• 10-NOV-2011

Worldwide Tax Reforms Continue to Encourage Growth and Sustained Revenues

PricewaterhouseCoopers headquarters, New York
Governments continue to reform their tax systems, according to a new report by the World Bank, IFC, and PwC. In all, 123 out of 183 economies measured have made significant regulatory changes since 2006 to ease tax burdens for small and medium-sized firms, as governments seek to increase business registrations and relieve the impact of the global economic downturn. Launched on November 10, Paying Taxes 2012 finds that 33 economies made it easier and less costly to pay taxes from June 2010 through May 2011. Paying Taxes 2012 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 report found that the Total Tax Rate for small and medium-sized companies has fallen by 8.5 percentage points since 2006, more than one point per year. During that period, the time it takes to comply with business taxes declined by more than a day a year (54 hours), and the number of payments required dropped by five.