Paying Taxes 2015
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Paying Taxes 2015
www.pwc.com/payingtaxes
Paying Taxes 2015: The global picture
The changing face of tax compliance in 189economies worldwide
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During 2014 there has been anincreasing focus on the perception thatthe world’s tax systems are no longerfit for purpose
Tax systems around the worldneed to be updated to meetmodern needs
The Paying Taxes study provides information to help inform thediscussion around tax reform
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Now in its 9th year, Paying Taxes remains a unique study from PwC andthe World Bank group…
… comparing tax regimes in 189 economies around the world
How does your economy compare with others around the world? Findout by using our unique Paying Taxes modeller atwww.pwc.com/payingtaxesmodeller
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2013
makes 25.9 tax payments per year
spends 264 hours to comply with its taxes
and has a tax cost of 40.9% of its commercial profit
On average, a medium-size domestic company
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379
Reforms continue around the world
379 reformshave beenrecordedsince 2004
105 of these arerelated to electronicfiling and payment
105
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43%
The compliance burden has been steadily easing since 2004with the growing use of electronic systems for filing andpayment…
… 43% of economies now haveelectronic filing and payment systems
which are used by the majority of companies
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Corporate income tax is only part of the burden.
Taxes on profit are only…
12% of tax
payments…
27% of time spent on
tax compliance, and
40% of
the tax cost
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Central Asia andEastern Europecontinues to be thefastest reformingregion. Africacontinues to improvebut reform is veryslow in South America
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Labour taxes and mandatory contributions, account foran increasing share of the global Total Tax Rate havingrisen from
32%2004
40%2013
32% in 2004to almost 40% in 2013
…but consumption taxestake the longest timehours
99
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Total Tax Rate
Since 2004 the global average TotalTax Rate has fallen by 11.2percentage points
Its rate of decline was fastestduring the global financial crisisperiod (2008–2010)
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Total Tax Rate
56 economiesincreased their rate 56
whilst 47 reduced itin 2013
47
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81% of governments publish information on taxrevenues but only 2/3rds of these keep the dataup-to-date
70% of contributors believe that a key aim ofgovernment policy is to increase tax revenues, but60% think that governments also have an eye onusing the tax system to encourage investment
Additional insights and views from PwCcontributors around the world
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Interest in the tax agenda by the media and by civilsociety organisations is highest in North Americaand Europe
37% of economies find the post-filing processdifficult. On average these economies also spendmore time on pre-filing compliance
Additional insights and views from PwCcontributors around the world
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In 181 economies thecase study company payscorporate income tax
187 economies levylabour taxes while…
170 economies nowhave consumption taxes
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Central Asia & Eastern Europecontinues to be the fastest overallreformer with large falls for all the sub-indicators
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Africa no longer has the highest tax rate
The highest averagetax cost is nowSouth America
55.4%
the lowest continuesto be in theMiddle East
24.0%
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The biggest reduction in theTotal Tax Rate is in Africa
4.0percentage points
Electronic filing and payment provides thelargest opportunities for the region
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South America has the most timeconsuming tax system
The lowest is in the Middle East
hours
620
hours
160
The largest fall in the time tocomply is in Central Asia &Eastern Europe hours
11
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The most tax payments aremade in Africa 36.2Followed by Central America& the Caribbean 33.8The fewest are made in theNorth America 8.2
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The largest fall in tax payments is inCentral Asia & Eastern Europe
6.5
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The Middle East has the leastdemanding tax system, althoughelectronic filing and payment isstill a challenge
In Asia Pacific and Central Asia &Eastern Europe all three sub-indicators are also below theworld average
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How does your economy compare with othersaround the world? Find out by using our uniquePaying Taxes modeller
available atwww.pwc.com/payingtaxesmodeller