Thursday, December 2, 2021

Puerto Rico Occupies 134th spot Among 189 Countries in Corporate Taxes

By on December 17, 2015

A typical global-level company in 2014 had a tax rate of 40.8% on its earnings and had to make 25.6 payments a year to comply with its tax obligations, which takes 261 hours, according to the “Paying Taxes 2016” study from the World Bank and PricewaterhouseCoopers (PwC).

In Puerto Rico, the tax rate is 65.8% and 16 payments have to be made, which takes 218 hours. These results place the island in the 134th spot among 189 countries.

Top spots are held by Qatar, United Arab Emirates and Saudi Arabia, where tax rates for corporations range from 11% to 15%, with three or four payments taking 12 to 64 hours to process. The U.S. mainland has an average corporate tax rate of 43.9%, which requires 175 hours and 11 payments to process, placing the country in the 53th spot in the study. Singapore holds the 40th position, and Ireland No. 6 with a 25.9% corporate rate, requiring 82 hours and nine payments.

In global terms, the results represent a 0.1% decrease in the tax rate when compared to last year, and the number of hours that companies have to dedicate for paying taxes has been reduced by two hours. In the past 10 years, the amount of time for this process has been reduced by 61 hours and the number of payments has been cut by 8.2 through electronic payment systems and document transfers.

In 2014, 40 reforms in various countries have made it easier and less costly to pay taxes. The most common reforms are a reduction of taxes and the use of electronic systems. In 2015, 46 countries allowed for the filing of tax documents electronically. The reforms are less evident in the countries of Latin America, where the time required for paying taxes and the tax rates are the highest in the world.

Sin Comillas is a Spanish-language digital media website that specializes in business news in such areas as economics, banking, planning and tourism. Sin Comillas was founded in 2010 by economist and journalist Luisa García Pelatti.

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