The U.K. is making strides to attract foreign businesses by continuing to lower the corporate tax. In March, George Osborne, the U.K. Chancellor of the Exchequer, announced the second U.K. corporation tax cut in less than a year, making the U.K. business tax 21 per cent - one of the most competitive in the world.
As a comparison, the average corporation tax charged by the G7 is 32 per cent, and the average is 25.3 per cent across other European countries.
Further cuts are planned throughout the next few years, as the U.K. looks to help it's domestic business community grow and position itself as a very attractive place for overseas investors to do business.
Both Russia and the UK are two of the major global economies which try to tempt businesses with a favourable tax environment. They offer companies the lowest effective tax rates among the world's best economies, according to a study by accountancy firm UHY Hacker Young. Firms in Russia are obliged to pay business tax at 20 per cent, Bloomberg reported. Meanwhile, companies in the UK pay business tax at 21 per cent.