South Africa performed reasonably well in the rankings at 46th, having moved up one place from 2017.<\/p>\n The report also found that South Africa is a leader when it comes to the number of payments due to the widespread use of electronic payment systems – ranked 14th.<\/p>\n \u201cThis sub-indicator is primary major reason for South Africa\u2019s good overall ranking,”\u00a0said Kyle Mandy, Tax Policy Leader for PwC.<\/p>\n \u201cIt also represents a risk to South Africa\u2019s future overall ranking as more countries introduce electronic filing and payment systems and catch up with the leaders,\u201d<\/p>\n South Africa takes 210 hours to comply with filing tax returns and paying taxes<\/strong>, compared to the world average of 240 hours and across Africa 285 hours. However, its ranking in this regard is overall relatively poor at 99th.<\/p>\n “Our assessment of the time it takes to comply is slightly better than that of the survey results at 200 hours,” said Mandy.<\/p>\n “The majority of time spent on compliance is in the preparation phase. The primary area where improvement could be made is on corporate income tax where South Africa\u2019s time to comply (96 hours) is above the world (61 hours) and Africa averages (77 hours),\u201d he said.<\/p>\n South Africa\u2019s TTCR (28.9%) compares favourably with global and regional averages where it is ranked 42nd out of 189 countries. However, it ranks behind some of its regional neighbours such as Zambia, Namibia, Mauritius and Botswana.<\/p>\n This is because\u00a0South Africa makes relatively low use of labour and other taxes compared to other countries, the report found.<\/p>\n However, the country has a relatively high rate of profit taxes of 21.7%<\/strong> which is well above the global and Africa averages of 16.3% and 18.3% respectively.<\/p>\n There is a risk that the total tax rate will increase in future as pressure mounts to introduce new taxes on business to fund increasing spending pressures such as social security reform, NHI and education, the report said.<\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/11\/PwC-1.jpg\")
<\/a><\/p>\n<\/a><\/p>\n