According to study, Canada dropped to fourth spot in manufacturing index
TORONTO—Canada is the second most tax competitive country among 14 major global economies, according to a new KPMG study.
KPMG’s Competitive Alternatives 2012: Focus on Tax study found Canada ranked second to India in tax competitiveness and took the top spot among mature markets.
Three Canadian cities—Vancouver (2nd); Toronto (5th); and Montréal (6th)—ranked in the top 10 among 55 major international cities studied.
“The study provides an effective approach for international comparisons based on the tax results of different business scenarios,” KPMG Canadian Managing Partner, tax, Elio Luongo said in a statement.
“Canada continues to offer a very competitive tax structure, which is crucial to attracting inbound investment, spurring innovation and creating skilled jobs that support our families and communities in Canada.”
Canada moved down in the rankings for manufacturing, with an index score of 69.8 ranking fourth behind India (49.3), China (51.2) and Mexico (60.0).
In Canada, higher costs for corporate taxes, particularly property taxes, have a significant impact on the manufacturing sector.
The global KPMG study assesses the general tax competitiveness of 55 major international cities in 14 countries.