Paying Taxes Questionnaire «Survey_Economy»

Transcription

1 Paying Taxes Questionnaire «Survey_Economy» Dear Respondent, We would like to thank you for your participation in the Doing Business project. Your expertise in the area of tax systems in «Survey_Economy_FullName» is essential to the success of the Doing Business report, an annual publication of the World Bank and IFC that benchmarks business regulations in 189 economies worldwide. The same data is also used for a joint World Bank Group and PwC publication entitled Paying Taxes: The Global Picture. The goal of Doing Business is to inspire more efficient business laws and regulations. The report attracts much attention around the world. The latest edition, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises, received nearly 6,000 media citations within two weeks of its publication on October 29, The coverage spanned major global, regional and local media outlets, from print and broadcast to the web. The Doing Business website had more than half a million page views in just the first 10 days after the report s launch. Governments worldwide read the report with interest every year, and your contribution makes it possible for the Doing Business project to disseminate the regulatory best practices that continue to inspire their regulatory reform efforts. Since 2005, Doing Business has recorded 328 tax reforms in 146 economies aiming at improving the tax system. In 2012/13, 32 reforms made it easier or less costly for firms to pay taxes. For Doing Business 2015, we are honored to be able to count on your expertise. In addition to providing data for the year January 1, 2013 to December 31, 2013, we would be interested in understanding any reforms affecting paying taxes in your country since June We also would like to draw your attention to the tax administration questions, the completion of which provides valuable insights into the tax system of your country. We therefore urge you to provide us with this information. Important change to this year s questionnaire We would like to draw your attention to an important change in this year s questionnaire. This year the case study company is larger because due to an update in the gross national income (GNI) per capita that is used to define the values of the company s sales, the employees salaries and the company s fixed assets, general expenses and general provisions. Previous questionnaires referred to the GNI per capita in This year s questionnaire refers to the GNI per capita in We therefore urge you to pay close attention to the new and larger case study figures and consider any implications they might have for the tax rates, number of tax payments and time applicable to the standardized case study company for the calendar years January December 2012 and January December Please review the assumptions of the case study before updating last year's information in the questionnaire. Please describe in detail any reform that has affected the paying taxes process since June 1, Please make sure to update your name and address, so we can mail you a complimentary copy of the report. Please kindly return the questionnaire to Joanna Nasr or Michelle Hanf. We thank you again for your invaluable contribution to the work of the World Bank Group. Sincerely, Ms. Joanna Nasr Ms. Michelle Hanf jnasr@worldbank.org mhanf@ifc.org Phone: +1 (202) Phone: +1 (202)

2 Primary Contributor Information: Please check the box next to information you do not want us to publish. Name Do not publish Never published Title (Mr., Ms., Dr.) «Title» [ ] First name Last name Position (e.g., manager, associate, partner) Profession (e.g., judge, lawyer, architect) Contact details «FirstName» «LastName» [ ] [ ] «Position» [ ] «ExpertiseName» [ ] Do not publish Firm name «FirmName» [ ] Website «FirmWebsite» [ ] Do not publish address « » [ ] Do not publish Phone «Phone» [ ] Never published Do not publish Fax «Fax» [ ] Mobile phone «MobilePhone» [ ] Firm address Street «FirmAddress» [ ] P.O. box «FirmPostOfficeBo [ ] x» City «FirmCity» [ ] State/province «FirmStateProvinc [ ] e» Zip/postal code «FirmZipcodePostal Code» [ ] Country «FirmCountry» [ ] «LanguageCode» «crm_dbeconomy» «crm_sfcontributorid» «crm_sfsurveyid» «crm_indicator» «crm_economy» «FbsSurveyID» «FSTokenValue» Additional Contributor(s): If there are more people whom you would like us to acknowledge, kindly send us an . Name Occupation Phone Address [title] [first name] [last name] [firm] [position] [profession] [ ] [phone] [mobile] [street] [state/province] [city/country] [title] [first name] [last name] [firm] [position] [profession] [ ] [phone] [mobile] [street] [state/province] [city/country] [title] [first name] [last name] [firm] [position] [profession] [ ] [phone] [mobile] [street] [state/province] [city/country] Paperless Option for Complimentary Report and Certificate Last year Doing Business contributors saved nearly half a million pieces of paper by selecting the paperless report option. We welcome you to join us in conserving resources: Please me an electronic copy of the report and my certificate of appreciation rather than mailing me a paper copy. Referrals: Please help us expand our list of contributors by referring us to other experts in the private or public sector (lawyers, notaries, public officials or any expert in this field) who could respond to the questionnaire. First name Last name Position Firm Address Phone [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ]

