asked Her Majesty's Government:
Further to the Written Answer by the Lord McKenzie of Luton on 11 October (WA 156), what is the relevant position of the headline corporation tax level of the United Kingdom compared to the 10 largest economies outside the G7 group of countries.[HL7919]
The headline corporation tax rate in the UK compared to headline rates in the 10 largest economies outside the G7 group of countries is given in the table below. GDP rankings relate to 2005 and are calculated using market or official government exchange rates. Of the 10 economies, only South Korea, Brazil and Russia have a lower headline rate of corporation tax than the UK.
Country Rank(total GDP) Headline CT rate UK - 30 per cent Ten largest economies outside G7 People's Republic of China 1 33 per cent (15 per cent for foreign companies) Spain 2 35 per cent South Korea 3 25 per cent Brazil 4 25 per cent India 5 35 per cent Mexico 6 30 per cent Russia 7 24 per cent Australia 8 30 per cent Netherlands 9 31.5 per cent Belgium 10 33 per cent China plans to unify domestic and foreign corporate tax rates by the end of 2007.