Romania, ahead of Poland and Hungary in PwC Paying Taxes ranking

Romania ranks 49th in the PwC Paying Taxes 2019 ranking, which is part of the World Bank’s Doing Business report. The ranking measures the ease of paying taxes in 190 economies worldwide. The ranking for 2019 is based on the fiscal indicators for 2017 and takes into account the number of hours a company needs to comply with fiscal legislation in a year, the number of tax payments a company does in a year and the total taxation rate, which is calculated as the share of taxes and contributions from a company’s profits. Romania outranks Bulgaria (92nd), Hungary (86th) and Poland (69th), but lags behind regional performers Latvia, Estonia and Lithuania, which are in the top 20. Romania’s total taxation rate, of 40%, is the fourth-lowest in the region, after those in Bulgaria (27.7%), Slovenia (31%) and Latvia (36%). Romania also has the third-lowest number of hours for fiscal compliance in a year – 163. Estonia is the regional champion, with 50 hours, followed by Lithuania, with 99. Meanwhile, in Hungary it takes 277 hours a year for a medium company to pay its taxes, in Poland – 334 and in Bulgaria – 453. However, Romania has the highest number of tax payments in a year – 14, similarly to Bulgaria. In Latvia and Poland, the number of tax payments in a year is only 7. Romania climbs 8 positions in PwC’s Paying Taxes 2018 editor@romania-insider.com