Paying Taxes in 2010

The World Bank Group and PricewaterhouseCoopers published their report on the cost of paying taxes worldwide. The report measures the ease of paying taxes across 183 economies by assessing the administrative burden for companies to comply with tax regulations, and also by calculating companies’ total tax liability as a percentage of pre-tax profits.Around the world on average, the case-study-company pays a total tax rate (percentage of profit paid out in taxes) of 48.3%, spends 286 hours on filing the papers and makes 31 tax payments. The number of taxes are 9.5 globally.

The average EU burden is somewhat below the world average, the same company pays 44.5% to 46%., spends 232 hours on compliance (down from 257 the year before) out of which 117 hours is require for personnel charges. and The EU average was effected by corporate income tax cuts implemented in 2007/08 in Germany and Italy. The average number of taxes is almost 11. Alhtough tax services can be outsourced relatively easy, and tax breaks can be negotiated for big foreing investments, the V4 are no tax havens. The hours to comply taxes are the highest in the EU together with Italy, Portugal and only falling short of Bulgaria.

• Czech Republic: tax rate 47.2%, 672 hours, 12 payments.
  
• Hungary: tax rate 57.5%, 330 hours, 14 payments.
  
• Poland: tax rate 42.5%, 395 hours, 47 payments.
  
• Slovakia: tax rate 48.5% . 257 hours, 31 payments.

Except for Poland the average tax rate is above the EU average and the number of payments needed adds to the banking costs (unless you are a banker who receives it).