Tax regime vs business & development Georgia Stamatelou 20 October 2017 1
Contents Global Competitiveness Index 2017-2018 Rankings Performance overview Factors when assessing the benefits of a country s tax system Problematic factors for doing business in Greece Factors impeding business and development 2
Factors when assessing the benefits of a country s tax system 75% Advance warning of major changes 83% Predictability of action taken by tax authorities 45% Availability of advance tax rulings 41% Personal tax regime 72% Simplicity 48% Taxation of foreign profits (CFC regime) 88% Stability over the years 77% Low effective tax rate Source: Succeeding in uncharted waters. Assessing the competitiveness of the UK, KPMG UK Survey 3
Global Competitiveness Index 2017-2018 Rankings 100 90 80 70 60 50 40 30 20 10 0 Rank 1st in EU / 4th Globally Rank 28th in EU / 87th Globally 4
Performance overview Global Competitiveness Index - Greece 87 1 pillar: Institutions 87 2 pillar: Infrastructure 38 3 pillar: Macroeconomic environment 117 4 pillar: Health and primary education 48 5 pillar: Higher education and training 44 6 pillar: Goods market efficiency 93 7 pillar: Labor market efficiency 110 8 pillar: Financial market development 133 9 pillar: Technological readiness 50 10 pillar: Market size 58 11 pillar: Business sophistication 73 12 pillar: Innovation 75 Source: International Monetary Fund; World Economic Outlook Database (April 2017) 5
Problematic factors for doing business in Greece Inflation Crime and theft Foreign currency regulations Inadequately educated workforce Poor public health Poor work ethic in national labor force Restrictive labor regulations Insufficient capacity to innovate Inadequate supply of infrastructure Corruption Access to financing Government instability/coups Policy instability Tax regulations Inefficient government bureaucracy Tax rates 0 0.1 0.5 0.5 0.7 0.8 1.2 1.4 2 5.5 10 10.8 13.8 14.1 18.1 20.3 0 5 10 15 20 25 Source: World Economic Forum, Executive Opinion Survey 2017 6
Emphasizing to the constant change of tax Laws Η ΚΑΘΗΜΕΡΙΝΗ 7
Factors impeding business & development Complexity of tax system Very high taxation rates failing to bring anticipated high revenues Greek Tax Laws changed 82 times in 4 years Handicaps of business and development Lack of codification of tax provisions 8
Thank you Georgia Stamatelou Partner, Head of Tax
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