Paying Taxes 2010 Global Report (via World Bank)

Paying Taxes 2010The global picture

PricewaterhouseCoopers*

Bob Morris

PricewaterhouseCoopers LLP, US+1 202 414 1714robert.c.morris@us.pwc.com

Susan Symons

PricewaterhouseCoopers LLP, UK+44 20 7804 6744susan.symons@uk.pwc.com

Neville Howlett

PricewaterhouseCoopers LLP, UK+44 20 7212 7964neville.p.howlett@uk.pwc.comFor further information or to discuss any of the ﬁndings in this report please contact:* In this publication, the terms “PricewaterhouseCoopers” and “PwC” refer to the network of member ﬁrms ofPricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity

World Bank Group

Penelope Brook

+1 202 473 3748pbrook@ifc.org

Sylvia Solf

+1 202 458 5452ssolf@worldbank.org

Caroline Otonglo

+1 202 473 9559cotonglo@worldbank.org2

Paying Taxes 20103

Foreword

Penelope BrookDirector of the Global Indicators and Analysis Group

World Bank Group

Susan SymonsTax partner

PricewaterhouseCoopers LLP, UKThis is the fourth Paying Taxes publication, which isbased on data collected in connection with the ‘payingtaxes’ indicator from the World Bank Group’s

DoingBusiness

project. The project assesses the regulatoryclimate which impacts a domestic, small to mediumsized business during its natural life cycle, and PayingTaxes is part of this overall structure. The study is uniquein that it measures the ease of paying taxes across183 economies, by assessing the time required forcompanies to prepare and file tax returns and pay taxes,and also the company’s total tax liability as a percentageof commercial profits. Paying Taxes provides a wealthof data which can help governments benchmark theirtax systems on a like-for-like basis. The results providea platform for government and business to engage inconstructive discussion on tax reform.The Paying Taxes study, and the way in which the resultsare used, has developed since it was first introducedto the

Doing Business

project. In the publication, wehave sought to draw themes from the results, andto illustrate the findings with analysis from specificeconomies and regional groupings. Additional questionsare also now asked in the study, to put the indicatorresults into a broader context and provide furtherinsight into tax systems from the view of business.This publication, as well as the full set of results andunderlying data, is available on the World Bank Groupand PricewaterhouseCoopers websites, for governmentsand other users to explore.This year, the study has been conducted againstthe backdrop of a global recession that has meantfalling tax revenues around the world, and the needfor governments to make difficult tax policy choices.The challenge is how to ensure sufficient publicrevenues for the future, while at the same timeincentivising investment and economic growth.With reforms identified by the study in 104 economiesover a five year period, it is clear that tax reform is ongovernments’ agendas. 45 of these reforms, relevantfor

Doing Business,

have been undertaken in the pastyear, including broadening the tax base, lowering taxburdens and making compliance easier. This suggeststhat tax reform is an important part of the way inwhich governments are dealing with the economicdownturn. These reforms are discussed in more detailin the publication.Governments continue to demonstrate their engagementon tax reform. This is evidenced in the publication witharticles from various economies, which give insightsinto how the Paying Taxes data has been used, andprovide details of the reforms that have been and arebeing implemented.We welcome feedback and encourage users of thisreport to provide additional input and comments, so thatthe value of the data can be even further enhanced forthe future.