3 A. Case Study Assumptions The paying taxes indicators record the taxes and mandatory contributions that a standardized case study firm (a medium-size company) must pay in a given year and also measure the administrative burden of paying taxes and contributions. There are 3 indicators: payments, time and total tax rate. The number of payments indicates the frequency with which the company has to file and pay different types of taxes and contributions, adjusted for the way in which those payments are made. The time indicator captures the number of hours it takes to prepare, file and pay 3 major types of taxes: profit taxes, consumption taxes, and labor taxes and mandatory contributions. The total tax rate measures the tax cost borne by the case study firm. A.1 General Assumptions The standardized case study was developed to ensure comparability of responses across countries. Therefore, in completing the questionnaire, please keep in mind the following key assumptions about the standardized company, called TaxpayerCo. More detailed assumptions are outlined on the following page (section A.2). TaxpayerCo. is a limited liability company and operates in Type a typical manufacturing location in the largest business city in the country (see city used below). Location DB_City» The company is 100% domestically and privately owned Ownership and has 5 owners, none of whom is a legal entity. One of the owners is also a manager. January 1, 2012 (On that date the company bought all its Start of company operations assets and hired all its workers.) Year of assessment January 1, 2013 December 31, 2013 TaxpayerCo. performs general manufacturing and commercial activities: it produces ceramic flowerpots and Type of operation sells them at retail. All its transactions are purely domestic, and it does not handle any products subject to a special tax regime, such as liquor or tobacco. Sales «Survey_Currency_Code» Sales» The company began operations owning 2 plots of land. Each plot has an area of 6,000 square feet (557.4 square meters). Plot number 2 was sold at the beginning of Assets: Land Any property transfer tax due on the sale needs to be listed in the appropriate place in the questionnaire. If there is a stamp duty payable on the sale contract, please include this duty as well. The building where production and storage take place, located on land plot 1, was originally 10,000 square feet Assets: Building (929 square meters). It was expanded in 2013 with proceeds from the sale of land plot 2. The company s capital has not changed since the Capital company was created. TaxpayerCo. does not qualify for investment incentives or Incentives any special benefits. The company has 60 employees: 4 managers, 8 assistants and 48 workers. All the employees were hired on the same day: January 1, No employee has left the company and no new employee has joined the Employees company since January 1, One of the managers is also an owner. All employees at any given level earn the same wage as others at their level. All employees are nationals, male and married with 2 children each. Accounting is compliant with applicable generally Accounting rules accepted accounting principles, or GAAP (local or international, depending on your national laws). This

4 includes, for example, the International Financial Reporting Standards/International Accounting Standards (IAS/IFRS) regime if applicable to your country. A.2 Detailed Assumptions and Definitions In addition to the general assumptions about the standardized company TaxpayerCo. outlined above, please keep in mind the following more detailed assumptions and definitions when completing the questionnaire. General Description of the Company 1 The company (TaxpayerCo.) started operations 2 years ago, on January 1, Type and location: TaxpayerCo. is a taxable corporation and operates in a typical manufacturing location in the largest business city in the country. The company is liable for taxes levied at the local, state/provincial and national level. Please consider taxes at all levels when completing the questionnaire. TaxpayerCo. does not qualify for investment incentives or any special benefits. Ownership: The company is 100% domestically and privately owned; that is, it has no foreign or state ownership. The company has 5 owners, none of whom is a legal entity. 4 Capital: The company s capital has not changed since the company was created. 5 6 Accounting rules: Accounting is compliant with applicable GAAP (local or international, depending on your country s laws). This includes, for example, the IAS/IFRS regime if applicable to your country. Type of operation: TaxpayerCo. performs general manufacturing and commercial activities: it produces ceramic flowerpots and sells them at retail. All its transactions are purely domestic, and it does not handle any products subject to a special tax regime, such as liquor or tobacco. Important Assumptions and Definitions Mandatory tax books and records: In the course of the financial year companies are required to maintain various books and records for accounting and audit purposes. These books are often also used for preparing tax computations and completing tax returns. In some cases tax laws or tax authorities may also require companies to keep additional books and records specifically for tax purposes books and records that are over and above those kept for the accounting and audit processes and that are not required for the financial reporting processes. The questionnaire s sections on compliance time include an entry under each of the 3 tax categories for time related to maintaining mandatory tax books and records. Please disregard in those entries any time spent on books and records that are also used for financial accounting or audit purposes. Employees: The company has 60 employees: 4 managers, 8 assistants and 48 workers. All the employees were hired on the same day: January 1, No employee has left the company and no new employee has joined the company since January 1, One of the managers is also an owner. All employees at any given level earn the same wage as others at their level. All employees are nationals, male and married with 2 children each. Social security contributions and payroll taxes: Please include all social security contributions and payroll taxes paid by the employer for each category of employee on the wages and salaries paid by the company. These taxes may be referred to by different terms in different economies. These taxes and contributions should be split between those that are a cost to the employer and those that are withheld by the employer on behalf of the employee. Other labor taxes or mandatory contributions: In this category include all other labor taxes and social contributions paid by the company, withheld by the company from employees pay or paid directly by the employees. Please keep in mind that these can be collected by different levels of government. Please include all government-mandated contributions even if paid to nongovernment entities (e.g., compulsory guarantees and insurance paid to third-party agencies).

