It's Cheaper to do Business in Canada
March 12, 1999
In a survey of eight major industrial countries, the KPMG consulting firm found that Canada has the lowest business costs. Setting up a business there and running it for 10 years was 7.8 percent cheaper than in the United States.
Here are some of the study's other conclusions:
- Among the eight major industrial countries surveyed, Britain and the U.S. had the next lowest costs.
- Japan and Germany have the highest costs.
- Austria, France and Italy were ranked in the middle.
- Demonstrating that Canada's cost advantage is particularly pronounced in high technology, KPMG said that operating a 110-employee software firm there, instead of in the U.S., would save the average company about $1.6 million a year.
Canada's advantage was partially attributed to the low value of its dollar relative to the currencies of other countries. The survey also found that contrary to a widespread view, the tax burden on companies is somewhat lighter in Canada than in the U.S.
The survey didn't address personal income taxes -- which are comparatively high in Canada.
Source: John Urquhart, "Canada Has the Lowest Business Costs of 8 Industrial Countries, Survey Says," Wall Street Journal, March 12, 1999.
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