Taxation

The Taxation topic measures the quality of regulation, administration, and practical implementation of tax systems across the three different dimensions, referred to as pillars. The first pillar assesses the quality of regulation related to taxation, encompassing both the legal framework (de jure) and the implementation (de facto) of the legal requirements. The second pillar measures the quality of tax administration by assessing the public services related to tax matters. The third pillar evaluates the practical effectiveness of the implemented tax regulations and public services. Each pillar is divided into categories—defined by common features that inform the grouping into a particular category—and each category is further divided into subcategories. Each subcategory has several indicators, each of which may, in turn, have several components. Relevant points are assigned to each indicator and subsequently aggregated to obtain the number of points for each subcategory, category, and pillar.

Latest Score: 2024
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# Description Value
1 Time to prepare, file, and pay taxes (hours) 40
2 Percentage of respondent firms that used electronic systems to file taxes (%) 73
3 Percentage of respondent firms that used electronic systems to pay taxes (%) 68
4 Total time between the first interaction with auditors and receipt of final audit report (weeks) 1
5 Time between the moment a taxpayer files a claim until the moment the decision is issued (days) 30
6 Percentage of firms who did not apply for a VAT refund due to processes being too burdensome (%) 83
7 Time to receive a VAT refund adjusted by the number of firms reporting issues with VAT refunds (weeks) 23
8 Effective tax rate of income-based taxes (%) 20
9 Effective tax rate of labor taxes and social contributions 18

Detailed Score for each Pillar - Year 2024

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Regulatory Framework
%
Public Service
%
Operational Efficiency

Regulatory Framework

The first pillar assesses the quality of regulation related to taxation, encompassing both the legal framework (de jure) and the implementation (de facto) of the legal requirements.

Public Services

This pillar measures the quality of tax administration by assessing the public services related to tax matters.

Operational Efficiency

The third pillar evaluates the practical effectiveness of the implemented tax regulations and public services.