AN international survey covering 114 countries has found corporation tax rates are falling while indirect taxes rise worldwide.
The KPMG survey found Ireland’s 12.5% corporation tax to be among the lowest in Europe where the average now stands at 21.5% compared with a global average of 25%.
As governments look to recoup lost revenues the world is in the midst of considerable tax regime change, according to KPMG’s 2010 Global Corporation and Indirect Tax Survey.
Indirect taxes are rising with a global average of 15.6% this year compared with 15.4% in 2009 and a rate of 21.5% in Ireland.
“Our survey shows the extent to which corporation tax varies worldwide and the extent to which many countries have used corporation tax policy as a key economic development strategy”, said Shaun Murphy, head of tax at KPMG. With Ireland operating a “hugely competitive environment” for inward investment Mr Murphy noted the commitment of successive Irish governments to keeping that low rate.
“The 12.5% corporation rate remains a cornerstone of Irish industrial policy and the Government, and main opposition parties, are emphatic that it will continue to do so,” he said.
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