Académique Documents
Professionnel Documents
Culture Documents
Paying
Taxes
2016
10th edition
www.pwc.com/payingtaxes
Contacts
PwC1
Stef van Weeghel
Leader, Global Tax Policy and
Administration Network
PwC Netherlands
+31 88 792 6763
stef.van.weeghel@nl.pwc.com
Andrew Packman
Tax Transparency and
Total Tax Contribution leader
PwC UK
+44 1895 522 104
andrew.packman@uk.pwc.com
Rita Ramalho
Manager, Doing Business Unit
+1 202 458 4139
rramalho@ifc.org
Neville Howlett
Director External Relations, Tax
PwC UK
+44 20 7212 7964
neville.p.howlett@uk.pwc.com
Joanna Nasr
Private Sector Development Specialist
+ 1 202 458 0893
jnasr@worldbank.org
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Contents
Foreword
Key ndings from the Paying Taxes 2016 data ..............................................................................................................1
What does this publication cover? ...............................................................................................................................7
Chapter 1: World Bank Group commentary ....................................................................................................11
Recent developments in the Paying Taxes sub-indicators.......................................................................................11
Chapter 2: PwC commentary .............................................................................................................................23
The global results ..................................................................................................................................................25
Comparing the regions ..........................................................................................................................................29
How has the Paying Taxes picture changed over the ten editions? .........................................................................33
Regional analysisbof the sub-indicators .................................................................................................................45
In-depth country articles ...................................................................................................................................... 61
Chapter 3: Tax policy and administration.......................................................................................................81
Uncovering the impact of hidden taxes on employment ........................................................................................83
Combatting the shadow economy: a taxpayer-centric approach ............................................................................89
The relevance and sustainability of co-operative compliance models for tax in African countries .........................95
Appendix 1
Methodology and example calculations for each Paying Taxes sub-indicators ............................................................99
Appendix 2
Economy sub-indicator results by region .................................................................................................................. 111
Appendix 3
The data tables ........................................................................................................................................................129
Foreword
Foreword
Andrew Packman
7D[7rDQVSDreQF\
and Total Tax
&ontrLEXtLon leader
PwC UK
Augusto
Lopez-Claros
'LreFtor *loEal
,ndLFatorV *roXS
The World Bank
*roXS
Andrew Packman
Augusto Lopez-Claros
Foreword
2014
Time to comply
Number of payments
40.8%
261 hours
25.6
46
41
150
2014
Max number of
payments (147)
144
Total Tax Rate
-0.1%
Time to comply
-2 hours
Max number of
payments (70)
Number of payments
-0.6
50
67
Min number of
payments (3)
Min number of
payments (3) 0
2004
2014
300 hrs
60%
74%
economies
46
economies
84
2005
2014
0
2004
2014
2004
2014
Low income economies
2004
2010
2014
Other economies
1orth America
Lowest payments indicator
The three countries in the region have
fully implemented electronic ling and
payment systems, resulting in efcient
compliance processes. Mexico abolished
a prot tax in 2014 reducing the regions
time to comply still further.
38
%
1
hours
82
payments
421
%
20
hours
550
%
341
payments
615
hours
235
payments
6outh America
Highest Total Tax Rate
and time to comply
While the Total Tax Rate and time to
comply sub-indicators have decreased
since last year, the region still has the
highest Total Tax Rate and the highest
time to comply. It is also the region
where other taxes account for the
largest share of the Total Tax Rate.
Explore our powerful interactive data modeller and compare tax regimes across 189 global economies at
www.pwc.com/payingtaxesmodeller
3
352
%
406
%
13
hours
115
24
hours
payments
(8 (FTA
All three suE-indicators
Eelow the gloEal average
and still falling
Twenty economies in the region
made reforms which affected
their Total Tax Rates, mostly by
small amounts. Labour taxes
account for a greater share of
the Total Tax Rate than in any
other region.
242
%
160
hours
10
payments
0iddle (ast
Still the easiest region in which to
pay taxes
Despite a small increase in the Total
Tax Rate in 2014, the region is the
easiest in which to pay tax. It has the
lowest Total Tax Rate and time to
comply, and all of the sub-indicators
have been very stable sinceb2004.
46
%
313
hours
212
payments
366
payments
AIrica
*reatest reduction in Total Tax Rate
over ten years Eut has the highest
payments suE-indicator
Although the region shows the greatest
overall drop in the Total Tax Rate since
2004, itbis still a very difcult region
in which to pay tax. The Total Tax
Rate increased this year, with time
to comply and number of payments
decreasing.
356
%
222
hours
251
payments
Asia Pacic
Apart from theb0iddle (ast it
is the regionbwith the lowest
averagebTotal Tax Rate
All three sub-indicators fell slightly
in 2014. All are below the global
average and have been since the
study began. While the average
time to comply fell in the latest
period, this is a mix of large
reductions in some economies offset
by signicant increases in others.
Paying Taxes
The global picture
A grown tree produces on average, 80,500 sheets of paper. There are about 250 million formal businesses in the world.
www.pwc.com/payingtaxes
Paying
Taxes
2013
A fair, sustainable
tax system how can
governments create an
environment that fosters
business investment and
economic growth?
www.pwc.com/payingtaxes
Paying
Taxes
2014
www.pwc.com/payingtaxes
Paying Taxes 2015: The global picture.
The changing face of tax compliance in 189
economies worldwide.
Paying Taxes
2015
www.pwc.com/payingtaxes
Paying
Taxes
2016
10th edition
www.pwc.com/payingtaxes
The previous editions of Paying Taxes are available to download at our website: www.pwc.com/payingtaxes
Key ndings from the Paying Taxes 201 data
Wh
Tax 6implication, edited by C (vans, 5 Krever and P 0ellor, 6eries on ,nternational Taxation, Kluwer /aw ,nternational 2015.
10
11
Figure 1.1
The greater the difculty of paying taxes, the more likely rms are to perceive corruption as a problem
Score (0-100)
70
60
50
40
30
20
10
Most difcult
Least difcult
less/more corrupt
Score (1-7)
The Paying Taxes sub-indicators comprise three measures Total Tax Rate as a percentage of commercial prot a measure of the nancial burden, number of
tax payments and time in hours per year measures of the administrative burden. 6ee Appendix 1 for details.
12
Figure 1.2
6erbia has made complying with tax obligations easier for companies
Time to comply (hours per year)
300
67
275
payments
42
250
payments
225
200
2013
13
2014
Table 1.1
Who made paying taxes easier and less costly in 2014?
Costa Rica Cyprus ,ndonesia -amaica
0alaysia 0ontenegro 0orocco
0o]ambiTue Peru Poland Rwanda 6erbia
6lovak Republic 6pain TaMikistan Uruguay
9ietnam =ambia
Merged or eliminated
taxes other than prot
tax
6implied tax
compliance process
Reduced labour
taxes and mandatory
contributions
China 6hanghai Colombia France Greece Romania reduced the social security contribution
,ndonesia Mexico Romania United Kingdom rate paid by employers from 20.8% to 15.8% from
1 2ctober 2014.
Allowed more
deductible expenses
or depreciation
Easing
,ntroduced or
compliance enhanced electronic
systems
Reducing
taxes
Note: The reforms shown are those recorded from 1 -anuary 2014, to 31 'ecember 2014.
Source: Doing Business database.
The corporate income tax was changed from a 25% at rate to a progressive tax system, with the rst b15,000 taxed at 17% and any amount above that taxed
at 23%.
Tax deductions are expenses that a company is allowed to deduct from its income for the purpose of calculating corporate income tax.
10
14
Figure 1.3
(ighty-four economies have a fully implemented electronic system for ling and paying taxes
Note: An electronic system is counted where both the ling and payment of taxes are done online and used by the maMority of medium-si]e businesses.
Sources: Doing Business database.
11
12
15
Figure 1.4
(urope and Central Asia accounted for the most reforms in electronic tax ling and payment in the past ve years
2010
2011
2012
2013
2014
South Asia
Sub-Saharan Africa
Reforms introducing or enhancing electronic system for ling and paying taxes
Note: The reforms shown for each year until 2014 are those recorded from 1 -une of that year to 1 -une of the following year. For 2014 the reforms shown are
those recorded from 1 -anuary to 31 'ecember of that year.
Source: Doing Business database. Doing Business uses the World Bank regional and income group classications, available at httpdata.worldbank.org
aboutcountry-and-lending-groups. Regional data averages presented in gures and tables in the Doing Business report include economies from all income
groups low, lower middle, upper middle and high income, though 2(C' high income economies are assigned the oregionalp classication.
13
2(C' 2014b.
16
14
o2thersp include property taxes, turnover taxes, property transfer taxes, road taxes, environmental taxes and other small taxes such as municipal fees and
vehicle taxes.
17
18
15
16
17
OECD 2014a.
OECD 2014a.
Harrison and Krelove 2005.
19
20
Tax audits
In some cases a claim for a VAT refund may
automatically trigger an audit. These audits
can be administratively costly, and they can
undermine the effectiveness of a VAT system.18
An effective audit program and payment of VAT
refunds are inseparable processes. The IMF
recommends applying computerised risk-based
checks to claims to select a certain share for
audit verication before payment.19 Rather than
screening claims and automatically clearing
some of them, however, the VAT system in some
economies subjects all claims to audit verication
before payment. This ties up a large share of
the audit resources, leaving fewer resources for
potential cases of tax evasion.
18
20
21
Tax appeals
A certain number of tax disputes is a normal part
of any system of taxation. But a serious backlog
of tax cases threatens revenue collection.25
Sobdisputes between the tax authority and
taxpayers need to be resolved in a fair, timely
and efcient manner.26 As a rst step, taxpayers
should try to settle the nal tax assessment with
the tax ofcials who rst issued the assessment.
If a dispute continues, taxpayers should have the
opportunity, within a prescribed period of time,
to appeal to a special administrative appeal board
or department.
The creation of appeal boards within tax
administrations can be an effective tool for
addressing and resolving complaints and
avoiding overcrowding in the courts. An
internal administrative review by the tax
authorities through a process removed as
much as possible from the original auditor and
assessor can ensure independence in handling
complaint cases. Surprisingly, many economies
do not separate the appeal board from the
auditor. Thisbis the case in Armenia, Bosnia
and Herzegovina, the Arab Republic of Egypt,
Germany, Israel, Moldova, Namibia, Rwanda
andbSwitzerland
5eferences
Alm, -ames, and Michael McKee. 2006. Audit Certainty, Audit Productivity, and Taxpayer Compliance. Working Paper 06-43, Andrew <oung
School of Policy Studies, Georgia State University, Atlanta. Available at Social Science Research Network (SSRN): http://ssrn.com/abstract 897341.
Gordon, Richard. 1996. Law of Tax Administration and Procedure. In Tax /aw Design and Drafting, vol. 1, edited by Victor Thuronyi. Washington,
DC: International Monetary Fund.
Gupta, Manish, and Vishnuprasad Nagadevara. 2007. Audit Selection Strategy for Improving Tax Compliance: Application of Data Mining
Techniques. In )oundations of (government, edited by Ashok Agarwal and V. Venkata Ramana. Hyderabad: Computer Society of India.
Harrison, Graham, and Russell Krelove. 2005. VAT Refunds: A Review of Country Experience. IMF Working Paper 05/218, International Monetary
Fund, Washington, DC.
Hudson, Veena, and Chas Roy-Chowdhury. 2010. Tax after the Financial Crisis. ACCA Position Paper, Association of Chartered Certied
Accountants, London. http://www.accaglobal.com/content/dam/acca/global/pdf/pb-TaxAftertheFinancialCrisis.pdf.
Khwaja, Munawer Sultan, Rajul Awasthi and -an Loeprick, eds. 2011. 5iskBased Tax Audits: Approaches and &ountry (xperiences. Washington, DC:
World Bank.
OECD (Organisation for Economic Co-operation and Development). 2014a. ,nternational 9AT/*6T *uidelines. Paris: OECD.
