In a study, the company analysed international movements in corporate tax rates for the past 14 years across 86 countries, drawing on the annual surveys it has conducted since 1993.

The findings point to the economic growth enjoyed over the period by countries such as Ireland, Norway, Sweden and Denmark, and draws a parallel between this success and a favourable corporate tax regime.

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The main exception to the trend is the US, which has maintained high levels of growth with a consistently high corporate tax rate of 40%. “Despite its high taxes, the sheer economic power of the US market has preserved its attraction for multinational companies,” said KPMG’s head of global tax practice and UK firm partner, Loughlin Hickey.

“But even here the effectiveness of reducing tax rates has been evident. For example, the American Jobs Creation Act of 2004, which reduced repatriation taxes from 35% to 5.3% for one year, caused US companies to repatriate about $300bn during 2005, according to JPMorgan Chase.”