MIAMI, Oct. 1, 2012 /PRNewswire/ -- Brazil faces a powerful obstacle in the way of achieving its ambition of becoming a major world economic power: its tax system. The Brazilian tax system has many faults, sufficient, in fact, to place Brazil in the last place for the second straight year in Latin Business Chronicle's Latin Tax Index.
The index measures countries' business climates by measuring four factors: corporate tax rates, tax rates as a percentage of profits, the number of tax returns and the amount of time spent in filing them each year. The yardsticks are data from the World Bank, KPMG and the Heritage Foundation.
Argentina, Venezuela and Bolivia can also provide fiscal headaches for businesspeople. They rank as numbers 15, 16 and 17 respectively on the Index, just ahead of Brazil. A mix of high tax rates for companies and a mass of red tape sent this group of countries to the bottom of the ranks.
On the other side of the spectrum, Chile and Paraguay boast the best fiscal systems, while Peru showed the most improvement in its annual fiscal climate ranking, coming in at number four. However, closer analysis reveals that the Peruvian government still needs to work more on its reforms.
See the full list of countries ranked by the quality of their tax systems at latinbusinesschronicle.com.
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SOURCE Latin Business Chronicle