Armenia is among 20 most effective countries in terms of tax burden –PwC/World Bank report
YEREVAN, November 23, /ARKA/. According to the latest report prepared by the PriceWaterHouseCoopers (PwC) together with the World Bank Group, Armenia is one of the top 20 effective countries in terms of tax burden.
The report – Paying Taxes 2017- further says that in terms of tax burden Armenia has improved its standing and with the total tax rate of 18.4% is ranked 14th among 189 countries, leaving behind Luxembourg, Singapore, Canada and several EU countries.
The ranking is based on four indicators: the total interest rate; the number of hours spent on the calculation, declaration and payment of taxes; the number of tax payments made during the year and the assessment of the administrative burden of procedures (Post-filing index).
Of regional countries only Georgia with the total tax rate of 16.4% is ahead of Armenia in terms of tax burden. Russia’s rate is 47.4%, Kazakhstan’s is 29,2%, Kyrgyzstan’s is 29%, Moldova’s is 40.4%, Azerbaijan’s is 39.8%, Tajikistan’s is 65.2%, Belarus’ is 54.8% and Ukraine’s is 51.9%.
Despite the relative ease of paying taxes, meeting one’s tax obligations in Armenia takes quite a lot of time, – 313 hours. At the same time Armenian companies make on average 14 tax payments during the year.
According to the overall ranking, Armenia is placed 88th against last year’s 41st position. Georgia is 22nd, Azerbaijan is 40th and Russia is 45th.
Across the world, Qatar and the United Arab Emirates hold the top spot for ease of paying taxes, followed by Hong Kong, Bahrain, Ireland, Kuwait, Denmark, Singapore, Macedonia and the United Kingdom – making up the top ten spots. -0-