Poland six places down in Doing Business report
Doing Business is an annual report prepared by the World Bank whose authors try to assess how easy (or difficult) it is for entrepreneurs to carry out business activity in a given country. The report covers such areas as taxation, company formation, access to investment, trading regulation and insolvency procedures.
This year, Poland was ranked 27th. It is a whole six positions down from the previous year’s list. The country’s assessment fell quite significantly in just twelve months. Out of 190 countries – from Afghanistan to Zimbabwe – whose business environment was put to the test, Poland found itself falling below the top 30. What happened?
According to the report, the country could do with some improvements in the areas of debt recovery. Moreover, the time entrepreneurs need to spend on tax settlements is long. The number of hours spent on calculating and paying taxes in Poland is 334. On the other hand, the country scored high on international trade regulations, access to credit and insolvency proceedings.
The Minister of Entrepreneurship and Technology Jadwiga Emilewicz commented on the report findings, saying that the main reason for the drop in the ranking were the new regulations intended to combat VAT fraud. Companies in Poland have to meet new compliance obligations, but the state budget receives higher fiscal revenues. The new legal provisions were needed to close the VAT gap, said the minister.
She also highlighted the fact that the government has recently introduced several solutions that are to make doing business in Poland easier, such as “100 changes for companies”, lowered social insurance contributions, and lowered company income tax (CIT) rate. Currently, officials are working on regulations on payment gridlocks.
According to Doing Business 2018, the best place to run a company is New Zealand. The second place in the ranking was Singapore, with Denmark holding the third position.