DAILY NEWS Jun 17, 2014 12:12 PM - 0 comments

Canada remains most competitive business tax environment worldwide: KPMG

TEXT SIZE bigger text smaller text
2014-06-17

Canada is the most competitive business tax nation in the world, according to a new report by advisory firm KPMG LLP, and its manufacturing sector ranks second for tax competitiveness.

 

Canada’s top ranking is mainly due to its low effective corporate income tax policy, moderate labor costs and harmonized sales taxes, according to the report.

 

The United Kingdom and Mexico ranked second and third, respectively, while the U.S. came in fifth place.

 

As a total, Canada’s business tax costs come in 46.4 per cent lower than the U.S.

 

Toronto, Vancouver and Montreal held the top three spots among the 51 major international cities (population of two million or more) included in the 2014 report.  A total of 107 cities were featured in the study, of which 15 were Canadian.

 

“This year’s report demonstrates that once again Canada provides an attractive business tax climate,” Elio Luongo, Canadian managing partner of tax services with KPMG, said in a news release. “Our corporate tax policies ensure Canada remains a viable option and desirable location for businesses looking to locate or expand their operations.”

 

Canada’s tax costs for the manufacturing sector ranked second overall globally behind only Mexico, with a 34.5 per cent tax cost advantage versus the U.S.

 

The nation’s average total labor cost per employee came in at US$89,038, which is third overall out of the 10 countries measured – and well ahead of the U.S., which had a total labor cost of US$102,249 per worker.

 

Mexico ranked first overall, with an average total labor cost per employee of US$40,648.

 

Average total labor cost is a combined measure of salary or wage, and statutory and benefit plans as percentages of total payroll.

 

The tax report is a supplement to KPMG’s Competitive Alternatives report, where Canada ranked second overall for the lowest cost of doing business globally.

 

The report, which uses the U.S. as a baseline, estimated the cost of doing business in Canada at 7.2 per cent lower than in the U.S.

 

KPMG's Competitive Alternatives 2014: Focus on Tax report is available at this link.



Horizontal ruler

Horizontal Ruler

Post A Comment

Disclaimer
Note: By submitting your comments you acknowledge that Canadian Plastics has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

Your Name (this will appear with your post) *

Email Address (will not be published) *

Comments *



* mandatory fields