According to the latest KPMG tax competitiveness report, the UK has lost ground in both tax competitiveness and as an attractive destination for foreign direct investment, largely as a result of Brexit uncertainty. The KPMG rankings are based on a survey of 100 of the largest UK-listed companies and foreign-owned subsidiaries and 60 companies from across the other G7 nations.
Among UK companies, Ireland tops the rankings, with the UK in second place, although the gap between the two has widened since 2015. Among non-UK companies, the UK fell from first to fifth place in the rankings.
Robin Walduck, tax partner at KPMG in the UK, said: ‘In many respects this year’s survey suggests that it’s business as usual’. On the possible effects of Brexit, however, he noted, ‘a striking divergence between the views of UK companies and their G7 peers, providing some insight as to why the UK has started to fall out of favour’.
The KPMG research shows that companies are not planning to withdraw their entire operations from the UK, with the number of respondents considering taking business functions out of the country broadly unchanged in comparison to 2015.
In 2016, ‘low effective tax rate’ comes out as the third most important factor determining the appeal of a country’s tax regime, up from fourth in 2015. KPMG suggests that the UK government’s plans to reduce corporate tax rates to 17% in 2020 should continue to enhance competitiveness.
Countries with the most competitive tax regimes 2012 to 2016:
According to the latest KPMG tax competitiveness report, the UK has lost ground in both tax competitiveness and as an attractive destination for foreign direct investment, largely as a result of Brexit uncertainty. The KPMG rankings are based on a survey of 100 of the largest UK-listed companies and foreign-owned subsidiaries and 60 companies from across the other G7 nations.
Among UK companies, Ireland tops the rankings, with the UK in second place, although the gap between the two has widened since 2015. Among non-UK companies, the UK fell from first to fifth place in the rankings.
Robin Walduck, tax partner at KPMG in the UK, said: ‘In many respects this year’s survey suggests that it’s business as usual’. On the possible effects of Brexit, however, he noted, ‘a striking divergence between the views of UK companies and their G7 peers, providing some insight as to why the UK has started to fall out of favour’.
The KPMG research shows that companies are not planning to withdraw their entire operations from the UK, with the number of respondents considering taking business functions out of the country broadly unchanged in comparison to 2015.
In 2016, ‘low effective tax rate’ comes out as the third most important factor determining the appeal of a country’s tax regime, up from fourth in 2015. KPMG suggests that the UK government’s plans to reduce corporate tax rates to 17% in 2020 should continue to enhance competitiveness.
Countries with the most competitive tax regimes 2012 to 2016:
