Paying taxes 2010

Download

The global picture

This is the fourth issue of “Paying Taxes” report by the World Bank Group, IFC (International Finance Corporation) and PricewaterhouseCoopers produced as part of the World Bank – IFC’s “Doing Business” study. The report measures the ease of paying taxes across 183 economies.

This year’s study was conducted against the backdrop of a global recession, which has meant falling tax revenues around the world, and the need for governments to make difficult tax policy choices. Despite this, it is clear from the study that tax reform remains high on governments’ agendas.

The standard case study company measured is a small to medium-size manufacturer and retailer, deliberately selected as it is a business that can be identified with worldwide; a standard fact pattern is given so that the tax indicators generated can be compared across many diverse economies without being significantly distorted by industry specific incentives and reliefs. The business is a simple domestic one so that the focus of the results is purely on the local tax system. The paying taxes indicator measures all taxes and contributions mandated by government at any level (federal, state, or local) as they apply to the standardized business.

The report shows how businesses are affected not only by tax rates, but also by the procedural burden of compliance. They are measured using three subindicators: 

1. the number of tax payments, 
2. the time needed to comply with the major taxes (profit taxes, labor taxes and mandatory contributions, and consumption taxes), and 
3. the total tax rate (the cost of all taxes borne).

More details on the report please find on the “Paying Taxes 2010” page. To learn more about “Doing Business” survey by the World Bank and IFC please visit Doing business: Measuring business regulaitons.