How SA’s Tax System Stacks Up
27 November 2013
Posted by: Author: Ingé Lamprecht
Author: Ingé Lamprecht (Moneywebtax)
Worldwide ranking improves from 32nd to 24th position –World Bank & PwC report.
South Africa's worldwide paying tax ranking has improved over the past year due to the success of the eFiling system and the abolishment of secondary tax on companies (STC).
According to the Paying Taxes 2014 report, which ranks the tax regimes of 189 international economies, South Africa's ranking improved from 32nd position to 24th position. The ranking is based on the total tax rate of a standardised medium-sized company in a given country in relation to its profit before these taxes, the number of tax payments it has to make as well as its administrative compliance burden. The report, a collaboration between the World Bank and PwC, covers a one-year period to June 2013.
Charles de Wet, tax partner at PwC, says the improvement in the ranking was mainly due to a reduction in the number of tax payments that was facilitated by the efficiency of the eFiling system. Additionally, the abolishment of secondary tax on companies in favour of a dividends tax (which is levied on the shareholder) also reduced the total tax rate.
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This article was first published on moneywebtax.co.za