axes are essential. The level of tax rates needs to be carefully chosen—and needless complexity in tax rules avoided. Firms in economies that rank better on the ease of paying taxes tend to perceive both tax rates and tax administration as less of an obstacle to business according to the World Bank Enterprise Survey research.
WHAT THE PAYING TAXES INDICATORS MEASURE?
Tax payments for a manufacturing company in 2015 (number per year adjusted for electronic and joint filing and payment)
- Total number of taxes and contributions paid, including consumption taxes (value added tax, sales tax or goods and service tax)
- Method and frequency of filing and payment
Time required to comply with 3 major taxes (hours per year)
- Collecting information and computing the tax payable
- Completing tax return forms, filing with proper agencies
- Arranging payment or withholding
- Preparing separate tax accounting books, if required
Total tax rate (% of profit before all taxes)
- Profit or corporate income tax
- Social contributions and labor taxes paid by the employer
- Property and property transfer taxes
- Dividend, capital gains and financial transactions taxes
- Waste collection, vehicle, road and other taxes
- Post filing Index
Post filing Index
- The time to comply with a VAT or GST refund
- The time to receive a VAT or GST refund
- The time to comply with a corporate income tax audit
- The time to complete a corporate income tax audit
The indicators reported here for Iran, are based on the taxes and contributions that would be paid by a standardized case study company. Tax practitioners are asked to review a set of financial statements as well as a standardized list of assumptions and transactions that the company completed during its 2nd year of operation.
The taxes and contributions paid are listed in following table, along with the associated number of payments, time and tax rate.
Summary of tax rates and administration
Source: Doing Business database.
Summary of post filing data in Iran
Note: The post filing index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.
N/A = Not applicable.