Bullish on Europe? The region leads corporate tax reductions

Most countries reducing their corporate income tax rates are European, Ernst & Young says in a new global survey and tax outlook.

Of the 50 countries surveyed, 40 report no change or anticipated change to their national headline corporate income tax rate in 2017, Ernst & Young says.

But nine nations reported laws passed to reduce corporate income taxes this year, with eight of them in Europe, indicating that “countries in the region are reducing rates faster than elsewhere,” the report says.

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The majority of respondents (80%) did not anticipate or know of any changes to their national headline corporate tax rate in 2017. Only Chile forecast a known or anticipated rate increase.

The report found 30% of countries surveyed see increased government funding for business investment while 22% anticipate more generous research and development (R&D) incentives.

Canada, the report says, is taking a “wait and see” approach to tax changes as the U.S. looks at pulling back corporate taxes under Donald Trump.

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“Canada is one of only two countries where the rate actually increased (the average combined federal/provincial rate increased marginally — by 0.2 percentage points). This in itself is unlikely to deter investment, but is still slightly out of step with global peers,” the release says.

See the complete report here with country-by-country outlooks.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.