5 11 12 Land: On January 1, 2012, the company began operations owning 2 plots of land, each with an area of 6,000 square feet (557.4 square meters). At the beginning of 2013 plot number 2 was sold. Building: The building where production and storage take place, located on land plot 1, was originally 10,000 square feet (929 square meters). It was expanded in 2013 with half the proceeds from the sale of land plot Truck: The company owns a truck that is used to ship products to customers and is classified as a nonluxury, medium-size unit. This truck covers on average 80,000 km (50,000 miles) a year and weighs 15,300 kilos (34,000 pounds) when loaded. The company also leases a truck Capital gains: At the beginning of the second year of operation (2013) the company sells a plot of land (land plot 2) that it has owned for 12 months at a price 20% higher than the original cost of the land plot. Please indicate whether there is a capital gains tax separate from corporate income tax by including the tax rate in the appropriate field. Please note that half the proceeds from this sale are reinvested in assets (by expanding the existing building). Dividends: In the second year (2013) the company distributes 50% of its profits to its owners. Please provide any dividend tax borne by the company in this transaction. If the company merely withholds tax on paying shareholders, EXCLUDE this withheld dividend tax. The dividends are paid in cash. The other 50% of profits are kept as retained earnings. Fuel expenses: TaxpayerCo. purchases vehicle fuel and therefore should pay fuel tax (if applicable). Fuel tax may be embedded in the price of fuel paid at the pump. Environmental duties: TaxpayerCo. produces 2 tons of nontoxic waste a month and therefore must pay the tax or other duties (if any) associated with waste production. B. Reform Update Please update us on any tax reforms that occurred in your country in calendar year 2013 or that are planned for the next year. These could include new tax codes, a change in rates, a change in the frequency of payment of taxes, the unification of tax agencies into one administration, the elimination or merging of taxes, or the introduction or improvement of online filing, among others. 1. Between January 1, 2013, and December 31, 2013, was there any change to the tax laws, regulations or administration in your country? If yes, please explain: 2. Between January 1, 2013, and December 31, 2013, were any new taxes introduced? If yes, please explain: 2.1 Between January 1, 2013, and December 31, 2013, were any taxes eliminated or merged with other taxes? If yes, please explain:

6 3. Between January 1, 2013, and December 31, 2013, did any of the following tax rates change? a. Corporate income tax -Click to Selectb. Labor taxes and social contributions -Click to Selectc. Sales tax, value added tax (VAT), goods and service -Click to Selecttax (GST) or other consumption tax d. If VAT exists in your country, please indicate whether -Click to Selectany VAT changes have been implemented since January 2008 e. Any other taxes If yes, please explain the changes: a. Corporate income tax b. Labor taxes and social contributions c. Sales tax, VAT, GST or other consumption tax d. VAT changes implemented since January 2008 e. Any other taxes 4. Between January 1, 2013, and December 31, 2013, did the tax payment or filing schedules change for any of the following taxes? a. Corporate income tax -Click to Selectb. Labor taxes and social contributions -Click to Selectc. Sales tax, VAT, GST or other consumption tax -Click to Selectd. Any other taxes If yes, please explain the changes: a. Corporate income tax b. Labor taxes and social contributions c. Sales tax, VAT, GST or other consumption tax d. Any other taxes 5. Between January 1, 2013, and December 31, 2013, were there any legal or regulatory changes that increased or reduced the time for preparing, filing or paying any of the following taxes? a. Corporate income tax -Click to Selectb. Labor taxes and social contributions -Click to Selectc. Sales tax, VAT, GST or other consumption tax If yes, please explain the changes: a. Corporate income tax b. Labor taxes and social contributions c. Sales tax, VAT, GST or other consumption tax 6. Between January 1, 2013, and December 31, 2013, were there any changes to the method (e.g., electronic capabilities) of preparing, filing or paying any of the following taxes that increased or reduced the time required? a. Corporate income tax -Click to Selectb. Labor taxes and social contributions -Click to Selectc. Sales tax, VAT, GST or other consumption tax If yes, please explain the changes: a. Corporate income tax b. Labor taxes and social contributions c. Sales tax, VAT, GST or other consumption tax

7 7. Are any changes to tax rates, associated rules or tax administration expected to become effective between January 1, 2014, and June 1, 2014? Please note that these reforms will not affect the data in this year s report. a. Corporate income tax -Click to Selectb. Labor taxes and social contributions -Click to Selectc. Sales tax, VAT, GST or other consumption tax -Click to Selectd. Any other taxes If yes, please explain the changes: a. Corporate income tax b. Labor taxes and social contributions c. Sales tax, VAT, GST or other consumption tax d. Any other taxes/any other area not related to a specific type of tax 8. How many clients did you or your company represent in the past year? 8.1 Please provide an estimate of the number of clients. C. Data Update PLEASE KEEP IN MIND THAT THE COMPANY SIZE (INCLUDING SALARIES, SALES, FIXED ASSETS AND EXPENSES) IS LARGER THIS YEAR AS A RESULT OF THE UPDATE IN THE CASE STUDY VALUES. In the following pages, please consider taxes paid to all levels of government by TaxpayerCo. during the calendar year ending December 31, For your convenience, parts of the questionnaire are already populated with the aggregate answers obtained last year for You need only update those figures for 2013 and verify that the rates provided last year for the fiscal year ending December 2012 have not changed as a result of the changes in the size of the company. Please keep in mind that last year s answers included here represent a unified response based on all the answers we received from various contributors. When answering the questions, always use the method for computing the taxes that is most favorable for the company, i.e., minimize taxes within legal constraints and by making reasonable assumptions where necessary. Please state any such assumptions clearly in the comments corresponding to the relevant data input cell. The information provided should be based on a typical or normal business in your country of a size similar to TaxpayerCo. If you feel that a unified answer reported in the subsequent sections does not reflect the reality in your country, kindly provide your own answer and clearly indicate why you disagree. C.1 List of Taxes In the table below please update the information for each tax, taking into account the detailed assumptions of the case study described in section A.2. If you make any changes to last year s data, please specify the reason why you think the data for this year should be different: Correction (our unified answer is wrong and does not reflect the current and previous reality in your country), Reform (the different answer resulted from a modification in practice or by law that occurred after June 1, 2013), or Other (please specify). In the fields provided below the table, please describe in detail any change to the data and indicate when the change took effect.

