Russia and the UK have lowest effective corporate tax rate
Both Russia and the UK are two of the major global economies which try to tempt businesses with a favourable tax environment.
They offer companies the lowest effective tax rates among the world's best economies, according to a study by accountancy firm UHY Hacker Young.
Firms in Russia are obliged to pay business tax at 20 per cent, Bloomberg reported. Meanwhile, companies in the UK pay business tax at 21 per cent.
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This is less than the average corporate tax of 32 per cent charged by the world's seven largest industrial nations. It's 25.3 per cent across European economies, and 27 per cent in the 31 countries studied by UHY.
Osborne's March budget featured the second cut to firms' corporation tax in less than a year. "Britain is blazing a trail, let the rest of the world catch up," he said.
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Roy Maugham, Tax Partner at UHY, said: "There is a global competition amongst countries to offer a lower corporation tax rate."
"At more than ten percentage points lower than the G7 average corporation tax rate, the UK now has one of the most competitive regimes in the world. This is benefiting UK-based companies of all sizes."
"With further cuts planned over the next few years, the UK is looking to help its domestic company base grow, while at the same time making a play for more corporate investment from overseas."