Archive for the ‘International Finance Corporation’ Category

IFC Jobs Study: Assessing Private Sector Contributions to Job Creation and Poverty Reduction

January 24, 2013 Comments off

IFC Jobs Study: Assessing Private Sector Contributions to Job Creation and Poverty Reduction (PDF)

Source: International Finance Corporation

From press release:

With so many young workers joining the labor force, more than 600 million jobs must be created by the end of the decade just to maintain today’s employment levels. The vast majority—90 percent, by most estimates—must come from the private sector. There is no alternative.

IFC, the world’s largest global development institution focused on the private sector, has decades of experience financing and advising private firms throughout the developing world. We sum up our thinking on job creation in a new IFC Jobs Study released. The study, produced with support from our Dutch, Swiss, and U.K. donor partners, complements the World Bank’s recent World Development Report 2013-Jobs.

In many developing countries, several factors hold back private sector growth:

  • Investment Climate: Red tape and taxes are excessive
  • Infrastructure: Power outages are frequent, roads are bad, ports are clogged
  • Access to Finance: Banks often won’t lend to smaller firms; investors won’t invest in them
  • Skills: Job applicants lack relevant abilities

Steps can be taken, however, to remove these and other major obstacles. This frees up local entrepreneurs to create the stable, well-paying jobs with good working conditions that are essential to the fight against poverty.

Paying Taxes 2012: The global picture

November 21, 2011 Comments off

Paying Taxes 2012: The global picture
Source: International Finance Corporation and World Bank

This is the seventh year that the World Bank and IFC’s Doing Business Project has included the “paying taxes” indicator. The indicator measures tax systems from the point of view of a domestic company complying with the different tax laws and regulations in each economy. The case-study company is a small to medium-size manufacturer and retailer, deliberately chosen to ensure that its business can be identified with and compared worldwide. The indicator covers the cost of taxes borne by the case study company and the administrative burden of tax compliance for the firm.

Main Findings

  • Between June 2010 and May 2011, 33 economies made it easier to pay taxes as measured by Doing Business.
  • In the past seven years more than 60% of the 183 economies covered by Doing Business implemented changes aimed at simplifying tax administration and reducing the tax burden – 244 such reforms in all.
  • Globally, the average Total Tax Rate is 44.8% of profit. For the 174 economies included in the sample in Doing Business 2006, the average is 7.4 percentage points lower than it was seven years ago.
  • Paying taxes is easiest in high income economies, while only 22% of low income economies are in the first or second quartile for the overall ranking.
  • For our case study company the Paying Taxes results show that on average more than nine taxes are paid with corporate income tax representing just 12% of tax payments, 25% of the compliance time and 36% of the tax cost.

+ Full Report (PDF)