. 2014b. 2(&D (conomic 6urveys: 6lovak 5epublic 201. Paris: OECD. doi:10.1787/ecoBsurveys-svk-2014-en.
Snow, Arthur, and Ronald S. Warren -r. 2005. Tax Evasion under Random Audits with Uncertain Detection. (conomics /etters 88: 97100.
doi:10.1016/j.econlet.2004.12.026.
Thuronyi, Victor. 2003. How Can an Excessive Volume of Tax Disputes Be Dealt With? Legal Department, International Monetary Fund,
Washington, DC.
World Economic Forum. 2014. *lobal &ompetitiveness 5eport 2012015. Geneva: World Economic Forum.
=olt, Eric, and Richard Bird. 2008. Technology and Taxation in Developing Countries: From Hand to Mouse. 1ational Tax -ournal 61: 791821.
25
26
Gordon 1996.
Thuronyi 2003.
22
23
27
http://www.pwc.com/gx/en/ceo-agenda/ceo-survey.html
24
25
Figure 2.1
Averages for the three Paying Taxes sub-indicators have fallen since last year
Time to comply
Number of payments
2013:
40.9%
2014:
40.8%
2013:
263 hours
2014:
261 hours
2013:
26.2
8.4
8.4
100
99
12.7
16.2
16.2
12.3
Other taxes
94
93
10.3
16.3
2014:
25.6
10.1
16.2
Labour taxes
69
69
3.2
3.2
Prot taxes
26
Figure 2.2
Movement in Total Tax Rate
Total Tax Rate (%)
20
Labour taxes
2014: 16.6%
Prot taxes
2014: 16.6%
15
10
Other taxes
2014: 8.8%
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
28
The movements in Total Tax Rate refer to a movement exhibited by the Total Tax Rates when rounded to one decimal place. Where the economys Total Tax
Rate is the weighted average of the Total Tax Rate of two cities, the movements in the Total Tax Rates of the separate cities may differ. For example in Mexico,
Mexico Citys Total Tax Rate increased by 0.019 percentage points while Monterreys decreased by 0.376 percentage points.
27
28
Comparing the
regions
29
Figure 2.3 shows the Total Tax Rate for all the
geographic regions split between the three
main types of tax; prot taxes, labour taxes and
mandatory contributions and other taxes. This
chart allows us to compare not only the overall
tax levied in each region, but also the extent to
which this falls on these three types of tax. Figure
2.4 and Figure 2.5 show the regional splits of
the time to comply and payments sub-indicators
respectively.
In spite of some improvements in its Total Tax
Rate and its time to comply, as explained in
the next section, the South American region is
still by far the region with the highest Total Tax
Rate, 55.0%, and the greatest time to comply,
615 hours. To put this in perspective, the region
which stands second, Africa, has a Total Tax Rate
of 46.9% and a time to comply of 313 hours. On
the other hand, South America fares well as far
as the number of payments is concerned as the
availability and use of electronic systems for ling
and paying taxes is more prevalent than in some
other regions.
Figure 2.3
Total Tax Rate by region (%) for 2014
South America
16.7
Africa
16.4
17.7
21.9
14.9
Central America
& the Caribbean
14.3
22.3
World average
12.2
16.2
EU & EFTA
16.2
12.6
19.2
Asia Pacic
17.6
7.5
18.8
9.4
3.7
10.5
12.9
Middle East
14.2
10
Prot taxes
40.6
38.9
35.6
3.5
35.2
0.6 24.2
20
Labour taxes
40.8
1.5
16.0
46.9
42.1
8.4
26.5
North America
Central Asia
& Eastern Europe
7.6
55.0
30
40
50
60
Other taxes
30
Figure 2.4
Time to comply by region for 2014
South America
138
Africa
189
87
World average
69
Central Asia
& Eastern Europe
73
Asia Pacic
70
Central America
& the Caribbean
104
North America
93
37
Middle East
44
99
83
90
209
60
53
26
197
173
160
100
Prot taxes
200
Labour taxes
31
222
72
52
313
247
86
96
615
261
100
66
85
EU & EFTA
122
74
41
288
300
400
Consumption taxes
500
600
700
Figure 2.5
Number of payments by region for 2014
Africa
4.0
Central America
& the Caribbean
15.3
5.4
World average
3.2
Asia Pacic
3.1
Central Asia
& Eastern Europe
3.2
12.3
25.6
10.7
10.9
25.1
9.0
Middle East
1.0
EU & EFTA
1.4
2.9
1.5
2.9
North America
11.4
4.8
13.2
10.4
5.6
7.2
3.8
34.1
23.5
21.2
17.0
11.5
8.2
10
Prot taxes
36.6
15.7
10.1
3.5
South America
17.3
13.0
Labour taxes
20
30
40
Other taxes
32
33
Figure 2.6
Trends in the global sub-indicators since 2004
% / Number
70
Hours
350
60
300
50
250
Time to comply
200
40
2014: 42.1%
30
150
20
100
Number of payments
2014: 26.3
50
10
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
0
2014
34
Figure 2.7
Trends in the Total Tax Rate since 2004
Total Tax Rate (%)
75
70
65
60
55
South America
50
Africa
Central America
& the Caribbean
World average
EU & EFTA
North America
Central Asia &
Eastern Europe
Asia Pacic
45
40
35
30
Middle East
25
20
15
10
0
2004
2005
2006
2007
2008
35
2009
2010
2011
2012
2013
2014
Table 2.1
Increases and decreases in Total Tax Rate by region between 2013 and 2014
Total number
of economies
Percentage of economies
with decreased Total Tax Rate
Percentage of economies
with no changes
Percentage of economies
with increased Total Tax Rate
Africa
53
17%
60%
23%
Asia Pacic
37
22%
54%
24%
20
25%
55%
20%
19
26%
37%
37%
EU & EFTA
32
38%
38%
24%
Middle East
13
0%
69%
31%
North America
33%
67%
0%
South America
12
17%
75%
World
189
22%
54%
8%
24%
Note: The table includes only changes exhibited by the Total Tax Rates when rounded to one decimal place.
Source: PwC Paying Taxes 2016 analysis.
36
Figure 2.8
Trend in Total Tax Rate by income level of economies
Total Tax Rate (%)
100
90
80
70
60
Low income
50
High income
Upper middle
income
Lower middle
income
40
30
20
10
0
2004
2005
2006
2007
37
2008
2009
2010
2011
2012
2013
2014
Time
As shown in Figure 2.9 over the period of the study
from 2004 until 2014, Central Asia & Eastern
Europe has shown the biggest improvement of all
the regions in average time to comply, with a drop
of 234 hours across the region. South America
continues to be the outlier of the regions, largely
due to Brazils time to comply sitting at 2,600
hours, along with Bolivias time to comply at 1025
hours which is the second highest in the world.
Even taking these two countries out of the South
America average, the region would still have the
highest time to comply and it would have shown
very little reduction over the period of the study.
Figure 2.9
Trends in the time to comply since 2004
Time (hours)
700
South America
600
500
400
Africa
300
World average
Central Asia &
Eastern Europe
Asia Pacic
Central America
& the Caribbean
North America
200
EU & EFTA
Middle East
100
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
38
Figure 2.10
Distribution of the time to comply 2004 and 2014
Number of economies
45
40
35
30
25
20
15
10
Number of
economies 2004
Number of
economies 2014
0
050
51
-100
101
-150
151
-200
201
-250
251
-300
301
-350
351
-400
401
-450
Time (hours)
39
451
-500
501
-550
551
-600
601
-650
651
-700
701
-750
751
-800
801
-850
851
-900
901
951 >1000
-950 -1000
Figure 2.11
Trend in the time to comply by income level of economies
Time (hours)
450
400
350
Lower middle
income
300
Upper middle
income
Low income
250
200
High income
150
100
50
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
40
Payments
As shown in Figure 2.12, when it comes to the
number of payments sub-indicator, Central Asia
& Eastern Europe is the most reformed region
since 2004, with Ukraine and Belarus being the
most improved economies globally. In Ukraine,
the number of payments sub-indicator fell from
147 to 5 payments and in Belarus it fell from 125
to 7 payments over the course of the study. South
America and the EU & EFTA were next with a drop
of 12.7 payments and 11 payments respectively.
Figure 2.12
Trends in the number of payments since 2004
Number of payments
55
50
45
40
Africa
Central America
& the Caribbean
35
30
World average
25
Asia Pacic
South America
Central Asia &
Eastern Europe
20
Middle East
15
EU & EFTA
10
North America
0
2004
2005
2006
2007
2008
41
2009
2010
2011
2012
2013
2014
Looking at the distribution of the payments subindicator across the economies (see Figure 2.13),
59% of economies had a payments sub-indicator of
30 or less in 2014, compared to 43% of economies
in 2004. In addition, we can see that in 2014
the distribution of the payments sub-indicator
has moved towards the lower end of the range
compared to 2004 and that the most common
value for the sub-indicator is in the range of 6 10
payments, compared to 31 35 payments in 2004.
Figure 2.13
Distribution of the number of payments sub-indicator 2004 and 2014
Number of economies
45
40
35
30
25
20
15
10
Number of
economies 2004
0
050
51
-100
101
-150
151
-200
201
-250
251
-300
301
-350
351
-400
401
-450
451
-500
501
-550
551
-600
601
-650
651
-700
701
-750
751
-800
801
-850
851
-900
901
951 >1000
-950 -1000
Number of
economies 2014
Number of payments
42
Figure 2.14
Trend in number of payments sub-indicator by income level of economies
Number of payments
50
45
Low income
40
35
Lower middle
income
30
25
Upper middle
income
20
15
High income
10
0
2004
2005
2006
2007
43
2008
2009
2010
2011
2012
2013
2014
44
Regional
analysisbof the
sub-indicators
45
Figure 2.15
Africa 29
2014
201330
46.9
46.6
(%)
313
316
(hours)
36.6
36.7
(number)
Africa
As shown in Figure 2.15, there was a mixed
story with regards to Africa, with the average
Total Tax Rate increasing by 0.3 percentage
points (only Central Asia & Eastern Europe had
a larger increase at 0.5 percentage points) and
the compliance sub-indicators falling; time to
comply fell by 3 hours and the number of payments
decreased by 0.1 percentage points.
As regards the Total Tax Rate, across the region
changes in prot taxes were the most signicant,
though there was a very mixed picture, with some
economies raising their corporate income tax
liabilities while others reduced theirs. Another
good example of the varied picture is in other taxes
where Zambia has doubled its property transfer tax
from 5% to 10% while Mauritius did the reverse,
halving its land transfer tax from 10% to 5%.
The single largest change was Liberias prot tax
Total Tax Rate increasing by 14.6 percentage points
to 47.8% due to the introduction of a minimum
corporate income tax. Companies in Liberia must
now pay 2% of turnover as a monthly advance tax
and the nal income tax liability cannot be lower
than the amount already paid in advance.
The next biggest increases in Total Tax Rates were:
An increase of 5.1 percentage points to
45.7% in Gabon as a result of a reduction in
depreciation rates.
A mixed picture
in Africa the
Total Tax Rate
increases while
compliance subindicators fall.
29
The following economies are included in our analysis of Africa: Algeria; Angola; Benin; Botswana; Burkina Faso; Burundi; Cabo Verde; Cameroon; Central
African Republic; Chad; Comoros; Congo, Dem. Rep.; Congo, Rep.; Cte dIvoire; Djibouti; Egypt, Arab Rep.; Equatorial Guinea; Eritrea; Ethiopia; Gabon;
Gambia, The; Ghana; Guinea; Guinea-Bissau; Kenya; Lesotho; Liberia; Libya; Madagascar; Malawi; Mali; Mauritania; Mauritius; Morocco; Mozambique;
Namibia; Niger; Nigeria; Rwanda; So Tom and Prncipe; Senegal; Seychelles; Sierra Leone; South Africa; South Sudan; Sudan; Swaziland; Tanzania; Togo;
Tunisia; Uganda; Zambia; Zimbabwe.
