Turkey Tops Tax Complexity Index
A new index on tax complexity around the world was published recently, courtesy of TMF Group, the international professional services firm. There were few surprises therein. The top-end of the index featured the usual rogues’ gallery of fiendishly complicated tax systems, many of which were found in Latin America, where taxpayers often contend with three layers of taxation – federal, state/regional, and municipal.
The only surprise perhaps was that Brazil, infamous for its tax complexity, as noted here last week, wasn’t top of the overall league table. That unwanted accolade went to Turkey, mostly because of extensive local language and currency requirements, and a long and frequently changing tax code. In short, don’t think about navigating the Turkish tax code without the services of a knowledgeable local guide, according to TMF. Istanbul is no longer Byzantium by name, but the nation’s tax rules certainly seem Byzantine by nature.
Normal order could be restored, however, when, according to TMF, Turkey reduces the number of articles in the tax code by 200 to 321 as it attempts to align tax processes with those of the European Union, which the country hopes to eventually join – at which point Brazil will probably be restored to the top of the table.
It was also quite predictable that Italy and Greece should figure at the top end of TMF’s tax complexity index, with Italy deemed the most complicated place in Europe for companies to figure out their taxes by TMF.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look