Regional Profile 2017 Asia-Pacific Economic Cooperation (APEC) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 2 © 2017 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 19 18 17 16 This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 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Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 3 CONTENTS Introduction .................................................................................................................................. 4 The business environment .......................................................................................................... 5 Starting a business ..................................................................................................................... 14 Dealing with construction permits ........................................................................................... 40 Getting electricity ....................................................................................................................... 70 Registering property .................................................................................................................. 96 Getting credit ............................................................................................................................ 128 Protecting minority investors ................................................................................................. 155 Paying taxes .............................................................................................................................. 184 Trading across borders ............................................................................................................ 215 Enforcing contracts .................................................................................................................. 251 Resolving insolvency ................................................................................................................ 278 Distance to frontier and ease of doing business ranking .................................................... 303 Resources on the Doing Business website ............................................................................ 306 Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 4 INTRODUCTION Doing Business sheds light on how easy or difficult it is also provides data for other selected economies for a local entrepreneur to open and run a small to (comparator economies) for each indicator. The data in medium-size business when complying with relevant this report are current as of June 1, 2016 (except for the regulations. It measures and tracks changes in paying taxes indicators, which cover the period January– regulations affecting 11 areas in the life cycle of a December 2015). business: starting a business, dealing with construction The Doing Business methodology has limitations. Other permits, getting electricity, registering property, getting areas important to business—such as an economy’s credit, protecting minority investors, paying taxes, proximity to large markets, the quality of its trading across borders, enforcing contracts, resolving infrastructure services (other than those related to insolvency and labor market regulation. Doing Business trading across borders and getting electricity), the 2017 presents the data for the labor market regulation security of property from theft and looting, the indicators in an annex. The report does not present transparency of government procurement, rankings of economies on labor market regulation macroeconomic conditions or the underlying strength of indicators or include the topic in the aggregate distance institutions—are not directly studied by Doing Business. to frontier score or ranking on the ease of doing The indicators refer to a specific type of business, business. generally a local limited liability company operating in In a series of annual reports Doing Business presents the largest business city. Because standard assumptions quantitative indicators on business regulations and the are used in the data collection, comparisons and protection of property rights that can be compared benchmarks are valid across economies. The data not across 190 economies, from Afghanistan to Zimbabwe, only highlight the extent of obstacles to doing business; over time. The data set covers 48 economies in Sub- they also help identify the source of those obstacles, Saharan Africa, 32 in Latin America and the Caribbean, 25 supporting policy makers in designing regulatory reform. in East Asia and the Pacific, 25 in Eastern Europe and More information is available in the full report. Doing Central Asia, 20 in the Middle East and North Africa and Business 2017 presents the indicators, analyzes their 8 in South Asia, as well as 32 OECD high-income relationship with economic outcomes and presents economies. The indicators are used to analyze economic business regulatory reforms. The data, along with outcomes and identify what reforms have worked, where information on ordering Doing Business 2017, are and why. available on the Doing Business website at This economy profile presents the Doing Business http://www.doingbusiness.org. indicators for Afghanistan. To allow useful comparison, it Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 5 THE BUSINESS ENVIRONMENT CHANGES IN DOING BUSINESS 2017 As part of a three-year update in methodology, Doing Business 2017 expands further by adding postfiling processes to the paying taxes indicator, including a gender component in three of the indicators and developing a new pilot indicator on selling to the government. Also, for the first time this year Doing Business collects data on Somalia, bringing the total number of economies covered to 190. The paying taxes indicator is expanded this year to include postfiling processes – those processes that occur after a firm complies with its regular tax obligations. These include tax refunds, tax audits and tax appeals. In particular, Doing Business measures the time it takes to get a value added tax (VAT) refund, deal with a simple mistake on a corporate tax return that can potentially trigger an audit and good practices with administrative appeals process. This year’s Doing Business report presents a gender dimension in four of the indicator sets: starting a business, registering property, enforcing contracts and labor market regulation. Three of these areas are included in the distance to frontier score and in the ease of doing business ranking, while the fourth—labor market regulation—is not. Doing Business has traditionally assumed that the entrepreneurs or workers discussed in the case studies were men. This was incomplete by not reflecting correctly the Doing Business processes as applied to women—which in some economies may be different from the processes applied to men. Starting this year, Doing Business measures the starting a business process for two case scenarios: one where all entrepreneurs are men and one where all entrepreneurs are women. In economies where the processes are more onerous if the entrepreneur is a woman, Doing Business now counts the extra procedures applied to roughly half of the population that is female (for example, obtaining a husband’s consent or gender-specific requirements for opening a personal bank account when starting a business). Within the registering property indicators, a gender component has been added to the quality of land administration index. This component measures women’s ability to use, own, and transfer property according to the law. Finally, within the enforcing contracts indicator set, economies will be scored on having equal evidentiary weight of women’s testimony in court. Also for the first time this year Doing Business collects data on Somalia, bringing the total number of economies covered to 190. For more details on the changes, see the “”Old and new factors covered in Doing Business” section in the Overview chapter starting on page 1 of the Doing Business 2017 report. For more details on the data and methodology, please see the “Data Notes” chapter starting on page 114 of the Doing Business 2017 report. For more details on the distance to frontier metric, please see the “Distance to frontier and ease of doing business ranking” chapter in this profile. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 6 THE BUSINESS ENVIRONMENT For policy makers trying to improve their economy’s permits, getting electricity, registering property, regulatory environment for business, a good place to getting credit, protecting minority investors, paying start is to find out how it compares with the regulatory taxes, trading across borders, enforcing contracts environment in other economies. Doing Business and resolving insolvency. The labor market provides an aggregate ranking on the ease of doing regulation indicators are not included in this year’s business based on indicator sets that measure and aggregate ease of doing business ranking, but the benchmark regulations applying to domestic small to data are presented in the economy profile. medium-size businesses through their life cycle. The ease of doing business ranking compares Economies are ranked from 1 to 190 by the ease of economies with one another; the distance to frontier doing business ranking. Doing Business presents results score benchmarks economies with respect to for 2 aggregate measures: the distance to frontier score regulatory best practice, showing the absolute and the ease of doing business ranking. The ranking of distance to the best performance on each Doing economies is determined by sorting the aggregate Business indicator. When compared across years, the distance to frontier scores, rounded to two decimals. An distance to frontier score shows how much the economy’s distance to frontier score is indicated on a regulatory environment for local entrepreneurs in an scale from 0 to 100, where 0 represents the worst economy has changed over time in absolute terms, performance and 100 the frontier. (See the chapter on while the ease of doing business ranking can show the distance to frontier and ease of doing business). only how much the regulatory environment has The 10 topics included in the ranking in Doing Business changed relative to that in other economies. 2017: starting a business, dealing with construction Figure 1.1 Where economies stand in the global ranking on the ease of doing business Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 7 THE BUSINESS ENVIRONMENT For policy makers, knowing where their economy stands in regional average (figure 1.2). Another perspective is the aggregate ranking on the ease of doing business is provided by the regional average rankings on the topics useful. Also useful is to know how it ranks compared with included in the ease of doing business ranking (figure 1.3) other economies in the region and compared with the and the distance to frontier scores (figures 1.4 and 1.5). Figure 1.2 How economies in Asia-Pacific Economic Cooperation (APEC) rank on the ease of doing business Note: The rankings are benchmarked to June 2015 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population- weighted average for the 2 cities. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 8 THE BUSINESS ENVIRONMENT Figure 1.3 Rankings on Doing Business topics - Asia-Pacific Economic Cooperation (APEC) (Scale: Rank 190 center, Rank 1 outer edge) Regional average ranking Source: Doing Business database. Figure 1.4 Distance to frontier scores on Doing Business topics - Asia-Pacific Economic Cooperation (APEC) (Scale: Score 0 center, Score 100 outer edge) Note: The rankings are benchmarked to June 2015 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respec t to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population-weighted average for the 2 cities. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 9 Figure 1.5 How far has Asia-Pacific Economic Cooperation (APEC) come in the areas measured by Doing Business? Source: Doing Business database. Note: The distance to frontier score shows how far on average an economy is from the best performance achieved by any economy on each Doing Business indicator. Starting a business is comparable to 2010. Getting credit, protecting minority investors, paying taxes and resolving insolvency had methodology changes in 2014 and thus are only comparable to 2013. Dealing with construction permits, registering property, trading across borders, enforcing contracts and getting electricity had methodology changes in 2015 and thus are only comparable to 2014. The measure is normalized to range between 0 and 100, with 100 representing the best performance (the frontier). See the data notes starting on page 114 of the Doing Business 2017 report for more details on the distance to frontier score. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 10 THE BUSINESS ENVIRONMENT Just as the overall ranking on the ease of doing business The absolute values of the indicators tell another part of tells only part of the story, so do changes in that ranking. the story (table 1.1). Policy makers can learn much by Yearly movements in rankings can provide some comparing the indicators for their economy with those indication of changes in an economy’s regulatory for the lowest- and highest-scoring economies in the environment for firms, but they are always relative. An region as well as those for the best performers globally. economy’s ranking might change because of These comparisons may reveal unexpected strengths in developments in other economies. An economy that an area of business regulation—such as a regulatory implemented business regulation reforms may fail to rise process that can be completed with a small number of in the rankings (or may even drop) if it is passed by procedures in a few days and at a low cost. others whose business regulation reforms had a more significant impact as measured by Doing Business. Table 1.1 Summary of Doing Business indicators for Asia-Pacific Economic Cooperation (APEC) Lowest regional Best regional Best global Indicator Regional average performance performance performance Starting a Business 171 (Philippines) 1 (New Zealand) 68.76 1 (New Zealand) (rank) Starting a Business 68.86 (Philippines) 99.96 (New Zealand) 88.43 99.96 (New Zealand) (DTF Score) Procedure – Men 16.0 (Philippines) 1.0 (New Zealand) 6.0 1.0 (New Zealand) (number) 41.0 (Papua New Time – Men (days) 0.5 (New Zealand) 14.0 0.5 (New Zealand) Guinea) Cost – Men (% of 19.4 (Indonesia) 0.3 (New Zealand) 6.1 0.0 (Slovenia) income per capita) Procedure – Women 16.0 (Philippines) 1.0 (New Zealand) 6.1 1.0 (New Zealand) (number) 41.0 (Papua New Time – Women (days) 0.5 (New Zealand) 14.1 0.5 (New Zealand) Guinea) Cost – Women (% of 19.4 (Indonesia) 0.3 (New Zealand) 6.1 0.0 (Slovenia) income per capita) Paid-in min. capital (% 3.1 (Philippines) 0.0 (Peru) 0.1 0.0 (127 Economies*) of income per capita) Dealing with Construction Permits 177 (China) 1 (New Zealand) 52.52 1 (New Zealand) (rank) Dealing with Construction Permits 48.52 (China) 87.40 (New Zealand) 75.04 87.40 (New Zealand) (DTF Score) Procedures (number) 24.0 (Philippines) 9.0 (Singapore) 14.0 7.0 (4 Economies*) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 11 Lowest regional Best regional Best global Indicator Regional average performance performance performance Time (days) 249.0 (Canada) 28.0 (Korea, Rep.) 133.7 28.0 (Korea, Rep.) Cost (% of warehouse 0.1 (Trinidad and 9.8 (Mexico) 0.1 (Thailand) 2.3 value) Tobago) Building quality control 8.0 (Korea, Rep.) 15.0 (New Zealand) 11.8 15.0 (Luxembourg*) index (0-15) Getting Electricity 108 (Canada) 1 (Korea, Rep.) 44.62 1 (Korea, Rep.) (rank) Getting Electricity 63.76 (Canada) 99.88 (Korea, Rep.) 82.82 99.88 (Korea, Rep.) (DTF Score) Procedures (number) 7.0 (Canada) 3.0 (Taiwan, China) 4.5 3.0 (15 Economies*) 160.5 (Russian Time (days) 18.0 (Korea, Rep.) 65.9 18.0 (Korea, Rep.*) Federation) Cost (% of income per 1,261.3 (Vietnam) 0.0 (Japan) 158.5 0.0 (Japan) capita) Reliability of supply and transparency of 0.0 (Papua New Guinea) 8.0 (Malaysia) 6.4 8.0 (26 Economies*) tariff index (0-8) Registering Property 134 (Brunei Darussalam) 1 (New Zealand) 57.48 1 (New Zealand) (rank) Registering Property 50.65 (Brunei 94.46 (New Zealand) 72.29 94.46 (New Zealand) (DTF Score) Darussalam) Procedures (number) 9.0 (Philippines) 2.0 (New Zealand) 5.2 1.0 (4 Economies*) 298.0 (Brunei Time (days) 1.0 (New Zealand) 33.9 1.0 (3 Economies*) Darussalam) Cost (% of property 10.8 (Indonesia) 0.1 (New Zealand) 4.0 0.0 (Saudi Arabia) value) Quality of the land administration index 4.5 (Papua New Guinea) 29.0 (Singapore) 19.5 29.0 (Singapore) (0-30) Getting Credit (rank) 118 (Philippines) 1 (New Zealand) 40.95 1 (New Zealand) Getting Credit (DTF 40.00 (Philippines) 100.00 (New Zealand) 69.76 100.00 (New Zealand) Score) Strength of legal rights 3.0 (Philippines) 12.0 (New Zealand) 6.9 12.0 (3 Economies*) index (0-12) Depth of credit 5.0 (Philippines) 8.0 (China) 7.1 8.0 (30 Economies*) information index (0-8) Credit registry 0.0 (Australia) 91.1 (China) 18.8 100.0 (3 Economies*) coverage (% of adults) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 12 Lowest regional Best regional Best global Indicator Regional average performance performance performance Credit bureau coverage 0.0 (Brunei Darussalam) 100.0 (New Zealand) 63.5 100.0 (23 Economies*) (% of adults) Protecting Minority 137 (Philippines) 1 (New Zealand) 49.10 1 (New Zealand*) Investors (rank) Protecting Minority 41.67 (Philippines) 83.33 (New Zealand) 63.95 83.33 (New Zealand*) Investors (DTF Score) Strength of minority investor protection 4.2 (Philippines) 8.3 (New Zealand) 6.4 8.3 (New Zealand*) index (0-10) Extent of conflict of interest regulation 4.0 (Philippines) 9.3 (Singapore) 6.9 9.3 (New Zealand*) index (0-10) Extent of shareholder governance index (0- 3.7 (Brunei Darussalam) 7.7 (Korea, Rep.) 5.9 8.3 (Norway) 10) 4 (Hong Kong SAR, Paying Taxes (rank) 168 (Vietnam) 70.33 1 (United Arab Emirates) China) Paying Taxes (DTF 98.71 (Hong Kong SAR, 99.44 (United Arab 52.87 (Vietnam) 76.48 Score) China) Emirates) Payments (number per 3.0 (Hong Kong SAR, 3.0 (Hong Kong SAR, 43.0 (Indonesia) 14.3 year) China) China*) Time (hours per year) 540.0 (Vietnam) 66.5 (Singapore) 200.6 55.0 (Luxembourg) Total tax rate (% of 68.0 (China) 19.1 (Singapore) 36.8 26.1 (32 Economies*) profit) Postfiling index (0-100) 65.8 98.5 (Estonia) Trading across 164 (Papua New 32 (Korea, Rep.) 77.38 1 (10 Economies*) Borders (rank) Guinea) Trading across 44.64 (Papua New 92.52 (Korea, Rep.) 76.57 100.00 (10 Economies*) Borders (DTF Score) Guinea) Time to export: Border 117 (Brunei Darussalam) 2 (United States) 39 0 (18 Economies*) compliance (hours) Cost to export: Border 765 (Russian Federation) 167 (Canada) 374 0 (18 Economies*) compliance (USD) Time to export: Documentary 163 (Brunei Darussalam) 1 (Canada) 30 1 (25 Economies*) compliance (hours) Cost to export: 375 (Papua New Documentary 11 (Korea, Rep.) 99 0 (19 Economies*) Guinea) compliance (USD) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 13 Lowest regional Best regional Best global Indicator Regional average performance performance performance Time to import: Border 99 (Indonesia) 2 (United States) 50 0 (25 Economies*) compliance (hours) Cost to import: Border 1,125 (Russian 172 (Canada) 432 0 (28 Economies*) compliance (USD) Federation) Time to import: Documentary 140 (Brunei Darussalam) 1 (New Zealand) 42 1 (29 Economies*) compliance (hours) Cost to import: 425 (Papua New Documentary 27 (Korea, Rep.) 109 0 (30 Economies*) Guinea) compliance (USD) Enforcing Contracts 170 (Papua New 1 (Korea, Rep.) 54.14 1 (Korea, Rep.) (rank) Guinea) Enforcing Contracts 36.21 (Papua New 84.15 (Korea, Rep.) 65.51 84.15 (Korea, Rep.) (DTF Score) Guinea) Time (days) 910.0 (Canada) 164.0 (Singapore) 446.2 164.0 (Singapore) 110.3 (Papua New Cost (% of claim) 12.7 (Korea, Rep.) 33.9 9.0 (Iceland) Guinea) Quality of judicial 6.5 (Vietnam) 15.5 (Australia) 10.6 15.5 (Australia) processes index (0-18) Resolving Insolvency 137 (Papua New 2 (Japan) 45.14 1 (Finland) (rank) Guinea) Resolving Insolvency 32.15 (Papua New 93.34 (Japan) 65.80 93.89 (Finland) (DTF Score) Guinea) Recovery rate (cents on 21.3 (Philippines) 92.1 (Japan) 60.5 92.9 (Norway) the dollar) Time (years) 5.0 (Vietnam) 0.6 (Japan) 1.9 0.4 (22 Economies*) Cost (% of estate) 32.0 (Philippines) 3.5 (New Zealand) 11.5 1.0 (22 Economies*) Strength of insolvency 6.0 (Malaysia) 15.0 (United States) 10.6 15.0 (6 Economies*) framework index (0-16) * Two or more economies share the top ranking on this indicator. A number shown in place of an economy’s name indicates the number of economies that share the top ranking on the indicator. For a list of these economies, see the Doing Business website (http://www.doingbusiness.org). Note: The global best performer on time for paying taxes is defined as the lowest time recorded among all economies in the DB2017 sample that levy the 3 major taxes: profit tax, labor taxes and mandatory contributions, and VAT or sales tax. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 14 STARTING A BUSINESS WHAT THE STARTING A BUSINESS Formal registration of companies has many INDICATORS MEASURE immediate benefits for the companies and for business owners and employees. Legal entities can Procedures to legally start and operate a outlive their founders. Resources are pooled as company (number) several shareholders join forces to start a company. Formally registered companies have access to Preregistration (for example, name services and institutions from courts to banks as well verification or reservation, notarization) as to new markets. And their employees can benefit Registration in the economy’s largest from protections provided by the law. An additional business city1 benefit comes with limited liability companies. These Postregistration (for example, social security limit the financial liability of company owners to their registration, company seal) investments, so personal assets of the owners are not put at risk. Where governments make registration Obtaining approval from spouse to start a easy, more entrepreneurs start businesses in the business, to leave the home to register the formal sector, creating more good jobs and company or open a bank account. generating more revenue for the government. Obtaining any gender specific document for company registration and operation, national What do the indicators cover? identification card or opening a bank Doing Business measures the ease of starting a account. business in an economy by recording all procedures Time required to complete each procedure officially required or commonly done in practice by (calendar days) an entrepreneur to start up and formally operate an industrial or commercial business—as well as the Does not include time spent gathering time and cost required to complete these procedures. information It also records the paid-in minimum capital that Each procedure starts on a separate day (2 companies must deposit before registration (or procedures cannot start on the same day). within 3 months). The ranking of economies on the Procedures that can be fully completed ease of starting a business is determined by sorting online are recorded as ½ day. their distance to frontier scores for starting a Procedure completed once final document is business. These scores are the simple average of the received distance to frontier scores for each of the component indicators. No prior contact with officials To make the data comparable across economies, Cost required to complete each procedure Doing Business uses several assumptions about the (% of income per capita) business and the procedures. It assumes that all Official costs only, no bribes information is readily available to the entrepreneur and that there has been no prior contact with No professional fees unless services required officials. It also assumes that the entrepreneur will by law pay no bribes. And it assumes that the business: Paid-in minimum capital (% of income  Is a limited liability company (or its legal per capita) equivalent). If there is more than one type Deposited in a bank or with a notary before of limited liability company in the registration (or within 3 months) economy, the limited liability form most common among domestic firms is chosen. Has at least 10 and up to 50 employees one Information on the most common form is month after the commencement of operations, all obtained from incorporation lawyers or the of them domestic nationals.. statistical office.  Has a turnover of at least 100 times income per Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 15  Operates in the economy’s largest business capita.Has a company deed 10 pages long. city. For 11 economies the data are also collected for the second largest business The owners: city.  Have reached the legal age of majority and are  The size of the entire office space is capable of making decisions as an adult. If there approximately 929 square meters (10,000 is no legal age of majority, they are assumed to square feet). be 30 years old.  Does not qualify for investment incentives  Are sane, competent, in good health and have no or any special benefits. criminal record. .  Are married, the marriage is monogamous and registered with the authorities.  Where the answer differs according to the legal system applicable to the woman or man in question (as may be the case in economies where there is legal plurality), the answer used will be the one that applies to the majority of the population Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 16 STARTING A BUSINESS Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in Asia- starting a business suggest an answer (figure 2.1). The Pacific Economic Cooperation (APEC) to start a business? average ranking of the region and comparator regions The global rankings of these economies on the ease of provide a useful benchmark. Figure 2.1 How economies in Asia-Pacific Economic Cooperation (APEC) rank on the ease of starting a business Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 17 STARTING A BUSINESS The indicators underlying the rankings may be more and the paid-in minimum capital requirement (figure revealing. Data collected by Doing Business show what 2.2). Comparing these indicators across the region and it takes to start a business in each economy in the with averages both for the region and for comparator region: the number of procedures, the time, the cost regions can provide useful insights. Figure 2.2 What it takes to start a business in economies in Asia-Pacific Economic Cooperation (APEC) Procedures (number) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 18 STARTING A BUSINESS Time (days) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 19 STARTING A BUSINESS Cost (% of income per capita) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 20 STARTING A BUSINESS Paid-in minimum capital (% of income per capita) Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 21 STARTING A BUSINESS What are the changes over time? Economies around the world have taken steps making it and savings and more registered businesses, financial easier to start a business—streamlining procedures by resources and job opportunities. setting up a one-stop shop, making procedures simpler What business registration reforms has Doing Business or faster by introducing technology, and reducing or recorded in Asia-Pacific Economic Cooperation (APEC) eliminating minimum capital requirements. Many have (table 2.1)? undertaken business registration reforms in stages—and often as part of a larger regulatory reform program. Among the benefits have been greater firm satisfaction Table 2.1 How have economies in Asia-Pacific Economic Cooperation (APEC) made starting a business easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform In Malaysia the credit bureau began to provide consumer DB2017 Malaysia credit scores. Hong Kong SAR, China, streamlined the processes of DB2017 Hong Kong SAR, China reviewing applications for new electrical connections and also reduced the time needed to issue an excavation permit. Hong Kong SAR, China, made starting a business less costly DB2017 Hong Kong SAR, China by reducing the business registration fee. Malaysia made starting a business more difficult by requiring DB2017 Malaysia that companies with an annual revenue of more than MYR 500,000 register as a GST payer. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. Malaysia made paying taxes easier by introducing an online system for filing and paying the Goods and Services Tax (GST) DB2017 Malaysia while also making it is more complex by replacing sales tax with GST. Singapore made dealing with construction permits easier by streamlining procedures and improving the online one-stop DB2017 Singapore shop. Russian Federation Saint Petersburg made dealing with DB2017 Russian Federation construction permits easier by removing the requirement to obtain permission to fence the construction site. Indonesia made enforcing contracts easier by introducing a dedicated procedure for small claims that allows for parties’ DB2017 Indonesia self-representation.This reform applies to both Jakarta and Surabaya. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 22 DB year Economy Reform The Russian Federation made enforcing contracts more difficult by mandating pre-trial resolution before filing a claim, thereby lengthening the initial DB2017 Russian Federation phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. China improved access to credit information by starting to report payment histories from utility companies and DB2017 China providing credit scores to banks and financial institutions. This reform applies to both Shanghai and Beijing. Indonesia strengthened access to credit by establishing a DB2017 Indonesia modern collateral registry. Thailand improved access to credit information by starting to DB2017 Thailand provide credit scores to banks and financial institutions. Indonesia made the process for getting an electricity connection faster by reducing the time for contractors to perform external work thanks to an increase in the stock of DB2017 Indonesia electrical material supplied by the utility. In Surabaya, getting electricity was also made easier after the utility streamlined the process for new connection requests. Vietnam strengthened minority investor protections by making it easier to sue directors in cases of prejudicial transactions between interested parties, by increasing DB2017 Vietnam shareholder rights and role in major corporate decisions, by strengthening the ownership and control structures of companies and by increasing corporate transparency requirements. Thailand made resolving insolvency easier by introducing new DB2017 Thailand restructuring for small and medium-size companies and by streamlining provisions related to company liquidation. Indonesia made it easier to register property by digitizing its DB2017 Indonesia cadastral records and setting up a geographic information system. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Singapore made it easier to transfer a property by DB2017 Singapore introducing an independent mechanism for reporting errors on titles and maps. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 23 DB year Economy Reform Thailand made starting a business easier by creating a single DB2017 Thailand window for registration payment and reducing the time to obtain a company seal. Indonesia made starting a business easier by creating a single form to apply for the company registration certificate and trading license. This reform applies to Jakarta. Indonesia also made starting a business easier by abolishing the minimum DB2017 Indonesia capital requirement for small and medium-size enterprises and by encouraging the use of an online system to reserve company names. This reform applies to both Jakarta and Surabaya. China made starting a business easier by introducing a single DB2017 China form to obtain a business license, organization code and tax registration. This reform applies to both Shanghai and Beijing. Vietnam made starting a business more difficult by requiring DB2017 Vietnam entrepreneurs to receive approval of the seal sample before using it. Vietnam made exporting and importing easier by DB2017 Vietnam implementing electronic customs clearance system. Indonesia made exporting and importing easier by improving DB2017 Indonesia the customs services and document submission functions of the Indonesia National Single Window. Singapore made paying taxes easier by introducing improvements to the online system for filing corporate DB2017 Singapore income tax returns and VAT returns. At the same, the social security contribution rate paid by employers increased and the rebate of 30% on vehicle tax expired. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. New Zealand made paying taxes easier by abolishing the cheque levy. New Zealand made paying less costly by decreasing the rate of accident compensation levy paid by DB2017 New Zealand employers. At the same time, New Zealand made paying taxes more costly by raising property tax and road user levy rates. Indonesia made paying taxes easier by introducing an online system for filing and paying health contributions. Indonesia DB2017 Indonesia also made paying taxes more costly by levying a new pension contribution at a rate of 2% paid by employers. These reforms apply to both Jakarta and Surabaya. Japan made paying taxes easier by disclosing the technical specifications of the eTax platform and allowing the upload of additional information in comma separated value (CSV) DB2017 Japan format. The restoration surtax was also abolished. However, a local corporation tax was introduced and the rates of special local corporation tax, inhabitants tax and enterprise tax were raised. Welfare pension premiums Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 24 DB year Economy Reform were also raised. These reforms apply to both Tokyo and Osaka. However, the rate for health insurance contributions paid by employers was reduced only in Osaka. Vietnam made paying taxes easier and less costly by DB2017 Vietnam streamlining the administrative process of complying with tax obligations and abolishing environmental protection fees. Brunei Darussalam made enforcing contracts easier by DB2017 Brunei Darussalam introducing an electronic filing system as well as a platform that allows users to pay court fees electronically. Brunei Darussalam strengthened access to credit by adopting a new insolvency law that contemplates protections for secured creditors during an automatic stay in reorganization DB2017 Brunei Darussalam proceedings. Brunei also improved access to credit information by beginning to distribute data from two utility companies. The utility in Brunei Darussalam streamlined the processes of reviewing applications, and the time to issue an excavation permit was reduced. In addition, Brunei Darussalam increased the reliability of power supply by rolling out a Supervisory DB2017 Brunei Darussalam Control and Data Acquisition (SCADA) automatic energy management system for the monitoring of outages and the restoration of service. Brunei Darussalam strengthened minority investor protections by clarifying ownership and control structures, DB2017 Brunei Darussalam making it easier to sue directors in case of prejudicial related- party transactions, and allowing the rescission of related- party transactions that harm the company. Brunei Darussalam made resolving insolvency easier by adopting a new insolvency law that introduced a reorganization procedure and facilitated continuation of the DB2017 Brunei Darussalam debtor’s business during insolvency proceedings. Brunei Darussalam also introduced regulations for insolvency practitioners. Brunei Darussalam made paying taxes easier by fully DB2017 Brunei Darussalam implementing an electronic system for filing and paying corporate income tax. The Philippines made dealing with construction permits easier DB2017 Philippines by increasing the transparency of its building regulations. Papua New Guinea strengthened access to credit by adopting a new law on secured transactions that implemented a functional secured transactions system and established a DB2017 Papua New Guinea centralized, notice-based collateral registry. The new law broadens the scope of assets that can be used as collateral and allows out-of-court enforcement of collateral. Papua New Guinea reduced the time required to start a DB2017 Papua New Guinea business by streamlining business registration at the Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 25 DB year Economy Reform Investment Promotion Agency (IPA). The Philippines made paying taxes easier by introducing an online system for filing and paying health contributions and DB2017 Philippines by allowing for the online corporate income tax and VAT returns to be completed offline. The Philippines made starting a business easier by streamlining communications between the Securities and DB2016 Philippines Exchange Commission and the Social Security System and thereby expediting the process of issuing an employer registration number. Brunei Darussalam made paying taxes easier and less costly for companies by merging contributions for the Employee Provident Fund and the Supplemental Pension Fund and DB2016 Brunei Darussalam increasing the capital allowance for industrial buildings. In addition, it reduced the corporate income tax rate, though it also abolished the partial exemption of income and introduced a flat rate. Brunei Darussalam made starting a business easier by DB2016 Brunei Darussalam improving online procedures and simplifying registration and post registration requirements. Chile made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, introducing provisions to facilitate the continuation of the DB2016 Chile debtor’s business during insolvency, establishing a public office responsible for the general administration of insolvency proceedings and creating specialized insolvency courts. Chile made paying taxes more costly for companies by DB2016 Chile increasing the corporate income tax rate. The utility in Hong Kong SAR, China, made getting electricity easier by streamlining the process for reviewing connection DB2016 Hong Kong SAR, China applications and for completing the connection works and meter installation. In addition, the time needed to issue an excavation permit was reduced. The Republic of Korea made paying taxes more complicated and costly for companies by requiring separate filing and DB2016 Korea, Rep. payment of the local income tax and by increasing the rates for unemployment insurance and national health insurance paid by employers. Hong Kong SAR, China, made paying taxes easier and less costly for companies by simplifying compliance with the mandatory provident fund obligations and increasing the DB2016 Hong Kong SAR, China allowance for profit tax. At the same time, it increased the maximum contribution to the mandatory provident fund and reduced the property tax waiver. Malaysia made paying taxes easier and less costly for DB2016 Malaysia companies by making electronic filing mandatory and Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 26 DB year Economy Reform reducing the property tax rate. At the same time, it also increased the capital gains tax. Hong Kong SAR, China, made starting a business easier by DB2016 Hong Kong SAR, China eliminating the requirement for a company seal. Hong Kong SAR, China, improved access to credit by DB2016 Hong Kong SAR, China implementing a modern collateral registry. The utility in Vietnam reduced the time required for getting an electricity connection by reducing delays and increasing efficiency in approving connection applications and designs for connection works. Getting electricity was also made easier DB2016 Vietnam by eliminating the need to obtain a substation certification from the Fire Fighters Prevention Department for connections to the medium-voltage grid. Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. The utility in Taiwan, China, reduced the time required for getting an electricity connection through a simplified DB2016 Taiwan, China procedure for obtaining excavation permits from the municipality. The utility in New Zealand reduced the time required for getting an electricity connection by improving its payment DB2016 New Zealand monitoring and confirmation process for the connection works. Vietnam made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, modifying the standard for commencement of insolvency DB2016 Vietnam proceedings, changing provisions on voidable transactions, regulating the profession of insolvency trustees and establishing the rules for enterprise asset managers. Vietnam made paying taxes less costly for companies by reducing the corporate income tax rate—and made it easier by reducing the number of procedures and documents for filing VAT and social security contributions, reducing the DB2016 Vietnam number of filings for VAT and replacing quarterly filings of corporate income tax with quarterly advance payments. On the other hand, Vietnam increased the rate for social security contributions paid by employers. Indonesia made paying taxes easier and less costly for companies by introducing an online system for paying social DB2016 Indonesia security contributions and by reducing both the rate paid by employers and the ceiling for the contributions. This reform applies to both Jakarta and Surabaya. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 27 DB year Economy Reform China made paying taxes less costly for companies in DB2016 China Shanghai by reducing the social security contribution rate. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be deductible. DB2016 Mexico These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Indonesia made starting a business in Jakarta easier by DB2016 Indonesia reducing the time needed to register with the Ministry of Manpower. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Vietnam made starting a business easier by reducing the time DB2016 Vietnam required to get the company seal engraved and registered. Indonesia improved access to credit by enabling searches of DB2016 Indonesia the collateral registry by the debtor’s name. This reform applies to both Jakarta and Surabaya. Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral DB2016 Russian Federation registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Vietnam guaranteed borrowers’ right to inspect their credit DB2016 Vietnam data while the new credit bureau expanded borrower coverage, improving the credit information system. Peru improved its credit information system by implementing DB2016 Peru a new law on personal data protection. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 28 DB year Economy Reform New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. Taiwan, China, improved access to credit information by DB2015 Taiwan, China beginning to include data from utility companies in credit reports. Vietnam improved its credit information system by DB2015 Vietnam establishing a new credit bureau. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. Hong Kong SAR, China, strengthened minority investor protections by introducing requirements for directors to DB2015 Hong Kong SAR, China provide more detailed disclosure of conflicts of interest to the other board members. The Republic of Korea strengthened minority investor DB2015 Korea, Rep. protections by increasing the level of transparency expected from companies on managerial compensation. The Republic of Korea made transferring property easier by DB2015 Korea, Rep. reducing the time needed to buy housing bonds and to register the property transfer. Hong Kong SAR, China, made starting a business more DB2015 Hong Kong SAR, China difficult by increasing the registration fee. Taiwan, China, made getting electricity easier by eliminating DB2015 Taiwan, China site inspections. In Indonesia the electricity company in Jakarta made getting electricity easier by eliminating the need for electrical contractors to obtain multiple certificates guaranteeing the DB2015 Indonesia safety of internal installations—though. The utility in Jakarta and Surabaya also increased the cost by introducing a security deposit for new connections. Thailand made dealing with construction permits less time- DB2015 Thailand consuming by introducing a fast-track approval process for building permits for smaller buildings. Singapore made enforcing contracts easier by introducing a DB2015 Singapore new electronic litigation system that streamlines litigation proceedings. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 29 DB year Economy Reform Taiwan, China, made paying taxes easier for companies by DB2015 Taiwan, China introducing an electronic system for paying the vehicle license tax. Indonesia made paying taxes less costly for companies by DB2015 Indonesia reducing employers’ health insurance contribution rate. This reform applies to both Jakarta and Surabaya. China made paying taxes easier for companies by enhancing the electronic system for filing and paying taxes and adopting new communication channels within its taxpayer service, DB2015 China changes applying to both Beijing and Shanghai. In addition, China made paying taxes less costly for companies in Shanghai by reducing the social security contribution rate. Vietnam made paying taxes less costly for companies by DB2015 Vietnam reducing the corporate income tax rate. The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing DB2015 Russian Federation tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. In the United States starting a business became easier in New DB2015 United States York City thanks to faster online procedures. China made starting a business easier by eliminating both the minimum capital requirement and the requirement to obtain DB2015 China a capital verification report from an auditing firm. This reform applies to both Beijing and Shanghai. Indonesia made starting a business easier by allowing the Ministry of Law and Human Rights to electronically issue the DB2015 Indonesia approval letter for the deed of establishment. This reform applies to both Jakarta and Surabaya. In Indonesia trading across borders became more difficult DB2015 Indonesia because of insufficient infrastructure at the Tanjung Priok Port Jakarta. This change applies to both Jakarta and Surabaya. Brunei Darussalam made dealing with construction permits DB2015 Brunei Darussalam easier by consolidating final inspections. Brunei Darussalam made paying taxes easier for companies by allowing joint filing and payment of supplemental DB2015 Brunei Darussalam contributory pension and employee provident fund contributions and by introducing an online system for paying these 2 contributions. DB2015 Philippines In the Philippines trading across borders became more Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 30 DB year Economy Reform difficult because of a new city ordinance restricting truck traffic in Manila. The Philippines improved access to credit information by beginning to distribute both positive and negative DB2014 Philippines information and by enacting a data privacy act that guarantees borrowers’ right to access their data. The Philippines made dealing with construction permits easier DB2014 Philippines by eliminating the requirement to obtain a health certificate. The Philippines made paying taxes easier for companies by DB2014 Philippines introducing an electronic filing and payment system for social security contributions. Brunei Darussalam improved access to credit information by DB2014 Brunei Darussalam establishing a public credit registry. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a DB2014 Mexico “silence is consent” rule for the approval of the feasibility study for a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. New Zealand made enforcing contracts easier by improving DB2014 New Zealand its case management system to ensure a speedier and less costly adjudication of cases. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. China made enforcing contracts easier by amending its civil DB2014 China procedure code to streamline and speed up all court proceedings. Thailand made paying taxes less costly for companies by DB2014 Thailand reducing employers' social security contribution rate. Vietnam made paying taxes more costly for companies by DB2014 Vietnam increasing employers' social security contribution rate. Vietnam strengthened investor protections by introducing DB2014 Vietnam greater disclosure requirements for publicly held companies in cases of related-party transactions. Singapore made transferring property easier by introducing DB2014 Singapore an online procedure for property transfers. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 31 DB year Economy Reform Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Vietnam abolished priority rules for redundancy dismissals or DB2014 Vietnam layoffs and increased the minimum wage. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. Malaysia made getting electricity easier by increasing the DB2014 Malaysia efficiency of internal processes at the utility and improving its communication and dialogue with contractors. Malaysia made dealing with construction permits easier by DB2014 Malaysia establishing a one-stop shop. Hong Kong SAR, China, made transferring property more DB2014 Hong Kong SAR, China costly by increasing the stamp duty. Malaysia made starting a business less costly by reducing the DB2014 Malaysia company registration fees. Hong Kong SAR, China, made starting a business less costly DB2014 Hong Kong SAR, China by abolishing the capital duty levied on local companies. DB2014 Malaysia Malaysia introduced a minimum wage. Australia improved its credit information system through the Privacy Amendment (Enhancing Privacy Protection) DB2014 Australia Act 2012, which permits credit bureaus to collect account payment history with improved privacy protection. China improved its credit information system by introducing DB2014 China credit information industry regulations, which guarantee borrowers’ right to inspect their data. Indonesia improved its credit information system through a DB2014 Indonesia new regulation setting up a legal framework for establishing credit bureaus. Vietnam improved its credit information system through a DB2014 Vietnam decree setting up a legal framework for the establishment of Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 32 DB year Economy Reform private credit bureaus. Singapore improved its credit information system by DB2014 Singapore guaranteeing by law borrowers’ right to inspect their own data. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Thailand made starting a business easier by allowing the DB2013 Thailand registrar at the Department of Business Development to receive the company’s work regulations. Vietnam made starting a business easier by allowing DB2013 Vietnam companies to use self-printed value added tax invoices. China made starting a business less costly by exempting DB2013 China micro and small companies from paying several administrative fees from January 2012 to December 2014. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. Taiwan, China, made dealing with construction permits easier by introducing a risk-based and self-regulatory inspection DB2013 Taiwan, China system and improving operational features of the one-stop shop for building permits. China simplified the process of obtaining a construction DB2013 China permit by streamlining and centralizing preconstruction approvals. Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Taiwan, China, strengthened investor protections by increasing disclosure requirements for related-party DB2013 Taiwan, China transactions and improving the liability regime for company directors in cases where such transactions are abusive. Australia strengthened its secured transactions system by adopting a new national legal regime governing the DB2013 Australia enforceability of security interests in personal property and implementing a unified collateral registry. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 33 DB year Economy Reform Canada made getting an electricity connection easier by DB2013 Canada reducing the time needed for external connection works. Malaysia made dealing with construction permits faster by DB2013 Malaysia improving the one-stop center for new buildings and by reducing the time to connect to telephone service. Malaysia substantially reduced the number of days it takes to DB2013 Malaysia register property transfers. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Japan made paying taxes less costly for companies by DB2013 Japan reducing the corporate income tax rate—though it also introduced a restoration surtax for a 3-year period. Thailand made paying taxes less costly for companies by DB2013 Thailand reducing the profit tax rate. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Indonesia made getting electricity easier by eliminating the requirement for new customers applying for an electricity DB2013 Indonesia connection to show a neighbor’s electricity bill as a way to help determine their address. In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training DB2013 Mexico opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials. Brunei Darussalam made dealing with construction permits DB2013 Brunei Darussalam easier by creating a one-stop shop for preconstruction approvals. Brunei Darussalam made paying taxes less costly for DB2013 Brunei Darussalam companies by reducing the profit tax rate. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Brunei Darussalam made getting electricity easier by DB2012 Brunei Darussalam establishing a one-stop shop and reducing the time required to obtain an excavation permit. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 34 DB year Economy Reform The Philippines adopted a new insolvency law that provides a DB2012 Philippines legal framework for liquidation and reorganization of financially distressed companies. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Vietnam strengthened investor protections by requiring DB2012 Vietnam higher standards of accountability for company directors. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Indonesia made getting electricity more difficult by increasing DB2012 Indonesia connection fees. Korea eased the administrative burden of paying taxes for firms by merging several taxes, allowing 4 labor taxes and DB2012 Korea, Rep. contributions to be paid jointly and continuing to increase the use of the online tax payment system. Malaysia made paying taxes costlier for firms by reintroducing the real estate capital gains tax—but also made DB2012 Malaysia tax compliance easier by improving electronic systems and the availability of software. DB2012 Hong Kong SAR, China Hong Kong, China introduced a Minimum Wage. Hong Kong SAR (China) made starting a business easier by DB2012 Hong Kong SAR, China introducing online electronic services for company and business registration. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Malaysia made starting a business easier by merging company, tax, social security and employment fund DB2012 Malaysia registrations at the one-stop shop and providing same-day registration. Australia clarified the priority of claims of unsecured creditors DB2012 Australia over all shareholders’ claims and introduced further regulation of the profession of insolvency practitioners. Chile made business start-up easier by starting to provide an immediate temporary operating license to new companies, eliminating the requirement for an inspection of premises by DB2012 Chile the tax authority before new companies can begin operations and allowing free online publication of the notice of a company’s creation. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 35 DB year Economy Reform Chile strengthened its secured transactions system by DB2012 Chile implementing a unified collateral registry and a new legal framework for nonpossessory security interests. Canada made paying taxes easier and less costly for DB2012 Canada companies by reducing profit tax rates, eliminating the Ontario capital tax and harmonizing sales taxes. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Thailand made registering property more expensive by DB2012 Thailand increasing the registration fee. Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Russia increased the social security contribution rate for DB2012 Russian Federation employers. Malaysia established dedicated commercial courts to handle DB2012 Malaysia foreclosure proceedings. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. Taiwan (China) made dealing with construction permits easier DB2012 Taiwan, China by creating a one-stop center. Indonesia made starting a business easier by introducing a simplified application process allowing an applicant to DB2012 Indonesia simultaneously obtain both a general trading license and a business registration certificate. Taiwan (China) made starting a business easier by DB2012 Taiwan, China implementing an online one-stop shop for business registration. Thailand made starting a business easier by introducing a DB2012 Thailand one-stop shop. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 36 DB year Economy Reform Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Hong Kong SAR (China) made getting electricity easier by DB2012 Hong Kong SAR, China increasing the efficiency of public agencies and streamlining the utility’s procedures with other government agencies. Malaysia continued to improve the computerization of its DB2012 Malaysia courts by introducing a system making it possible to file complaints electronically. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Korea made it easier to deal with insolvency by introducing DB2011 Korea, Rep. postfiling financing, granting superpriority to the repayment of loans given to companies undergoing reorganization. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Taiwan (China) eased business start-up by reducing the time DB2011 Taiwan, China required to check company names, register retirement plans and apply for health, pension and labor insurance. Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business DB2011 Vietnam license and tax license and by eliminating the need for a seal for company licensing. Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Indonesia eased business start-up by reducing the cost for company name clearance and reservation and the time DB2011 Indonesia required to reserve the name and approve the deed of incorporation. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Vietnam made dealing with construction permits easier by reducing the cost to register newly completed buildings by DB2011 Vietnam 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Thailand made registering property more costly by repealing DB2011 Thailand a 2-year temporary tax reduction for property transfers. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 37 DB year Economy Reform Vietnam improved its credit information system by allowing DB2011 Vietnam borrowers to examine their own credit report and correct errors. Singapore improved its credit information system by DB2011 Singapore collecting and distributing information on firms. Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. In the United States the introduction of a new tax on payroll DB2011 United States increased taxes on companies operating within the New York City metropolitan commuter transportation district. DB2011 Indonesia Indonesia reduced its corporate income tax rate. China’s new corporate income tax law unified the tax regimes for domestic and foreign enterprises and clarified the DB2011 China calculation of taxable income for corporate income tax purposes. The government of Vietnam eased paying taxes by reducing DB2011 Vietnam corporate income tax rate. Taiwan (China) reduced the corporate income tax rate and DB2011 Taiwan, China simplified tax return forms, rules for assessing corporate income tax and the calculation of interim tax payments. Thailand temporarily lowered taxes on business by reducing DB2011 Thailand its specific business tax for 12 months. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. An amendment to Chile’s securities law strengthened investor protections by requiring greater corporate disclosure and DB2011 Chile regulating the approval of transactions between interested parties. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Australia introduced the severance payment obligation and reemployment consideration applicable in cases of redundancy dismissals. Annual leave was increased and DB2011 Australia averaging of hours is now allowed in shorter periods of time. In addition, notice period applicable in case of redundancy dismissals was decreased. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 38 DB year Economy Reform Malaysia eliminated the requirements to notify third parties in DB2011 Malaysia cases of redundancy dismissals. Malaysia eased business start-up by introducing more online DB2011 Malaysia services. Malaysia’s introduction of online stamping reduced the time DB2011 Malaysia and cost to transfer property. DB2011 Hong Kong SAR, China Hong Kong SAR (China) abolished the fuel tax on diesel. Reforms implemented in the civil justice system of Hong DB2011 Hong Kong SAR, China Kong SAR (China) will help increase the efficiency and cost- effectiveness of commercial dispute resolution. Japan made it easier to deal with insolvency by establishing a new entity, the Enterprise Turnaround Initiative Corporation, DB2011 Japan to support the revitalization of companies suffering from excessive debt but professionally managed. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. Brunei Darussalam made starting a business easier by DB2011 Brunei Darussalam improving efficiency at the company registrar and implementing an electronic system for name searches. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. Indonesia reduced the time to export by launching a single- DB2011 Indonesia window service. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. The Philippines eased business startup by setting up a one- DB2011 Philippines stop shop at the municipal level. The Philippines made construction permitting more DB2011 Philippines cumbersome through updated electricity connection costs. Operation of a new private credit bureau improved the credit DB2011 Papua New Guinea information system in Papua New Guinea. The Philippines reduced the time and cost to trade by improving its electronic customs systems, adding such DB2011 Philippines functions as electronic payments and online submission of declarations. The introduction of an electronic customs system in Brunei DB2011 Brunei Darussalam Darussalam made trading easier. Brunei Darussalam instituted mandatory minimum annual DB2011 Brunei Darussalam leave and reduced notice periods applicable in case of redundancy dismissals. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 39 DB year Economy Reform Brunei Darussalam reduced the corporate income tax rate DB2011 Brunei Darussalam from 23.5% to 22% while also introducing a lower tax rate for small businesses, ranging from 5.5% to 11%. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 40 DEALING WITH CONSTRUCTION PERMITS Regulation of construction is critical to protect the WHAT THE DEALING WITH CONSTRUCTION public. But it needs to be efficient, to avoid excessive PERMITS INDICATORS MEASURE constraints on a sector that plays an important part in every economy. Where complying with building regulations is excessively costly in time and money, Procedures to legally build a warehouse (number) many builders opt out. They may pay bribes to pass inspections or simply build illegally, leading to Submitting all relevant documents and hazardous construction that puts public safety at risk. obtaining all necessary clearances, licenses, Where compliance is simple, straightforward and permits and certificates inexpensive, everyone is better off. Submitting all required notifications and receiving all necessary inspections What do the indicators cover? Obtaining utility connections for water and Doing Business records all procedures required for a sewerage business in the construction industry to build a warehouse along with the time and cost to complete Registering and selling the warehouse after its each procedure. In addition, this year Doing Business completion introduces a new measure, the building quality Time required to complete each procedure control index, evaluating the quality of building (calendar days) regulations, the strength of quality control and safety Does not include time spent gathering mechanisms, liability and insurance regimes, and information professional certification requirements. Each procedure starts on a separate day. The ranking of economies on the ease of dealing with Procedures that can be fully completed online construction permits is determined by sorting their are recorded as ½ day distance to frontier scores for dealing with construction permits. These scores are the simple Procedure considered completed once final document is received average of the distance to frontier scores for each of the component indicators. No prior contact with officials To make the data comparable across economies, Cost required to complete each procedure (% several assumptions about the construction of warehouse value) company, the warehouse project and the utility Official costs only, no bribes connections are used. Assumptions about the construction company Building quality control index (0-15) Sum of the scores of six component indices: The construction company (BuildCo): Quality of building regulations (0-2)  Is a limited liability company (or its legal equivalent). Quality control before construction (0-1)  Operates in the economy’s largest business Quality control during construction (0-3) city. For 11 economies the data are also Quality control after construction (0-3) collected for the second largest business city. Liability and insurance regimes (0-2)  Is 100% domestically and privately owned Professional certifications (0-4)  Has five owners, none of whom is a legal entity..   