30
The information for 2013 has been updated to include any corrections made to the underlying data since the publication of the previous edition of Paying
Taxes.
46
Figure 2.16
Reductions in the time to comply sub-indicator for Africa
Time in 2013
Morocco
Zambia
Mozambique
Time in 2014
232
211
177
157
230
217
314
Rwanda
Cabo Verde
Liberia
20
13
12
10
109
218
210
Tax can now be paid at several banks and not just at the tax
ofce
186
180
143
140
88
85
181
179
47
21
119
Seychelles
Tanzania
Reason
302
Namibia
South Sudan
Reduction
Figure 2.17
Asia Pacic31
2014
201332
35.6
35.8
(%)
222
224
(hours)
25.1
25.5
(number)
Asia Pacic
The Asia Pacic economies showed improvements
across the board with reductions in all three subindicators. Brunei Darussalam, Indonesia and
Vietnam improved the most overall in this region.
The Total Tax Rate for the Asia Pacic region
decreased by 0.2 percentage points on average
with the greatest reduction being in Brunei
Darussalam where the Total Tax Rate decreased
by 7.1 percentage points, mainly as a result of
changes to the capital allowance provisions.
Thebreduction in the Total Tax Rate generated by
the changes in capital allowances was partially
offset by the taxable prots of our case study
company becoming fully subject to corporate
income tax; previously some of the taxable prot
had been exempt from tax. Furthermore, the rate
of corporate income tax reduced from 20% to
18.5% in the year.
Indonesia reduced social security contributions
paid by the employer from 6% to 4% of salaries,
but imposed an additional health insurance
contribution on employees of 0.5% rising to 1%
of salary in 2015. This change in the employers
contributions reduced the Total Tax Rate by 1.7
percentage points to 29.7%, while the change in
employees contributions does not affect the Total
Tax Rate.
31
The following economies are included in our analysis of the Asia Pacic: Afghanistan; Australia; Bangladesh; Bhutan; Brunei Darussalam; Cambodia; China;
Fiji; Hong Kong SAR, China; India; Indonesia; Japan; Kiribati; Korea, Rep.; Lao PDR; Malaysia; Maldives; Marshall Islands; Micronesia, Fed. Sts.; Mongolia;
Myanmar; Nepal; New Zealand; Pakistan; Palau; Papua New Guinea; Philippines; Samoa; Singapore; Solomon Islands; Sri Lanka; Taiwan, China; Thailand;
Timor-Leste; Tonga; Vanuatu; Vietnam.
32
The information for 2013 has been updated to include any corrections made to the underlying data since the publication of the previous edition of Paying
Taxes.
48
49
Figure 2.18
Central America & the Caribbean33
2014
201334
42.1
42.8
(%)
209
211
(hours)
34.1
34.7
(number)
33
The following economies are included in our analysis of Central America & the Caribbean: Antigua and Barbuda; Bahamas, The; Barbados; Belize; Cost Rica;
Dominica; Dominican Republic; El Salvador; Grenada; Guatemala; Haiti; Honduras; Jamaica; Nicaragua; Panama; Puerto Rico (U.S); St. Kitts and Nevis;
St. Lucia; St. Vincent and the Grenadines; Trinidad and Tobago.
34
The information for 2013 has been updated to include any corrections made to the underlying data since the publication of the previous edition of Paying
Taxes.
50
51
Figure 2.19
Central Asia & Eastern Europe35
2014
201336
35.2
34.7
(%)
247
250
(hours)
21.2
23.5
(number)
35
The following economies are included in our analysis of Central Asia & Eastern Europe: Albania; Armenia; Azerbaijan; Belarus; Bosnia and Herzegovina;
Georgia; Israel; Kazakhstan; Kosovo; Kyrgyz Republic; Macedonia, FYR; Moldova; Montenegro; Russian Federation; Serbia; Tajikistan; Turkey; Ukraine;
Uzbekistan.
36
The information for 2013 has been updated to include any corrections made to the underlying data since the publication of the previous edition of Paying
Taxes.
52
53
Figure 2.20
EU & EFTA37
2014
201338
40.6
41.2
(%)
173
175
(hours)
11.5
12.3
(number)
(8 (FTA
Since last year all three sub-indicators for the EU
& EFTA region have decreased slightly.
Twenty economies in the region made reforms
which affected their Total Tax Rates resulting in
an overall reduction in the regional average from
41.2% to 40.6%. The picture however is mixed
with 12 economies showing a decrease in their
Total Tax Rates and 8 economies showing an
increase. As shown in Figure 2.21 the reduction
in the Total Tax Rate is attributable to prot taxes,
though there is a slight increase in the labour tax
Total Tax Rate.
Figure 2.21
Movement in the Total Tax Rate in the EU & EFTA
8.4
2013:
41.2%
1.6
1.5
26.4
26.5
100
2014:
40.6%
Other taxes
99
Labour taxes
16.1
13.2
12.6
Prot taxes
10.3
10.1
37
The following economies are included in our analysis of the EU & EFTA: Austria; Belgium; Bulgaria; Croatia; Cyprus; Czech Republic; Denmark; Estonia;
Finland; France; Germany; Greece; Hungary; Iceland; Ireland; Italy; Latvia; Lithuania; Luxembourg; Malta; Netherlands; Norway; Poland; Portugal; Romania;
San Marino; Slovak Republic; Slovenia; Spain; Sweden; Switzerland; United Kingdom.
38
The information for 2013 has been updated to include any corrections made to the underlying data since the publication of the previous edition of Paying
Taxes.
54
55
56
Figure 2.22
Middle East39
2014
201340
24.2
24.0
(%)
160
160
(hours)
17.0
17.0
(number)
Middle (ast
The Middle East still remains the region in which
it is the easiest to pay taxes, with both the lowest
average Total Tax Rate and the lowest average
time to comply of all the regions. Most of the
economies in the Middle East region have a Total
Tax Rate below the threshold of 26.1% that is
used for the distance to frontier calculation.
Economies with a Total Tax Rate that is on or
below this threshold are treated for the distance
to frontier and ranking calculations as having
reached the frontier. Any reductions in Total
Tax Rate below 26.1% therefore have no further
impact on the distance to frontier score or the
overall ranking.
The Middle East regions time to comply is just
160 hours, some 455 hours lower than South
America which is the region where it takes the
longest on average for companies to comply with
their tax obligations.
39
The following economies are included in our analysis of the Middle East: Bahrain; Iran, Islamic Republic; Iraq; Jordan; Kuwait; Lebanon; Oman; Qatar; Saudi
Arabia; Syrian Arab Republic; United Arab Emirates; West Bank and Gaza; Yemen, Rep.
40
The information for 2013 has been updated to include any corrections made to the underlying data since the publication of the previous edition of Paying
Taxes.
57
58
Figure 2.23
North America41
2014
201342
38.9
38.9
(%)
197
213
(hours)
8.2
8.2
(number)
1orth America
At 38.9%, North Americas average Total Tax Rate
is slightly below the global average of 40.8%.
Although the regional average did not change,
small movements in the Total Tax Rates were
recorded in the USA and Mexico. ForbMexico,
thebbiggest change was to the minimum wage
index which is used to calculate the social
security contributions paid by employer.
Combined with other minor changes, the overall
impact of the changes in Mexico was, however,
small, resulting in a decrease in the Total Tax
Rate of less than 0.1 percentage points. In the
USA, changes were observed only in New York
City, where there was an increase in the base
for calculating payroll taxes paid by employers
and also in the rate of New York City and State
property taxes. Again, the overall impact on the
Total Tax Rate was 0.1 percentage points.
Compared
to the rest of
the world, the
proportion
of time spent
complying with
prot taxes in
North America
is still the
largest.
41
42
The following economies are included in our analysis of North America: Canada; Mexico; United States.
The information for 2013 has been updated to include any corrections made to the underlying data since the publication of the previous edition of Paying
Taxes.
59
Figure 2.24
South America43
2014
201344
55.0
55.6
(%)
615
620
(hours)
23.5
23.5
(number)
South America
Compared to last year, the average Total Tax
Rate for the South American region has fallen
by 0.6 percentage points and the average time
to comply sub-indicator has dropped by 5 hours.
The average number of payments sub-indicator
remains unchanged at 23.5 payments.
The reduction in the Total Tax Rate is largely
driven by changes to labour taxes paid by
companies in Colombia which resulted in a
decrease of 7.6 percentage points in the countrys
Total Tax Rate. From 2013, employers of workers
who earn less than 10 times the statutory
minimum wage are exempt from the Welfare
Security Tax, and from employers contributions
to the Colombian Family Welfare Institute and
to the National Apprenticeship Service. As these
changes came into effect part way through 2013,
the full impact of the changes was only felt in
2014. Even after these reductions, Colombia has a
labour tax Total Tax Rate of 18.6% which is higher
than both the regional average of 16.4% and the
global average of 16.2%.
Reduction
in Total Tax
Rate driven
by change to
employers
labour taxes
inbColombia.
43
The following economies are included in our analysis of South America: Argentina; Bolivia; Brazil; Chile; Colombia; Ecuador; Guyana; Paraguay; Peru; Suriname;
Uruguay; Venezuela, RB.
44
The information for 2013 has been updated to include any corrections made to the underlying data since the publication of the previous edition of Paying Taxes.
60
Azerbaijan
An improved tax system, but
a more diverse tax base may
be needed
Movlan Pashayev, PwC Azerbaijan
Figure 2.25
Trend in the Paying Taxes sub-indicators for Azerbaijan since 2004
% / Number
Hours
50
1000
40
800
Total Tax Rate
2014: 39.8%
30
600
20
400
Time to comply
200
10
0
2004
2005
2006
2007
2008
2009
61
2010
2011
2012
2013
2014
Number of payments
2014: 7
Since 1991,
Azerbaijan
has made
steady progress
towards a more
modern tax
system.
Azerbaijan
62
Figure 2.26
Tax collections in Azerbaijan
Tax collections (AZN millions)
7500
7000
6500
6000
5500
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
45
Please refer to the regional breakdown in Appendix 2 to see Azerbaijans rates amongst the Central Asia and Eastern Europe region.
63
2013
2014
What is next ?
Currently one of most signicant scal challenges
for Azerbaijan is to increase the performance of
the non-oil sectors and thereby increase the share
of tax revenues coming from industries other than
oil and gas. The drastic fall in global oil prices, as
well as a decrease in the countrys oil production,
contributed to a signicant economic slowdown
in 2014. Azerbaijans GDP grew by only 2.8 % in
2014 compared to 5.8% in 2013. A similar rate
of GDP growth is expected in 2015 and, possibly,
inb2016.47
Future reforms
should look at
how to widen
the tax base
and promote
transparency.
46
For more information relating to VAT accounts, please see here: http://www.iota-tax.org/content/view/379/39/.
http://www.worldbank.org/content/dam/Worldbank/document/Azerbaijan-Snapshot.pdf
Source: http://data.worldbank.org/country/azerbaijan
49
SOFAZ has assets of over $37 billion. For more information, see: http://www.oilfund.az/uploads/annual_2014en.pdf
50
http://data.worldbank.org/country/azerbaijan#cp_wdi
47
48
Azerbaijan
64
Mexico
Changing the tax system to
address the informal economy
Mauricio Hurtado de Mendoza, PwC Mexico
Figure 2.27
Trend in the Paying Taxes sub-indicators for Mexico since 2004
% / Number
Hours
60
600
50
500
2014: 51.7%
40
400
30
300
20
200
10
100
Time to comply
Number of payments
2014: 6
0
2004
2005
2006
2007
2008
2009
65
2010
2011
2012
2013
2014
51
BOLETN DE PRENSA NM. 155/15 27 DE ABRIL DE 2015 AGUASCALIENTES, AGS. PGINA 1/2 INDICADORES DE OCUPACIN Y EMPLEO CIFRAS
OPORTUNAS DURANTE MARZO DE 2015.
