Corporation tax: UK vs USA
9th Dec 2016
Corporation tax rates are higher in the USA than the UK
That’s correct. US companies pay about twice the rate of tax on their profits as UK companies.
“Corporation tax is even much higher in the United States.”
Richard Burgon MP, 8 December 2016
It’s correct that corporation tax rates are higher in the USA than that UK.
Companies pay tax in the country where they locate their business, rather than the place where they make their sales. For example, a UK car manufacturer who sold cars in the United States would pay the UK rate to the UK government.
Corporation tax isn’t the only tax paid by UK businesses.
This fact check is part of a roundup of BBC Question Time, factchecked. Read the roundup.