World Bank ranks State's tax system among EU's most efficient
IRELAND's tax system is one of the most efficient for businesses, a joint report by consultants PwC and the World Bank has found.
Homeowners may raise an eyebrow given the recent controversy over paying the property tax, but businesses appear to be largely happy.
The State's tax system ranks as one of the most effective in the EU for paying business taxes, with companies here spending 80 hours complying with the tax regime compared with 218 hours in Germany, the report concluded. The report covers 189 economies worldwide and looks at all taxes paid by businesses, using broad principles from PwC's Total Tax Contribution Framework.
Feargal O'Rourke (pictured), tax chief at PwC Ireland, said Ireland's tax system is an advantage for attracting investment.
"The survey demonstrates that, having simpler tax systems with competitive business tax rates and a robust and transparent tax regime, gives Ireland a real advantage in the market for attracting direct investment," Mr O'Rourke said.
"The credit for this can be shared between legislators, Revenue and practitioners, who work collaboratively on a wide range of issues."
According to the study, 'Paying Taxes 2014 – The global picture', a typical Irish company spends just over a quarter of its total commercial profit in taxes, spends two weeks dealing with its tax affairs and makes a tax payment nearly every six weeks. Key findings of the study include:
* Ireland is fourth in the EU for the length of time it takes businesses to pay their taxes.
* Irish businesses make nine tax payments, lower than the EU average of 13.1.