BOLETN DE PRENSA NM. 154/15 27 DE ABRIL DE 2015 AGUASCALIENTES, AGS. PGINA 1/2 INFORMACIN OPORTUNA SOBRE LA BALANZA
COMERCIAL DE MERCANCAS DE MXICO DURANTE MARZO DE 2015.
53
Informal Economy and the World Bank. Nancy Benjamin with Kathleen Beegle, Francesca Recanatini and Massimiliano Santini. The World Bank Poverty
Reduction and Economic Management Network, Economic Policy and Debt Department, May 2014.
54
http://www.inegi.org.mx/est/contenidos/proyectos/cn/informal/
52
Mexico
66
67
In 2013, Mexico
abolished its
alternative
minimum tax.
Mexico
68
Poland
The Polish tax system: heading in
the right direction
Tomasz Baranczyk, PwC Poland
Figure 2.28
Trend in the Paying Taxes sub-indicators for Poland since 2004
% / Number
Hours
45
450
40
400
35
350
2014: 40.3%
30
300
25
250
20
200
15
150
10
100
50
Time to comply
Number of payments
2004
2005
2006
2007
2008
2009
69
2010
2011
2012
2013
2014
2014: 7
Figure 2.29
Polish tax revenue prole 2004 vs 2014: tax collection and GDP
Tax revenue (PLN 000 000)
300
Key
1500
GDP
2014: 1,390
Other*
2014: 43
1200
240
Excise duty
2014: 616
VAT
900
180
2014: 1,243
Personal
income tax
(PIT)
2014: 781
600
120
Corporate
income tax
(CIT)
2014: 297
300
60
0
2004
2014
55
See http://www.ination.eu/ination-rates/poland/historic-ination/cpi-ination-poland.aspx
Poland
70
1. Time to comply
Paying Taxes shows that the average time needed by
the case study company to meet its tax compliance
obligations decreased from 420 to 271 hours since
2004 a reduction of 35%. The reduction is due
to both new regulatory measures and advances in
technology. The increasingly modern systems that
companies have in place to prepare and le their
taxes have allowed them to reduce the amount of
time needed for the compliance process. In addition,
online money transfers are more and more popular
and have signicantly reduced the payment time in
the hours needed to comply. Most businesses now
pay their taxes electronically, even though there is
no legal requirement to do so.
The introduction in December 2008 of quarterly tax
ling for VAT has also contributed to the reduction
in the amount of time needed.
There have however been some factors that have
had an adverse effect on the amount of time needed
to prepare, le and pay taxes. These include the
frequent changes made to the tax return forms,
frequent changes in secondary legislation and
general changes in the tax law (e.g. concerning
tax exemptions). Keeping up to date with current
trends in judicial decisions can also affect the
amount of time needed to prepare tax returns. Even
though Polish law is not based formally on judicial
interpretation or precedents, in practice court and
tribunals often refer to previous interpretations
and judicial decisions. In particular, decisions of
the Supreme Administrative Court (SAC) play an
important role and time is require to keep abreast of
these developments.
For many taxpayers, the introduction of payment
backlog regulations in 2013 imposed an additional
compliance burden. The aim of these regulations
was to help businesses maintain nancial
liquidity, however, in practice they increased
the administrative burden quite signicantly. In
accordance with these regulations, a business which
fails to settle its liabilities within the statutory
deadlines is obliged to increase its taxable prots
by the amount left unpaid. The regulations have
been strongly criticised by businesses and they are
expected to be revoked as of 1 January 2016.
71
2. Payments
Since 2004, the number of payments has also
reduced signicantly from 41 in 2004 to 19 in 2011
and just 7 in 2014. This is mostly the result of the
introduction and widespread adoption of electronic
ling and payment of taxes for corporate income
tax, social security contributions and, in the last
year, for VAT. Under the Paying Taxes methodology,
where a tax is led and paid electronically by the
majority of taxpayers, it is counted as one payment
even though in practice a business may make more
frequent payments. The growing popularity of
electronic ling and payment systems has therefore
led to a reduction in the sub-indicator for payments.
The decrease in the number of payments was also
due to:
The reduction of frequency of ling and
payment of the property tax from monthly to
annual, and
The use of computerised settlement systems
by taxpayers to accelerate the payment
process.
The approach
and attitude
of the tax
authorities can
affect the ease of
paying taxes for
companies.
5. Summary
The Paying Taxes data over the period of the study
suggests that the Polish tax system is heading in
the right direction. Positive changes include in
particular creating a transparent appeals process
in relation to individual tax rulings, the reasonably
stable tax rate structure, and the popularisation of
electronic communication with the tax authorities
including electronic ling of returns and making
electronic payments. Introducing the principle
of giving the taxpayer the benet of the doubt in
disputes with the tax authorities is also likely to
make life easier for many taxpayers in the future. It
should however be noted that some of the changes
discussed here will not come into effect until 2015
at the earliest and so any potential impact will only
be reected in future editions of Paying Taxes.
Poland
72
Uruguay
A reformed tax system with more
registered taxpayers
Daniel Garcia, PwC Uruguay
Figure 2.30
Trend in the Paying Taxes sub-indicators for Uruguay since 2004
% / Number
Hours
75
375
70
350
65
325
60
300
55
275
50
250
45
225
40
200
35
175
30
150
25
125
20
100
15
75
10
50
25
Time to comply
0
2004
2005
2006
2007
2008
2009
73
2010
2011
2012
2013
2014
2014: 41.8%
Number of payments
2014: 31
Figure 2.31
Number of taxpayers in Uruguay
175,000
170,000
165,000
Taxpayers
160,000
155,000
150,000
145,000
140,000
135,000
130,000
125,000
2008
2009
2010
2011
2012
2013
2014
Uruguay
74
56
75
57
The Paying
Taxes subindicators for
Uruguay have
improved in
recent years.
http://www.ine.gub.uy/web/guest/cuentas-nacionales.
Uruguay
76
Zambia
Recent progress on compliance
costs, but long-term tax policy
still a challenge
Jyoti Mistry, PwC Zambia
Figure 2.32
Trend in the Paying Taxes sub-indicators for Zambia since 2004
% / Number
Hours
200
40
Time to comply
150
30
Number of payments
2014: 26
100
20
2014: 18.6%
50
10
0
2004
2005
2006
2007
2008
2009
77
2010
2011
2012
2013
2014
Launch of TaxOnline
In October 2013, the Zambia Revenue Authority
(ZRA) made progress on its commitment to
address the high tax compliance costs for
taxpayers with the introduction of TaxOnline, an
electronic tax ling and tax payment system.
With the launch of TaxOnline, it is no longer
necessary to physically go to the ZRA ofces to
register for taxes, le tax returns or make tax
payments. Following the introduction of the webbased tax ling and payment system, the time
taken to comply with tax obligations dropped by
3% in 2013, and by a further 11% in 2014. While
these reductions in time are encouraging, there
may be room for further improvements as not all
teething problems have been fully ironed out and
the ZRA may need to make a concerted effort to
resolve any remaining issues before the benet of
the online system can be fully realised.
Zambia
78
79
Zambia
80
81
Having looked in the previous chapters at the results from the Paying
Taxes study since 2004 and in detail at the reforms made in 2014, this
chapter looks at some broader issues of tax policy and administration
The rst section considers the role of employment taxes in creating a
balanced tax system, the next looks at how good tax systems can help
reduce the informal economy and nally we consider how co-operation
between tax authorities and taxpayers can be improved, especially
inbAfrica.
82
Uncovering
the impact of
hidden taxes on
employment
Author: Dr Andrew Sentance,
Senior Economic Adviser, PwC UK
83
Figure 3.1
Tax structures in OECD economies
% of tax receipts categorised by revenue source
60
Employment and
personal income*
50
40
Consumer
expenditure
30
20
Corporate prots
10
Property
and other
0
1965
1975
1985
1995
2005
2010
2012
84
58
Data from the UK Labour Force Survey, published by the Ofce for National Statistics
85
A European problem?
The Paying Taxes survey shows that labour taxes
paid directly by business are a particularly large
element of the taxes levied in Europe. From a
historical perspective, this is perhaps not a great
surprise. Income tax was levied originally in
Britain in 1799 to pay for the war against Napoleon
and social security contributions were rst
introduced in Germany in the late 19th Century.
In Europe, labour taxes paid by employers are the
largest component of the Total Tax Rate, equivalent
to 26.5% of commercial prots. The global average
is 16.2% and in other regions the labour taxes
(including mandatory contributions) component
of the Total Tax Rate paid by employers is in the
range 10 to 19%. Broader measures of the tax
wedge on employment income tell the same story.
Figure 3.2 shows the OECDs latest measure of the
tax wedge on an employee on average earnings in
selected OECD countries. In a number of major EU
economies, the tax wedge is close to 50% or above.
In North America, it is just over 30%. In the AsiaPacic region and Latin America, the labour tax
wedge is generally below 30%.
Figure 3.2
Tax wedges in major OECD economies
Income tax/social security payments as % of average worker* income, 2014
Belgium
21.8
Germany
33.8
33.3
16.0
France
10.6
37.8
Italy
16.7
Sweden
31.5
13.2
Spain
29.3
12.8
Netherlands
27.9
14.6
Poland
23.1
10
6.0
Japan
29.6
11
6.6
Canada
25.3
17
13.9
US
UK
13.0
Australia
4.6
Mexico
28
5.6
16.9
7.8
Chile
15.8
18.1
22.1
Korea
17.6
21
15.7
11.7
7
12
Income tax
12
1
Social security contributions
4
12
26
32
35
59
Data from OECD Economic Outlook, June 2015. The Eurozone contains 19 EU members, of which Germany, France, Italy, Spain, Netherlands and Belgium
are the most signicant economies.
60
Eurostat report that in September 2015 the unemployment rate in Spain was 21.6%, in Italy it was 11.8% and in France 10.8%. The EU average unemployment
rate in September 2015 was 9.8%
61
OECD Economic Outlook, June 2015, projections for 2015. National denitions of unemployment.
86
87
88
Combatting the
shadow economy:
abtaxpayer-centric
approach
Authors: Amal Lahrlid and
Nicholas ODonovan.
Global Tax Governance, PwC UK
89
62
63
Colin C. Williams and Jan Windebank (1998) Informal employment in the advanced economies: implications for work and welfare, Routledge.
International Labor Ofce (2002) Decent Work and the Informal Economy, International Labor Ofce; Colin C. Williams and Alvaro Martinez (2014) qIs the
informal economy an incubator for new enterprise creation? A gender perspectiver, International Journal of Entrepreneurial Behavior & Research, 20(1),
4-19; Colin C. Williams & John Round (2007) qEntrepreneurship and the informal economy: a study of Ukraines hidden enterprise culturer, Journal of
developmental entrepreneurship, 12(1), 119-136.
90
Figure 3.3
Trends in the size of the informal economy as a percentage of GDP in selected EU member states, 2004-2014 (unweighted averages of
national-level data).
Size of informal economy as percentage of GDP (%)
35
30
2007 accession
countries
25
2004 accession
countries
20
15
EU15 countries
10
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: Friedrich Schneider, Konrad Raczkowski & Bogdan Mrz (2015) qShadow economy and tax evasion in the EUr, Journal of Money Laundering Control,
18(1), 34-51.
64
Colin C. Williams, Jan Windebank, Marijana Baric & Sara Nadin, (2013) qPublic policy innovations: the case of undeclared workr, Management Decision, 51(6),
1161-1175.
91
Understanding the
formalisationbchoice
Nevertheless, it is important to recognise that
correlation does not equate to causation, and the
decision to formalise or operate in the shadow
economy is affected by much more than tax
compliance costs alone. By adopting a taxpayercentric perspective on the informal economy,
policy-makers become better able to understand
the drivers of informal economic activity, and
thereby appreciate the diverse range of measures
that they can deploy to improve compliance (See
Table 3.1). These include measures to reduce
the costs of formalisation, enhance deterrence,
increase the benets of formalisation, and improve
tax morale.
