Business Taxation

Examples of Our Work

Yemen

In the Republic of Yemen, FIAS provided targeted services within the broader framework of the country's ongoing initiative to improve the investment climate. FIAS' efforts focused on three areas:

• simplifying the tax system;
• easing business start-up;
• improving the country's capacity to attract foreign investment.

Working with local staff from IFC Advisory Services FIAS developed a two-phase tax simplification program at the request of the government and key members of the private sector. The project assisted the Tax Authority and Ministry of Finance in the design and implementation of the necessary tax reforms. Within one week, the team launched the program's initial 18-month phase focusing on tax policy and tax administration. Results from the first stage included a new draft of the income tax code, a compliance cost survey, and benchmarking of tax compliance costs and procedures. The second stage will develop a new SME tax system and overhaul the tax administration architecture.

South Africa

In South Africa, FIAS supported the government as it continued its progress in dismantling an old economic system based on import substitution, high tariffs, subsidies, and widespread government intervention. Regulators reduced the corporate tax rate, which resulted in tax relief of $255 million per year. In October 2007, secondary taxes on companies were cut from 12.5 to 10 percent. These secondary taxes on companies are slated to be replaced with a dividend tax.