Orlando offers one of the best tax structures for business, landing at the No. 15 spot globally on KPMG’s Focus on Tax report. The study highlights 51 major international cities, those that KPMG determines to be of most interest to companies seeking to locate international business operations.
For the study KPMG analyzed 111 cities from the top 10 countries for business taxes based on their “total tax index,” which included corporate income taxes, capital taxes, sales taxes, property taxes, miscellaneous local business taxes and statutory labor costs.
What makes Orlando so business-friendly? Local governments focus on keeping the cost of doing business as low as possible. In addition, Florida has no state personal income tax, no corporate income tax on limited partnerships, and no state-level property tax assessed. Last year, KPMG also named Orlando the No. 2 most cost-competitive location in the U.S. among large cities on its overarching Competitive Alternatives study.
In addition, Florida’s stable and highly favorable tax climate provides advantages that make a Florida location profitable for every type of business. Florida has…
- NO corporate income tax on limited partnerships
- NO corporate income tax on subchapter S-corporations
- NO state personal income tax guaranteed by constitutional provision
- NO corporate franchise tax on capital stock
- NO state-level property tax assessed
- NO property tax on business inventories
- NO property tax on goods-in-transit for up to 180 days
- NO sales and use tax on goods manufactured or produced in Florida for export outside the state
- NO sales tax on purchases of raw materials incorporated in a final product for resale, including non-reusable containers or packaging
- NO sales/use tax on co-generation of electricity
Florida offers Sales and Use Tax Exemptions on…
- Machinery and equipment used by a new or expanding Florida business to manufacture, produce or process tangible personal property for sale
- Labor, parts and materials used in repair of and incorporated into machinery and equipment
- Electricity used in the manufacturing process
- Certain boiler fuels (including natural gas) used in the manufacturing process
- Semiconductor, defense and space technology-based industry transactions involving manufacturing equipment
- Machinery and equipment used predominantly in research and development
- Labor component of research and development expenditures
- Commercial space activity — launch vehicles, payloads and fuel, machinery and equipment for production of items used exclusively at Spaceport Florida
- Aircraft parts, modification, maintenance and repair, sale or lease of qualified aircraft
- Production companies engaged in Florida in the production of motion pictures, made for television motion pictures, television series, commercial music videos or sound recordings.
To learn more about Orlando’s competitive tax and incentive options, click here.