Table 3.1
Taxpayer perspective
Enhance deterrence
65
Friedrich Schneider, Konrad Raczkowski & Bogdan Mrz (2015) qShadow economy and tax evasion in the EUr, Journal of Money Laundering Control, 18(1), 3451.
Joe Stanley-Smith (2015) qVAT lotteries t driving up compliance from the consumers endr, International Tax Review.
67
Patricia Kowsmann (2015) qGet Receipts, Win a Car: How Greeces VAT Lottery Plan Worked in Portugalr, The Wall Street Journal.
66
92
68
European Monitoring Centre on Change (2013) qInformation campaign on tax compliance, Estoniar, European Foundation for the Improvement of Living and
Working Conditions (Eurofound).
93
Conclusion
The informal economy poses a complex set
of problems for revenue authorities, and for
governments more broadly. Viewed over a longer
time horizon, informal economic activity tends to
reduce as countries develop, and as populations
shift from agriculture to industry, from rural
settings to large cities. Yet the rates of change
are not uniform, and even over relatively short
periods of time, policy interventions can have a
tangiblebimpact.69
69
Timothy Besley and Torsten Persson (2014) qWhy do developing countries tax so little?r, Journal of Economic Perspectives, 28 (4), 99-120.
94
70
This paper is an extract of the paper presented at the African Tax Research
Network (ATRN), 1st Annual Congress, Contemporary Tax Challenges for
African Countries, 02 04 September 2015, Cape Town, South Africa.
95
Introduction
Tax authorities have always felt the pressure
to do more with less due to budget constraints
and limited capacity within tax administrations;
these issues are increasingly becoming a common
challenge for many countries, but especially in the
developing world. To improve their position, many
countries have already incorporated a co-operative
compliance model into their tax enforcement
strategies, along with a traditional commandand-force manner. Co-operative compliance is a
new way to effective tax compliance management
based on transparency, justied trust and a better
understanding of the taxpayers business and risk
prole. If properly designed and executed, it has
proved capable of enabling tax authorities and
taxpayers to build a sustainable tax compliance
infrastructure.
71
African tax administrations: a Dutch multinationals perspective. In a recent study by the Dutch Association of Investors for
Sustainable Development (VBDO, 2015), tax directors of the Dutch listed companies have identied the following challenges to
taxation in developing countries:
Opportunistic / aggressive behaviour of local tax authorities towards MNEs;
Overly hierarchical and bureaucratic tax organisation, difcult to get a single point of contact;
Time-consuming and costly appeal procedures;
Multi-interpretable, complex and fast-changing tax laws;
Corruption within governmental bodies;
Lack of capacity and skills of local tax authorities;
Different perspectives, difcult to establish an open and transparent relationship with local tax authorities.
Businesses struggles to establish the right dialogue and good working relations with local tax authorities in many developing
countries. However, MNEs are crucial for the nancial development and economic sustainability of these countries with an
estimated annual contribution of 750 billion dollars to local economies (UNCTAD, 2015). Paying Taxes refers to a medium sized
enterprise, however we believe that the concepts outlined in this paper remain relevant.
96
Co-operative compliance
whatbhowband why?
Co-operative compliance in
Africanbcountries
72
The OECD Forum on Tax Administration (FTA) for Commissioners from 45 OECD and non-OECD countries, including every member of the G20, was created
in 2002 with the aim to improve taxpayer services and tax compliance by helping tax administrations increase the efciency, effectiveness and fairness of tax
administration and reduce the costs of compliance. See OECD / FTA website http://www.oecd.org/site/ctpfta/
97
Conclusion
The search for new and effective ways to assure tax
compliance is becoming a common issue for many
countries worldwide. In African countries, capacity
building of tax authorities and domestic resource
mobilisation are among the top priorities for many
economies. Taking steps to create a culture that
builds on the principles of co-operative compliance
may be a way forward for many African countries,
with the potential to instigate pilot projects using
the co-operative compliance model.
73
Paying Taxes identies the time to comply with tax systems in 189 economies.
98
Appendix 1
Methodology and
example calculations for
each of the Paying Taxes
sub-indicators
99
99
100
101
Tax payments
Table A1.1
Azerbaijan: Number of payments
Tax type
Actual payments
Notes
1
1
1
1
1
1
4
12
12
4
2
1
Fuel tax
0
0
7
12
12
60
Paid jointly
Paid jointly
102
Time
Time is recorded in hours per year. The subindicator measures the time taken to prepare,
le and pay three major types of taxes and
contributions: corporate income tax, value added
or sales tax, and labour taxes, including payroll
taxes and social contributions. Preparation
time includes the time to collect all information
necessary to compute the tax payable and
to calculate the amount payable. If separate
accounting books must be kept for tax purposes
or separate calculations made the time
associated with these processes is included.
Table A1.2
Zambia: Time to comply
Corporate
income tax
Labour
taxes
Consumption
tax
Data gathering from internal sources (for example accounting records) if held
16
10
12
Tax type
Total
Compliance process
Preparation
38
10
10
Time spent submitting forms to tax authority, which may include time for
electronic ling, waiting time at tax authority ofce etc.
36
15
44
15
Total
58
Filing
Total
74
Payment
Calculations of tax payments required including if necessary extraction of data
from accounting records
Analysis of forecast data and associated calculations if advance payments
are}required
Time to make the necessary tax payments, either online or at the tax authority
ofce (include time for waiting in line and travel if necessary)
15
Total
15
25
57
60
40
157
Grand total
The time required to make tax payments is negligible and is included within the ling time.
103
Table A1.3
Poland: Total Tax Rate
PLN '000
Prot before tax (PBT)
PLN '000
1,743
448
67
68
Transport tax
Property tax
22
606
2,349
(340)
(606)
(946)
1,403
7RWDO7D[5DWH 7RWDOWD[HVERUQHFRPPHUFLDOSURW
40.3%
Appendix 1: Methodology and example calculations
104
74
www.pwc.com/totaltaxcontribution
105
Table A1.4
Economy
Bangladesh
Cities
Dhaka, Chittagong
Brazil
China
Shanghai, Beijing
India
Indonesia
Japan
Mumbai, Delhi
Jakarta, Surabaya
Tokyo, Osaka
Mexico
Nigeria
Lagos, Kano
Pakistan
Russian Federation
USA
75
Karachi, Lahore
Moscow, St. Petersburg
New York City, Los Angeles
Where the second and third largest cities were very close in population size, the GDP of the city or relevant state was used to determine which city was the
second largest business city.
106
Population
Bangladesh Dhaka
Bangladesh Chittagong
Bangladesh
Weight
Time to
comply (hours)
Number of
payments
14,730,537
78%
31.6
302
21.0
4,106,060
22%
31.6
302
21.0
31.6
302
21.0
19,659,808
61%
69.1
2600
10.0
12,373,884
39%
69.4
2600
9.0
69.2
2600
9.6
China Shanghai
19,979,977
55%
67.2
261
9.0
China Beijing
16,189,572
45%
68.5
261
9.0
67.8
261
9.0
33.0
Brazil
China
India Mumbai
19,421,983
47%
60.6
243
India Delhi
21,935,142
53%
60.6
243
33.0
60.6
243
33.0
54.0
India
Indonesia Jakarta
9,629,953
78%
29.7
234
Indonesia Surabaya
2,768,199
22%
29.7
234
54.0
29.7
234
54.0
Japan Tokyo
36,833,979
65%
51.3
330
14.0
Japan Osaka
19,491,722
35%
51.4
330
14.0
14.0
Indonesia
Japan
Mexico Mexico City
Mexico Monterrey
Mexico
51.3
330
20,131,688
83%
51.7
286
6.0
4,112,643
17%
51.7
286
6.0
51.7
286
6.0
Nigeria Lagos
10,780,986
77%
33.4
956
59.0
Nigeria Kano
3,220,929
23%
33.3
747
59.0
33.3
908
59.0
14,080,737
65%
32.5
594
47.0
7,487,415
35%
32.8
594
47.0
32.6
594
47.0
7.0
Nigeria
Pakistan Karachi
Pakistan Lahore
Pakistan
Russian Federation Moscow
Russian Federation Saint Petersburg
Russian Federation
United States New York
United States Los Angeles
United States
11,461,264
70%
47.1
168
4,871,556
30%
46.8
168
7.0
47.0
168
7.0
18,365,262
60%
45.9
175
11.0
12,160,151
40%
40.9
175
10.0
43.9
175
10.6
Source: United Nations, Department of Economic and Social Affairs, Population Division, World Urbanization Prospects, 2014 Revision, File 12: Population
of Urban Agglomerations with 300,000 Inhabitants or More in 2014, by Country, 1950-2030 (thousands). Available at http://esa.un.org/unpd/wup/CD-ROM/
Default.aspx.
107
108
109
Figure A1.1
How the non-linear transformation affects the distance to frontier score for the Total Tax Rate
Distance to frontier
100
80
B
A
60
40
D
C
Distance to frontier
for Total Tax Rate
linear
20
Distance to frontier
for Total Tax Rate
non-linear
0
0
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Note: The non-linear distance to frontier for the Total Tax Rate is equal to the distance to frontier for the Total Tax Rate to the power of 0.8.
Source: Doing Business database.
110
Appendix 2
Economy sub-indicator
results by region
Which economies are most relevant to you? Use our
comparative modeller, www.pwc.com/payingtaxesmodeller
to create your own comparisons from all the economies
andbregions.
111
10.8
2.0
Namibia
18.6
6.2
17.2
Mauritius
21.3
1.0 3.1
11.7
7.1
Botswana
21.5
South Africa
21.7
South Sudan
13.6
2.8
10.4
22.4
3.6
25.1
3.6
4.0
6.9
19.2
Seychelles
18.8
Sierra Leone
18.8
30.1
9.0
11.3
32.7
14.7
22.0
10.5
18.8
5.6
Rwanda
25.8
Nigeria
Malawi
20.4
12.4
25.6
Mozambique
20.3
20.7
21.7
23.3
15.9
56.0
12.7
63.3
28.4
26.4
63.5
68.3
71.3
48.1
6.6
30.6
19.8
72.7
35.5
73.3
53.5
9.2
83.7
74.5
32.1
Prot taxes
Labour taxes
Other taxes
3.8
41.9
23.2
Comoros
63.3
21.0
44.5
31.3
Guinea
59.9
21.9
26.4
6.1
54.6
14.5
25.2
Chad
Eritrea
49.1
24.7
12.8
48.8
1.4
51.9
12.6
31.3
Mauritania
0.5
19.8
27.5
Benin
Algeria
22.3
8.8
Congo, Rep.
