TAIPEI (Taiwan News) – Taiwan was ranked the 29th easiest location for a company to pay tax, according to a recent study by accounting giant PricewaterhouseCoopers (PwC) and the World Bank Group.
Hong Kong was awarded top honors, while Taiwan ranked higher than the U.S. (37), Japan (97), and China (114).
The “Paying Taxes 2019” report compares tax regimes across 190 economies based on data from 2017, with the point of comparison being a medium-sized domestic company. This year’s report took a special interest in how new technologies are affecting tax compliance and submission.
In comparison to similarly ranked economies, Taiwan’s total tax and contribution rate (34.6 percent) was lower, but the time required to file all tax requirements (221 hours) was higher.
Richard Watanabe, Partner at PwC Taiwan told Economic Daily News said the main reason for Taiwan’s comparatively strong performance was its good post-filing procedure.
Watanabe noted that according to the report, Taiwan’s tax refund correction procedure and business tax refund wait times are comparatively shorter than most countries.
Watanabe said total tax contributions are comprised of income tax, labor tax, health insurance, and other duties, and suggested that Taiwan’s total tax is comparatively low.
The report states since 2004, there are three main global tax trends. These trends are decline of income tax rate, increase in labor tax rate, and reduction in time to file tax returns.