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TMF Group: Largest Economies Often Most Complex for BusinessSome of the world's largest economies are the most complex and unpredictable places to do business, according to an independent report commissioned by TMF Group. The Global Business Complexity Index, which compares key administrative and compliance demands across 76 jurisdictions, has found China, Germany and Brazil - countries with the second, fifth and eighth largest gross domestic products worldwide - among the ten most demanding in the world for multinational firms to operate in. The report also revealed stark contrasts between global superpowers and among neighbouring countries around the world as political, socio-economic and legislative changes take hold. "The findings confirm that the business landscape has become more challenging. Any business looking to expand into new territories faces a formidable array of potential hurdles," according to Mark Weil, CEO of TMF Group. "Trade disputes, tariffs, rising nationalism and political unrest point to a shift from globalisation to economic fragmentation. This has made some of the world's most commercially attractive countries among the most complex to operate in. More than ever, businesses with global ambitions must have a good understanding of the rules and regulations that prevail locally, and how to manage them." The report, which was based on a combination of statistically weighted data and qualitative research among local market experts, focuses on three areas: rules, regulations and penalties; accounting and tax; and hiring, firing and paying employees. Greece is deemed the most complex country overall due to frequently changing legislation, differing regional tax rates and inconsistent treatment of firms by the authoriies. By contrast, the three easiest places are the Cayman Islands, Curaçao and Jersey, which thrive on the back of politically-stable and pro-business policies. Europe is home to the most complex countries for business, with four out of the top ten, including Germany. Conversely, the continent tops the list for the ten easiest places to do business, with the Netherlands, Denmark, Switzerland and Jersey among them. The UK was deemed the 43rd most complex country. While it remains a robust place to do business, strict governance standards, a complex tax system and anticipated legislative changes following Brexit were seen to add to complexity. It sits just below Russia but was still ranked significantly higher than France, where its President has been pushing for more pro-business policies. While China is the ninth most complex country, with regional variations in legislation among the issues, this is a marked improvement on the 2018 compliance complexity list produced by TMF Group. Although these legislative changes are seen as posing challenges in the short term, they are likely to bring huge benefits to international businesses investing in China in the long term. The USA was deemed the eleventh least complex jurisdiction worldwide, due to its relatively straightforward regulatory standards and recent tax reforms making it easier for firms to repatriate profits. "In over a third of countries analysed, local rules, regulations and penalty systems present major challenges for companies. In many of cases, frequent and significant changes, often designed to attract investors, actually add to complexity," continued Weil. "This report will help give businesses a better understanding of the idiosyncrasies that make up the global business landscape. "Complexity is no reason to avoid investing. It is a dimension which must be managed. With the right local knowledge and preparation, good companies can thrive anywhere." The Global Complexity Index - the full rankings: 01 Greece 02 Indonesia 03 Brazil 04 United Arab Emirates 05 Bolivia 06 Slovakia 07 Germany 08 Turkey 09 China 10 Peru 11 El Salvador 12 France 13 Colombia 14 Ukraine 15 Belgium 16 Portugal 17 Qatar 18 Argentina 19 Spain 20 Philippines 21 Poland 22 Kazakhstan 23 Nicaragua 24 Italy 25 Malaysia 26 Canada 27 Vietnam 28 India 29 Serbia 30 South Africa 31 Costa Rica 32 Slovenia 33 Ireland 34 Norway 35 Honduras 36 Luxembourg 37 Jamaica 38 Uruguay 39 Mexico 40 Chile 41 Ecuador 42 Singapore 43 United Kingdom 44 Russia 45 Austria 46 Taiwan 47 Finland 48 Czech Republic 49 Malta 50 Venezuela 51 Panama 52 Guatemala 53 Romania 54 Cyprus 55 Sweden 56 Hong Kong 57 Hungary 58 Bulgaria 59 Japan 60 Guernsey 61 Korea 62 Mauritius 63 Dominican Republic 64 New Zealand 65 Australia 66 United States 67 Netherlands 68 British Virgin Islands 69 Denmark 70 Switzerland 71 Israel 72 Paraguay 73 Thailand 74 Jersey 75 Curacao 76 Cayman Islands ENDS About TMF Group With some 7,800 in-house experts, TMF Group is a leading provider of international administrative services. It is the only company worldwide to provide the essential combination of fiduciary, company secretarial, accounting, tax and payroll services on the ground in over 80 jurisdictions for clients investing and operating globally. www.tmf-group.com
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