Ten of the G20 world leading economies do not implement lower corporation tax rates for all smaller businesses, undermining new business and job creation and hampering companies’ capacity to re-invest in their business and to expand, according to a research by MGI.
The leading economies which do not implement lower corporation tax rates for smaller business are: the USA, Argentina, Italy, Mexico, Germany, China, the UK, Russia, Saudi Arabia, Turkey.
The economies who do offer lower taxes for all small businesses are: Australia, Brazil, Canada, France, India, Indonesia, Japan, South Africa, South Korea.
Introducing small company corporation tax rates to boost start-ups and enterprise economies can be a vital way to incentivise growth in the economy and is a necessity amidst the ongoing constraints in bank lending that hit small businesses the hardest, MGI argued.
Clive Bennett, CEO of MGI Worldwide said: “Politicians often hail small businesses as the backbone of their economies so they should do more to incentivise them through the corporate tax system.”