In Washington, D.C.:
Nadine Ghannam
Phone: +1 (202) 473-3011
E-mail: nsghannam@ifc.org
In Hanoi, Vietnam
Chu Van Anh
Phone: +844 3824 7892
Email: canh1@ifc.org
In Hong Kong
Hannfried von Hindenburg
Phone: +852 2509 8115
E-mail: hvonhindenburg@ifc.org
Vientiane, Lao PDR, September 9, 2009—Lao PDR simplified the process of paying taxes in 2008/2009, joining many other economies in East Asia and the Pacific in strengthening business regulations to help increase opportunities for local firms. Three economies from the region—in order, Singapore, New Zealand, and Hong Kong (China)—led the world in ease of doing business.
Between June 2008 and May 2009 a record 131 of 183 economies around the globe reformed business regulation, according to Doing Business 2010: Reforming through Difficult Times, the seventh in a series of annual reports published by IFC and the World Bank. In East Asia and the Pacific 17 of 24 economies made reforms against the backdrop of the global economic crisis.
Lao PDR consolidated the filing for three taxes—business turnover tax, excise tax, and personal income tax withholding—in a single tax return. It also improved the lodgment process and staffing at the tax offices. These changes resulted in saving taxpayers 198 hours needed to pay taxes per year, a reduction of over one-third.
“The Lao government has recently carried out many more reforms with the aim of improving the country’s investment climate. The positive impacts from some of these on-going activities are still to be realized,” said Charles Schneider, Program Manager of Investment Climate Advisory Services for IFC in the Mekong.“IFC supports the Lao government in streamlining business entry procedures and in easing business operations through effective implementation of the new Investment Promotion Law and the Enterprise Law.”
As a result of its reforms, Indonesia—the region’s most active reformer this year—moved up to 122 from 129 on the global ease of doing business rankings. Indonesia cut the time required to start a business by 16 days and the time to transfer a property by 17 days. The country also strengthened disclosure requirements for related-party transactions to protect investors.
Singapore, a consistent reformer, is the top-ranked economy on the ease of doing business for the fourth year in a row, with New Zealand as runner-up. Singapore introduced online and computer-based services to ease business start-up, construction permits, and property transfers.
Other reforms occurred throughout the region. Thailand eased business start-up and ranks twelfth globally on the ease of doing business.China made it easier for domestic firms to trade by relaxing rules on trade credit. The Philippines introduced new insolvency rules to make it easier to reorganize firms. The Pacific island economies also continued to pick up the pace of reform. Fiji, Papua New Guinea, Samoa, Tonga, and Vanuatu reformed in areas including starting a business, getting credit, paying taxes, and enforcing contracts.
Doing Business ranks 183 economies based on 10 topics of business regulations that track the time and cost needed by domestic companies to meet business regulations such as starting and operating a business, trading across borders, paying taxes, or closing a business. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure security, macroeconomic stability, corruption, skill level, or the strength of financial systems.
About the World Bank Group
The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.
For more information about the Doing Business report series, please visit: www.doingbusiness.org
For more information on Doing Business 2010, please contact:
Nadine Ghannam +1 (202) 473-3011
E-mail: nsghannam@ifc.org
Rebecca Ong +1 (202) 458-0434
E-mail: rong@worldbank.org
Contacts for region-specific queries on Doing Business 2010:
East Asia and the Pacific
Hannfried von Hindenburg +852 2509 8115
E-mail: hvonhindenburg@ifc.org
Mohamad Al Arief +1 (202) 458-5964
E-mail: malarief@worldbank.org
