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Nigeria ranks low in ease of paying tax index

By on November 29, 2015

Nigeria ranks 181 out of 189 economies covered by a World Bank and the PwC joint survey on the ease of paying taxes.

By contrast, the Total Tax Rate for the model company in Nigeria is 33.3 per cent, up by 0.9 percentage from last year’s 32.4 per cent, the latest edition of the Paying Taxes report from the World Bank Group and the PwC has shown.

It makes 59 tax payments per year and takes 908 hours to comply with its tax requirements.

The Paying Taxes 2016 report further showed that electronic tax filing and payments were the most common tax reforms undertaken by countries worldwide during the past year.

As a result, paying taxes became easier for medium-sized companies globally, and the focus had moved from reducing tax rates for companies to embracing technology and relieving their compliance burden.

According to the report, low-income economies continue to face the biggest reform challenges.

The report found that on the average, the model company has a total tax rate (as defined under the Doing Business methodology) of 40.8 per cent of commercial profits, down by just 0.1 percentage point from last year.

[Punch]