Ireland continues to be most effective country in the EU in which to pay business taxes and 4th most effective worldwide. This is according to The PwC/World Bank Group Paying Taxes 2018 report which was published in Ireland today.
The ranking by PwC/The World Bank Group Paying Taxes report is unique as it looks beyond corporate income tax to all of the other business taxes paid and is a measure of effectiveness of tax systems around the world. The Paying Taxes 2018 report measures the ease of paying taxes by assessing the administrative burden for companies to comply with tax regulations, and by calculating companies’ total tax liability as a percentage of pre-tax profits.
Top 10 rankings for the EU countries on ease of paying taxes are, in order, are:
Ireland
Denmark
Finland
Latvia
Estonia
Lithuania
Switzerland
Netherlands
Luxembourg
UK
The top 10 worldwide economies for ease of paying taxes are, in order:
Qatar and United Arab Emirates
Hong Kong
Ireland
Bahrain
Kuwait
Singapore
Denmark
New Zealand
Mauritius
According to the study, a typical Irish company spends around a quarter of its total commercial profit in taxes, spends just over two weeks dealing with its tax affairs and makes a tax payment nearly every six weeks. Globally this compares to the typical company paying over a third of its commercial profit in taxes, spending nearly seven weeks dealing with its tax affairs and making a tax payment every 2 weeks.
Commenting on the report, Head of Tax at PwC, Joe Tynan said, "When you look at the mix of the tax indicators – cost and compliance - the report highlights that Ireland does very well in terms of tax competitiveness. When you take labour and other taxes into account, Ireland's total tax rate on corporate profits is much lower when compared with many other EU countries such as the UK, Germany, Sweden and France and also the US and China. And ranking as the most effective country in the EU for paying business taxes, Ireland remains a very attractive location in which to do business."
Source: www.businessworld.ie