Economy April 26, 2016 | 10:04 am

Dominican tax climate improves: Latinvex

Miami (Latinvex).- The Dominican Republic is one of theLatin America countries that has improved its overall tax climate for business,according to the latest annual ranking from Miami-based online publicationLatinvex.

The ranking, which is based on data from PwC, KPMG and TheWorld Bank, measures the tax environment in 18 countries based on corporate taxrate and time and number of payments necessary to comply with tax regulations.

The Dominican Republic improved its score by reducing thenumber of tax payments from nine to seven and the time necessary to pay taxes,from 324 to 316 hours. However, it kept its corporate tax rate at 27 percent,which ranks it in the middle in Latin America and is in line with the regionalaverage rate.

The Dominican number of tax payments for companies is amongthe three lowest in Latin America. Only Mexico has fewer number of payments(six), while Chile also requires seven payments.

Latin America overall saw an improvement in its taxclimate, thanks to better scores from seven countries, according to Latinvex.They helped offset deteriorations in Brazil and Chile

Chile remains the country with the best tax environmentalthough its score saw the worst deterioration as a result of increasedcorporate taxes.

Brazil, which already had the worst tax climate in LatinAmerica, saw a deterioration after slightly increasing the number of taxpayments per year – from 9 to 9.6. Brazil already had the highest number ofhours worldwide for paying taxes – 2,600 hours.

Thanks to reducing the time and number of tax payments,Costa Rica jumped from 9th place last year to fourth place this year. Thecountry reduced the number of payments from 23 to 9, while the time was reducedfrom 163 hours to 151 hours.