UK
is still above average, according to KPMG's Global Corporate and
Indirect Tax Rate Survey 2008.
The average rate dropped to 25.9 per cent from 26.8 per cent last
year, but the UK's corporate tax is higher at 28 per cent.
However, that was two per cent less than last year and the UK has
now moved up to 19th (equal with Sweden) lowest rate of the 27 EU
states, compared with 21st last year.
KPMG also found that this was the first time since 1994 that not a
single country had raised its rate and the company believe this
will pressurise the UK into dealing with its perceived lack of
competitive edge on tax.
"The challenge to the UK authorities is to find a way to improve
the country's tax competitiveness that is genuinely
revenue-neutral," said the head of international corporate tax at
KPMG in the UK, Chris Morgan.
"They can't afford a tax giveaway but business will not welcome a
major hit in terms of extra taxes."
He added that the only way to find a solution was for all parties
involved to engage with the debate.
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