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Ranking the regimes

A recent study* by PriceWaterhouseCoopers and the World Bank argues that the relative friendliness of a given tax regime is more than the rate of corporate income tax, which often amounts to a mere third of any tax burden shouldered by a business. The study developed and used a Total Tax Rate** that tallies all the different taxes payable after accounting for deductions and exemptions. In ranking the easiest and most difficult places for businesses to pay taxes, the study looks at the Total Tax Rate, number of required payments, and estimated hours per year to complete a filing. Below are the rankings of the easiest and most difficult places to pay taxes, along with rankings according to these individual factors.

WHO MAKES PAYING TAXES EASY-AND WHO DOES NOT?

Easiest Rank Most difficult Rank
Maldives 1 Bolivia 166
Ireland 2 Venezuela 167
Oman 3 China 168
United Arab Emirates 4 Algeria 169
Hong Kong, China 5 Congo, Rep. 170
Saudi Arabia 6 Central African Republic 171
Switzerland 7 Colombia 172
Singapore 8 Mauritania 173
St. Lucia 9 Ukraine 174
New Zealand 10 Belarus 175

PAYMENTS (NUMBER PER YEAR)

Fewest Most
Maldives 1 Jamaica 72
Afghanistan 2 Bosnia and Herzegovina 73
Norway 3 Montenegro 75
Hong Kong, China 4 Dominican Republic 87
Sweden 5 Kyrgyz Republic 89
Sweden 7 Romania 89
Portugal 7 Congo, Rep. 94
Spain 7 Ukraine 98
United Kingdom 7 Belarus 125
Ireland 8 Uzbekistan 130

TIME (HOURS PER YEAR)

Least Most
Maldives 0 Azerbaijan 1 ,000
United Arab Emirates 12 Vietnam 1 ,050
Singapore 30 Bolivia 1 ,080
St. Lucia 41 Taiwan, China 1 ,104
Oman 52 Armenia 1 ,120
Dominica 65 Nigeria 1 ,120
Switzerland 68 Belarus 1 ,188
New Zealand 70 Cameroon 1 ,300
Saudi Arabia 75 Ukraine 2 ,185
Ireland 76 Brazil 2 ,600

TOTAL TAX RATE (% OF PROFIT)

Least % Most
Maldives 9.3 Tajikistan 87.0
Vanuatu 14.4 Mauritania 104.3
Saudi Arabia 14.9 Argentina 116.8
United Arab Emirates 15.0 Uzbekistan 122.3
Oman 20.2 Belarus 186.1
Samoa 22.1 Central African Republic 209.5
Zambia 22.2 Congo, Dem. Rep. 235.4
Cambodia 22.3 Sierra Leone 277.0
Mauritius 24.8 Burundi 286.7
Switzerland 24.9 Gambia 291.4