Tax rates on corporate profits have continued their long decline in the past year, but governments worldwide are increasingly looking to taxes on goods and services to make up shortfalls in public revenues, with profound effects on business.
This is the main conclusion of KPMG International’s latest survey which compares corporate income tax rates from 1993 to 2008 covering 106 countries. For the first time, the survey also includes information on Value Added Taxes or Goods and Services Taxes in 90 countries, going back five years.
Key findings:- for the first time since 1994, not one of the 106 countries covered by the survey has raised its main corporate tax rate in the past year
- wider tax base and tougher enforcement mean indirect taxes take on new global importance.
