Timor-Leste most tax competitive country in Portuguese-speaking world

November 24th, 2014  

 

http://www.macauhub.com.mo/en/2014/11/24/timor-leste-most-tax-competitive-country-in-portuguese-speaking-world/

 

Timor-Leste (East Timor) is the highest rated among the Portuguese-speaking countries in the list of most competitive nations in the world in terms of tax burden, according to the “Paying Taxes 2015″ study by PricewaterhouseCoopers, published recently.

The study puts Timor-Leste in 55th place, ahead of Portugal in 64th and at a great distance from the other Portuguese-speaking countries – Angola (144th), Brazil (177th), Cabo Verde (91st), Guinea-Bissau ( 150th) Mozambique (123rd) and Sao Tome and Principe.

This list is drawn up based on a set of indicators such as the tax burden for businesses, the number of hours spent dealing with tax issues and the number of annual payments.

In the case of Timor-Leste, the tax applied to companies is at a rate of 11 percent, the number of hours needed to deal with tax matters is 276 and the number of annual payments is 18.

In the case of Portugal the corporate tax burden is 42.4 percent, the number of hours is 275 and the number of payments is only eight.

This study by PricewaterhouseCoopers comparing the tax burden of 189 world economies and drawn up in cooperation with the World Bank, shows that on average companies make eight annual tax payments (a number that has remained constant) and spend 275 hours dealing with tax matters. (macauhub/AO/BR/CV/GW/MZ/PT/ST/TL)