Good news for companies doing business in Brazil. The latest edition of the PWC/World Bank Group’s annual publication, Paying Taxes, reveals that it now takes businesses only 1,958 hours a year to comply with their Brazilian tax filing and payment obligations. This represents a reduction of 80 hours from the previous year and a whopping 24.7 percent drop from the 2,600 hours recorded in the 2016 edition.
True, Brazil is still by some way at the top of the league table for time spent on tax compliance – the runner-up is Bolivia at a mere 1,025 hours, while the average worldwide figure is 240 hours per year. Nevertheless, things are clearly moving in the right direction. If Brazil maintains a 24.7 percent decrease every two years, it will be only another 15 years or so before it reaches the global average.
By Dr Craig Rose, Technical Editor, Bloomberg Tax