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PwC Paying Taxes Report: Romania went up to 32nd world position, before Czech Republic, Slovakia and Hungary
Romania went up this year to the 32nd position in the world PwC Paying Taxes 2020 top, part of Doing Business Report of the World Bank, which measures how easily can a company pay it taxes. In last year's edition, Romania ranked 49th. At world level, the ease with which a company pays its taxes remained relatively stable.
Romania surpasses this year, other countries from Central and Eastern Europe, such as the Czech Republic (53rd), Slovakia (55th) , Hungary (56th), Poland (76th) and Bulgaria (97th). The best regional performances continue to be recorded by the Baltic countries: Estonia (12th), Latvia (16th) and Lithuania (18th).
Romania's evolution is owed to the drop of the total tax rate for an average company by 20%, from 40% to 20%. According to the methods used by the report, the overall tax rate takes into account only the fiscal obligation of an average company as share in profit.
As for the other indicators, the situation is not different from the top made last year. The time needed for the payment of obligations remained 163 hours per year. At regional level, 213 hours are needed on the average. An average company in Romania must make 14 payments annually, the same with last year's situation and a regional average of 14.4 payments.
The world report points out the significant advantages offered by fiscal administrations to tax payers if they adopt the technology.
“At regional level, we can see the deterioration of Poland's position, which went down by 8 positions compared to last year, as a result of the increase of the number of fiscal reports. The same evolution was registered by Bulgaria which went down by 5 positions, the Czech Republic by 8 positions and Slovakia by 7. On the other hand, Hungary improved its position went up 30 positions to 56,” the press release shows.
At global level, the ease with which an average company can pay taxes remained relatively stable at the level of all four indicators: necessary time (234 hours), number of payments (23.1), overall tax rate (40.5%) and a registration index (60.9 of 100).