The latest World Bank Doing Business report reveals some surprising insights into China's regulatory environment.
With the report now in its 11th year, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises analyses the impact of regulations throughout the business lifecycle across 189 jurisdictions, ranking economies on the basis of 10 indicators including ease of starting a business, and paying taxes. Russell Bedford member firms have contributed to each of the report’s Paying Taxes survey since 2009, contributing data on tax regulation, recent reforms, and the real costs of tax compliance worldwide.
While rankings for China's overall business friendliness show only minor change, up to 96th place from 99th, the country has leapt nine places in the ranking for access to credit, up to 73rd place from 82nd. The country has also held on to its 19th-place ranking for contract enforcement, and businesses are saving 20 hours per year on their tax compliance obligations, now spending only 318 hours per year in contrast to 338 in 2012.
Despite the reduction, the tax compliance burden figure is still a source of some concern to Guoqi Wang, managing partner of Russell Bedford member firm Hua-Ander CPAs, Beijing, who points out that the burden remains well in excess of that experienced in competitive economies in East Asia and the Pacific (which average 208 hours) and far in excess of the OECD average of 175. "It is encouraging to see China's rankings improving in a number of areas. And any reduction in the compliance burden is always welcome. But if China is to take its rightful place among our peers in the region it is essential that we continue to work towards reducing this."
Notes for Editors
For more information about the World Bank's Doing Business reports, please visit www.doingbusiness.org
About Russell Bedford International
Established in 1983, Russell Bedford International is a global network of independent firms of accountants, auditors, tax advisers and business consultants. Ranked amongst the world’s leading accounting and audit networks, Russell Bedford is represented by some 460 partners, 5000 staff and 280 offices in more than 90 countries in Europe, the Americas, the Middle East, Africa and Asia-Pacific. Russell Bedford International is a member of the IFAC Forum of Firms and a member of EGIAN, the European Group of International Accounting Networks and Associations.
Russell Bedford International
T: +44 20 7410 0339
T: +86 10 8468 2688