48.5
18.3
25.4
48.4
14.7
30.0
Morocco
48.3
17.7
23.1
Cameroon
48.2
3.9
9.0
10.7
47.8
5.3
34.3
Angola
47.3
7.1
21.7
10.1
47.1
5.3
5.4
21.2
45.7
1.0
23.6
35.3
Tunisia
45.5
2.1
25.4
Liberia
Togo
45.4
5.6
22.7
18.4
Niger
45.0
14.7
24.8
Equatorial Guinea
43.9
4.6
19.2
20.9
41.3
6.2
24.1
15.1
40.3
3.7
16.9
11.5
Mali
1.2
21.4
Gabon
Gambia, The
10.2
16.3
Senegal
38.2
11.2
20.8
Guinea-Bissau
38.1
1.5
6.8
16.2
Sudan
37.6
2.2
28.9
37.1
5.4
17.7
20.2
Tanzania
36.5
1.9
16.3
Burkina Faso
36.5
0.4
11.3
17.7
Burundi
36.1
4.5 0.8
29.8
34.7
4.1
17.6
Kenya
34.5
1.7
25.2
Madagascar
33.3
0.4
5.0
18.5
Djibouti
33.0
1.6
30.8
Uganda
Cte d'Ivoire
32.8
5.6
12.1
Swaziland
32.8
0.3
8.4
20.8
Cabo Verde
32.1
5.6 0.8
18.0
Zimbabwe
31.0
0.9
25.7
Libya
29.0
2.9
2.3
Ethiopia
Ghana
28.8
3.1
184.4
216.5
112
30
Seychelles
36
37
Comoros
Rwanda
Swaziland
85
12
48
20
82
16
36
100
48
30
109
59
48
54
110
Liberia
56
53
31
Tunisia
64
30
140
144
50
Botswana
40
40
72
152
Mauritius
36
48
68
152
Zambia
57
60
Malawi
67
Tanzania
62
Cabo Verde
70
43
78
68
Ghana
216
217
120
88
Zimbabwe
211
96
47
40
210
102
96
50
209
78
41
24
208
24
102
54
Mozambique
24
66
Morocco
202
108
160
South Sudan
200
50
51
41
Eritrea
183
50
Guinea-Bissau
Uganda
180
40
102
100
Kenya
180
60
72
South Africa
179
63
85
70
Madagascar
175
30
54
35
Sudan
157
40
78
224
96
78
96
242
68
Benin
30
120
120
270
Burkina Faso
30
120
120
270
Cte d'Ivoire
30
120
120
270
Mali
30
120
120
270
Niger
30
120
120
270
Togo
30
120
120
270
Burundi
76
Angola
75
Namibia
48
125
40
Ethiopia
114
70
154
Algeria
Guinea
40
Gabon
192
145
Mauritania
160
96
162
620
630
294
216
134
Libya
216
378
889
210
378
732
734
480
679
Nigeria
113
602
181
410
300
120
492
187
146
174
Chad
488
220
275
Cameroon
483
219
131
114
440
216
240
Congo, Rep.
Senegal
424
192
137
Equatorial Guinea
392
158
192
24
385
123
165
32
110
69
346
108
152
344
171
84
326
190
157
324
150
96
16
306
72
104
40
Sierra Leone
302
210
120
Gambia, The
282
82
52
Lesotho
274
150
152
908
1 1
South Africa
Mauritius
1 1
Tunisia
8
3
12
Burundi
Gabon
23
16
19
26
13
Algeria
12
Namibia
25
25
17
Zambia
19
14
Rwanda
Libya
Madagascar
4
2
12
29
12
Cabo Verde
27
16
13
Angola
27
12
12
Seychelles
12
13
Eritrea
12
16
Ethiopia
12
16
Kenya
Uganda
Comoros
Sierra Leone
34
16
13
34
17
35
7
12
12
36
18
12
37
20
37
13
35
19
25
12
Cameroon
41
28
13
42
12
19
24
45
21
12
46
25
5
Zimbabwe
Congo, Rep.
Gambia, The
Togo
46
29
Tanzania
45
28
24
44
20
12
Guinea-Bissau
33
15
12
South Sudan
Mauritania
33
24
Mozambique
Equatorial Guinea
13
Djibouti
Burkina Faso
33
18
Sudan
33
16
13
Botswana
32
14
12
Niger
31
12
Mali
30
30
18
Malawi
30
16
12
Ghana
Swaziland
30
16
12
Liberia
30
14
11
12
29
14
14
Lesotho
26
15
23
24
49
20
14
49
30
25
49
20
13
50
32
24
50
21
50
36
Chad
15
12
24
Benin
24
5
52
18
54
28
24
56
28
57
Guinea
36
18
Senegal
36
19
Nigeria
Cte d'Ivoire
38
3
24
3URWWD[HV
/DERXUWD[HV
2WKHUWD[HV
57
58
19
59
36
63
114
)LJXUH$$VLD3DFLF
Total Tax Rate (%)
Vanuatu
4.5
Brunei Darussalam
0.8
4.0
8.7
Timor-Leste
11.2
Samoa
11.3
Singapore
8.5
7.9
11.2
6.8
2.0
Cambodia
1.1
19.5
5.2
10.0
21.0
0.1
12.4
Lao PDR
22.8
2.0
16.0
Thailand
5.6
19.5
Nepal
17.7
Indonesia
17.2
24.4
3.7
25.3
5.4
2.6
0.5
9.2
5.6
13.1
Fiji
7.9
Bangladesh
0.1
0.2
8.5
18.7
13.8
32.7
18.4
34.3
3.4
33.9
Afghanistan
33.2
2.7 1.6
12.7
Bhutan
32.6
1.2
30.0
Taiwan, China
32.0
1.1
8.4
18.2
New Zealand
31.6
0.2
12.8
24.3
Korea, Rep.
31.4
3.9
23.3
Kiribati
31.1
5.9
27.7
Pakistan
30.1
30.2
10.4
25.3
Solomon Islands
29.7
0.7
9.2
20.6
Myanmar
29.5
3.3
23.8
Maldives
27.5
11.3
Tonga
34.5
1.4
35.3
36.3
36.3
23.2
Vietnam
11.7
14.5
Malaysia
4.4
24.8
22.7
Philippines
20.3
Australia
16.4
0.9
8.7
13.9
1.1
47.6
4.2
51.3
37.2
8.5
55.2
52.1
India
24.9
Marshall Islands
40.0
0.5
18.2
16.9
39.4
42.9
21.1
28.9
Sri Lanka
39.3
0.1
26.0
Japan
60.5
20.0
15.7
11.8
48.4
64.8
8.5
65.8
3URWWD[HV
/DERXUWD[HV
2WKHUWD[HV
60.6
53.0
10.9
Palau
115
18.4
0.5 1.0
17.5
Mongolia
China
18.1
15.3
67.8
9.5
0.1
75.4
)LJXUH$$VLD3DFLF
Time to comply (hours)
Hong Kong SAR, China
Solomon Islands
50
8
Singapore
24
30
32
Bhutan
12
80
40
64
Australia
26
Vanuatu
24
85
25
37
Malaysia
84
32
53
Brunei Darussalam
74
42
18
89
50
30
120
32
96
32
96
Palau
46
Mongolia
46
Sri Lanka
Cambodia
72
25
42
25
188
113
68
193
70
153
200
8
161
75
243
48
77
276
302
162
155
140
120
Lao PDR
275
144
140
Japan
264
78
132
Bangladesh
261
56
120
Timor-Leste
84
138
42
94
40
234
92
160
Maldives
224
105
110
Thailand
221
90
93
59
207
33
80
69
45
46
27
96
48
Nepal
195
144
48
Afghanistan
188
107
38
57
8
173
80
56
Indonesia
Vietnam
66
83
Taiwan, China
Pakistan
156
167
84
China
152
36
142
23
Fiji
148
59
16 9
Philippines
India
142
54
59
48
Myanmar
Samoa
128
48
Korea, Rep.
Tonga
128
96
34
Kiribati
118
96
Marshall Islands
New Zealand
105
62
88
40
35
130
330
334
182
362
213
395
514
204
273
594
293
770
116
)LJXUH$$VLD3DFLF
Number of payments
Hong Kong SAR, China
1 1
Singapore
New Zealand
China
3
3
6
5
Kiribati
Australia
Palau
Malaysia
13
9
14
4
2
12
Bangladesh
18
1
12
18
20
16
Marshall Islands
21
5
16
17
Thailand
Maldives
15
12
Vietnam
Myanmar
12
12
13
31
18
32
24
4
Solomon Islands
12
5
25
36
24
6
18
12
12
Mongolia
12
12
Indonesia
40
17
41
17
13
Prot taxes
Labour taxes
Other taxes
39
16
25
13
37
15
Cambodia
35
10
Sri Lanka
34
19
34
17
12
Pakistan
33
18
12
Fiji
117
31
19
Lao PDR
30
14
12
Nepal
30
12
Vanuatu
30
17
India
22
12
21
21
13
Tonga
18
15
1
5
Afghanistan
Samoa
12
9
12
Timor-Leste
Philippines
11
Brunei Darussalam
11
Bhutan
Korea, Rep.
Japan
11
Taiwan, China
10
47
29
25
47
16
54
24.7
5.0
21.9
Bahamas, The
6.3
32.2
1.8
33.7
27.4
Barbados
19.5
12.2
St. Lucia
25.8
Jamaica
5.6
14.8
13.4
Dominica
34.7
3.3
34.7
35.2
7.9
12.4
14.3
0.7
30.2
5.1
20.1
Haiti
Antigua and Barbuda
31.1
Grenada
St. Kitts and Nevis
42.4
44.3
10.0
5.6
12.1
30.5
45.3
11.2
19.3
8.0
49.7
32.2
21.9
41.9
1.2
3.2
27.6
40.3
5.3
18.6
Honduras
Nicaragua
38.7
4.1
10.7
22.6
Costa Rica
38.6
1.4
12.4
25.9
37.5
3.3
17.2
23.8
Dominican Republic
37.2
4.8
22.5
37.0
3.0
20.0
Guatemala
El Salvador
3.0
7.0
26.1
Panama
31.1
1.4
8.5
6.5
21.4
25.9
58.0
63.9
20.6
13.5
65.8
26.4
3URWWD[HV
/DERXUWD[HV
2WKHUWD[HV
10
49
11
15
Costa Rica
72
27
18
72
151
184
72
27
128
23
48
136
67
207
207
64
75
210
90
80
60
35
203
48
76
45
218
78
93
224
96
27
162
31
126
74
237
48
256
99
120
Dominican Republic
Panama
147
74
40
El Salvador
Jamaica
140
60
59
Guatemala
36
60
Barbados
117
54
32
Nicaragua
Honduras
110
48
48
Haiti
St. Kitts and Nevis
108
45
51
Grenada
Belize
58
48
14
96
80
96
162
32
312
316
278
83
144
48
358
190
417
118
Guatemala
Costa Rica
8
9
Bahamas, The
Barbados
16
12
19
7
12
Belize
28
13
12
St. Lucia
12
12
29
16
35
19
36
20
Dominica
12
20
37
Jamaica
12
20
37
12
24
Grenada
13
Nicaragua
Honduras
Panama
25
13
48
30
16
52
31
24
13
24
3URWWD[HV
/DERXUWD[HV
2WKHUWD[HV
47
16
13
43
18
El Salvador
119
42
17
24
Haiti
39
11
12
39
22
53
16
20
57
Macedonia, FYR
2.0
12.9
5.6
0.3
10.9
Kosovo
9.3
Georgia
14.3
Armenia
15.2
2.1
16.4
19.1
Montenegro
0.8
8.1
7.2
Kyrgyz Republic
19.9
12.8
0.7
13.5
6.4
21.6
2.6
23.3
19.5
Kazakhstan
3.1
16.2
11.2
Israel
1.8
23.6
Albania
5.6
14.1
Serbia
3.6
19.9
Belarus
40.9
1.5
41.1
35.6
2.5
11.7
Ukraine
40.2
3.1
28.2
8.9
39.8
0.2
17.9
11.4
39.7
2.1
30.8
Turkey
Russian Federation
36.5
3.5
24.8
9.2
Uzbekistan
30.6
20.2
12.9
Moldova
29.2
1.4
18.8
16.0
Azerbaijan
29.0
47.0
39.0
9.0
1.1
43.1
Tajikistan
17.7
0.1
51.8
52.2
28.5
35.6
81.8
3URWWD[HV
/DERXUWD[HV
2WKHUWD[HV
56
19
Russian Federation
59
70
Kyrgyz Republic
59
193
57
71
60
Armenia
276
103
92
97
100
119
Georgia
314
150
94
191
68
313
179
100
Albania
244
154
113
Ukraine
235
90
48
43
226
65
106
74
225
97
110
48
195
95
80
49
188
70
78
Israel
186
43
57
66
60
176
55
75
Tajikistan
168
39
89
42
Azerbaijan
Montenegro
39
78
Uzbekistan
Serbia
155
76
Kazakhstan
Turkey
119
87
53
Belarus
Moldova
44
39
29
350
56
81
357
144
115
362
271
420
120
Ukraine
Azerbaijan
Belarus
Kazakhstan
Macedonia, FYR
Russian Federation
Armenia
Turkey
Montenegro
Moldova
Tajikistan
5
2
10
14
28
12
15
12
Uzbekistan
Albania
33
12
12
Serbia
12
12
4
3URWWD[HV
/DERXUWD[HV
2WKHUWD[HV
32
19
Kyrgyz Republic
21
26
5
Israel
17
15
Kosovo
121
11
33
34
17
4
1
12
13
26
42
32
45
35
51
18.8
Luxembourg
4.2
15.5
Cyprus
9.3
20.0
0.4
20.1
13.4
Denmark
1.7
18.7
Ireland
3.0
12.4
Bulgaria
5.0
24.5
1.4
20.2
17.7
Iceland
9.1
17.7