8 «Survey_Economy_FullName» -DB_City» Number of taxes: List_TOTAL_PROCEDURES_NUMBER» Tax 1. List_T _rownumber_1» 2. List_T _rownumber_2» 3. List_T _rownumber_3» 4. List_T _rownumber_4» 5. List_T _rownumber_5» 6. List_T _rownumber_6» 7. List_T _rownumber_7» 8. List_T _rownumber_8» 9. List_T _rownumber_9» 10. List_T _rownumber_10» 11. List_T _rownumber_11» Number of payments and filings required in one year (monthly = 12, quarterly = 4, annual = 1). Please include any final payments or filings that need to be made. Can this tax be paid and filed online? Can this tax be paid and filed jointly with another tax? Statutory rate Tax base If you made changes to last year s information please indicate whether it is a correction or a refo Last year Update Last year Update Last year Update Last year Update Last year Update DB DBPTT Li umber_1» DB DB DB DB DB DB DB DB DB DB umber_2» umber_3» umber_4» umber_5» umber_6» umber_7» umber_8» umber_9» umber_10 umber_11 DBPTT DBPTT DBPTT DBPTT DBPTT DBPTT DBPTT DBPTT DBPTT DBPTT Li Li Li Li Li Li Li Li Li Li

9 12. List_T DB _rownumber_12» 13. List_T _rownumber_13» 14. List_T _rownumber_14» 15. List_T _rownumber_15» 16. List_T _rownumber_16» 17. List_T _rownumber_17» 18. List_T _rownumber_18» 19. List_T _rownumber_19» 20. List_T _rownumber_20» 21. List_T _rownumber_21» 22. List_T _rownumber_22» 23. List_T _rownumber_23» 24. List_T _rownumber_24» 25. List_T _rownumber_25» 26. List_T _rownumber_26» 27. List_T _rownumber_27» DB DB DB DB DB DB DB DB DB DB DB DB DB DB DB umber_12 umber_13 umber_14 umber_15 umber_16 umber_17 umber_18 umber_19 umber_20 umber_21 umber_22 umber_23 umber_24 umber_25 umber_26 umber_27 DBPTT DBPTT DBPTT DBPTT DBPTT DBPTT DBPTT DBPTT DBPTT DBPTT DBPTT DBPTT DBPTT DBPTT DBPTT DBPTT Li Li Li Li Li Li Li Li Li Li Li Li Li Li Li Li xbase_rownumber»

10 28. List_T DB _rownumber_28» 29. List_T _rownumber_29» 30. List_T _rownumber_30» DB DB umber_28 umber_29 umber_30 DBPTT DBPTT DBPTT Li Li Li Please explain any changes and provide the legal basis when applicable. Please indicate when the change took effect. Please indicate whether any of the information in the tax list provided last year for calendar year 2012 would have been different as a result of the changes in the size of the company.

11 C.2 Deductions and Depreciation PLEASE KEEP IN MIND THAT THE COMPANY SIZE IS LARGER THIS YEAR AS A RESULT OF THE UPDATE IN THE CASE STUDY VALUES. 2.1 Tax-Deductible Expenses Please indicate if the following expenses are deductible in computing corporate income tax and note the total amount of deductions allowed per year. Kindly provide information for calendar year 2013 based on the law in your country. Deductible in 2013? Start-up expenses: Official and -Click to Selectattorney fees paid at the time of incorporation. If the company can deduct these expenses in full in the first year of operation, then input zero as this year s deductible expense. If the tax law allows companies to assign these expenses to future years and this is done by the majority of firms like TaxpayerCo., please allow the maximum possible deduction this year (the second year of operations). Advertising expenses: The company -Click to Selectengages the services of an advertising company to promote its ceramic products at an annual cost of 1% of its sales revenue. Leasing expenses: The company -Click to Selectleases a new truck for 3 years. This truck covers on average 80,000 km (50,000 miles) a year and weighs 15,300 kilos (34,000 pounds) when loaded. Medical insurance premium for -Click to Selectemployees: The company pays part of the medical insurance premium for its employees. This medical insurance is an extra benefit for the workers and goes beyond what may be mandated by law. It amounts to 1% of total salaries. Building insurance premium: The -Click to Selectcompany insures the building against fire and theft at a cost of 1% of the building s value. Business travel expenses: Refers to -Click to Selecttravel by the company managers for business purposes (e.g., to meet customers and suppliers). Accountancy fees: The company -Click to Selecthires an accountancy firm to manage its books. Legal fees: The company hires a law -Click to Selectfirm for writing contracts with its suppliers and customers and for % deductible

