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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