Competitive Alternatives

Competitive Alternatives – New Features

KPMG's Guide to International Business Location Costs

Special Report: Focus on Tax

Since 2008, each edition of Competitive Alternatives has included a separate, detailed study of tax costs in major cities in study countries—Competitive Alternatives Special Report: Focus on Tax. These studies have shown huge variations in the tax burden borne by business in different countries, and have been of value to international companies assessing their location options and to anyone with an interest in comparing international tax burdens.

Special Report: Focus on Tax has now been updated for 2012, with the latest edition of this report released on September 25, 2012. Move your cursor over the flags on the map below for a quick sample of the types of information contained in this new report.

Canada United States Mexico Brazil United Kingdom France Netherlands Germany Russia China Japan India Italy Australia
Canada holds the lowest effective rate for corporate income taxes, a competitive rate of 7.3 percent after allowing for relevant tax incentives.
The United States sees a large spread in tax burden between cities due to the significance of state and local taxes - the spread between Cincinnati and San Francisco is 25.8 percent.
Mexico's highly centralized tax system results in a low variation in tax burden between cities (1.4 percentage points between Monterrey and Mexico City).
Brazil's high statutory labor costs and other corporate taxes both impact its results - ranking 11th overall among 15 countries.
The United Kingdom has seen a drop in its TTI of 14.8 points from 2010 to 2012 - the largest reduction in tax burden among the countries compared.
France has the highest TTI ranking for Corporate Services (244.2 points) due to the effect of high statutory labor costs.
The Netherlands also enjoys a low variation in tax burden between its cities - tax costs in Amsterdam and Rotterdam vary by only 0.5 percent - due to Netherlands' strongly centralized tax system.
Germany ranks 9th overall with a Total Tax Index of 122.0 - representing tax costs 22 percent higher than the US.
Russia performs well in the digital sector, where it ranks 3rd - ahead of its 5th place overall ranking.
China ranks second lowest for tax costs in the manufacturing sector, holding a TTI of 51.2
Japan ranks 11th for its TTI in Research and Development (R&D) - helped by an income tax credit of 8-12 percent on R&D expenditures.
India ranks first overall with a (Total Tax Index) TTI of 49.7 points. This is largely due to India's low statutory labour costs.
Italy has the second largest change in TTI among the countries studied (an increase of 23.3 points) due in part to the expiry of economic stimulus tax credits.
Australia sees the largest change in TTI between 2010 and 2012 with an increase of 44.3 points, in part due to the strong appreciation of its dollar.

A full summary of the results of this new study can be found in the Highlights sectionof this website, and the complete report is available for download from the Download section of this site.

 
Focus on Tax report cover

Corporate Sponsors

Colliers International

MMK Consulting Inc.

Share This

Share
 

The analysis on this website is based on cost information collected primarily between July 2011 and January 2012. Taxes reflect tax rates in effect on January 1, 2012, and also incorporate any announced changes at that time to take effect at specified later dates. Exchange rates and other cost factors will, of course, change over time. Tax rates and other tax-related information are also subject to change as a result of new legislation, judicial decisions, and administrative pronouncements.

All information provided is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

KPMG International Cooperative ("KPMG International") is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

KPMG On-Line Privacy Policy