12 other legal services. Machinery repair expenses: The company has to repair some of its machinery. These repairs do not add value to the machinery. The cost of the repairs is NOT capitalized in the company s books. Patent royalties: The company pays royalties to another domestic company for a patented industrial process that the company uses in its operations. Owner s expenses: These are expenses made by the owner: 60% are expenses on business travel, 20% are expenses on entertaining customers and 20% are purely private expenses. Loss carry forward: The company made tax losses in the first year of operations (2% of capital). If these tax losses can be brought forward to the year of assessment, please use the maximum losses that can be utilized in this financial year. Please include the maximum deduction rate. 2.2 General Provisions Please indicate if the following general provisions are deductible in computing corporate income tax and note the total amount of deductions allowed per year. Kindly provide information for calendar year 2013 based on the law in your country. Deductible in 2013? Bad debt: Assume that TaxpayerCo. -Click to Selectestimates that 10% of its accounts receivable will not be collected. These 10% of accounts receivable are overdue for at least 6 months and are not guaranteed debt. The company knows the actual debtor accounts that will probably not be paid and sets aside this provision. Pension contribution: The company -Click to Selectputs aside every year 1% of total paid wages in an internal pension fund for its employees. This is a provision, not an actual expense. No funds leave the company. Machinery expenses: The company -Click to Selectputs aside every year 1% of the net value of machinery to pay for future machinery repairs. This is a provision, not an actual expense. No funds leave the company. % deductible 2.3 Annual Depreciation of Fixed Assets

13 Please provide the tax depreciation for calendar year 2013 for the fixed assets that the company has. Please carefully read the assumptions for each asset to ensure that the correct rate, method and amount of tax depreciation are provided. Tax depreciation rate in 2013 Depreciation method in 2013 Land: On January 1, 2012, the company began operations owning 2 plots of land. Each plot has an area of 6,000 square feet (557.4 square meters). At the beginning of 2013 plot number 2 is sold. Building: The building where production and storage take place, located on land plot 1, was originally 10,000 square feet (929 square meters). In 2013 the building was expanded with half the proceeds from the sale of land plot 2. If the building expansion (the new part added to the building) would be depreciated at a different rate, please specify the rate. Machinery: Light machinery for tax purposes. Truck: The truck is used to ship products to customers and is classified as a nonluxury, mediumsize unit. This truck covers on average 80,000 km (50,000 miles) a year and weighs 15,300 kilos (34,000 pounds) when loaded. Computers: The company has 10 computers. Assume that the value of the computers is net of any tax depreciation in Office equipment: Includes standard office tables, chairs, one copier, one fax machine, one scanner and 10 phones. Assume that the value of the office equipment is net of any tax depreciation in Business development expenses: These are expenses that the company incurred when starting operations and were capitalized. 2.4 Please indicate if any of the deductibility rules, tax depreciation rates or methods of depreciation provided last year for calendar year 2012 would have been different as a result of the changes in the size of the company. C.3 Labor Taxes and Mandatory Contributions PLEASE NOTE THAT THE SALARIES HAVE INCREASED THIS YEAR AS A RESULT OF THE UPDATE IN THE CASE STUDY VALUES. Please use the following assumptions when answering the questions below: Category of employee Number of employees Annual gross salary per employee Workers 48 «Survey_Currency_Code» workers_sal_ann» Assistants 8 «Survey_Currency_Code»

14 Managers 4 assistants_sal_ann» «Survey_Currency_Code» managers_sal_ann» For each category of employee, please include all social security contributions and all payroll taxes paid by the employer on the wages and salaries paid by the company. These taxes may be referred to by different terms in your country. Please differentiate between those that are a cost to the employer and those that are withheld by the employer on behalf of the employee. Please also include in the relevant separate cells social security contributions and payroll taxes paid directly by the employees to the tax authority in relation to the wages and salaries paid to them by the company. Please keep in mind the detailed assumptions of the case study listed in section A Social Security Contributions 2013: withheld by employer on behalf of the employee 2013: paid by employer 2013: paid by employee directly to the tax authority Tax base (e.g., salaries, number of employees) Are there any minimum or maximum salaries used when calculating labor taxes? Deductions Deductible from taxable income? Comments Workers Assistants Managers 3.2 Health Care Contributions 2013: withheld by employer on behalf of the employee 2013: paid by employer 2013: paid by employee directly to the tax authority Tax base (e.g., salaries, number of employees) Are there any minimum or maximum salaries used when calculating labor taxes? Deductions Deductible from taxable income? Comments Workers Assistants Managers 3.3 Unemployment Insurance Contribution Workers Assistants Managers

15 2013: withheld by employer on behalf of the employee 2013: paid by employer 2013: paid by employee directly to the tax authority Tax base (e.g., salaries, number of employees) Are there any minimum or maximum salaries used when calculating labor taxes? Deductions Deductible from taxable income? Comments 3.4 Other Social Security Contribution Is there any other social security contribution? If yes, please provide the name: Please fill out the cells below with the details on this social security contribution. Workers Assistants Managers 2013: withheld by employer on behalf of the employee 2013: paid by employer 2013: paid by employee directly to the tax authority Tax base (e.g., salaries, number of employees) Are there any minimum or maximum salaries used when calculating labor taxes? Deductions Deductible from taxable income? Comments 3.5 Personal Income Tax 2013: withheld by employer on behalf of the employee 2013: paid by employer 2013: paid by employee directly to the tax authority Tax base (e.g., salaries, number of employees) Are there any minimum or Workers Assistants Managers

