In-depth analysis on tax systems in 190 economies
Explore the new edition of Paying Taxes, a unique report by PwC and the World Bank Group
Paying Taxes 2017, now in its 11th edition, continues to be a unique report from PwC and the World Bank Group. It is the only piece of research which, by using a medium-sized domestic case study company, measures and assesses the ease of paying taxes across 190 economies. This year, for the first time, we look at two post-filing processes; obtaining a VAT refund and correcting a corporate income tax return and dealing with any corresponding tax audits. This publication also includes two articles which look beyond the case study. The first considers that while paying taxes is an important part of how companies contribute to society, companies may have more to offer. The second article looks at the rising importance of consumption taxes to governments and the challenges of creating effective and efficient VAT systems.
Now with 12 year's worth of data, Paying Taxes provides a unique dataset that measures and analyses tax systems in 190 economies. Want to know how your economy compares to others around the world? Try out our interactive tool to create your own peer groups from all the economies and regions in the study.
The post-filing index looks at two post-filing processes; claiming a value added tax (VAT) (or GST) refund and correcting a corporate income tax (CIT) return. Both processes may involve a tax audit. For each process there are two components giving the following four components in total, and the central number being the overall post-filing index score.
Each of the four components is converted to a distance to frontier score of 0-100 where 0 represents the least efficient process and 100 the most efficient. If both VAT and CIT apply, the post-filing index is the simple average of the distance to frontier scores for each of the four components.
If an economy has no VAT or CIT system, then the relevant components are ignored and the distance to frontier scores of the remaining components are averaged to give the post-filing index. If an economy has neither VAT nor CIT, then the post-filing index is ignored in determining the overall Paying Taxes distance to frontier score.
If a VAT (or GST) refund system does not exist in an economy, or is not available to the case study company, then the distance to frontier scores of the VAT components are each given a score of 0, being equal to the least efficient process. An efficient refund system is a necessary element of a VAT system if the principle that the tax should be paid by consumers, but neutral for companies, is to be fully applied in practice.