Russell Bedford International
Home

 

World Bank publishes Paying Taxes report with Russell Bedford contributions

A new World Bank report says tax reforms continue worldwide despite economic turmoil

The World Bank has published its Paying Taxes 2013 report with participation by tax specialists from the Russell Bedford global accounting group.

The Paying Taxes report, part of the World Bank's Doing Business report series, finds that governments continue to reform their tax systems despite global economic uncertainty, with 31 economies having taken steps from June 2011 to May 2012 to make it easier and cost less for small and medium businesses to pay taxes.

The Paying Taxes 2013 study looks at tax regimes in 185 economies and finds that the most common tax reform is the introduction or improvement of online systems for tax compliance, which occurred in 16 economies.

The report finds that over the last several years there has been a gradual reduction in the number of payments and in the number of hours spent by a medium-sized company to comply with its tax obligations.  It concludes that on average a medium company pays a Total Tax Rate of 44.7 percent of profits, making 27.2 payments, and spending 267 hours to comply with its tax requirements.

In the eight years since the study began, the time to comply has fallen by 54 hours, almost seven working days, and the number of payments has declined by more than six, while the Total Tax Rate has fallen nearly 1 percent for each year.

Reforms continue around the world.  However, the report finds that the number of economies reforming has fallen from 35 last year to 31 in the most recent study. The focus continues to be on reducing the administrative burden of the tax system.  In 2011, the time to comply fell by an 8-hour day and the number of payments dropped by almost two, while the Total Tax Rate fell by only 0.3 percent.

Paying Taxes 2013 measures all mandatory taxes and contributions that a medium-sized firm must pay in a given year.  Taxes and contributions measured include the profit or corporate income tax, social contributions and labour taxes paid by the employer, property taxes, property transfer taxes, dividend tax, capital gains tax, financial transactions tax, waste collection taxes, vehicle and road taxes, and other small taxes or fees.

The case-study company is a small to medium-size manufacturer and retailer, deliberately chosen to ensure that its business can be identified with and compared worldwide.

The latest edition of 'Paying Taxes – the global picture' is a joint publication produced by the World Bank, the International Finance Corporation (IFC) and PwC. The study is based on data collected as part of the Doing Business project.

 

Paying Taxes ReportThe World Bank's Doing Business project - www.DoingBusiness.org - analyses regulations that apply to an economy’s businesses during their life cycles, including start-up and operations, trading across borders, paying taxes, and closing a business.  The data and analysis are used to help the World Bank to advise policy-makers in developing countries and by governments worldwide in identifying regulatory reforms to improve the ability of entrepreneurs to do business.

Russell Bedford International joined the World Bank Doing Business project in January 2009 as a pro-bono Global Contributor, with Russell Bedford member firms around the world contributing data to the Paying Taxes survey.

 



For more information about the Doing Business report series, please visit: www.doingbusiness.org .

For more information about Paying Taxes, visit www.doingbusiness.org/reports/thematic-reports/paying-taxes/ .