- All three key indicators (Total Tax Rate, time to comply, and number of payments) have fallen consistently over the eight -year period of the study, reflecting the reforms that governments have implemented to make paying taxes less burdensome.
- The two compliance indicators (number of hours to comply and number of payments) continue to fall significantly in the most recent year, suggesting that there is still room for improvement in many economies around the world, and that the value of these improvements are understood.
- The rate of reduction in the Total Tax Rate has slowed in the most recent year, reflecting governments’ need for policy flexibility in dealing with different economic scenarios, including the circumstances which have arisen in the wake of the economic downturn.
- The range of the indicators across the economies in the study is narrowing, suggesting a gradual move to what may be perceived as sustainable—and, perhaps, an awareness of companies’ ability, in an age of increasing globalisation, to compare rates with geographic neighbours and economic peers.
The study continues to show that corporate income tax is only part of the picture when looking at the contribution made by business to public finances. This is important for governments when considering the reforms which they may feel are necessary for the tax system.
For companies, the challenge is to have a better understanding of the full extent of their contribution to the economy.