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Canadian corporate taxes among highest in the world: KPMG Canadian Press
June 26, 2007 at 8:59 AM EDT
TORONTO — A KPMG survey has found that Canada has one of the world's highest corporate tax rates, but less than the United States, while the GST is relatively low.
The lowest corporate taxes among developed economies are still to be found in the countries of the European Union, KPMG International's latest global tax survey found.
In a review of corporate tax rates at the beginning of 2007 in 92 countries, the average rate in the EU was 24.2 per cent, compared with 28 per cent in Latin America and 30.1 per cent in Asia-Pacific.
Among developed economies, Canada's corporate tax rate of 36.1 per cent is one of the highest. However, the United States and Japan still have higher corporate tax rates at 40 per cent and 40.7 per cent respectively, KPMG says.
But value-added tax, or goods and services tax, rates in the EU countries average 19.5 per cent, compared with 14.2 per cent in Latin America and only 10.8 per cent in the Asia Pacific.
Canada's average federal GST is six per cent. Additionally, all provinces, except for Alberta, impose a form of GST or retail sales tax at rates ranging from six to 10 per cent on the sales of taxable goods and services.
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