16 maximum salaries used when calculating labor taxes? Deductions Deductible from taxable income? Comments 3.6 Payroll Tax 2013: withheld by employer on behalf of the employee 2013: paid by employer 2013: paid by employee directly to the tax authority Tax base (e.g., salaries, number of employees) Are there any minimum or maximum salaries used when calculating labor taxes? Deductions Deductible from taxable income? Comments Workers Assistants Managers 3.7 Fringe Benefit Tax Please note that the only fringe benefit considered by the case study is that the company pays part of the medical insurance premium for its employees. This medical insurance is an extra benefit for the workers and goes beyond what may be mandated by law. It amounts to 1% of total salaries. Workers Assistants Managers 2013: withheld by employer on behalf of the employee 2013: paid by employer 2013: paid by employee directly to the tax authority Tax base (e.g., salaries, number of employees) Are there any minimum or maximum salaries used when calculating labor taxes? Deductions Deductible from taxable income? Comments 3.8 Other Labor Taxes or Mandatory Contributions Are there any other taxes or mandatory contributions on salaries of workers?

17 3.8.2 Please provide the name of any other labor tax or mandatory contribution: In this category include all other labor taxes and social contributions paid by the company, withheld by the company from employees pay or paid directly by the employees. Please keep in mind that these can be collected by different levels of government. Please include all government-mandated contributions even if paid to nongovernment entities (e.g., compulsory guarantees and insurance paid to third-party agencies). If there is any other labor tax or mandatory contribution, please fill out the cells below with the details on it. 2013: withheld by employer on behalf of the employee 2013: paid by employer 2013: paid by employee directly to the tax authority Tax base (e.g., salaries, number of employees) Are there any minimum or maximum salaries used when calculating labor taxes? Deductions Deductible from taxable income? Comments Workers Assistants Managers 3.9 Please indicate if any of the labor tax rates and mandatory contributions or tax base provided last year for calendar year 2012 would have been different as a result of the changes in the salaries and size of the company Are any of the withheld labor taxes and mandatory contributions filed and paid jointly? 3.11 If yes, please indicate which of the labor taxes are filed and paid jointly and with which other taxes they are filed and paid jointly: C.4 Time to Prepare, File and Pay 3 Major Taxes 4.1 Was the total time required to prepare, file and pay profit tax, labor tax and mandatory contributions, or consumption taxes different 5 years ago? Was the process to comply with these 3 major taxes faster or slower? Please explain: 4.2 Compliance Time for Labor Taxes and Mandatory Contributions

18 Please update the following section for calendar year 2013 (January 1, 2013 December 31, 2013), taking into account the detailed case study assumptions about the company TaxpayerCo. (see section A.2). PLEASE KEEP IN MIND THAT THE SIZE OF THE COMPANY IS LARGER THIS YEAR DUE TO THE UPDATED CASE STUDY VALUES. The information on compliance time should include all time spent calculating the tax liability for inclusion in the tax returns, except where accounting records are acceptable for tax purposes. However, if special or additional accounting records or books are maintained for tax purposes, the time required for this should be included. The information you provide on compliance time will directly affect the time indicator. We would greatly appreciate it if you would take the time to break down the compliance time among the different tax compliance activities in the cells below to assist our analysis. Please note that according to the case study assumptions, TaxpayerCo. has 60 employees Is last year s information provided in the tables below for preparation, filing and payment of labor taxes and mandatory contributions accurate and up to date for 2013? Yes. No. If no, please update the tables below. NA. This labor tax does not exist. PREPARATION Labor taxes and mandatory contributions 1. Data gathering from internal sources (for example, accounting records) 2. Additional analysis of accounting information to highlight tax-sensitive items 3. Actual calculation of tax liability, including inputting of data into software/spreadsheets or hard-copy records 4. Time spent maintaining/updating accounting systems for changes in tax rates and rules 5. Preparation and maintenance of mandatory tax records if required (see section A.2 for definition of mandatory tax records) 6. Other activities undertaken for preparation of labor taxes and mandatory contributions in your country (please specify Time last year: Hours per year (2012) Labor_Prep_Gathering» Labor_Prep_Additional» Labor_Prep_calc» Labor_Prep_Update» Labor_Prep_Mandatory» Labor_Prep_Other» Updated time if applicable: Hours per year (2013) Please briefly outline the main steps and tasks for each time entry.

19 below) Total preparation time for labor taxes and mandatory contributions Labor_Prep_Total» Please specify all other activities (step 6): FILING Labor taxes and mandatory contributions 7. Completion of tax return forms 8. Time spent submitting forms to tax authority, which may include time for electronic filing, waiting time at tax authority, etc. 9. Other activities undertaken for filing of labor taxes and mandatory contributions in your country (please specify below) Total filing time for labor taxes and mandatory contributions Time last year: Hours per year (2012) Labor_File_Complete» Labor_File_Submit» Labor_File_Other» Labor_File_Total» Updated time if applicable: Hours per year (2013) Please briefly outline the main steps and tasks for each time entry. Please specify all other activities (step 10): PAYMENT Labor taxes and mandatory contributions 10. Calculations of tax payments required, including if necessary the extraction of data from accounting records 11. Analysis of forecast data and associated calculations if advance payments are required (for example, quarterly installment payments based on estimates of expected tax liability) 12. Time to make the necessary tax payments, either online or at the tax authority (including time for waiting in line and Time last year: Hours per year (2012) Labor_Pay_Calc» Labor_Pay_Forecast» Labor_Pay_Pay» Updated time if applicable: Hours per year (2013) Please briefly outline the main steps and tasks for each time entry.

