Lameez Omarjee FIN24
Johannesburg – At 28.8%, South Africa’s corporate tax is relatively high compared to countries which scored better in the World Economic Forum’s (WEF’s) global competitiveness rankings.
South Africa ranked 47th out of the 138 countries, an improvement by two places, in the Global Competitiveness Report for 2016/17. The survey looked at the economy profiles of 138 of the world’s countries and ranked each country in terms of its competitiveness.
We compare South Africa’s corporate tax rate to 10 of the countries with the lowest tax rates in the world to see if this affects competitiveness:
10. Singapore, ranked 2nd out of 138
The tax on profits for this country is at 18.4%. With a population of 5.5 million, the country’s gross domestic product comes to $292.7bn, or $52 887.8 per capita. The country’s GDP contribution to the world is 0.42%. The savings level is at 46% of GDP.
Some of the problem factors to doing business are linked to restrictive labour regulations, insufficient capacity to innovate, inflation levels, an inadequately educated workforce and poor work ethic in its national labour force