Paying Taxes 2011, a new report launched by PwC, the World Bank, and the International Finance Corporation has some interesting findings and some much needed good news for countries battered by the recession. The report, which looks at 183 economies, found that 40 economies have made it easier to pay taxes in the last year.
The study also showed taxes on company profits dropped each year because governments have reduced corporate tax rates trying to encourage business investment and stimulate growth. Easing compliance is also important for business and there is potential for more emphasis here.
Some countries worth mentioning include South Africa where the decrease in the corporate income tax rate and the abolishment of smaller business taxes showed a decrease of 7.6% . Overall the Maldives scored first place in the survey.
With budget cuts, it is clear tax revenues are a sustainable source of financing for developing countries such as South Africa, as opposed to debt or aid. Tax rates tend to be higher and the compliance burden more stringent in developing countries.
The study also showed taxes on company profits dropped each year because governments have reduced corporate tax rates trying to encourage business investment and stimulate growth. Easing compliance is also important for business and there is potential for more emphasis here.
Some countries worth mentioning include South Africa where the decrease in the corporate income tax rate and the abolishment of smaller business taxes showed a decrease of 7.6% . Overall the Maldives scored first place in the survey.
With budget cuts, it is clear tax revenues are a sustainable source of financing for developing countries such as South Africa, as opposed to debt or aid. Tax rates tend to be higher and the compliance burden more stringent in developing countries.
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