Slovenia
25.9
27.0
1.8
9.3
1.8
2.8
12.7
18.2
United Kingdom
19.2
Latvia
24.4
2.8
12.1
Switzerland
29.6
31.0
1.6
32.0
26.6
11.8
3.0
24.8
Norway
Poland
14.5
24.8
20.2
13.6
26.8
Malta
30.1
Romania
10.7
10.9
Lithuania
30.0
5.9
11.8
Slovak Republic
Austria
Belgium
34.3
19.5
Prot taxes
Labour taxes
Other taxes
50.4
0.6
51.2
51.7
0.6
53.5
Italy
50.0
1.0
49.4
0.5
49.6
2.5
39.7
8.4
49.4
0.8
38.4
16.8
49.1
0.6
35.9
10.5
48.8
0.6
29.3
13.3
48.4
2.0
19.7
9.5
42.6
2.3
39.0
Greece
42.0
4.4
35.4
8.4
Czech Republic
41.3
21.2
13.1
Spain
41.0
0.5
1.5
23.2
Estonia
41.0
0.6
34.3
Germany
Sweden
0.4
1.1
35.2
Hungary
40.5
0.3
20.4
Portugal
40.3
1.0
30.0
Netherlands
37.9
39.5
15.9
10.2
35.9
1.3
23.6
San Marino
28.8
0.1
11.2
6.3
Finland
France
1.2
58.4
8.7
43.4
62.7
1.9
64.8
122
Luxembourg
Switzerland
14
40
20
Ireland
55
22
15
Estonia
52
48
19
34
12
40
Norway
24
Finland
21
15
27
81
30
82
83
44
48
United Kingdom
24
37
48
Sweden
50
25
64
Denmark
25
65
France
26
Malta
23
28
46
58
134
32
103
96
146
96
94
32
269
271
98
116
35
Czech Republic
245
69
198
63
Hungary
218
43
90
70
Portugal
206
52
39
Poland
193
66
86
Italy
193
69
96
41
188
84
99
Slovenia
171
58
78
Croatia
166
67
62
Greece
123
161
100
85
42
159
54
52
28
158
35
40
Slovak Republic
146
90
47
Germany
140
40
80
Austria
139
40
78
21
Latvia
137
24
60
25
Lithuania
130
31
33
Belgium
123
40
92
28
Romania
122
34
40
Spain
110
36
80
Iceland
Cyprus
93
25
36
Netherlands
Bulgaria
63
275
277
217
226
94
165
405
423
Sweden
Latvia
Malta
Poland
Czech Republic
Estonia
Finland
France
Greece
Portugal
United Kingdom
Germany
7
7
7
7
3
2
Ireland
Netherlands
Spain
Denmark
Slovak Republic
Slovenia
Belgium
Hungary
Austria
Bulgaria
Italy
11
7
11
8
1
2
Croatia
14
14
11
14
12
19
17
Switzerland
12
12
1
San Marino
11
8
3
12
21
Prot taxes
Labour taxes
Other taxes
19
10
13
19
Luxembourg
Cyprus
10
Romania
Iceland
10
Lithuania
10
12
23
12
13
27
124
11.3
Kuwait
11.3
13.0
Bahrain
13.0
13.5
Saudi Arabia
13.5
2.2
12.8
15.0
15.0
0.3
14.1
Oman
15.3
1.8
15.9
11.0
11.8
Iraq
0.1
14.3
Jordan
13.1
Lebanon
22.9
13.5
27.8
14.4
6.1
2.0
23.8
Yemen, Rep.
20.0
29.5
0.4
30.3
11.3
1.8
23.0
33.1
19.3
17.8
0.4
25.9
42.7
0.4
44.1
Prot taxes
Labour taxes
Other taxes
12
12
36
Bahrain
41
60
Saudi Arabia
60
30
34
Oman
64
56
12
Kuwait
68
98
Jordan
10
98
90
18
51
Lebanon
48
40
Yemen, Rep.
162
100
56
Iraq
151
96
43
183
72
120
24
248
288
312
300
32
36
240
72
336
344
Qatar
3
2
4
4
Kuwait
12
12
Bahrain
12
13
Iraq
12
14
Oman
12
14
12
Lebanon
12
25
13
12
28
19
24
Prot taxes
Labour taxes
Other taxes
125
20
12
12
20
6
12
20
44
3.9
12.7
21.1
4.5
United States
28.1
Mexico
9.8
25.4
6.0
43.9
25.4
0.9
51.7
3URWWD[HV
Labour taxes
Other taxes
45
36
United States
131
50
87
55
Mexico
122
33
175
64
100
286
Canada
United States
3URWWD[HV
Labour taxes
Other taxes
3
3
4
4
8
5
11
126
27.9
27.9
Chile
22.3
Guyana
21.3
Ecuador
9.2
16.1
Paraguay
28.9
4.0 2.6
1.8
13.7
9.6
3.2
18.6
Peru
11.0
35.0
2.2
23.6
Venezuela, RB
33.0
6.8
22.7
Uruguay
32.3
15.6
9.9
35.9
2.6
Brazil
Colombia
65.0
37.1
24.9
40.3
22.5
Bolivia
41.8
18.0
4.0
18.6
18.8
69.2
69.7
28.6
83.7
64.8
Argentina
29.3
137.4
108.1
3URWWD[HV
/DERXUWD[HV
2WKHUWD[HV
48
Colombia
24
Guyana
41
Peru
39
Uruguay
87
256
167
111
105
Ecuador
108
291
125
138
Argentina
277
98
124
Paraguay
260
110
102
42
Venezuela, RB
239
66
48
77
Chile
199
127
86
96
84
405
216
306
120
Bolivia
378
144
654
240
288
792
384
110
507
Brazil
1025
408
736
490
2600
1374
1 1
Ecuador
Argentina
1 1
Peru
1
2
Colombia
Paraguay
6
2
1
7
12
Venezuela, RB
30
24
6
Bolivia
20
13
Guyana
12
12
14
Prot taxes
Labour taxes
Other taxes
127
11
12
5
Uruguay
10
Suriname
Brazil
5
1
31
35
17
29
42
28
28
70
128
Appendix 3
129
129
Distance to frontier
74.14
62.01
45.03
62.25
54.35
44.99
82.51
82.35
76.53
83.77
87.09
93.88
74.42
72.42
78.74
73.80
78.17
39.91
85.50
12.18
57.55
77.47
40.85
89.61
74.19
58.08
69.45
73.36
73.06
36.34
93.00
23.47
19.54
84.00
64.46
63.32
47.37
43.50
30.68
75.67
42.73
83.02
81.70
67.09
91.94
74.56
72.49
76.29
62.84
58.87
52.73
43.21
43.49
84.33
68.95
70.17
89.38
74.31
55.23
40.94
82.76
77.00
71.24
Appendix 3: The data tables
Rank
89
142
169
141
161
170
41
42
74
34
24
8
86
99
63
90
69
179
28
189
154
71
178
16
88
153
111
94
95
180
9
185
186
33
132
136
167
173
182
80
176
38
44
122
12
85
98
77
139
151
162
175
174
30
113
108
17
87
158
177
40
72
106
130
Distance to frontier
78.45
64.46
81.18
28.27
58.65
68.69
61.87
57.28
98.71
73.06
83.67
56.14
60.46
66.78
79.53
94.97
71.65
62.98
60.95
67.16
80.96
89.18
71.96
87.51
84.53
78.43
92.48
62.94
66.10
85.76
81.69
69.72
68.21
54.68
81.42
88.58
94.17
76.32
71.82
84.31
65.31
60.16
85.91
66.38
17.71
91.92
73.67
68.78
76.28
73.79
78.57
78.91
67.78
74.80
73.63
66.50
85.81
88.06
50.59
56.87
32.17
91.36
92.91
Rank
66
132
50
184
152
117
143
155
4
95
36
157
148
123
59
6
103
137
146
121
52
18
101
23
29
67
11
138
127
27
45
109
118
160
49
21
7
76
102
31
128
149
25
125
187
13
92
116
78
91
64
62
120
84
93
124
26
22
165
156
181
14
10
Distance to frontier
44.46
64.65
48.60
69.50
69.45
81.18
66.23
79.63
78.54
63.93
99.44
80.69
81.60
81.48
72.10
84.14
51.65
99.23
29.83
61.87
81.82
65.29
96.56
76.79
83.74
78.42
88.75
71.45
79.48
55.23
60.64
75.04
72.76
62.34
76.45
76.16
83.46
89.13
67.89
82.78
43.53
59.25
77.70
79.97
51.70
75.37
68.89
75.53
79.44
71.32
70.69
99.44
91.34
80.81
65.25
68.83
80.79
13.64
45.41
80.29
63.72
81.66
61.39
Appendix 3: The data tables
Rank
171
131
166
110
111
50
126
58
65
134
1
55
47
48
100
32
164
3
183
143
43
129
5
73
35
68
20
104
60
158
147
83
97
140
75
79
37
19
119
39
172
150
70
57
163
82
114
81
61
105
107
1
15
53
130
115
54
188
168
56
135
46
145
132
7RWDO7D[5DWHRIFRPPHUFLDOSURW
Total Tax Rate
36.3
36.5
72.7
48.4
41.9
137.4
19.9
47.6
51.7
39.8
33.7
13.5
31.6
31.6
31.6
34.7
51.8
58.4
31.1
63.3
35.3
83.7
23.3
25.1
69.2
69.1
69.4
8.7
27.0
41.3
40.3
36.5
21.0
48.8
21.1
73.3
63.5
28.9
67.8
67.2
68.5
69.7
216.5
54.6
56.0
58.0
51.9
20.0
24.4
50.4
24.5
37.6
37.0
42.4
33.0
45.0
38.7
47.1
83.7
49.4
32.1
31.1
3URWWD[HV
Total Tax Rate
0.0
14.1
6.6
21.7
25.9
0.0
19.1
26.0
16.8
12.9
0.0
0.0
27.7
27.7
27.7
19.5
11.7
8.4
24.7
15.9
33.9
0.0
7.2
21.5
24.9
24.9
24.8
0.8
5.0
16.2
28.9
18.5
19.5
30.0
3.9
0.0
31.3
22.3
10.9
11.1
10.7
22.5
32.1
27.5
0.0
19.3
8.8
0.0
9.3
9.5
18.7
17.7
26.1
22.6
16.1
16.3
20.1
20.7
9.2
8.4
25.7
20.6
Labour taxes
Total Tax Rate
0.0
18.8
30.6
9.0
10.7
29.3
0.0
21.1
34.3
24.8
6.3
13.5
0.0
0.0
0.0
12.2
39.0
49.4
5.0
26.4
0.0
18.8
13.5
0.0
40.3
40.3
40.3
7.9
20.2
21.4
10.2
17.6
0.5
18.3
12.7
19.8
28.4
4.0
48.4
47.4
49.6
18.6
0.0
12.6
31.3
32.2
23.3
18.8
13.4
38.4
3.0
17.7
7.9
18.6
13.7
24.1
17.2
25.4
0.0
39.0
5.6
10.4
Other taxes
Total Tax Rate
36.3
3.6
35.5
17.7
5.3
108.1
0.8
0.5
0.6
2.1
27.4
0.0
3.9
3.9
3.9
3.0
1.1
0.6
1.4
21.0
1.4
64.9
2.6
3.6
4.0
3.9
4.3
0.0
1.8
3.7
1.2
0.4
1.0
0.5
4.5
53.5
3.8
2.6
8.5
8.7
8.2
28.6
184.4
14.5
24.7
6.5
19.8
1.2
1.7
2.5
2.8
2.2
3.0
1.2
3.2
4.6
1.4
1.0
74.5
2.0
0.8
0.1
7RWDO7D[5DWHRIFRPPHUFLDOSURW
Total Tax Rate
37.9
62.7
45.7
63.3
16.4
48.8
32.7
49.6
45.3
37.5
68.3
45.5
32.3
40.3
44.3
22.8
48.4
29.6
60.6
60.6
60.6
29.7
29.7
29.7
44.1
27.8
25.9
30.6
64.8
35.2
51.3
51.3
51.4
29.5
29.2
37.1
32.7
33.2
15.2
13.0
29.0
25.3
35.9
30.3
13.6
47.8
32.8
42.6
20.1
12.9
38.1
34.5
40.0
30.2
48.3
41.3
64.8
71.3
22.4
51.7
51.7
51.7
3URWWD[HV
Total Tax Rate
11.8
0.5
20.9
6.1
14.3
23.2
18.0
19.7
27.6
22.5
0.0
15.1
21.3
23.8
31.1
17.5
11.8
9.1
24.9
24.9
24.9
17.2
17.2
17.2
17.8
14.3
12.4
23.6
19.5
14.8
28.9
28.9
28.9
13.1
16.2
29.8
24.3
18.2
9.3
0.0
6.4
16.0
6.3
6.1
10.8
35.4
22.0
5.9
4.2
10.9
16.3
20.4
22.7
13.1
10.1
30.1
0.0
0.0
11.7
25.4
25.4
25.4
Labour taxes
Total Tax Rate
24.8
53.5
22.7
12.7
0.0
21.2
14.7
29.3
5.6
14.3
26.4
24.8
9.2
12.4
3.2
5.2
34.3
17.7
20.0
20.0
20.0
9.2
9.2
9.2
25.9
13.5
12.1
5.6
43.4
13.4
18.2
18.2
18.3
14.4
11.2
1.9
8.4
13.8
5.6
13.0
19.5
5.6
26.6
23.8
0.0
5.4
10.5
35.2
15.5
0.0
20.3
12.4
16.4
7.9
34.3
10.7
11.8
23.2
7.1
25.4
25.4
25.4
Other taxes
Total Tax Rate
1.3
8.7
2.1
44.5
2.1
4.4
0.0
0.6
12.1
0.7
41.9
5.6
1.8
4.1
10.0
0.1
2.3
2.8
15.7
15.7
15.7
3.3
3.3
3.3
0.4
0.0
1.4
1.4
1.9
7.0
4.2
4.2
4.2
2.0
1.8
5.4
0.0
1.2
0.3
0.0
3.1
3.7
3.0
0.4
2.8
7.0
0.3
1.5
0.4
2.0
1.5
1.7
0.9
9.2
3.9
0.5
53.0
48.1
3.6
0.9
0.9
0.9
134
7RWDO7D[5DWHRIFRPPHUFLDOSURW
Economy
Total Tax Rate
Micronesia, Fed. Sts.