20 travel if necessary) 13. Other activities undertaken for payment of labor taxes and mandatory contributions in your country (please specify below) Total payment time for labor taxes and mandatory contributions Total compliance time (preparation, filing and payment) for labor taxes and mandatory contributions Labor_Pay_Other» Labor_Pay_Total» Labor_Time_Total» Please specify all other activities (step 15): 4.3 Compliance Time for Consumption Taxes Please update the following section for calendar year 2013 (January 1, 2013 December 31, 2013), taking into account the detailed case study assumptions about the company TaxpayerCo. (see section A.2). PLEASE KEEP IN MIND THAT THE SIZE OF THE COMPANY IS LARGER THIS YEAR DUE TO THE UPDATED CASE STUDY VALUES. The information on compliance time should include all time spent calculating the tax liability for inclusion in the tax returns, except where accounting records are acceptable for tax purposes. However, if special or additional accounting records or books are maintained for tax purposes, the time required for this should be included. The information you provide on compliance time will directly affect the time indicator. We would greatly appreciate it if you would take the time to break down the compliance time among the different tax compliance activities in the cells below to assist our analysis Is last year s information provided in the tables below for preparation, filing and payment of VAT, sales tax and/or GST accurate and up to date for 2013? Yes. No. If no, please update the tables below. NA. This VAT/sales tax/gst does not exist. PREPARATION VAT, sales tax and/or GST 1. Data gathering from internal sources (for example, accounting records) 2. Additional analysis of accounting information to highlight tax-sensitive items 3. Actual calculation of tax liability, including inputting of data into Time last year: Hours per year (2012) VAT_Prep_Gathering» VAT_Prep_Additional» VAT_Prep_calc» Updated time if applicable: Hours per year (2013) Please briefly outline the main steps and tasks for each time entry.

21 software/spreadsheets or hard-copy records 4. Time spent maintaining/updating accounting systems for changes in tax rates and rules 5. Preparation and maintenance of mandatory tax records if required (see section A.2 for definition of mandatory tax records) 6. Other activities undertaken for preparation of VAT/sales tax/gst in your country (please specify below) Total preparation time for VAT/sales tax/gst VAT_Prep_Update» VAT_Prep_Mandatory» VAT_Prep_Other» VAT_Prep_Total» Please specify all other activities (step 6): FILING VAT, sales tax and/or GST 7. Completion of tax return forms 8. Time spent submitting forms to tax authority, which may include time for electronic filing, waiting time at tax authority, etc. 9. Other activities undertaken for filing of VAT/sales tax/gst in your country (please specify below) Total filing time for VAT/sales tax/gst Time last year: Hours per year (2012) VAT_File_Complete» VAT_File_Submit» VAT_File_Other» VAT_File_Total» Updated time if applicable: Hours per year (2013) Please briefly outline the main steps and tasks for each time entry. Please specify all other activities (step 10): PAYMENT VAT, sales tax and/or GST 10. Calculations of tax payments required, including if necessary the extraction of data from accounting records Time last year: Hours per year (2012) VAT_Pay_Calc» Updated time if applicable: Hours per year (2013) Please briefly outline the main steps and tasks for each time entry.

22 11. Analysis of forecast data and associated calculations if advance payments are required (for example, quarterly installment payments based on estimates of expected tax liability) 12. Time to make the necessary tax payments, either online or at the tax authority office (including time for waiting in line and travel if necessary) 13. Other activities undertaken for payment of VAT/sales tax/gst in your country (please specify below) Total payment time for VAT/sales tax/gst Total compliance time (preparation, filing and payment) for VAT/sales tax/gst VAT_Pay_Forecast» VAT_Pay_Pay» VAT_Pay_Other» VAT_Pay_Total» VAT_Time_Total» Please specify all other activities (step 15): Is TaxpayerCo. required to submit invoices to support the figures reported in the VAT/sales tax/gst returns? How much time (in hours) does it take TaxpayerCo. to collate and submit these invoices? Please also indicate UNDER WHICH STEPS in (1) preparation, (2) filing or (3) payment you have included any required time for collating and submitting these invoices. 4.4 Compliance Time for Profit Taxes Please update the following section for calendar year 2013 (January 1, 2013 December 31, 2013), taking into account the detailed case study assumptions about the company TaxpayerCo. (see section A.2). PLEASE KEEP IN MIND THAT THE SIZE OF THE COMPANY IS LARGER THIS YEAR DUE TO THE UPDATED CASE STUDY VALUES. The information on compliance time should include all time spent calculating the tax liability for inclusion in the tax returns, except where accounting records are acceptable for tax purposes. However, if special or additional accounting records or books are maintained for tax purposes, the time required for this should be included. The information you provide on compliance time will directly affect the time indicator. We would greatly appreciate it if you would take the time to break down the compliance time among the different tax compliance activities in the cells below to assist our analysis.

