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October 14, 2010 at 01:11 PM
Even though global corporate tax rates have been on the decline, falling slightly from 25.44% in 2009 to 24.99% in 2010, indirect taxes have been rising as governments all over the world seek new sources of revenue and adjust their tax rates accordingly. So says the 2010 Global Corporate and Indirect Tax Survey from KPMG International, released on Thursday.
That average indirect tax rate has climbed, albeit slowly, from 15.41% in 2009 to 15.61% in 2010, although change in both direct and indirect rates has been varied throughout the world. The survey results show that, since 2009, Africa, Asia, Europe, North America, and Oceania have all fallen in average corporate tax rates: 29.77% to 29.36% in Africa, 24.81% to 24.44% in Asia, 21.70% to 21.52% in Europe, 36.50% to 35.50% in North America, and 29.2% to 29% in Oceania. Latin America, however, increased from 26.82% in 2009 to 27.87% in 2010, primarily because of the Mexican corporate tax rate, which rose 2% to 30%.
In indirect taxes, Africa and North America held steady at 14% and 5%, respectively. Asia fell just a bit, thanks to the lower rate of newly admitted Cambodia’s below-average rate; omitting Cambodia from the survey shows that Asia has either held firm or risen. Europe, Latin America, and Oceania all rose as well.
