Labor tax and contributions (% of commercial profits) - Country Ranking - Asia

Definition: Labor tax and contributions is the amount of taxes and mandatory contributions on labor paid by the business.

Source: World Bank, Doing Business project (http://www.doingbusiness.org/).

See also: Thematic map, Time series comparison

Find indicator:
Rank Country Value Year
1 China 46.20 2019
2 Russia 36.70 2019
3 Tajikistan 28.50 2019
4 Nepal 26.20 2019
5 Iran 25.90 2019
6 Azerbaijan 25.40 2019
7 Lebanon 24.90 2019
8 Vietnam 24.30 2019
9 India 20.20 2019
10 Turkey 19.70 2019
11 Kyrgyz Republic 19.50 2019
12 Syrian Arab Republic 19.30 2019
13 Japan 18.60 2019
14 Singapore 17.80 2019
15 Uzbekistan 17.40 2019
16 Sri Lanka 16.90 2019
17 Malaysia 16.70 2019
18 Jordan 16.10 2019
19 Pakistan 15.00 2019
20 United Arab Emirates 14.10 2019
21 Korea 13.70 2019
22 Mongolia 13.50 2019
22 Saudi Arabia 13.50 2019
22 Bahrain 13.50 2019
22 Iraq 13.50 2019
26 Oman 13.00 2019
26 Kuwait 13.00 2019
28 Indonesia 11.60 2019
29 Qatar 11.30 2019
29 Yemen 11.30 2019
31 Kazakhstan 10.10 2019
32 Philippines 8.90 2019
33 Brunei 7.90 2019
34 Lao PDR 6.80 2019
34 Timor-Leste 6.80 2019
36 Israel 5.80 2019
37 Thailand 5.40 2019
38 Hong Kong SAR, China 5.30 2019
39 Cambodia 2.30 2019
40 Myanmar 0.30 2019
41 Afghanistan 0.00 2019
41 Bhutan 0.00 2019
41 Georgia 0.00 2019
41 Armenia 0.00 2019
41 Bangladesh 0.00 2019

More rankings: Africa | Asia | Central America & the Caribbean | Europe | Middle East | North America | Oceania | South America | World |

Development Relevance: The total tax rate payable by businesses provides a comprehensive measure of the cost of all the taxes a business bears. It differs from the statutory tax rate, which is the factor applied to the tax base. In computing business tax rates, actual tax payable is divided by commercial profit. Taxes are the main source of revenue for most governments. The sources of tax revenue and their relative contributions are determined by government policy choices about where and how to impose taxes and by changes in the structure of the economy. Tax policy may reflect concerns about distributional effects, economic efficiency (including corrections for externalities), and the practical problems of administering a tax system. There is no ideal level of taxation. But taxes influence incentives and thus the behavior of economic actors and the economy's competitiveness.

Limitations and Exceptions: To make the data comparable across countries, several assumptions are made about businesses. The main assumptions are that they are limited liability companies, they operate in the country's most populous city, they are domestically owned, they perform general industrial or commercial activities, and they have certain levels of start-up capital, employees, and turnover. The Doing Business methodology on business taxes is consistent with the Total Tax Contribution framework developed by PricewaterhouseCoopers (now PwC), which measures the taxes that are borne by companies and that affect their income statements. However, PwC bases its calculation on data from the largest companies in the economy, while Doing Business focuses on a standardized medium-size company.

Statistical Concept and Methodology: The data covering taxes payable by businesses, measure all taxes and contributions that are government mandated (at any level - federal, state, or local), apply to standardized businesses, and have an impact in their income statements. The taxes covered go beyond the definition of a tax for government national accounts (compulsory, unrequited payments to general government) and also measure any imposts that affect business accounts. The main differences are in labor contributions and value added taxes. The data account for government-mandated contributions paid by the employer to a requited private pension fund or workers insurance fund but exclude value added taxes because they do not affect the accounting profits of the business - that is, they are not reflected in the income statement.

Aggregation method: Unweighted average

Periodicity: Annual

General Comments: Data are presented for the survey year instead of publication year.