23 4.4.1 Is last year s information provided in the tables below for preparation, filing and payment of profit taxes accurate and up to date for 2013? Yes. No. If no, please update the tables below. NA. This profit tax does not exist. PREPARATION Profit taxes 1. Data gathering from internal sources (for example, accounting records) 2. Additional analysis of accounting information to highlight tax-sensitive items 3. Actual calculation of tax liability, including inputting of data into software/spreadsheets or hard-copy records 4. Time spent maintaining/updating accounting systems for changes in tax rates and rules 5. Preparation and maintenance of mandatory tax records if required (see section A.2 for definition of mandatory tax records) 6. Other activities undertaken for preparation of profit taxes in your country (please specify below) Total preparation time for profit taxes Time last year: Hours per year (2012) CIT_Prep_Gathering» CIT_Prep_Additional» CIT_Prep_calc» CIT_Prep_Update» CIT_Prep_Mandatory» CIT_Prep_Other» CIT_Prep_Total» Updated time if applicable: Hours per year (2013) Please briefly outline the main steps and tasks for each time entry. Please specify all other activities (step 6): FILING Profit taxes Time last year: Hours per year (2012) 7. Completion of tax return CIT_File_Complete» forms 8. Time spent submitting CIT_File_Submit» Updated time if applicable: Hours per year (2013) Please briefly outline the main steps and tasks for each time entry.

24 forms to tax authority, which may include time for electronic filing, waiting time at tax authority, etc. 9. Other activities undertaken for filing of profit taxes in your country (please specify below) Total filing time for profit taxes CIT_File_Other» CIT_File_Total» Please specify all other activities (step 10): PAYMENT Profit taxes 10. Calculations of tax payments required, including if necessary the extraction of data from accounting records 11. Analysis of forecast data and associated calculations if advance payments are required (for example, quarterly installment payments based on estimates of expected tax liability) 12. Time to make the necessary tax payments, either online or at the tax authority (including time for waiting in line and travel if necessary) 13. Other activities undertaken for payment of profit taxes in your country (please specify below) Total payment time for profit taxes Total compliance time (preparation, filing and payment) for profit taxes Time last year: Hours per year (2012) CIT_Pay_Calc» CIT_Pay_Forecast» CIT_Pay_Pay» CIT_Pay_Other» CIT_Pay_Total» CIT_Time_Total» Updated time if applicable: Hours per year (2013) Please briefly outline the main steps and tasks for each time entry. Please specify all other activities (step 15): D. Questions on Tax Administration D.1 The Tax System 1.1 Is there a special tax regime for small and medium-size enterprises in your country?

25 1.1.1 If yes, please explain, and list the criteria for classifying a firm as a small or medium-size enterprise in your country (turnover, firm size, etc.) Would TaxpayerCo. be considered a small, medium-size or large company in your country? Please note that the case study company has 60 employees, a turnover of «Survey_Currency_Code» Sales» and total assets of «Survey_Currency_Code» Total Assets» Is there a special tax regime for microenterprises in your country? If yes, please list the criteria for classifying a firm as a microenterprise in your country (turnover, firm size, etc.). 1.2 In order to comply with tax obligations in your country, does a formal company have to: a. Calculate its own tax bill and file returns appropriately (self-assessment)? b. Supply information to the tax authority so that the -Click to Selectauthority can calculate the tax payment? c. Other. Please explain: For each of the following taxes, is online filing (e.g., through a web portal) of tax returns mandatory, voluntary or not possible in your country for companies of a size similar to TaxpayerCo.? Tax type Mandatory Voluntary Not possible Comments Corporate income tax VAT/sales tax/gst Personal income tax Social security -Click to Selectcontributions Other taxes Please comment on the above answer Other - please specify If online filing of tax returns is available but not mandatory, do the majority of companies of a size similar to TaxpayerCo. file returns online for the following taxes? Tax type Online filing used by the majority? Comments Corporate income tax VAT/sales tax/gst Personal income tax Social security contributions Other taxes Please comment on the above answer Other - please specify :

26 1.3.3 If online filing of taxes is available but not used by the majority of companies, what do you think is the greatest barrier preventing companies from using the online systems? For each of the following taxes, is online payment (e.g., through bank transfer or online credit card payment) mandatory, voluntary or not possible in your country for companies of a size similar to Taxpayer Co.? Tax type Mandatory Voluntary Not possible Comments Corporate income tax VAT/sales tax/gst Personal income tax Social security -Click to Selectcontributions Other taxes Please comment on the above answer Other - please specify : If online payment of tax is available but not mandatory, do the majority of companies of a size similar to TaxpayerCo. pay the following taxes online? Tax type Online payment used by the Comments majority? Corporate income tax VAT/sales tax/gst Personal income tax Social security contributions Other taxes Please comment on any answer provided for Other taxes : If online payment of taxes is available but not used by the majority of companies, what do you think is the greatest barrier preventing companies from using the online systems? 1.5 Are unlisted companies in your country obliged to file statutory accounts (accounts required by law in order to fulfill certain reporting obligations; i.e., an account for taxes) with a public registry? Do the statutory accounts need to be audited? How can the statutory accounts be accessed? Online. Please provide a link to the website: In hard copy. Only by visiting the company Do statutory accounts need to be prepared and can the public access them? 1.6 For each type of tax shown, do the majority of firms like TaxpayerCo. use software for the following tasks?