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UK 14th in world tax league, claims PwC

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Britain is now ranked 14th in the PwC, World Bank and IFC Paying Taxes study, which ranks countries by assessing the tax costs and compliance burden for a case-study manufacturer. The UK’s improved position – a rise of two places from last year – is, according to PwC, ‘down to the steady lowering of corporation tax, a process begun several years ago to attract and retain business,’ and that: ‘As the UK also scores relatively well on compliance processes, it outperforms other countries with lower tax rates still.’

The study also suggests that: there is no global ‘race to bottom’, as the fall in tax rates around the world in recent years has come to a halt; and labour taxes now represent the a greater share of tax burden for businesses worldwide, making up 38% of a business’s tax cost (slightly more than 37% for profit taxes).

The United Arab Emirates came top of this year’s rankings.