WB ranks Uganda 84 in Global tax paying

By ABCafrica reporter
Uganda is number 84 in global ranking of Paying Tax 2018, a report by the World Bank and PricewaterhouseCoopers (PwC) says.
The report released on November 21 reveals that Uganda’s overall ranking amongst 190 economies has slightly declined from position 80 in 2015 (adjusted) to 84.
The World Bank and PWC Paying Taxes 2018 for Uganda say a model company had a Total Tax and Contribution Rate (TTCR, as defined under the Doing Business methodology) of 33.7 per cent for 2016, which is the same as the 2015 (adjusted) rate.
The model company makes 31 tax payments per year and takes 195 hours to comply with its tax requirements, numbers which have remained unchanged from 2015.
“The comparable average figures for the 53 surveyed economies in the African region are 46.8 per cent, 285 hours and 35.4 payments respectively, indicating that Uganda is doing comparably well in the region,” says the report.
Associate director in tax at PwC Uganda, Mr Richard Marshall, said Uganda’s ranking is a reflection of the four sub-indicators for Uganda namely Total Tax and
Contribution Rate, hours to complete, number of tax payments and post-filing index, relative to the other 190 countries.
“The sub-indicators provide an objective like-for-like basis by which the relative tax compliance burden in different countries can be evaluated and compared,” he said.
He added: “The ranking of 84 indicates that Uganda fares fairly well in the Africa continent, while globally it sits around the mid-point.”
Mr Marshall explained that the sub-indicators where Uganda performs well are in the hours to complete (that is the annual time required for a business taxpayer to complete the main tax compliance obligations – 195 hours compared to the global average of 240).
The report also shows a tax and contribution rate of 33.7 per cent versus the global average of 40.5 per cent.
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