Wednesday, 13 July 2016

RISK: Canada still the most tax competitive country for business: study

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RISK: Canada still the most tax competitive country for business: study


St. John’s, Nfld. was the most tax-competitive city in Canada


Staff on July 13, 2016


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Toronto, Vancouver and Montreal held three of the top four spots among 51 large international cities in terms of tax competitiveness, a KPMG study found.

The Focus on Tax 2016 report assessed the tax competitiveness of 111 cities with populations of at least two million in 10 countries. It also made tax comparisons between 51 major international cities. It used a Total Tax Index for each location which measured the total taxes paid by companies in a particular place, expressed as a percentage of total taxes paid by similar firms in the US.


All 17 of the Canadian cities featured have lower total effective tax costs when compared to all U.S. cities. St. John’s, Nfld. was the most tax-competitive city in Canada, followed by Fredericton, N.B. and Moncton, N.B.


Read: RISK: Canada ranks ninth in ease of tax-paying


Overall, Canada ranked as the most tax-competitive country globally, with KPMG attributing this to Canada’s low federal corporate income tax rate and low provincial tax rates, as well as the refundable nature of GST/HST and low statutory labour costs.


“This year’s Focus on Tax report reinforces Canada’s position as an attractive option for businesses looking to relocate and expand their operations,” Jodi Kelleher, KPMG’s national leader of international tax, said in a release. “As our economy continues to rebound, this provides more positive news for the provinces and cities featured in the study.”


The UK and the Netherlands ranked as the second and third most tax-competitive countries.


Read: RISK: Global CEOs expect drastic change within three years



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RISK: Canada still the most tax competitive country for business: study

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