According to a recent KPMG study, Montréal ranks fourth worldwide in terms of tax competitiveness, offering further confirmation of the city’s business-friendly approach.
Entitled “Special Report: Focus on Tax”, the study assesses the tax competitiveness of 95 cities in 10 countries, focusing on 41 major urban areas with populations of more than two million inhabitants. Various aspects of the corporate tax burden are, including income taxes, capital taxes, sales taxes, property taxes, municipal business taxes and legally mandated labour costs.
The study compares various aspects of the corporate tax burden using the “Total Tax Index”, calculated as a percentage of the total taxes paid by US companies (the lower the score, the lower the tax level). With a score of 60.3, Montréal compares favourably with cities such as New York (101.9), Boston (87.9) and Toronto (67.6). Vancouver topped the list with a score of 50.5.
Number one in R&D
The KPMG study also examines the tax burden in various economic sectors. Montréal ranked as the number-one North American city in the research and development sector. In the international ranking, Montréal came in second, just behind Melbourne, Australia.
According to the country-by-country results, Canada has the second most tax-competitive system, with Mexico in the number-one spot.