At least we’re not No. 1

We all know Canadian businesses face high corporate taxes, but just how high are they compared to the rest of the world? According to a KPMG review of corporate tax rates in 92 countries as of Jan. 1, 2007, Canada’s rate of 36.1% is fifth among OECD countries and eighth globally.

Of the countries in the OECD, only Japan (40.7%), US (40%), Germany (38.4%) and Italy (37.3%) are more expensive than Canada for corporate taxpayers (see below). Other countries with a corporate tax rate higher than Canada’s are Kuwait, United Arab Emirates (both 55%) and South Africa (36.9%). Ireland’s businesses have the lowest corporate taxes in the OECD at 12.5%, while the average rate for all 30 OECD members is 27.8%.

The average corporate tax rate in the EU is 24.2%, compared with 28% in Latin America and 30.1% in Asia-Pacific.