Good news regarding corporate tax reduction worldwide for the first time in 14 years, says KPMG report. This will not come as a surprise for most of our readers as in the UK we saw the reduction of its lower CT band some years ago to 21% and Spain to 25%.
The not so good news is that Governments continue looking at indirect tax on goods and services as the main source of revenue and those remain invariable.
A clear indication of the international economy outlook or just a casual coincidence? While corporations are looking at Corporation tax as a factor for potential emigration to most tax efficient jurisdictions, the Tax authorities re-focus their attention to tax on consumption.
The report is based on a 106 country survey showing that the global average corporate tax stands at 25.9%, been the lowest average in the European Union at 23.2% compared with Asia Pacific region at 28.4%.
Indirect Tax remains almost invariable at 15.1% average worldwide, been the EU the region with the highest rate.
Tags: Double Tax Treaty, UK Tax