Tax payment regimes in some countries have become simpler in spite of the economic crisis according to the latest study by PwC and the World Bank, Paying Taxes 2011, as nearly 60 percent of 183 assessed countries introduced reforms to simplify tax payments despite the impact of the economic crisis and a sluggish global economic recovery, the SITA newswire wrote, adding that Slovakia ranked 122 in the 2011 comparison.
The time required to comply with tax requirements in Slovakia represents 257 hours which put the country in 103rd spot. The total tax rate is 48.7 percent and the number of different tax payments reaches 31.
According to the study, forty countries introduced changes to make their tax systems less complex, with Tunisia atop the chart as the biggest reformer. Countries included in the Paying Taxes study both in 2006 and 2011 showed that the time required to meet tax obligations was shortened by one week.
Seven EU countries carried out tax reforms to simplify the payment of taxes in 2009 and 2010: Bulgaria, the Czech Republic, Hungary, Lithuania, the Netherlands, Portugal and Slovenia. EU member states reported lower than global average figures in three main indicators. The tax rate in EU states was 44.2 percent compared with the international median of 47.8 percent. The time required to comply in EU states was 222 hours while the average figure for the whole world was 282 hours. The average number of tax payments in the EU was 17.5 compared with 29.9 payments for the entire world.
To measure the ease of paying taxes, Paying Taxes 2011 evaluates the administrative burden on companies related to observance of relevant laws and calculates the overall tax duty as a percentage of pre-tax profit, SITA wrote.
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
23. Nov 2010 at 14:00