Toronto ranked #1 in KPMG's list of tax competitive global cities

Focus on Tax, a KPMG study of total business tax costs by country and city, highlights Canada's low tax costs, with Toronto achieving the top spot among global cities for tax competitiveness.

KPMG's Focus on Tax is a supplemental report that is part of its biennial survey, Competitive Alternatives, which compares business costs and taxes across more than 100 cities from ten of the most attractive countries for investment sites: Australia, Canada, France, Germany, Italy, Japan, Mexico, the Netherlands, the United Kingdom and the U.S.

Canadian total business tax costs 47.6% lower than U.S. average

Once again topping the list of most tax competitive countries is Canada, with total business tax costs 47.6% lower than in the United States. According to KPMG's Total Tax Index, Canada's average total tax cost dropped by 1.2% since their last report in 2014, making it 12% more competitive than its next closest rival, the United Kingdom. In attaining its top ranking, Canada finished first in tax competitiveness across each of four sectors: digital services, research and development, corporate services and manufacturing, while Mexico dropped out of the top three and the U.S. fell from the top five.

Canada adds the title of lowest total business tax costs to a long list of recent accolades, which include:

 

Toronto, Ontario's total business tax costs are 52.6% lower than major U.S. city average

Meanwhile, KPMG ‘s report adds one more reason for businesses to relocate to Toronto. The city finished first in a list of 111 global cities with total tax costs 52.6% lower than the average of major U.S. cities. All three Canadian cities rated by KPMG placed within the top five.

Learn which country KPMG ranked first for overall cost competitiveness

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