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Romania, 50th in the PwC Paying Taxes 2017 global ranking
Romania climbed 5 spots to position 50 in the PwC Paying Taxes 2017 global ranking which measures the ease of paying taxes for a standard company in 190 economies around the world, a release of the consultancy company informed on Thursday.
The expert report reveals that many Central and Eastern European states have made progress in the past year regarding the ease of paying taxes.
Thus, the Czech Republic climbed from the 122nd to the 53rd position in the ranking, Poland advanced from position 58 to 47, Slovakia went up from 73 to 56 and Hungary from 95 to 77.
"The Republic of Moldova too had a spectacular evolution, climbing to position 31 in the Paying Taxes ranking from spot 78 last year. This shows that we are in an ever increasing competition as regards easing tax paying and reducing the tax burden, and Romania should continue and intensify the pace of the positive fiscal action taken in recent years to position itself as a more attractive investment destination," says Mihaela Mitroi, leader of PwC Romania Tax and Legal Services Department.
The total tax rate, which measures the amount of taxes and contributions borne by a company expressed as percentage of the profits, was 38.4 percent in Romania, below the EU average of 40.3 percent and the 40.6 percent global average.
Also, by the time required to comply with tax laws, Romania is among the top performers of Central and Eastern Europe, with 161 hours of work per year, compared with 164 hours on average in the EU and 251 hours globally.
By the number of tax payments, the PwC report shows that a medium-sized Romanian company must perform 14 tax payments a year, compared to a global average of 25.6 payments and only 11.8 in the European Union.
The Paying Taxes 2017 report takes into account all taxes and mandatory contributions a medium-sized company has to pay in one fiscal year. The calculated taxes and contributions include profit tax, social contributions and workforce taxes paid by the employer, taxes on property, taxes on property transfers, dividend tax, tax on capital gains, taxes on financial transactions, the waste collection tax, fleet taxes, road taxes and any other small taxes and fees.
The document analyzes the ease of tax payment in 190 economies around the world by taking into consideration three main indicators: the total tax rate, which measures the amount of taxes and contributions borne by a company expressed as a percentage of profit, the time required to comply with tax laws, ie the number of hours the company allocates to comply with reporting obligations and the payment of the mandatory taxes, and the number of payments a company has to make in order to meet its tax obligations.
PwC is a network of firms based in 157 countries, with more than 223,000 experts who provide audit, tax and business consulting services.