60.5
Moldova
40.2
Mongolia
24.4
Montenegro
21.6
Morocco
49.1
Mozambique
36.1
Myanmar
31.4
Namibia
21.3
Nepal
29.5
Netherlands
41.0
New Zealand
34.3
Nicaragua
63.9
Niger
48.2
Nigeria
33.3
Nigeria (Lagos)
33.4
Nigeria (Kano)
33.3
Norway
39.5
Oman
22.9
Pakistan
32.6
Pakistan (Karachi)
32.5
Pakistan (Lahore)
32.8
Palau
75.4
Panama
37.2
Papua New Guinea
39.3
Paraguay
35.0
Peru
35.9
Philippines
42.9
Poland
40.3
Portugal
41.0
Puerto Rico (U.S.)
65.8
Qatar
11.3
Romania
42.0
Russian Federation
47.0
Russian Federation (Moscow)
47.1
Russian Federation (Saint Petersburg)
46.8
Rwanda
33.0
Samoa
18.1
San Marino
40.5
So Tom and Prncipe
38.2
Saudi Arabia
15.0
Senegal
47.3
Serbia
39.7
Seychelles
30.1
Sierra Leone
31.0
Singapore
18.4
Slovak Republic
51.2
Slovenia
31.0
Solomon Islands
32.0
South Africa
28.8
South Sudan
29.0
Spain
50.0
Sri Lanka
55.2
St. Kitts and Nevis
49.7
St. Lucia
34.7
St. Vincent and the Grenadines
38.6
Sudan
45.4
Suriname
27.9
Swaziland
34.7
Sweden
49.1
Switzerland
28.8
Syrian Arab Republic
42.7
Taiwan, China
34.5
Tajikistan
81.8
3URWWD[HV
Total Tax Rate
0.0
9.2
10.0
8.1
25.4
30.8
25.3
17.2
17.7
20.4
30.0
21.9
21.2
20.8
20.8
20.8
23.6
11.0
18.7
18.7
18.6
65.8
12.4
23.2
9.6
22.7
20.3
14.5
13.6
25.9
0.0
10.9
8.9
8.9
9.0
25.8
11.3
10.2
20.2
2.2
18.4
16.0
18.8
18.8
2.0
10.5
12.7
23.3
21.7
6.9
13.3
1.1
30.5
25.8
30.2
11.5
27.9
25.6
13.1
9.3
23.0
12.7
17.7
135
Labour taxes
Total Tax Rate
8.5
30.8
12.4
12.8
22.3
4.5
0.2
1.0
11.3
20.2
2.7
21.4
21.7
12.1
12.1
12.1
15.9
11.8
12.8
12.7
13.0
9.5
20.0
11.7
18.6
11.0
8.7
24.8
26.8
13.5
11.3
30.0
35.6
35.6
35.6
5.6
6.8
30.0
6.8
12.8
23.6
20.2
2.3
11.3
15.3
39.7
18.2
8.5
4.0
19.2
35.9
16.9
11.2
5.6
5.1
19.2
0.0
5.0
35.4
17.7
19.3
18.4
28.5
Other taxes
Total Tax Rate
52.0
0.2
2.0
0.7
1.4
0.8
5.9
3.1
0.5
0.4
1.6
20.6
5.3
0.4
0.5
0.4
0.0
0.1
1.1
1.1
1.2
0.1
4.8
4.4
6.8
2.2
13.9
1.0
0.6
26.4
0.0
1.1
2.5
2.6
2.2
1.6
0.0
0.3
11.2
0.0
5.3
3.5
9.0
0.9
1.1
1.0
0.1
0.2
3.1
2.9
0.8
37.2
8.0
3.3
3.3
14.7
0.0
4.1
0.6
1.8
0.4
3.4
35.6
7RWDO7D[5DWHRIFRPPHUFLDOSURW
Total Tax Rate
43.9
27.5
11.2
48.5
30.1
32.2
59.9
40.9
36.5
52.2
15.9
32.0
43.9
45.9
40.9
41.8
41.1
8.5
65.0
39.4
15.3
33.1
18.6
32.8
3URWWD[HV
Total Tax Rate
20.8
19.5
11.2
10.7
23.8
21.9
12.8
17.9
25.2
9.0
0.0
19.2
28.1
27.4
29.3
23.6
11.4
0.0
9.9
14.5
15.0
20.0
2.0
18.8
Labour taxes
Total Tax Rate
16.9
5.4
0.0
23.1
5.6
8.5
25.2
19.9
11.3
43.1
14.1
11.2
9.8
9.9
9.5
15.6
28.2
4.5
18.0
24.8
0.0
11.3
10.4
5.6
Other taxes
Total Tax Rate
6.2
2.6
0.0
14.7
0.7
1.8
21.9
3.1
0.0
0.1
1.8
1.6
6.0
8.6
2.1
2.6
1.5
4.0
37.1
0.1
0.3
1.8
6.2
8.4
136
Number of hours
Total tax time
275
357
385
282
207
405
313
105
166
195
58
60
302
302
302
237
176
161
147
270
85
1025
420
152
2600
2600
2600
89
423
270
274
180
173
630
131
483
732
291
261
261
261
239
100
346
602
151
270
206
146
405
130
82
117
316
654
392
312
492
216
81
306
195
93
Number of hours
Total tax time
137
488
326
362
218
224
193
140
256
440
208
256
184
224
74
277
140
243
243
243
234
234
234
344
312
82
235
269
358
330
330
330
151
188
202
156
188
155
98
225
362
193
183
324
140
889
171
55
119
183
175
118
395
270
139
128
734
152
286
286
286
128
186
138
Number of hours
Total tax time
148
314
211
217
188
302
334
123
152
207
270
908
956
747
83
68
594
594
594
142
417
207
378
260
193
271
275
218
41
159
168
168
168
109
224
52
424
64
620
244
85
344
84
188
245
80
200
210
158
167
203
110
108
180
199
110
122
63
336
221
276
179
264
Number of hours
Total tax time
276
270
200
210
144
226
209
350
12
110
175
175
175
277
193
120
792
770
162
248
157
242
140
Number of payments
Total tax payments
20
34
27
30
57
9
10
11
12
7
19
13
21
21
21
28
7
11
29
57
18
42
45
34
10
10
9
18
14
45
25
30
40
44
8
56
54
7
9
9
9
11
33
52
50
9
63
19
27
8
10
36
37
7
8
29
53
46
30
8
30
39
8
3URWWD[SD\PHQWV
1
5
0
4
13
1
1
1
1
1
0
0
5
5
5
3
1
1
12
5
2
1
12
6
2
2
2
1
1
1
5
3
12
13
1
4
12
1
3
3
3
2
3
1
5
1
3
1
2
1
3
5
5
1
2
1
13
1
2
1
2
6
1
Number of payments
Total tax payments
8
26
50
5
9
33
8
42
8
57
46
35
47
48
3
11
21
33
33
33
54
54
54
20
14
9
33
14
37
14
14
14
25
7
30
10
12
32
12
51
35
7
20
32
33
19
11
23
7
23
35
13
30
35
7
21
49
8
6
6
6
21
21
3URWWD[SD\PHQWV
1
3
5
1
2
7
1
13
2
3
5
6
6
5
1
2
1
2
2
2
13
13
13
1
1
1
2
2
5
3
3
3
1
1
5
5
2
5
0
4
4
1
1
4
5
4
1
5
1
1
5
2
3
4
1
0
1
1
1
1
1
0
1
142
Number of payments
Total tax payments
41
17
6
37
31
27
34
9
8
43
41
59
59
59
4
14
47
47
47
11
52
32
20
9
36
7
8
16
4
14
7
7
7
25
37
19
45
3
58
42
29
34
6
10
10
34
7
37
9
47
39
35
36
42
30
33
6
19
20
11
28
49
22
3URWWD[SD\PHQWV
12
1
1
7
5
3
4
1
1
1
3
2
2
2
1
1
5
5
5
4
5
1
1
1
1
1
1
5
1
1
1
1
1
4
5
3
5
1
3
12
13
6
1
1
1
5
1
5
1
5
5
4
4
2
5
2
1
2
2
2
1
5
2
Number of payments
Total tax payments
18
50
30
39
8
11
31
5
4
8
11
11
10
31
33
31
70
30
28
44
26
49
3URWWD[SD\PHQWV
5
5
1
4
1
1
3
1
0
1
2
2
3
1
8
0
14
6
3
1
5
5
144
145
146
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