Grant Thornton Survey Finds That 67% of Businesses Would Not Locate to Another Country for Any Level of Reduction in the Corporate Tax Rate

Majority support reducing their current rates by giving up certain deductions; asking local governments to do more

LONDON--(BUSINESS WIRE)--A Grant Thornton survey of more than 3,400 businesses in 44 economies finds that 67% would not relocate their business to another country for any level of reduction in their corporate tax rate.

Business leaders in New Zealand are the most resistant to relocation – 94% say they would not move abroad for a lower corporate tax rate. They are followed by Georgia (92%), Switzerland (90%), France (88%), Germany (87%) and Ireland (86%). The economies in which the most businesses would move for a lower rate are Russia, India, Taiwan, Greece, Botswana and Norway.

Over two-thirds of business leaders (68%) would favour lowering the corporate tax rate in their country even if it meant eliminating some current tax deductions. Support was greatest in Vietnam (94%), Lithuania (92%), Malaysia (92%), Peru (90%), Greece (88%), Mexico (82%), India (81%) and the United States (81%).

Three in five business leaders surveyed (61%) did not think their government was doing enough with tax measures to help ease economic pressures. The countries with the highest dissatisfaction were Argentina (92%), Japan (86%), Poland (82%), Spain (82%), Latvia (78%), Australia (77%) and Denmark (76%).

The survey was conducted by Experian in November and December 2012 as part of the quarterly Grant Thornton International Business Report with 3,450 respondents in 44 economies.