Grant Thornton Examines Corporate Tax Burdens in 19 Countries

Grant Thornton LLP examines corporate tax burdens in 19 countries to provide manufacturers with objective data on effective taxation.

In order to highlight the critical tax issues facing manufacturing companies, Grant Thornton LLP’s Manufacturing Practice released International taxation for manufacturing: A comparative review, a white paper that examines the corporate taxation of a hypothetical manufacturer as if it were located and doing business entirely in 19 countries.

“The corporate tax burden represents an ever-increasing concern for companies facing decisions about where to locate operations,” says Kullen Birkeland, Manufacturing Tax Practice Leader at Grant Thornton LLP. “Many countries interested in encouraging foreign direct investment have recently cut corporate tax rates to make themselves more attractive to businesses. As globalization increases, debate is growing over how the tax burden in different countries is affecting the ability of manufacturers to compete.”

Some of the topics covered in the white paper include:

  • Globalization and tax competition
  • Taxation of corporate income
  • Taxes on employment
  • Staffing considerations: Foreign nationals vs. expatriates
  • U.S. tax reform

The 19 countries examined in the tax study are: Australia, Brazil, Canada, China, France, Germany, India, Ireland, Japan, Korea, Malaysia, Mexico, the Netherlands, Poland, Russia, Singapore, the United Kingdom, the United States and Vietnam.

“We undertook this study to go beyond the basic studies that focused solely on statutory rates to provide manufacturers with an appreciation of how the tax incentives in each jurisdiction would impact the ultimate tax paid by a hypothetical manufacturer,” continues Birkeland. “We believe the study indicates domestic U.S. manufacturers could benefit from a reduction in their effective business tax rates. The results show that many of our trading partners compete to attract manufacturers by providing valuable tax incentives.”

To read or download a copy of International taxation for manufacturing: A comparative review, please visit