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India no longer one of the world’s most complex countries for financial compliance

Published in General Saturday, 14 April 2018 16:37

•    Ranked 13 out of 94 jurisdictions globally in TMF Group’s Financial Complexity Index

India is the third most complex jurisdiction in Asia Pacific for accounting and tax compliance – but is no longer among the 10 most complex countries in the world, according to TMF Group’s Financial Complexity Index 2018.
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.
India came in at 13th, indicating a decrease in complexity since its 2017 inaugural ranking of 10. China is at number 1, while Cayman Islands at 94 is once again the least complex jurisdiction for financial compliance.
To determine the rankings with its in-country experts, TMF Group used a 74-question survey with weighted complexity parameters, namely; regulatory compliance, tax, statutory reporting and bookkeeping.
1    China    APAC
2    Brazil    Americas
3    Turkey    EMEA
4    Italy    EMEA
5    Argentina    Americas
6    France    EMEA
7    Bolivia    Americas
8    Colombia    Americas
9    Mexico    Americas
10    Russia    EMEA


94    Cayman Islands    Americas
93    BVI    Americas
92    Jersey    EMEA
91    Hong Kong    APAC
90    Curacao    Americas
89    Afghanistan    APAC
88    Guyana    Americas
87    Norway    EMEA
86    Bangladesh    APAC
85    Singapore    APAC

Commenting on India’s ranking, TMF Group’s Head of India Shagun Kumar said: “This year India falls out of the notorious top 10 in the Financial complexity Index – moving up three spots to 13. India’s drop in complexity is partly driven by the success of the Goods and Services Tax (GST) introduction in mid-2017, the Insolvency and Bankruptcy Code, and the Real Estate (Regulation and Development) Act.
“Along with this legislation, the push for digital filing has unlocked productivity and enabled tighter implementation of laws with more severe penalties for offenders. The digital push helps simplify processes and encourages businesses to tap into India’s vast economic opportunity, but the pace of implementation continues to be slow due to the democratic and diverse structure of India.
“While the GST implementation hasn’t removed all complexity in India, it is undoubtedly a significant step forward and has had a far-reaching impact on all aspects of business operations. It replaces a complex ecosystem of local, regional and national taxes that often artificially inflated the cost of goods and services in the country.
“As for the Insolvency and Bankruptcy Code, it provides a simplified and more efficient process for companies to either wind up, set themselves on course for revival, or for investors to exit. It reduces the timeframe for insolvency and recovery proceedings to under one year.
“Overall, many business processes have streamlined in India over the past year and we see the move to higher corporate governance being reflected in India’s 2018 Financial Complexity Index ranking.
“When it comes to cross-border business success and navigating this complex environment, knowing and understanding the local requirements for financial compliance can prove vital. Seeking the support of in-country experts – such as TMF India – allows companies of all sizes to maintain focus on their core business.”
To download the full report please visit the TMF Group website.

For more information please contact: Samily Kwok: This email address is being protected from spambots. You need JavaScript enabled to view it.

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