Paying Taxes 2014
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Transcript of Paying Taxes 2014
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Paying Taxes 2014The global picture
PwC
A unique study from PwC, and theWorld Bank and IFC …… comparing tax regimes in189 economiesaround the world
makes 26.7tax paymentsper year
On average, a domestic medium-sizecompany …
takes almost 7weeks to complywith its taxes
and has a tax costof 43.1% of itscommercial profit
Total Tax Rate Number ofpayments
Time to comply(hours)
the global averageTotal Tax Ratehas fallen by 9%
Since 2004 …
the time tocomply by 55hours and
the numberof paymentsby 7
Reforms continue around the world
32 economies have made it easier to pay taxesin 2012
Economies focused on introducing orimproving electronic systems
Companies in 76 economies can file andpay their tax returns electronically
The compliance burdenhas continued to fall in2012 … but therate of decline hasslowed.
PwC
The reduction in the average Total TaxRate continues, but
… 38 economies haveincreased their rate
whilst 38 have reducedit in 2012
181 economieshave a corporateincome tax
of taxpaymentsmade
13%of
compliancetime
26%
but it is only one of the manytaxes that business has tobear. It accounts for just:
ofthe TotalTax Rate
37%
181 economieshave a corporateincome tax
13%26%
37%188 economies levy labour taxes
while 166 now have value added tax
PwC
Labour taxes arenow the largestelement of theTotal Tax Rate
…but consumptiontaxes take thelongest time 38%
Central Asia &Eastern Europe hasbeen the biggestoverall reformerover the nineyears of the study.
the lowest is in theMiddle East -
23.7%
The highest averageTotal Tax Rate is inAfrica -
52.9%followed by SouthAmerica -
52.7%
The largest falls in the Total Tax Rate
since 2004 have been in Africa - 16.0%,
Central Asia & Eastern Europe - 15.7%
and Middle East - 15.6%
the lowest is in theMiddle East -just under 4 weeks
The highest time tocomply is still inSouth America -over 15 weeks
Since 2004 the largest fall is inCentral Asia & Eastern Europe– 5 weeks
Most tax payments are made in:
followed by
36.1Africa
The fewest aremade in:
NorthAmerica
8.3CentralAmerica & theCaribbean
33.7
The largest fall since 2004 is inCentral Asia & Eastern Europe - 25.1
PwC
The Middle East has the leastdemanding tax systems
… but in Asia Pacific, EU& EFTA, and NorthAmerica all threeindicators are alsobelow the world average.
To find out how youreconomy compares withothers around the worlduse our uniquePaying Taxes modeller
available at www.pwc.com/payingtaxesmodeller
For more information,see this year’s report –
available at www.pwc.com/payingtaxes
Paying Taxes 2014The global picture