[June 05, 2017] |
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The Easiest and Most Complex Jurisdictions in the World for Accounting and Tax Compliance
Turkey is the most complex place in the world for Accounting and Tax
compliance, followed by Brazil, Italy, Greece and Vietnam - according to
TMF Group's inaugural Financial Complexity Index 2017.
The leading provider of global business and compliance services ranked
94 jurisdictions across Europe, the Middle East, Africa, Asia Pacific
and the Americas; 1 being most complex through to 94 the least complex.
The Cayman Islands came in at 94 as the least complex place for
compliance from an accounting and tax perspective.
In determining the rankings with its in-house accounting and tax
experts, TMF Group used four weighted complexity parameters, considering
the accounting and tax rules and regulations in different jurisdictions,
and risks associated with non-compliance.
TOP 10 MOST COMPLEX JURISDICTIONS FOR ACCOUNTING AND TAX COMPLIANCE
JURISDICTION
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GLOBAL RANKING
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Turkey
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1
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Brazil
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2
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Italy
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3
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Greece
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4
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Vietnam
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5
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Colombia
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6
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China
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7
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Belgium
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8
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Argentina
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9
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India
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10
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MOST COMPLEX BY EACH COMPLEXITY PARAMETER
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Most complex
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Global average
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Least complex
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Compliance
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Greece
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78%
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60%
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Cayman Islands
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32%
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Reporting
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Argentina
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88%
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55%
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Curacao
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8%
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Bookkeeping
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Mexico
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84%
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51%
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Cayman Islands
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27%
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Tax
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Italy
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68%
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48%
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UAE
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7%
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Results summary
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Turkey is the most complex jurisdiction overall in which
to stay financially compliant largely due to the requirement to report
in both Turkish language and currency, and the extremely high number
of tax articles, although this is reducing.
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In southern Europe both Italy (3) and Greece (4) have very
localised complexities. In Italy taxes are levied at a national,
regional and municipal level, while in Greece taxes are divided into
three categories: income, property and consumption tax.
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South and Central America has five jurisdictions in the top 15 most
complex: Brazil (2), Colombia (6), Argentina (9), Bolivia (12) and
Mexico (15). This is largely due to the common practice of levying
three layers of taxation, at federal, state and municipal level.
Argentina scored the highest of all 94 jurisdictions, in the area of
'Reporting' complexity (88%) and Mexico the highest in 'Bookkeeping'
(84%).
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Asia Pacific has three jurisdictions in the top 10: Vietnam
(5), China (7) and India (10). Complexity around invoicing, filing and
the conducting of audits is high with very specific documentation and
processes applied.
Unsurprisingly, the five least complex jurisdictions have
simplified reporting requirements and beneficial tax rates to encourage
investment: Jersey (90), Hong Kong (91), the UAE (92), BVI (93) and the
Cayman Islands (94).
Commenting on the rankings, TMF Group's Global Leader of Service
Lines Deborah Williams said: "Our findings show that
financial complexity can be grouped within three key areas of challenge:
regulation, knowledge and technology.
"Multiple layers of taxation and the rate of legislative change in some
jurisdictions requires increased effort to meet compliance requirements.
And applied local knowledge, not just of legislation but also currency
and language, can prove vital in meeting your accounting and tax
reporting obligations.
"When operating in a diverse global market, knowing and understanding
local requirements for financial compliance can prove the difference
between cross-border business success or failure.
"As more and more jurisdictions automate and digitise their information
storage and reporting requirements, it's important for organisations to
increase their compliance, transparency and flexibility so they can be
operationally efficient and reach their full business potential."
To download the full report please visit: https://www.tmf-group.com/FCI2017
NOTES TO EDITORS
TMF Group helps global companies expand and invest seamlessly
across international borders. Its expert accountants, legal, HR and
payroll professionals located around the world assist clients with their
corporate structures, finance vehicles and investments. With business
services offered in more than 80 countries, TMF Group is the global
expert that understands local needs. www.tmf-group.com
Index methodology and global rankings
In a survey comprising 70 detailed questions, TMF Group asked their
global in-house accounting and tax experts to rank the complexity of
their local jurisdiction according to four weighted complexity
parameters.
In particular, they considered:
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the accounting and tax rules and regulations in different jurisdictions
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how to incorporate relevant regulations into your business and
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the risks associated with non-compliance.
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COMPLIANCE
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Cross border transactions, corporate representation and data storage
requirements and methods.
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REPORTING
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Legal regulations, local reporting process and fiscal representation.
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BOOKKEEPING
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Accounting regulations, corporate representation and technology.
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TAX
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Tax registration, compliance regulation and types of taxes.
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Based on TMF Group's analysis of all services and complexity criteria:
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Turkey ranked as the most complex in the world for accounting and tax
compliance
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The Cayman Islands are the least complex.
FINANCIAL COMPLEXITY INDEX 2017 GLOBAL RANKINGS
JURISDICTION
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RANKING
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JURISDICTION
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RANKING
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JURISDICTION
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RANKING
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Turkey
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1
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Malta
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33
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Slovakia
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65
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Brazil
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2
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Chile
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34
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Bulgaria
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66
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Italy
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3
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Paraguay
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35
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Georgia
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67
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Greece
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4
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Latvia
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36
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New Zealand
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68
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Vietnam
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5
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Indonesia
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37
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South Africa
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69
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Colombia
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6
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Azerbaijan
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38
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USA
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70
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China
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7
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Egypt
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39
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Denmark
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71
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Belgium
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8
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Portugal
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40
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Ukraine
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72
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Argentina
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9
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Dominican Republic
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41
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Myanmar
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73
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India
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10
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Finland
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42
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Macedonia
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74
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France
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11
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Montenegro
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43
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Australia
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75
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Bolivia
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12
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Panama
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44
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Japan
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76
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Albania
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13
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Jamaica
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45
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Sweden
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77
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Kazakhstan
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14
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Mauritius
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46
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UK
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78
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Mexico
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15
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Poland
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47
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Norway
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79
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Belarus
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16
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Taiwan
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48
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Gibraltar
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80
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Israel
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17
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Canada
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49
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Slovenia
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81
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Spain
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18
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South Korea
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50
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Serbia
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82
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Pakistan
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19
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Nicaragua
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51
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Singapore
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83
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Croatia
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20
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Peru
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52
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Labuan
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84
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Austria
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21
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Russia
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53
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Qatar
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85
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Ecuador
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22
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Romania
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54
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Cambodia
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86
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Honduras
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23
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The Netherlands
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55
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Switzerland
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87
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Luxembourg
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24
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Costa Rica
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56
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Kosovo
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88
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Philippines
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25
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Lebanon
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57
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Curacao
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89
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Uruguay
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26
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Ireland
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58
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Jersey
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90
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Thailand
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27
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Malaysia
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59
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Hong Kong
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91
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El Salvador
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28
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Czech Republic
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60
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UAE
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92
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Guatemala
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29
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Estonia
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61
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BVI
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93
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Venezuela
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30
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Lithuania
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62
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Cayman Islands
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94
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Angola
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31
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Cyprus
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63
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Hungary
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32
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Kyrgyzstan
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64
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View source version on businesswire.com: http://www.businesswire.com/news/home/20170605005707/en/
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