KPMG report shows recession forcing governments to hike business taxes to boost revenues

KPMG International’s 2009 Corporate and Indirect Tax Rate Survey illustrates a milestone in global tax policy, as governments – driven by the need for more revenue as a result of the recession – are implementing proactive measures to increase the tax take from both indirect taxes and the tax base for corporate income taxes.

The key findings from the report include:
• In Latin America, the average corporate tax rate was unchanged at 26.9 percent, reversing a trend of falling rates in place since 2004.
• In Europe, average rates stayed at 23.2 percent, the first time in 13 years they have not fallen year-over-year.
• Only in Asia Pacific did the average rate this year match the cuts of previous years, falling from 28.4 percent in 2008 to 27.5 percent in 2009.
• Indirect tax rates in Europe rose from 19.5 percent to 19.8 percent and in Latin America 15.9 percent to 16.2 percent.
• In Asia-Pacific there was a marginal drop in the indirect tax rate from 10.9 percent to 10.8 percent.

To learn more about the current state of corporate and indirect taxes in countries across the globe, and the implications for businesses, access the full report here.