Is fully licensed and insured to carry out  construction projects, such as building  Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 41 warehouses.   The construction company (BuildCo) (continued):  Will be a new construction (there was no previous construction on the land), with no trees, natural  Has 60 builders and other employees, all of them water sources, natural reserves or historical nationals with the technical expertise and monuments of any kind on the plot. professional experience necessary to obtain construction permits and approvals.  Will have complete architectural and technical plans prepared by a licensed architect. If preparation of  Has a licensed architect and a licensed engineer, the plans requires such steps as obtaining further bothregistered with the local association of documentation or getting prior approvals from architects or engineers. BuildCo is not assumed external agencies, these are counted as procedures. to have any other employees who are technical or licensed experts, such as geological or  Will include all technical equipment required to be topographical experts. fully operational.  Has paid all taxes and taken out all necessary  Will take 30 weeks to construct (excluding all delays insurance applicable to its general business due to administrative and regulatory requirements). activity (for example, accidental insurance for  Assumptions about the utility connections construction workers and third-person liability).  The water and sewerage connections:  Owns the land on which the warehouse will be • Will be 150 meters (492 feet) from the existing built and will sell the warehouse upon its water source and sewer tap. If there is no water completion. delivery infrastructure in the economy, a borehole  Is valued at 50 times income per capita. will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be  Assumptions about the warehouse installed or built.  The warehouse:  Will not require water for fire protection reasons; a  Will be used for general storage activities, such fire extinguishing system (dry system) will be used as storage of books or stationery. The warehouse instead. If a wet fire protection system is required will not be used for any goods requiring special by law, it is assumed that the water demand conditions, such as food, chemicals or specified below also covers the water needed for pharmaceuticals. fire protection.  Will have two stories, both above ground, with a  Will have an average water use of 662 liters (175 total constructed area of approximately 1,300.6 gallons) a day and an average wastewater flow of square meters (14,000 square feet). Each floor will 568 liters (150 gallons) a day. Will have a peak be 3 meters (9 feet, 10 inches) high. water use of 1,325 liters (350 gallons) a day and a  Will have road access and be located in the peak wastewater flow of 1,136 liters (300 gallons) a day. periurban area of the economy’s largest business city (that is, on the fringes of the city but still  Will have a constant level of water demand and within its official limits). For 11 economies the wastewater flow throughout the year. data are also collected for the second largest  Will be 1 inch in diameter for the water connection business city. and 4 inches in diameter for the sewerage  • Will not be located in a special economic or connection. industrial zone. Will be located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo and is accurately registered in the cadastre and land registry. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 42 DEALING WITH CONSTRUCTION PERMITS Where do the region’s economies stand today? How easy it is for entrepreneurs in economies in Asia- the ease of dealing with construction permits suggest an Pacific Economic Cooperation (APEC) to legally build a answer (figure 3.1). The average ranking of the region warehouse? The global rankings of these economies on and comparator regions provide a useful benchmark. Figure 3.1 How economies in Asia-Pacific Economic Cooperation (APEC) rank on the ease of dealing with construction permits Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 43 DEALING WITH CONSTRUCTION PERMITS The indicators underlying the rankings may be more the time and the cost (figure 3.2). Comparing these revealing. Data collected by Doing Business show what it indicators across the region and with averages both for takes to comply with formalities to build a warehouse in the region and for comparator regions can provide each economy in the region: the number of procedures, useful insights. Figure 3.2 What it takes to comply with formalities to build a warehouse in economies in Asia-Pacific Economic Cooperation (APEC) Procedures (number) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 44 DEALING WITH CONSTRUCTION PERMITS Time (days) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 45 DEALING WITH CONSTRUCTION PERMITS Cost (% of warehouse value) * Indicates a “no practice” mark. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice” mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a competing regulation prohibits such practice. Either way, a “no practice” mark puts the econom y at the bottom of the ranking on the relevant indicator. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 46 DEALING WITH CONSTRUCTION PERMITS Building Quality Control Index (0-15) * Indicates a “no practice” mark. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice” mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a competing regulation prohibits such practice. Either way, a “no practice” mark puts th e economy at the bottom of the ranking on the relevant indicator. Note: The index ranges from 0 to 15, with higher values indicating better quality control and safety mechanisms in the construction permitting system. The indicator is based on the same case study assumptions as the measures of efficiency. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 47 DEALING WITH CONSTRUCTION PERMITS What are the changes over time? Smart regulation ensures that standards are met while compliance costs reasonable, governments around the making compliance easy and accessible to all. Coherent world have worked on consolidating permitting and transparent rules, efficient processes and adequate requirements. What construction permitting reforms has allocation of resources are especially important in sectors Doing Business recorded in Asia-Pacific Economic where safety is at stake. Construction is one of them. In Cooperation (APEC) (table 3.1)? an effort to ensure building safety while keeping Table 3.1 How have economies in Asia-Pacific Economic Cooperation (APEC) made dealing with construction permits easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform In Malaysia the credit bureau began to provide consumer DB2017 Malaysia credit scores. Hong Kong SAR, China, streamlined the processes of DB2017 Hong Kong SAR, China reviewing applications for new electrical connections and also reduced the time needed to issue an excavation permit. Hong Kong SAR, China, made starting a business less costly DB2017 Hong Kong SAR, China by reducing the business registration fee. Malaysia made starting a business more difficult by requiring DB2017 Malaysia that companies with an annual revenue of more than MYR 500,000 register as a GST payer. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. Malaysia made paying taxes easier by introducing an online system for filing and paying the Goods and Services Tax DB2017 Malaysia (GST) while also making it is more complex by replacing sales tax with GST. Singapore made dealing with construction permits easier by streamlining procedures and improving the online one-stop DB2017 Singapore shop. Russian Federation Saint Petersburg made dealing with DB2017 Russian Federation construction permits easier by removing the requirement to obtain permission to fence the construction site. DB2017 Indonesia Indonesia made enforcing contracts easier by introducing a Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 48 DB year Economy Reform dedicated procedure for small claims that allows for parties’ self-representation.This reform applies to both Jakarta and Surabaya. The Russian Federation made enforcing contracts more difficult by mandating pre-trial resolution before filing a claim, thereby lengthening the DB2017 Russian Federation initial phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. China improved access to credit information by starting to report payment histories from utility companies and DB2017 China providing credit scores to banks and financial institutions. This reform applies to both Shanghai and Beijing. Indonesia strengthened access to credit by establishing a DB2017 Indonesia modern collateral registry. Thailand improved access to credit information by starting to DB2017 Thailand provide credit scores to banks and financial institutions. Indonesia made the process for getting an electricity connection faster by reducing the time for contractors to perform external work thanks to an increase in the stock of DB2017 Indonesia electrical material supplied by the utility. In Surabaya, getting electricity was also made easier after the utility streamlined the process for new connection requests. Vietnam strengthened minority investor protections by making it easier to sue directors in cases of prejudicial transactions between interested parties, by increasing DB2017 Vietnam shareholder rights and role in major corporate decisions, by strengthening the ownership and control structures of companies and by increasing corporate transparency requirements. Thailand made resolving insolvency easier by introducing DB2017 Thailand new restructuring for small and medium-size companies and by streamlining provisions related to company liquidation. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 49 DB year Economy Reform Indonesia made it easier to register property by digitizing its DB2017 Indonesia cadastral records and setting up a geographic information system. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Singapore made it easier to transfer a property by DB2017 Singapore introducing an independent mechanism for reporting errors on titles and maps. Thailand made starting a business easier by creating a single DB2017 Thailand window for registration payment and reducing the time to obtain a company seal. Indonesia made starting a business easier by creating a single form to apply for the company registration certificate and trading license. This reform applies to Jakarta. Indonesia also made starting a business easier by abolishing the DB2017 Indonesia minimum capital requirement for small and medium-size enterprises and by encouraging the use of an online system to reserve company names. This reform applies to both Jakarta and Surabaya. China made starting a business easier by introducing a single form to obtain a business license, organization code and tax DB2017 China registration. This reform applies to both Shanghai and Beijing. Vietnam made starting a business more difficult by requiring DB2017 Vietnam entrepreneurs to receive approval of the seal sample before using it. Vietnam made exporting and importing easier by DB2017 Vietnam implementing electronic customs clearance system. Indonesia made exporting and importing easier by DB2017 Indonesia improving the customs services and document submission functions of the Indonesia National Single Window. Singapore made paying taxes easier by introducing improvements to the online system for filing corporate DB2017 Singapore income tax returns and VAT returns. At the same, the social security contribution rate paid by employers increased and the rebate of 30% on vehicle tax expired. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 50 DB year Economy Reform Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. New Zealand made paying taxes easier by abolishing the cheque levy. New Zealand made paying less costly by decreasing the rate of accident compensation levy paid by DB2017 New Zealand employers. At the same time, New Zealand made paying taxes more costly by raising property tax and road user levy rates. Indonesia made paying taxes easier by introducing an online system for filing and paying health contributions. Indonesia DB2017 Indonesia also made paying taxes more costly by levying a new pension contribution at a rate of 2% paid by employers. These reforms apply to both Jakarta and Surabaya. Japan made paying taxes easier by disclosing the technical specifications of the eTax platform and allowing the upload of additional information in comma separated value (CSV) format. The restoration surtax was also abolished. However, a local corporation tax was introduced and the rates of special DB2017 Japan local corporation tax, inhabitants tax and enterprise tax were raised. Welfare pension premiums were also raised. These reforms apply to both Tokyo and Osaka. However, the rate for health insurance contributions paid by employers was reduced only in Osaka. Vietnam made paying taxes easier and less costly by streamlining the administrative process of complying with DB2017 Vietnam tax obligations and abolishing environmental protection fees. Brunei Darussalam strengthened access to credit by adopting a new insolvency law that contemplates protections for secured creditors during an automatic stay in DB2017 Brunei Darussalam reorganization proceedings. Brunei also improved access to credit information by beginning to distribute data from two utility companies. The utility in Brunei Darussalam streamlined the processes of reviewing applications, and the time to issue an excavation permit was reduced. In addition, Brunei Darussalam increased the reliability of power supply by rolling out a DB2017 Brunei Darussalam Supervisory Control and Data Acquisition (SCADA) automatic energy management system for the monitoring of outages and the restoration of service. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 51 DB year Economy Reform Brunei Darussalam strengthened minority investor protections by clarifying ownership and control structures, DB2017 Brunei Darussalam making it easier to sue directors in case of prejudicial related-party transactions, and allowing the rescission of related-party transactions that harm the company. Brunei Darussalam made resolving insolvency easier by adopting a new insolvency law that introduced a reorganization procedure and facilitated continuation of the DB2017 Brunei Darussalam debtor’s business during insolvency proceedings. Brunei Darussalam also introduced regulations for insolvency practitioners. Brunei Darussalam made paying taxes easier by fully DB2017 Brunei Darussalam implementing an electronic system for filing and paying corporate income tax. The Philippines made dealing with construction permits DB2017 Philippines easier by increasing the transparency of its building regulations. Papua New Guinea strengthened access to credit by adopting a new law on secured transactions that implemented a functional secured transactions system and DB2017 Papua New Guinea established a centralized, notice-based collateral registry. The new law broadens the scope of assets that can be used as collateral and allows out-of-court enforcement of collateral. Papua New Guinea reduced the time required to start a DB2017 Papua New Guinea business by streamlining business registration at the Investment Promotion Agency (IPA). The Philippines made paying taxes easier by introducing an online system for filing and paying health contributions and DB2017 Philippines by allowing for the online corporate income tax and VAT returns to be completed offline. Brunei Darussalam made enforcing contracts easier by DB2017 Brunei Darussalam introducing an electronic filing system as well as a platform that allows users to pay court fees electronically. The Philippines made starting a business easier by streamlining communications between the Securities and DB2016 Philippines Exchange Commission and the Social Security System and thereby expediting the process of issuing an employer registration number. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 52 DB year Economy Reform Brunei Darussalam made paying taxes easier and less costly for companies by merging contributions for the Employee Provident Fund and the Supplemental Pension Fund and DB2016 Brunei Darussalam increasing the capital allowance for industrial buildings. In addition, it reduced the corporate income tax rate, though it also abolished the partial exemption of income and introduced a flat rate. Brunei Darussalam made starting a business easier by DB2016 Brunei Darussalam improving online procedures and simplifying registration and post registration requirements. Chile made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, introducing provisions to facilitate the continuation of the DB2016 Chile debtor’s business during insolvency, establishing a public office responsible for the general administration of insolvency proceedings and creating specialized insolvency courts. Chile made paying taxes more costly for companies by DB2016 Chile increasing the corporate income tax rate. The utility in Hong Kong SAR, China, made getting electricity easier by streamlining the process for reviewing connection DB2016 Hong Kong SAR, China applications and for completing the connection works and meter installation. In addition, the time needed to issue an excavation permit was reduced. The Republic of Korea made paying taxes more complicated and costly for companies by requiring separate filing and DB2016 Korea, Rep. payment of the local income tax and by increasing the rates for unemployment insurance and national health insurance paid by employers. Hong Kong SAR, China, made paying taxes easier and less costly for companies by simplifying compliance with the mandatory provident fund obligations and increasing the DB2016 Hong Kong SAR, China allowance for profit tax. At the same time, it increased the maximum contribution to the mandatory provident fund and reduced the property tax waiver. Malaysia made paying taxes easier and less costly for companies by making electronic filing mandatory and DB2016 Malaysia reducing the property tax rate. At the same time, it also increased the capital gains tax. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 53 DB year Economy Reform Hong Kong SAR, China, made starting a business easier by DB2016 Hong Kong SAR, China eliminating the requirement for a company seal. Hong Kong SAR, China, improved access to credit by DB2016 Hong Kong SAR, China implementing a modern collateral registry. The utility in Vietnam reduced the time required for getting an electricity connection by reducing delays and increasing efficiency in approving connection applications and designs for connection works. Getting electricity was also made DB2016 Vietnam easier by eliminating the need to obtain a substation certification from the Fire Fighters Prevention Department for connections to the medium-voltage grid. Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. The utility in Taiwan, China, reduced the time required for getting an electricity connection through a simplified DB2016 Taiwan, China procedure for obtaining excavation permits from the municipality. The utility in New Zealand reduced the time required for getting an electricity connection by improving its payment DB2016 New Zealand monitoring and confirmation process for the connection works. Vietnam made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, modifying the standard for commencement of insolvency DB2016 Vietnam proceedings, changing provisions on voidable transactions, regulating the profession of insolvency trustees and establishing the rules for enterprise asset managers. Vietnam made paying taxes less costly for companies by reducing the corporate income tax rate—and made it easier by reducing the number of procedures and documents for filing VAT and social security contributions, reducing the DB2016 Vietnam number of filings for VAT and replacing quarterly filings of corporate income tax with quarterly advance payments. On the other hand, Vietnam increased the rate for social security contributions paid by employers. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 54 DB year Economy Reform Indonesia made paying taxes easier and less costly for companies by introducing an online system for paying social DB2016 Indonesia security contributions and by reducing both the rate paid by employers and the ceiling for the contributions. This reform applies to both Jakarta and Surabaya. China made paying taxes less costly for companies in DB2016 China Shanghai by reducing the social security contribution rate. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be DB2016 Mexico deductible. These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Russia made transferring property easier by reducing the DB2016 Russian Federation time required for property registration. This reform applies to both Moscow and St. Petersburg. Indonesia made starting a business in Jakarta easier by DB2016 Indonesia reducing the time needed to register with the Ministry of Manpower. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Vietnam made starting a business easier by reducing the DB2016 Vietnam time required to get the company seal engraved and registered. Indonesia improved access to credit by enabling searches of DB2016 Indonesia the collateral registry by the debtor’s name. This reform applies to both Jakarta and Surabaya. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 55 DB year Economy Reform Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral DB2016 Russian Federation registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Vietnam guaranteed borrowers’ right to inspect their credit DB2016 Vietnam data while the new credit bureau expanded borrower coverage, improving the credit information system. Peru improved its credit information system by DB2016 Peru implementing a new law on personal data protection. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. Taiwan, China, improved access to credit information by DB2015 Taiwan, China beginning to include data from utility companies in credit reports. Vietnam improved its credit information system by DB2015 Vietnam establishing a new credit bureau. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief DB2015 Mexico from a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. Hong Kong SAR, China, strengthened minority investor protections by introducing requirements for directors to DB2015 Hong Kong SAR, China provide more detailed disclosure of conflicts of interest to the other board members. The Republic of Korea strengthened minority investor DB2015 Korea, Rep. protections by increasing the level of transparency expected from companies on managerial compensation. The Republic of Korea made transferring property easier by DB2015 Korea, Rep. reducing the time needed to buy housing bonds and to register the property transfer. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 56 DB year Economy Reform Hong Kong SAR, China, made starting a business more DB2015 Hong Kong SAR, China difficult by increasing the registration fee. Taiwan, China, made getting electricity easier by eliminating DB2015 Taiwan, China site inspections. In Indonesia the electricity company in Jakarta made getting electricity easier by eliminating the need for electrical contractors to obtain multiple certificates guaranteeing the DB2015 Indonesia safety of internal installations—though. The utility in Jakarta and Surabaya also increased the cost by introducing a security deposit for new connections. Thailand made dealing with construction permits less time- DB2015 Thailand consuming by introducing a fast-track approval process for building permits for smaller buildings. Singapore made enforcing contracts easier by introducing a DB2015 Singapore new electronic litigation system that streamlines litigation proceedings. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. Taiwan, China, made paying taxes easier for companies by DB2015 Taiwan, China introducing an electronic system for paying the vehicle license tax. Indonesia made paying taxes less costly for companies by DB2015 Indonesia reducing employers’ health insurance contribution rate. This reform applies to both Jakarta and Surabaya. China made paying taxes easier for companies by enhancing the electronic system for filing and paying taxes and adopting new communication channels within its taxpayer DB2015 China service, changes applying to both Beijing and Shanghai. In addition, China made paying taxes less costly for companies in Shanghai by reducing the social security contribution rate. Vietnam made paying taxes less costly for companies by DB2015 Vietnam reducing the corporate income tax rate. DB2015 Russian Federation The Russian Federation made transferring property easier by Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 57 DB year Economy Reform eliminating the requirement for notarization and introducing tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. In the United States starting a business became easier in DB2015 United States New York City thanks to faster online procedures. China made starting a business easier by eliminating both the minimum capital requirement and the requirement to DB2015 China obtain a capital verification report from an auditing firm. This reform applies to both Beijing and Shanghai. Indonesia made starting a business easier by allowing the Ministry of Law and Human Rights to electronically issue the DB2015 Indonesia approval letter for the deed of establishment. This reform applies to both Jakarta and Surabaya. In Indonesia trading across borders became more difficult because of insufficient infrastructure at the Tanjung Priok DB2015 Indonesia Port Jakarta. This change applies to both Jakarta and Surabaya. Brunei Darussalam made dealing with construction permits DB2015 Brunei Darussalam easier by consolidating final inspections. Brunei Darussalam made paying taxes easier for companies by allowing joint filing and payment of supplemental DB2015 Brunei Darussalam contributory pension and employee provident fund contributions and by introducing an online system for paying these 2 contributions. In the Philippines trading across borders became more DB2015 Philippines difficult because of a new city ordinance restricting truck traffic in Manila. The Philippines improved access to credit information by beginning to distribute both positive and negative DB2014 Philippines information and by enacting a data privacy act that guarantees borrowers’ right to access their data. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 58 DB year Economy Reform Brunei Darussalam improved access to credit information by DB2014 Brunei Darussalam establishing a public credit registry. The Philippines made dealing with construction permits DB2014 Philippines easier by eliminating the requirement to obtain a health certificate. The Philippines made paying taxes easier for companies by DB2014 Philippines introducing an electronic filing and payment system for social security contributions. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing DB2014 Mexico a “silence is consent” rule for the approval of the feasibility study for a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. New Zealand made enforcing contracts easier by improving DB2014 New Zealand its case management system to ensure a speedier and less costly adjudication of cases. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. China made enforcing contracts easier by amending its civil DB2014 China procedure code to streamline and speed up all court proceedings. Thailand made paying taxes less costly for companies by DB2014 Thailand reducing employers' social security contribution rate. Vietnam made paying taxes more costly for companies by DB2014 Vietnam increasing employers' social security contribution rate. Vietnam strengthened investor protections by introducing DB2014 Vietnam greater disclosure requirements for publicly held companies in cases of related-party transactions. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 59 DB year Economy Reform Singapore made transferring property easier by introducing DB2014 Singapore an online procedure for property transfers. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Vietnam abolished priority rules for redundancy dismissals or DB2014 Vietnam layoffs and increased the minimum wage. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Chile made starting a business easier by creating a new DB2014 Chile online system for business registration. Malaysia made getting electricity easier by increasing the DB2014 Malaysia efficiency of internal processes at the utility and improving its communication and dialogue with contractors. Malaysia made dealing with construction permits easier by DB2014 Malaysia establishing a one-stop shop. Hong Kong SAR, China, made transferring property more DB2014 Hong Kong SAR, China costly by increasing the stamp duty. Malaysia made starting a business less costly by reducing the DB2014 Malaysia company registration fees. Hong Kong SAR, China, made starting a business less costly DB2014 Hong Kong SAR, China by abolishing the capital duty levied on local companies. DB2014 Malaysia Malaysia introduced a minimum wage. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 60 DB year Economy Reform Australia improved its credit information system through the Privacy Amendment (Enhancing Privacy Protection) DB2014 Australia Act 2012, which permits credit bureaus to collect account payment history with improved privacy protection. China improved its credit information system by introducing DB2014 China credit information industry regulations, which guarantee borrowers’ right to inspect their data. Indonesia improved its credit information system through a DB2014 Indonesia new regulation setting up a legal framework for establishing credit bureaus. Vietnam improved its credit information system through a DB2014 Vietnam decree setting up a legal framework for the establishment of private credit bureaus. Singapore improved its credit information system by DB2014 Singapore guaranteeing by law borrowers’ right to inspect their own data. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Thailand made starting a business easier by allowing the DB2013 Thailand registrar at the Department of Business Development to receive the company’s work regulations. Vietnam made starting a business easier by allowing DB2013 Vietnam companies to use self-printed value added tax invoices. China made starting a business less costly by exempting DB2013 China micro and small companies from paying several administrative fees from January 2012 to December 2014. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. DB2013 Taiwan, China Taiwan, China, made dealing with construction permits easier Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 61 DB year Economy Reform by introducing a risk-based and self-regulatory inspection system and improving operational features of the one-stop shop for building permits. China simplified the process of obtaining a construction DB2013 China permit by streamlining and centralizing preconstruction approvals. Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Taiwan, China, strengthened investor protections by increasing disclosure requirements for related-party DB2013 Taiwan, China transactions and improving the liability regime for company directors in cases where such transactions are abusive. Australia strengthened its secured transactions system by adopting a new national legal regime governing the DB2013 Australia enforceability of security interests in personal property and implementing a unified collateral registry. Canada made getting an electricity connection easier by DB2013 Canada reducing the time needed for external connection works. Malaysia made dealing with construction permits faster by DB2013 Malaysia improving the one-stop center for new buildings and by reducing the time to connect to telephone service. Malaysia substantially reduced the number of days it takes to DB2013 Malaysia register property transfers. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Brunei Darussalam made dealing with construction permits DB2013 Brunei Darussalam easier by creating a one-stop shop for preconstruction approvals. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 62 DB year Economy Reform Brunei Darussalam made paying taxes less costly for DB2013 Brunei Darussalam companies by reducing the profit tax rate. Indonesia made getting electricity easier by eliminating the requirement for new customers applying for an electricity DB2013 Indonesia connection to show a neighbor’s electricity bill as a way to help determine their address. In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training DB2013 Mexico opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Japan made paying taxes less costly for companies by DB2013 Japan reducing the corporate income tax rate—though it also introduced a restoration surtax for a 3-year period. Thailand made paying taxes less costly for companies by DB2013 Thailand reducing the profit tax rate. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Vietnam strengthened investor protections by requiring DB2012 Vietnam higher standards of accountability for company directors. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Russia made filing a commercial case easier by introducing DB2012 Russian Federation an electronic case filing system. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 63 DB year Economy Reform Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Indonesia made getting electricity more difficult by DB2012 Indonesia increasing connection fees. The Philippines adopted a new insolvency law that provides DB2012 Philippines a legal framework for liquidation and reorganization of financially distressed companies. Brunei Darussalam made getting electricity easier by DB2012 Brunei Darussalam establishing a one-stop shop and reducing the time required to obtain an excavation permit. Korea eased the administrative burden of paying taxes for firms by merging several taxes, allowing 4 labor taxes and DB2012 Korea, Rep. contributions to be paid jointly and continuing to increase the use of the online tax payment system. Malaysia made paying taxes costlier for firms by reintroducing the real estate capital gains tax—but also DB2012 Malaysia made tax compliance easier by improving electronic systems and the availability of software. DB2012 Hong Kong SAR, China Hong Kong, China introduced a Minimum Wage. Hong Kong SAR (China) made starting a business easier by DB2012 Hong Kong SAR, China introducing online electronic services for company and business registration. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Malaysia made starting a business easier by merging company, tax, social security and employment fund DB2012 Malaysia registrations at the one-stop shop and providing same-day registration. Australia clarified the priority of claims of unsecured DB2012 Australia creditors over all shareholders’ claims and introduced further regulation of the profession of insolvency practitioners. Chile made business start-up easier by starting to provide an immediate temporary operating license to new companies, DB2012 Chile eliminating the requirement for an inspection of premises by the tax authority before new companies can begin operations and allowing free online publication of the notice Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 64 DB year Economy Reform of a company’s creation. Chile strengthened its secured transactions system by DB2012 Chile implementing a unified collateral registry and a new legal framework for nonpossessory security interests. Canada made paying taxes easier and less costly for DB2012 Canada companies by reducing profit tax rates, eliminating the Ontario capital tax and harmonizing sales taxes. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Thailand made registering property more expensive by DB2012 Thailand increasing the registration fee. Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Russia increased the social security contribution rate for DB2012 Russian Federation employers. Malaysia established dedicated commercial courts to handle DB2012 Malaysia foreclosure proceedings. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. DB2012 Taiwan, China Taiwan (China) made dealing with construction permits Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 65 DB year Economy Reform easier by creating a one-stop center. Indonesia made starting a business easier by introducing a simplified application process allowing an applicant to DB2012 Indonesia simultaneously obtain both a general trading license and a business registration certificate. Taiwan (China) made starting a business easier by DB2012 Taiwan, China implementing an online one-stop shop for business registration. Thailand made starting a business easier by introducing a DB2012 Thailand one-stop shop. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Hong Kong SAR (China) made getting electricity easier by DB2012 Hong Kong SAR, China increasing the efficiency of public agencies and streamlining the utility’s procedures with other government agencies. Malaysia continued to improve the computerization of its DB2012 Malaysia courts by introducing a system making it possible to file complaints electronically. Korea made filing a commercial case easier by introducing DB2012 Korea, Rep. an electronic case filing system. Korea made it easier to deal with insolvency by introducing DB2011 Korea, Rep. postfiling financing, granting superpriority to the repayment of loans given to companies undergoing reorganization. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Taiwan (China) eased business start-up by reducing the time DB2011 Taiwan, China required to check company names, register retirement plans and apply for health, pension and labor insurance. Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business DB2011 Vietnam license and tax license and by eliminating the need for a seal for company licensing. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 66 DB year Economy Reform Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Indonesia eased business start-up by reducing the cost for company name clearance and reservation and the time DB2011 Indonesia required to reserve the name and approve the deed of incorporation. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Vietnam made dealing with construction permits easier by reducing the cost to register newly completed buildings by DB2011 Vietnam 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Thailand made registering property more costly by repealing DB2011 Thailand a 2-year temporary tax reduction for property transfers. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Vietnam improved its credit information system by allowing DB2011 Vietnam borrowers to examine their own credit report and correct errors. Singapore improved its credit information system by DB2011 Singapore collecting and distributing information on firms. Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. In the United States the introduction of a new tax on payroll DB2011 United States increased taxes on companies operating within the New York City metropolitan commuter transportation district. DB2011 Indonesia Indonesia reduced its corporate income tax rate. DB2011 China China’s new corporate income tax law unified the tax regimes for domestic and foreign enterprises and clarified Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 67 DB year Economy Reform the calculation of taxable income for corporate income tax purposes. The government of Vietnam eased paying taxes by reducing DB2011 Vietnam corporate income tax rate. Taiwan (China) reduced the corporate income tax rate and DB2011 Taiwan, China simplified tax return forms, rules for assessing corporate income tax and the calculation of interim tax payments. Thailand temporarily lowered taxes on business by reducing DB2011 Thailand its specific business tax for 12 months. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. An amendment to Chile’s securities law strengthened investor protections by requiring greater corporate DB2011 Chile disclosure and regulating the approval of transactions between interested parties. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Australia introduced the severance payment obligation and reemployment consideration applicable in cases of redundancy dismissals. Annual leave was increased and DB2011 Australia averaging of hours is now allowed in shorter periods of time. In addition, notice period applicable in case of redundancy dismissals was decreased. Malaysia eliminated the requirements to notify third parties DB2011 Malaysia in cases of redundancy dismissals. Malaysia eased business start-up by introducing more online DB2011 Malaysia services. Malaysia’s introduction of online stamping reduced the time DB2011 Malaysia and cost to transfer property. DB2011 Hong Kong SAR, China Hong Kong SAR (China) abolished the fuel tax on diesel. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 68 DB year Economy Reform Reforms implemented in the civil justice system of Hong DB2011 Hong Kong SAR, China Kong SAR (China) will help increase the efficiency and cost- effectiveness of commercial dispute resolution. Japan made it easier to deal with insolvency by establishing a new entity, the Enterprise Turnaround Initiative DB2011 Japan Corporation, to support the revitalization of companies suffering from excessive debt but professionally managed. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. Indonesia reduced the time to export by launching a single- DB2011 Indonesia window service. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. The introduction of an electronic customs system in Brunei DB2011 Brunei Darussalam Darussalam made trading easier. Brunei Darussalam instituted mandatory minimum annual DB2011 Brunei Darussalam leave and reduced notice periods applicable in case of redundancy dismissals. Brunei Darussalam reduced the corporate income tax rate DB2011 Brunei Darussalam from 23.5% to 22% while also introducing a lower tax rate for small businesses, ranging from 5.5% to 11%. Brunei Darussalam made starting a business easier by DB2011 Brunei Darussalam improving efficiency at the company registrar and implementing an electronic system for name searches. The Philippines eased business startup by setting up a one- DB2011 Philippines stop shop at the municipal level. The Philippines made construction permitting more DB2011 Philippines cumbersome through updated electricity connection costs. Operation of a new private credit bureau improved the credit DB2011 Papua New Guinea information system in Papua New Guinea. DB2011 Philippines The Philippines reduced the time and cost to trade by Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 69 DB year Economy Reform improving its electronic customs systems, adding such functions as electronic payments and online submission of declarations. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 70 GETTING ELECTRICITY Access to reliable and affordable electricity is vital WHAT THE GETTING ELECTRICITY for businesses. To counter weak electricity supply, many firms in developing economies have to rely on INDICATORS MEASURE self-supply, often at a prohibitively high cost. Whether electricity is reliably available or not, the Procedures to obtain an electricity connection first step for a customer is always to gain access by (number) obtaining a connection. Submitting all relevant documents and What do the indicators cover? obtaining all necessary clearances and permits Doing Business records all procedures required for a Completing all required notifications and local business to obtain a permanent electricity receiving all necessary inspections connection and supply for a standardized Obtaining external installation works and warehouse, as well as the time and cost to complete possibly purchasing material for these works them. These procedures include applications and Concluding any necessary supply contract and contracts with electricity utilities, clearances from obtaining final supply other agencies and the external and final connection works. In addition, this year Doing Business adds Time required to complete each procedure two new measures: the reliability of supply and (calendar days) transparency of tariffs index (included in the Is at least 1 calendar day aggregate distance to frontier score and ranking on Each procedure starts on a separate day the ease of doing business) and the price of electricity (omitted from these aggregate measures). Does not include time spent gathering The ranking of economies on the ease of getting information electricity is determined by sorting their distance to Reflects the time spent in practice, with little frontier scores for getting electricity. These scores follow-up and no prior contact with officials are the simple average of the distance to frontier Cost required to complete each procedure (% scores for each of the component indicators. To of income per capita) make the data comparable across economies, several assumptions are used. Official costs only, no bribes Assumptions about the warehouse Excludes value added tax The reliability of supply and transparency of The warehouse: tariffs index  Is owned by a local entrepreneur. Sum of the scores of six component indices:  Is located in the economy’s largest business city. Duration and frequency of outages For 11 economies the data are also collected for the second largest business city. Tools to monitor power outages  Is located in an area where similar warehouses Tools to restore power supply are typically located. In this area a new Regulatory monitoring of utilities’ performance electricity connection is not eligible for a special Financial deterrents aimed at limiting outages investment promotion regime (offering special subsidization or faster service, for example). Transparency and accessibility of tariffs  It is located in an area with no physical Price of electricity (cents per kilowatt-hour)* constraints. For example, the property is not Price based on monthly bill for commercial near a railway. warehouse in case study  Is a new construction and is being connected to *Price of electricity is not included in the calculation of electricity for the first time. distance to frontier nor ease of doing business ranking Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 71 The warehouse (continued):   Has two stories, both above ground, with a Assumptions about the monthly consumption total surface area of approximately 1,300.6 square meters (14,000 square feet). The plot  It is assumed that the warehouse operates 30 of land on which it is built is 929 square days a month from 9:00 a.m. to 5:00 p.m. (8 meters (10,000 square feet). hours a day), with equipment utilized at 80% of capacity on average and that there are no  Is used for storage of goods. electricity cuts (assumed for simplicity reasons).  The monthly energy consumption is 26,880 kilowatt- Assumptions about the electricity connection hours (kWh); hourly consumption is 112 kWh. The electricity connection:  If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.  Is a permanent one.  Tariffs effective in March of the current year are  Is a three-phase, four-wire Y connection used for calculation of the price of electricity for with a subscribed capacity of 140-kilo-volt- the warehouse. Although March has 31 days, for ampere (kVA) with a power factor of 1, calculation purposes only 30 days are used. when 1 kVA = 1 kilowatt (kW   Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more common in the area where the warehouse is located.Requires works that involve the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other owners’ private property because the warehouse has access to a road.  Includes only a negligible length in the customer’s private domain.  Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service panel or switchboard and the meter base. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 72 GETTING ELECTRICITY Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in Asia- answer (figure 4.1). The average ranking of the region Pacific Economic Cooperation (APEC) to connect a and comparator regions provide a useful benchmark. warehouse to electricity? The global rankings of these economies on the ease of getting electricity suggest an Figure 4.1 How economies in Asia-Pacific Economic Cooperation (APEC) rank on the ease of getting electricity Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 73 GETTING ELECTRICITY The indicators underlying the rankings may be more time and the cost (figure 4.2). Comparing these revealing. Data collected by Doing Business show what it indicators across the region and with averages both for takes to get a new electricity connection in each the region and for comparator regions can provide economy in the region: the number of procedures, the useful insights. Figure 4.2 What it takes to get an electricity connection in economies in Asia-Pacific Economic Cooperation (APEC) Procedures (number) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 74 GETTING ELECTRICITY Time (days) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 75 GETTING ELECTRICITY Cost (% of income per capita) Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 76 GETTING ELECTRICITY Reliability of supply and transparency of tariff index (0-8) Source: Doing Business database. Note: The index ranges from 0 to 8, with higher values indicating greater reliability of electricity supply and greater transparency of tariffs. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 77 GETTING ELECTRICITY What are the changes over time? Obtaining an electricity connection is essential to enable ensure safety in the connection process while keeping a business to conduct its most basic operations. In many connection costs reasonable, governments around the economies the connection process is complicated by the world have worked to consolidate requirements for multiple laws and regulations involved—covering service obtaining an electricity connection. What reforms in quality, general safety, technical standards, procurement getting electricity has Doing Business recorded in Asia- practices and internal wiring installations. In an effort to Pacific Economic Cooperation (APEC) (table 4.1)? Table 4.1 How have economies in Asia-Pacific Economic Cooperation (APEC) made getting electricity easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform In Malaysia the credit bureau began to provide consumer DB2017 Malaysia credit scores. Hong Kong SAR, China, streamlined the processes of DB2017 Hong Kong SAR, China reviewing applications for new electrical connections and also reduced the time needed to issue an excavation permit. Hong Kong SAR, China, made starting a business less costly DB2017 Hong Kong SAR, China by reducing the business registration fee. Malaysia made starting a business more difficult by requiring DB2017 Malaysia that companies with an annual revenue of more than MYR 500,000 register as a GST payer. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. Malaysia made paying taxes easier by introducing an online system for filing and paying the Goods and Services Tax (GST) DB2017 Malaysia while also making it is more complex by replacing sales tax with GST. Singapore made dealing with construction permits easier by streamlining procedures and improving the online one-stop DB2017 Singapore shop. Russian Federation Saint Petersburg made dealing with DB2017 Russian Federation construction permits easier by removing the requirement to obtain permission to fence the construction site. Indonesia made enforcing contracts easier by introducing a dedicated procedure for small claims that allows for parties’ DB2017 Indonesia self-representation.This reform applies to both Jakarta and Surabaya. DB2017 Russian Federation The Russian Federation made enforcing contracts more Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 78 DB year Economy Reform difficult by mandating pre-trial resolution before filing a claim, thereby lengthening the initial phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. China improved access to credit information by starting to report payment histories from utility companies and DB2017 China providing credit scores to banks and financial institutions. This reform applies to both Shanghai and Beijing. Indonesia strengthened access to credit by establishing a DB2017 Indonesia modern collateral registry. Thailand improved access to credit information by starting to DB2017 Thailand provide credit scores to banks and financial institutions. Indonesia made the process for getting an electricity connection faster by reducing the time for contractors to perform external work thanks to an increase in the stock of DB2017 Indonesia electrical material supplied by the utility. In Surabaya, getting electricity was also made easier after the utility streamlined the process for new connection requests. Vietnam strengthened minority investor protections by making it easier to sue directors in cases of prejudicial transactions between interested parties, by increasing DB2017 Vietnam shareholder rights and role in major corporate decisions, by strengthening the ownership and control structures of companies and by increasing corporate transparency requirements. Thailand made resolving insolvency easier by introducing new DB2017 Thailand restructuring for small and medium-size companies and by streamlining provisions related to company liquidation. Indonesia made it easier to register property by digitizing its DB2017 Indonesia cadastral records and setting up a geographic information system. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Singapore made it easier to transfer a property by DB2017 Singapore introducing an independent mechanism for reporting errors on titles and maps. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 79 DB year Economy Reform Thailand made starting a business easier by creating a single DB2017 Thailand window for registration payment and reducing the time to obtain a company seal. Indonesia made starting a business easier by creating a single form to apply for the company registration certificate and trading license. This reform applies to Jakarta. Indonesia also made starting a business easier by abolishing the minimum DB2017 Indonesia capital requirement for small and medium-size enterprises and by encouraging the use of an online system to reserve company names. This reform applies to both Jakarta and Surabaya. China made starting a business easier by introducing a single DB2017 China form to obtain a business license, organization code and tax registration. This reform applies to both Shanghai and Beijing. Vietnam made starting a business more difficult by requiring DB2017 Vietnam entrepreneurs to receive approval of the seal sample before using it. Vietnam made exporting and importing easier by DB2017 Vietnam implementing electronic customs clearance system. Indonesia made exporting and importing easier by improving DB2017 Indonesia the customs services and document submission functions of the Indonesia National Single Window. Singapore made paying taxes easier by introducing improvements to the online system for filing corporate DB2017 Singapore income tax returns and VAT returns. At the same, the social security contribution rate paid by employers increased and the rebate of 30% on vehicle tax expired. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. New Zealand made paying taxes easier by abolishing the cheque levy. New Zealand made paying less costly by decreasing the rate of accident compensation levy paid by DB2017 New Zealand employers. At the same time, New Zealand made paying taxes more costly by raising property tax and road user levy rates. Indonesia made paying taxes easier by introducing an online system for filing and paying health contributions. Indonesia DB2017 Indonesia also made paying taxes more costly by levying a new pension contribution at a rate of 2% paid by employers. These reforms apply to both Jakarta and Surabaya. Japan made paying taxes easier by disclosing the technical specifications of the eTax platform and allowing the upload of DB2017 Japan additional information in comma separated value (CSV) format. The restoration surtax was also abolished. However, a local corporation tax was introduced and the rates of special Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 80 DB year Economy Reform local corporation tax, inhabitants tax and enterprise tax were raised. Welfare pension premiums were also raised. These reforms apply to both Tokyo and Osaka. However, the rate for health insurance contributions paid by employers was reduced only in Osaka. Vietnam made paying taxes easier and less costly by DB2017 Vietnam streamlining the administrative process of complying with tax obligations and abolishing environmental protection fees. Brunei Darussalam strengthened access to credit by adopting a new insolvency law that contemplates protections for secured creditors during an automatic stay in reorganization DB2017 Brunei Darussalam proceedings. Brunei also improved access to credit information by beginning to distribute data from two utility companies. The utility in Brunei Darussalam streamlined the processes of reviewing applications, and the time to issue an excavation permit was reduced. In addition, Brunei Darussalam increased the reliability of power supply by rolling out a Supervisory DB2017 Brunei Darussalam Control and Data Acquisition (SCADA) automatic energy management system for the monitoring of outages and the restoration of service. Brunei Darussalam strengthened minority investor protections by clarifying ownership and control structures, DB2017 Brunei Darussalam making it easier to sue directors in case of prejudicial related- party transactions, and allowing the rescission of related- party transactions that harm the company. Brunei Darussalam made resolving insolvency easier by adopting a new insolvency law that introduced a reorganization procedure and facilitated continuation of the DB2017 Brunei Darussalam debtor’s business during insolvency proceedings. Brunei Darussalam also introduced regulations for insolvency practitioners. Brunei Darussalam made paying taxes easier by fully DB2017 Brunei Darussalam implementing an electronic system for filing and paying corporate income tax. The Philippines made dealing with construction permits easier DB2017 Philippines by increasing the transparency of its building regulations. Papua New Guinea strengthened access to credit by adopting a new law on secured transactions that implemented a functional secured transactions system and established a DB2017 Papua New Guinea centralized, notice-based collateral registry. The new law broadens the scope of assets that can be used as collateral and allows out-of-court enforcement of collateral. Papua New Guinea reduced the time required to start a DB2017 Papua New Guinea business by streamlining business registration at the Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 81 DB year Economy Reform Investment Promotion Agency (IPA). The Philippines made paying taxes easier by introducing an online system for filing and paying health contributions and DB2017 Philippines by allowing for the online corporate income tax and VAT returns to be completed offline. Brunei Darussalam made enforcing contracts easier by DB2017 Brunei Darussalam introducing an electronic filing system as well as a platform that allows users to pay court fees electronically. The Philippines made starting a business easier by streamlining communications between the Securities and DB2016 Philippines Exchange Commission and the Social Security System and thereby expediting the process of issuing an employer registration number. Brunei Darussalam made paying taxes easier and less costly for companies by merging contributions for the Employee Provident Fund and the Supplemental Pension Fund and DB2016 Brunei Darussalam increasing the capital allowance for industrial buildings. In addition, it reduced the corporate income tax rate, though it also abolished the partial exemption of income and introduced a flat rate. Brunei Darussalam made starting a business easier by DB2016 Brunei Darussalam improving online procedures and simplifying registration and post registration requirements. Chile made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, introducing provisions to facilitate the continuation of the DB2016 Chile debtor’s business during insolvency, establishing a public office responsible for the general administration of insolvency proceedings and creating specialized insolvency courts. Chile made paying taxes more costly for companies by DB2016 Chile increasing the corporate income tax rate. The utility in Hong Kong SAR, China, made getting electricity easier by streamlining the process for reviewing connection DB2016 Hong Kong SAR, China applications and for completing the connection works and meter installation. In addition, the time needed to issue an excavation permit was reduced. The Republic of Korea made paying taxes more complicated and costly for companies by requiring separate filing and DB2016 Korea, Rep. payment of the local income tax and by increasing the rates for unemployment insurance and national health insurance paid by employers. Hong Kong SAR, China, made paying taxes easier and less DB2016 Hong Kong SAR, China costly for companies by simplifying compliance with the mandatory provident fund obligations and increasing the Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 82 DB year Economy Reform allowance for profit tax. At the same time, it increased the maximum contribution to the mandatory provident fund and reduced the property tax waiver. Malaysia made paying taxes easier and less costly for companies by making electronic filing mandatory and DB2016 Malaysia reducing the property tax rate. At the same time, it also increased the capital gains tax. Hong Kong SAR, China, made starting a business easier by DB2016 Hong Kong SAR, China eliminating the requirement for a company seal. Hong Kong SAR, China, improved access to credit by DB2016 Hong Kong SAR, China implementing a modern collateral registry. The utility in Vietnam reduced the time required for getting an electricity connection by reducing delays and increasing efficiency in approving connection applications and designs for connection works. Getting electricity was also made easier DB2016 Vietnam by eliminating the need to obtain a substation certification from the Fire Fighters Prevention Department for connections to the medium-voltage grid. Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. The utility in Taiwan, China, reduced the time required for getting an electricity connection through a simplified DB2016 Taiwan, China procedure for obtaining excavation permits from the municipality. The utility in New Zealand reduced the time required for getting an electricity connection by improving its payment DB2016 New Zealand monitoring and confirmation process for the connection works. Vietnam made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, modifying the standard for commencement of insolvency DB2016 Vietnam proceedings, changing provisions on voidable transactions, regulating the profession of insolvency trustees and establishing the rules for enterprise asset managers. Vietnam made paying taxes less costly for companies by reducing the corporate income tax rate—and made it easier by reducing the number of procedures and documents for DB2016 Vietnam filing VAT and social security contributions, reducing the number of filings for VAT and replacing quarterly filings of corporate income tax with quarterly advance payments. On the other hand, Vietnam increased the rate for social security Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 83 DB year Economy Reform contributions paid by employers. Indonesia made paying taxes easier and less costly for companies by introducing an online system for paying social DB2016 Indonesia security contributions and by reducing both the rate paid by employers and the ceiling for the contributions. This reform applies to both Jakarta and Surabaya. China made paying taxes less costly for companies in DB2016 China Shanghai by reducing the social security contribution rate. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be deductible. DB2016 Mexico These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Indonesia made starting a business in Jakarta easier by DB2016 Indonesia reducing the time needed to register with the Ministry of Manpower. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Vietnam made starting a business easier by reducing the time DB2016 Vietnam required to get the company seal engraved and registered. Indonesia improved access to credit by enabling searches of DB2016 Indonesia the collateral registry by the debtor’s name. This reform applies to both Jakarta and Surabaya. Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral DB2016 Russian Federation registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 84 DB year Economy Reform Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Vietnam guaranteed borrowers’ right to inspect their credit DB2016 Vietnam data while the new credit bureau expanded borrower coverage, improving the credit information system. Peru improved its credit information system by implementing DB2016 Peru a new law on personal data protection. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. Taiwan, China, improved access to credit information by DB2015 Taiwan, China beginning to include data from utility companies in credit reports. Vietnam improved its credit information system by DB2015 Vietnam establishing a new credit bureau. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. Hong Kong SAR, China, strengthened minority investor protections by introducing requirements for directors to DB2015 Hong Kong SAR, China provide more detailed disclosure of conflicts of interest to the other board members. The Republic of Korea strengthened minority investor DB2015 Korea, Rep. protections by increasing the level of transparency expected from companies on managerial compensation. The Republic of Korea made transferring property easier by DB2015 Korea, Rep. reducing the time needed to buy housing bonds and to register the property transfer. Hong Kong SAR, China, made starting a business more DB2015 Hong Kong SAR, China difficult by increasing the registration fee. Taiwan, China, made getting electricity easier by eliminating DB2015 Taiwan, China site inspections. In Indonesia the electricity company in Jakarta made getting electricity easier by eliminating the need for electrical contractors to obtain multiple certificates guaranteeing the DB2015 Indonesia safety of internal installations—though. The utility in Jakarta and Surabaya also increased the cost by introducing a security deposit for new connections. Thailand made dealing with construction permits less time- DB2015 Thailand consuming by introducing a fast-track approval process for Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 85 DB year Economy Reform building permits for smaller buildings. Singapore made enforcing contracts easier by introducing a DB2015 Singapore new electronic litigation system that streamlines litigation proceedings. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. Taiwan, China, made paying taxes easier for companies by DB2015 Taiwan, China introducing an electronic system for paying the vehicle license tax. Indonesia made paying taxes less costly for companies by DB2015 Indonesia reducing employers’ health insurance contribution rate. This reform applies to both Jakarta and Surabaya. China made paying taxes easier for companies by enhancing the electronic system for filing and paying taxes and adopting new communication channels within its taxpayer service, DB2015 China changes applying to both Beijing and Shanghai. In addition, China made paying taxes less costly for companies in Shanghai by reducing the social security contribution rate. Vietnam made paying taxes less costly for companies by DB2015 Vietnam reducing the corporate income tax rate. The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing DB2015 Russian Federation tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. In the United States starting a business became easier in New DB2015 United States York City thanks to faster online procedures. China made starting a business easier by eliminating both the minimum capital requirement and the requirement to obtain DB2015 China a capital verification report from an auditing firm. This reform applies to both Beijing and Shanghai. Indonesia made starting a business easier by allowing the Ministry of Law and Human Rights to electronically issue the DB2015 Indonesia approval letter for the deed of establishment. This reform applies to both Jakarta and Surabaya. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 86 DB year Economy Reform In Indonesia trading across borders became more difficult DB2015 Indonesia because of insufficient infrastructure at the Tanjung Priok Port Jakarta. This change applies to both Jakarta and Surabaya. Brunei Darussalam made dealing with construction permits DB2015 Brunei Darussalam easier by consolidating final inspections. Brunei Darussalam made paying taxes easier for companies by allowing joint filing and payment of supplemental DB2015 Brunei Darussalam contributory pension and employee provident fund contributions and by introducing an online system for paying these 2 contributions. In the Philippines trading across borders became more DB2015 Philippines difficult because of a new city ordinance restricting truck traffic in Manila. The Philippines improved access to credit information by beginning to distribute both positive and negative DB2014 Philippines information and by enacting a data privacy act that guarantees borrowers’ right to access their data. Brunei Darussalam improved access to credit information by DB2014 Brunei Darussalam establishing a public credit registry. The Philippines made dealing with construction permits easier DB2014 Philippines by eliminating the requirement to obtain a health certificate. The Philippines made paying taxes easier for companies by DB2014 Philippines introducing an electronic filing and payment system for social security contributions. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a DB2014 Mexico “silence is consent” rule for the approval of the feasibility study for a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. New Zealand made enforcing contracts easier by improving DB2014 New Zealand its case management system to ensure a speedier and less costly adjudication of cases. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. DB2014 China China made enforcing contracts easier by amending its civil Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 87 DB year Economy Reform procedure code to streamline and speed up all court proceedings. Thailand made paying taxes less costly for companies by DB2014 Thailand reducing employers' social security contribution rate. Vietnam made paying taxes more costly for companies by DB2014 Vietnam increasing employers' social security contribution rate. Vietnam strengthened investor protections by introducing DB2014 Vietnam greater disclosure requirements for publicly held companies in cases of related-party transactions. Singapore made transferring property easier by introducing DB2014 Singapore an online procedure for property transfers. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Vietnam abolished priority rules for redundancy dismissals or DB2014 Vietnam layoffs and increased the minimum wage. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. Malaysia made getting electricity easier by increasing the DB2014 Malaysia efficiency of internal processes at the utility and improving its communication and dialogue with contractors. Malaysia made dealing with construction permits easier by DB2014 Malaysia establishing a one-stop shop. Hong Kong SAR, China, made transferring property more DB2014 Hong Kong SAR, China costly by increasing the stamp duty. Malaysia made starting a business less costly by reducing the DB2014 Malaysia company registration fees. Hong Kong SAR, China, made starting a business less costly DB2014 Hong Kong SAR, China by abolishing the capital duty levied on local companies. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 88 DB year Economy Reform DB2014 Malaysia Malaysia introduced a minimum wage. Australia improved its credit information system through the Privacy Amendment (Enhancing Privacy Protection) DB2014 Australia Act 2012, which permits credit bureaus to collect account payment history with improved privacy protection. China improved its credit information system by introducing DB2014 China credit information industry regulations, which guarantee borrowers’ right to inspect their data. Indonesia improved its credit information system through a DB2014 Indonesia new regulation setting up a legal framework for establishing credit bureaus. Vietnam improved its credit information system through a DB2014 Vietnam decree setting up a legal framework for the establishment of private credit bureaus. Singapore improved its credit information system by DB2014 Singapore guaranteeing by law borrowers’ right to inspect their own data. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Thailand made starting a business easier by allowing the DB2013 Thailand registrar at the Department of Business Development to receive the company’s work regulations. Vietnam made starting a business easier by allowing DB2013 Vietnam companies to use self-printed value added tax invoices. China made starting a business less costly by exempting DB2013 China micro and small companies from paying several administrative fees from January 2012 to December 2014. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. Taiwan, China, made dealing with construction permits easier by introducing a risk-based and self-regulatory inspection DB2013 Taiwan, China system and improving operational features of the one-stop shop for building permits. China simplified the process of obtaining a construction DB2013 China permit by streamlining and centralizing preconstruction approvals. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 89 DB year Economy Reform Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Taiwan, China, strengthened investor protections by increasing disclosure requirements for related-party DB2013 Taiwan, China transactions and improving the liability regime for company directors in cases where such transactions are abusive. Australia strengthened its secured transactions system by adopting a new national legal regime governing the DB2013 Australia enforceability of security interests in personal property and implementing a unified collateral registry. Canada made getting an electricity connection easier by DB2013 Canada reducing the time needed for external connection works. Malaysia made dealing with construction permits faster by DB2013 Malaysia improving the one-stop center for new buildings and by reducing the time to connect to telephone service. Malaysia substantially reduced the number of days it takes to DB2013 Malaysia register property transfers. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Brunei Darussalam made dealing with construction permits DB2013 Brunei Darussalam easier by creating a one-stop shop for preconstruction approvals. Brunei Darussalam made paying taxes less costly for DB2013 Brunei Darussalam companies by reducing the profit tax rate. Indonesia made getting electricity easier by eliminating the requirement for new customers applying for an electricity DB2013 Indonesia connection to show a neighbor’s electricity bill as a way to help determine their address. In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training DB2013 Mexico opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials. Russia eased the administrative burden of taxes for firms by DB2013 Russian Federation simplifying compliance procedures for value added tax and Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 90 DB year Economy Reform by promoting the use of tax accounting software and electronic services. Japan made paying taxes less costly for companies by DB2013 Japan reducing the corporate income tax rate—though it also introduced a restoration surtax for a 3-year period. Thailand made paying taxes less costly for companies by DB2013 Thailand reducing the profit tax rate. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Vietnam strengthened investor protections by requiring DB2012 Vietnam higher standards of accountability for company directors. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Indonesia made getting electricity more difficult by increasing DB2012 Indonesia connection fees. The Philippines adopted a new insolvency law that provides a DB2012 Philippines legal framework for liquidation and reorganization of financially distressed companies. Brunei Darussalam made getting electricity easier by DB2012 Brunei Darussalam establishing a one-stop shop and reducing the time required to obtain an excavation permit. Korea eased the administrative burden of paying taxes for firms by merging several taxes, allowing 4 labor taxes and DB2012 Korea, Rep. contributions to be paid jointly and continuing to increase the use of the online tax payment system. Malaysia made paying taxes costlier for firms by reintroducing the real estate capital gains tax—but also made DB2012 Malaysia tax compliance easier by improving electronic systems and the availability of software. DB2012 Hong Kong SAR, China Hong Kong, China introduced a Minimum Wage. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 91 DB year Economy Reform Hong Kong SAR (China) made starting a business easier by DB2012 Hong Kong SAR, China introducing online electronic services for company and business registration. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Malaysia made starting a business easier by merging company, tax, social security and employment fund DB2012 Malaysia registrations at the one-stop shop and providing same-day registration. Australia clarified the priority of claims of unsecured creditors DB2012 Australia over all shareholders’ claims and introduced further regulation of the profession of insolvency practitioners. Chile made business start-up easier by starting to provide an immediate temporary operating license to new companies, eliminating the requirement for an inspection of premises by DB2012 Chile the tax authority before new companies can begin operations and allowing free online publication of the notice of a company’s creation. Chile strengthened its secured transactions system by DB2012 Chile implementing a unified collateral registry and a new legal framework for nonpossessory security interests. Canada made paying taxes easier and less costly for DB2012 Canada companies by reducing profit tax rates, eliminating the Ontario capital tax and harmonizing sales taxes. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Thailand made registering property more expensive by DB2012 Thailand increasing the registration fee. Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes DB2012 Russian Federation Russia increased the social security contribution rate for Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 92 DB year Economy Reform employers. Malaysia established dedicated commercial courts to handle DB2012 Malaysia foreclosure proceedings. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. Taiwan (China) made dealing with construction permits easier DB2012 Taiwan, China by creating a one-stop center. Indonesia made starting a business easier by introducing a simplified application process allowing an applicant to DB2012 Indonesia simultaneously obtain both a general trading license and a business registration certificate. Taiwan (China) made starting a business easier by DB2012 Taiwan, China implementing an online one-stop shop for business registration. Thailand made starting a business easier by introducing a DB2012 Thailand one-stop shop. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Hong Kong SAR (China) made getting electricity easier by DB2012 Hong Kong SAR, China increasing the efficiency of public agencies and streamlining the utility’s procedures with other government agencies. Malaysia continued to improve the computerization of its DB2012 Malaysia courts by introducing a system making it possible to file complaints electronically. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Korea made it easier to deal with insolvency by introducing DB2011 Korea, Rep. postfiling financing, granting superpriority to the repayment of loans given to companies undergoing reorganization. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Taiwan (China) eased business start-up by reducing the time DB2011 Taiwan, China required to check company names, register retirement plans and apply for health, pension and labor insurance. Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business DB2011 Vietnam license and tax license and by eliminating the need for a seal for company licensing. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 93 DB year Economy Reform Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Indonesia eased business start-up by reducing the cost for company name clearance and reservation and the time DB2011 Indonesia required to reserve the name and approve the deed of incorporation. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Vietnam made dealing with construction permits easier by reducing the cost to register newly completed buildings by DB2011 Vietnam 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Thailand made registering property more costly by repealing DB2011 Thailand a 2-year temporary tax reduction for property transfers. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Vietnam improved its credit information system by allowing DB2011 Vietnam borrowers to examine their own credit report and correct errors. Singapore improved its credit information system by DB2011 Singapore collecting and distributing information on firms. Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. In the United States the introduction of a new tax on payroll DB2011 United States increased taxes on companies operating within the New York City metropolitan commuter transportation district. DB2011 Indonesia Indonesia reduced its corporate income tax rate. China’s new corporate income tax law unified the tax regimes for domestic and foreign enterprises and clarified the DB2011 China calculation of taxable income for corporate income tax purposes. The government of Vietnam eased paying taxes by reducing DB2011 Vietnam corporate income tax rate. Taiwan (China) reduced the corporate income tax rate and DB2011 Taiwan, China simplified tax return forms, rules for assessing corporate income tax and the calculation of interim tax payments. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 94 DB year Economy Reform Thailand temporarily lowered taxes on business by reducing DB2011 Thailand its specific business tax for 12 months. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. An amendment to Chile’s securities law strengthened investor protections by requiring greater corporate disclosure and DB2011 Chile regulating the approval of transactions between interested parties. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Australia introduced the severance payment obligation and reemployment consideration applicable in cases of redundancy dismissals. Annual leave was increased and DB2011 Australia averaging of hours is now allowed in shorter periods of time. In addition, notice period applicable in case of redundancy dismissals was decreased. Malaysia eliminated the requirements to notify third parties in DB2011 Malaysia cases of redundancy dismissals. Malaysia eased business start-up by introducing more online DB2011 Malaysia services. Malaysia’s introduction of online stamping reduced the time DB2011 Malaysia and cost to transfer property. DB2011 Hong Kong SAR, China Hong Kong SAR (China) abolished the fuel tax on diesel. Reforms implemented in the civil justice system of Hong DB2011 Hong Kong SAR, China Kong SAR (China) will help increase the efficiency and cost- effectiveness of commercial dispute resolution. Japan made it easier to deal with insolvency by establishing a new entity, the Enterprise Turnaround Initiative Corporation, DB2011 Japan to support the revitalization of companies suffering from excessive debt but professionally managed. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. Indonesia reduced the time to export by launching a single- DB2011 Indonesia window service. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 95 DB year Economy Reform and payment deferrals. The introduction of an electronic customs system in Brunei DB2011 Brunei Darussalam Darussalam made trading easier. Brunei Darussalam instituted mandatory minimum annual DB2011 Brunei Darussalam leave and reduced notice periods applicable in case of redundancy dismissals. Brunei Darussalam reduced the corporate income tax rate DB2011 Brunei Darussalam from 23.5% to 22% while also introducing a lower tax rate for small businesses, ranging from 5.5% to 11%. Brunei Darussalam made starting a business easier by DB2011 Brunei Darussalam improving efficiency at the company registrar and implementing an electronic system for name searches. The Philippines eased business startup by setting up a one- DB2011 Philippines stop shop at the municipal level. The Philippines made construction permitting more DB2011 Philippines cumbersome through updated electricity connection costs. Operation of a new private credit bureau improved the credit DB2011 Papua New Guinea information system in Papua New Guinea. The Philippines reduced the time and cost to trade by improving its electronic customs systems, adding such DB2011 Philippines functions as electronic payments and online submission of declarations. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 96 REGISTERING PROPERTY Ensuring formal property rights is fundamental. WHAT THE REGISTERING PROPERTY Effective administration of land is part of that. If INDICATORS MEASURE formal property transfer is too costly or complicated, formal titles might go informal again. And where property is informal or poorly Procedures to legally transfer title on administered, it has little chance of being accepted immovable property (number) as collateral for loans—limiting access to finance. Preregistration (for example, checking for liens, notarizing sales agreement, paying property What do the indicators cover? transfer taxes) Doing Business records the full sequence of Registration in the economy’s largest business procedures necessary for a business to purchase city2 property from another business and transfer the property title to the buyer’s name. The transaction is Postregistration (for example, filing title with the municipality) considered complete when it is opposable to third parties and when the buyer can use the property, Time required to complete each procedure use it as collateral for a bank loan or resell it. In (calendar days) addition, this year Doing Business adds a new Does not include time spent gathering measure to the set of registering property information indicators, an index of the quality of the land administration system in each economy. The Each procedure starts on a separate day. ranking of economies on the ease of registering Procedures that can be fully completed online are recorded as ½ day. property is determined by sorting their distance to frontier scores for registering property. These scores Procedure considered completed once final are the simple average of the distance to frontier document is received scores for each of the component indicators. To No prior contact with officials make the data comparable across economies, several assumptions about the parties to the Cost required to complete each procedure transaction, the property and the procedures are (% of property value) used. Official costs only, no bribes The parties (buyer and seller): No value added or capital gains taxes included  Are limited liability companies (or the legal Quality of land administration index (0-30) equivalent).1.  Is located in a periurban commercial zone, and no  Are located in the periurban area of the rezoning is required. economy’s largest business city. For 11 economies the data are also collected for the  Has no mortgages attached, has been under the second largest business city same ownership for the past 10 years.  Are 100% domestically and privately owned  Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-story  Have 50 employees each, all of whom are warehouse of 929 square meters (10,000 square feet) nationals is located on the land. The warehouse is 10 years old,  Perform general commercial activities. is in good condition and complies with all safety standards, building codes and other legal requirements. It has no heating system. The property of land and building will be transferred in its entirety 1 For the 11 economies with a population of more than 100 million, data for a second city have been added. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 97 The property (fully owned by the seller):  Will not be subject to renovations or additional building following the purchase.  Has a value of 50 times income per capita. The sale price equals the value and entire property  Has no trees, natural water sources, natural reserves will be transferred. or historical monuments of any kind.  Is fully owned by the seller  Will not be used for special purposes, and no special permits, such as for residential use, industrial plants,  Is registered in the land registry or cada-stre, or waste storage or certain types of agricultural both, and is free of title disputes. activities, are required.  Has no occupants, and no other party holds a legal interest in it.  . Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 98 REGISTERING PROPERTY Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in Asia- ease of registering property suggest an answer (figure Pacific Economic Cooperation (APEC) to transfer 5.1). The average ranking of the region and comparator property? The global rankings of these economies on the regions provide a useful benchmark. Figure 5.1 How economies in Asia-Pacific Economic Cooperation (APEC) rank on the ease of registering property Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 99 REGISTERING PROPERTY The indicators underlying the rankings may be more time and the cost (figure 5.2). Comparing these revealing. Data collected by Doing Business show what indicators across the region and with averages both for it takes to complete a property transfer in each the region and for comparator regions can provide economy in the region: the number of procedures, the useful insights. Figure 5.2 What it takes to register property in economies in Asia-Pacific Economic Cooperation (APEC) Procedures (number) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 100 REGISTERING PROPERTY Time (days) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 101 REGISTERING PROPERTY Cost (% of property value) * Indicates a “no practice” mark. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice” mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a competing regulation prohibits such practice. Either way, a “no practice” mark puts the economy at the bottom of the ranking on the relevant indic ator. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 102 REGISTERING PROPERTY Quality of Land Administration Index (0-30) * Indicates a “no practice” mark. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice” mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a competing regulation prohibits such practice. Either way, a “no practice” mark puts the economy at the bottom of the ranking on the relevant indicator. Source: Doing Business database. Note: The index ranges from 0 to 30, with higher values indicating better quality of the land administration system. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 103 REGISTERING PROPERTY What are the changes over time? Economies worldwide have been making it easier for buyers to use or mortgage their property earlier. What entrepreneurs to register and transfer property—such as property registration reforms has Doing Business by computerizing land registries, introducing time limits recorded in Asia-Pacific Economic Cooperation (APEC) for procedures and setting low fixed fees. Many have cut (table 5.1)? the time required substantially—enabling Table 5.1 How have economies in Asia-Pacific Economic Cooperation (APEC) made registering property easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform In Malaysia the credit bureau began to provide consumer DB2017 Malaysia credit scores. Hong Kong SAR, China, streamlined the processes of DB2017 Hong Kong SAR, China reviewing applications for new electrical connections and also reduced the time needed to issue an excavation permit. Hong Kong SAR, China, made starting a business less costly DB2017 Hong Kong SAR, China by reducing the business registration fee. Malaysia made starting a business more difficult by requiring DB2017 Malaysia that companies with an annual revenue of more than MYR 500,000 register as a GST payer. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. Malaysia made paying taxes easier by introducing an online system for filing and paying the Goods and Services Tax (GST) DB2017 Malaysia while also making it is more complex by replacing sales tax with GST. Singapore made dealing with construction permits easier by streamlining procedures and improving the online one-stop DB2017 Singapore shop. DB2017 Russian Federation Russian Federation Saint Petersburg made dealing with construction permits easier by removing the requirement to Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 104 DB year Economy Reform obtain permission to fence the construction site. Indonesia made enforcing contracts easier by introducing a dedicated procedure for small claims that allows for parties’ DB2017 Indonesia self-representation.This reform applies to both Jakarta and Surabaya. The Russian Federation made enforcing contracts more difficult by mandating pre-trial resolution before filing a claim, thereby lengthening the initial DB2017 Russian Federation phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. China improved access to credit information by starting to report payment histories from utility companies and DB2017 China providing credit scores to banks and financial institutions. This reform applies to both Shanghai and Beijing. Indonesia strengthened access to credit by establishing a DB2017 Indonesia modern collateral registry. Thailand improved access to credit information by starting to DB2017 Thailand provide credit scores to banks and financial institutions. Indonesia made the process for getting an electricity connection faster by reducing the time for contractors to perform external work thanks to an increase in the stock of DB2017 Indonesia electrical material supplied by the utility. In Surabaya, getting electricity was also made easier after the utility streamlined the process for new connection requests. Vietnam strengthened minority investor protections by DB2017 Vietnam making it easier to sue directors in cases of prejudicial transactions between interested parties, by increasing shareholder rights and role in major corporate decisions, by Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 105 DB year Economy Reform strengthening the ownership and control structures of companies and by increasing corporate transparency requirements. Thailand made resolving insolvency easier by introducing new DB2017 Thailand restructuring for small and medium-size companies and by streamlining provisions related to company liquidation. Indonesia made it easier to register property by digitizing its DB2017 Indonesia cadastral records and setting up a geographic information system. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Singapore made it easier to transfer a property by DB2017 Singapore introducing an independent mechanism for reporting errors on titles and maps. Thailand made starting a business easier by creating a single DB2017 Thailand window for registration payment and reducing the time to obtain a company seal. Indonesia made starting a business easier by creating a single form to apply for the company registration certificate and trading license. This reform applies to Jakarta. Indonesia also made starting a business easier by abolishing the minimum DB2017 Indonesia capital requirement for small and medium-size enterprises and by encouraging the use of an online system to reserve company names. This reform applies to both Jakarta and Surabaya. China made starting a business easier by introducing a single DB2017 China form to obtain a business license, organization code and tax registration. This reform applies to both Shanghai and Beijing. Vietnam made starting a business more difficult by requiring DB2017 Vietnam entrepreneurs to receive approval of the seal sample before using it. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 106 DB year Economy Reform Vietnam made exporting and importing easier by DB2017 Vietnam implementing electronic customs clearance system. Indonesia made exporting and importing easier by improving DB2017 Indonesia the customs services and document submission functions of the Indonesia National Single Window. Singapore made paying taxes easier by introducing improvements to the online system for filing corporate DB2017 Singapore income tax returns and VAT returns. At the same, the social security contribution rate paid by employers increased and the rebate of 30% on vehicle tax expired. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. New Zealand made paying taxes easier by abolishing the cheque levy. New Zealand made paying less costly by decreasing the rate of accident compensation levy paid by DB2017 New Zealand employers. At the same time, New Zealand made paying taxes more costly by raising property tax and road user levy rates. Indonesia made paying taxes easier by introducing an online system for filing and paying health contributions. Indonesia DB2017 Indonesia also made paying taxes more costly by levying a new pension contribution at a rate of 2% paid by employers. These reforms apply to both Jakarta and Surabaya. Japan made paying taxes easier by disclosing the technical specifications of the eTax platform and allowing the upload of additional information in comma separated value (CSV) format. The restoration surtax was also abolished. However, a local corporation tax was introduced and the rates of special DB2017 Japan local corporation tax, inhabitants tax and enterprise tax were raised. Welfare pension premiums were also raised. These reforms apply to both Tokyo and Osaka. However, the rate for health insurance contributions paid by employers was reduced only in Osaka. DB2017 Vietnam Vietnam made paying taxes easier and less costly by Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 107 DB year Economy Reform streamlining the administrative process of complying with tax obligations and abolishing environmental protection fees. Brunei Darussalam strengthened access to credit by adopting a new insolvency law that contemplates protections for secured creditors during an automatic stay in reorganization DB2017 Brunei Darussalam proceedings. Brunei also improved access to credit information by beginning to distribute data from two utility companies. The utility in Brunei Darussalam streamlined the processes of reviewing applications, and the time to issue an excavation permit was reduced. In addition, Brunei Darussalam increased the reliability of power supply by rolling out a Supervisory DB2017 Brunei Darussalam Control and Data Acquisition (SCADA) automatic energy management system for the monitoring of outages and the restoration of service. Brunei Darussalam strengthened minority investor protections by clarifying ownership and control structures, DB2017 Brunei Darussalam making it easier to sue directors in case of prejudicial related- party transactions, and allowing the rescission of related- party transactions that harm the company. Brunei Darussalam made resolving insolvency easier by adopting a new insolvency law that introduced a reorganization procedure and facilitated continuation of the DB2017 Brunei Darussalam debtor’s business during insolvency proceedings. Brunei Darussalam also introduced regulations for insolvency practitioners. Brunei Darussalam made paying taxes easier by fully DB2017 Brunei Darussalam implementing an electronic system for filing and paying corporate income tax. The Philippines made dealing with construction permits easier DB2017 Philippines by increasing the transparency of its building regulations. DB2017 Papua New Guinea Papua New Guinea strengthened access to credit by adopting a new law on secured transactions that implemented a Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 108 DB year Economy Reform functional secured transactions system and established a centralized, notice-based collateral registry. The new law broadens the scope of assets that can be used as collateral and allows out-of-court enforcement of collateral. Papua New Guinea reduced the time required to start a DB2017 Papua New Guinea business by streamlining business registration at the Investment Promotion Agency (IPA). The Philippines made paying taxes easier by introducing an online system for filing and paying health contributions and DB2017 Philippines by allowing for the online corporate income tax and VAT returns to be completed offline. Brunei Darussalam made enforcing contracts easier by DB2017 Brunei Darussalam introducing an electronic filing system as well as a platform that allows users to pay court fees electronically. The Philippines made starting a business easier by streamlining communications between the Securities and DB2016 Philippines Exchange Commission and the Social Security System and thereby expediting the process of issuing an employer registration number. Brunei Darussalam made paying taxes easier and less costly for companies by merging contributions for the Employee Provident Fund and the Supplemental Pension Fund and DB2016 Brunei Darussalam increasing the capital allowance for industrial buildings. In addition, it reduced the corporate income tax rate, though it also abolished the partial exemption of income and introduced a flat rate. Brunei Darussalam made starting a business easier by DB2016 Brunei Darussalam improving online procedures and simplifying registration and post registration requirements. Chile made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, DB2016 Chile introducing provisions to facilitate the continuation of the debtor’s business during insolvency, establishing a public office responsible for the general administration of insolvency Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 109 DB year Economy Reform proceedings and creating specialized insolvency courts. Chile made paying taxes more costly for companies by DB2016 Chile increasing the corporate income tax rate. The utility in Hong Kong SAR, China, made getting electricity easier by streamlining the process for reviewing connection DB2016 Hong Kong SAR, China applications and for completing the connection works and meter installation. In addition, the time needed to issue an excavation permit was reduced. The Republic of Korea made paying taxes more complicated and costly for companies by requiring separate filing and DB2016 Korea, Rep. payment of the local income tax and by increasing the rates for unemployment insurance and national health insurance paid by employers. Hong Kong SAR, China, made paying taxes easier and less costly for companies by simplifying compliance with the mandatory provident fund obligations and increasing the DB2016 Hong Kong SAR, China allowance for profit tax. At the same time, it increased the maximum contribution to the mandatory provident fund and reduced the property tax waiver. Malaysia made paying taxes easier and less costly for companies by making electronic filing mandatory and DB2016 Malaysia reducing the property tax rate. At the same time, it also increased the capital gains tax. Hong Kong SAR, China, made starting a business easier by DB2016 Hong Kong SAR, China eliminating the requirement for a company seal. Hong Kong SAR, China, improved access to credit by DB2016 Hong Kong SAR, China implementing a modern collateral registry. The utility in Vietnam reduced the time required for getting an electricity connection by reducing delays and increasing efficiency in approving connection applications and designs DB2016 Vietnam for connection works. Getting electricity was also made easier by eliminating the need to obtain a substation certification from the Fire Fighters Prevention Department for connections to the medium-voltage grid. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 110 DB year Economy Reform Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. The utility in Taiwan, China, reduced the time required for getting an electricity connection through a simplified DB2016 Taiwan, China procedure for obtaining excavation permits from the municipality. The utility in New Zealand reduced the time required for getting an electricity connection by improving its payment DB2016 New Zealand monitoring and confirmation process for the connection works. Vietnam made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, modifying the standard for commencement of insolvency DB2016 Vietnam proceedings, changing provisions on voidable transactions, regulating the profession of insolvency trustees and establishing the rules for enterprise asset managers. Vietnam made paying taxes less costly for companies by reducing the corporate income tax rate—and made it easier by reducing the number of procedures and documents for filing VAT and social security contributions, reducing the DB2016 Vietnam number of filings for VAT and replacing quarterly filings of corporate income tax with quarterly advance payments. On the other hand, Vietnam increased the rate for social security contributions paid by employers. Indonesia made paying taxes easier and less costly for companies by introducing an online system for paying social DB2016 Indonesia security contributions and by reducing both the rate paid by employers and the ceiling for the contributions. This reform applies to both Jakarta and Surabaya. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 111 DB year Economy Reform China made paying taxes less costly for companies in DB2016 China Shanghai by reducing the social security contribution rate. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be deductible. DB2016 Mexico These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Indonesia made starting a business in Jakarta easier by DB2016 Indonesia reducing the time needed to register with the Ministry of Manpower. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Vietnam made starting a business easier by reducing the time DB2016 Vietnam required to get the company seal engraved and registered. Indonesia improved access to credit by enabling searches of DB2016 Indonesia the collateral registry by the debtor’s name. This reform applies to both Jakarta and Surabaya. DB2016 Russian Federation Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 112 DB year Economy Reform registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Vietnam guaranteed borrowers’ right to inspect their credit DB2016 Vietnam data while the new credit bureau expanded borrower coverage, improving the credit information system. Peru improved its credit information system by implementing DB2016 Peru a new law on personal data protection. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. Taiwan, China, improved access to credit information by DB2015 Taiwan, China beginning to include data from utility companies in credit reports. Vietnam improved its credit information system by DB2015 Vietnam establishing a new credit bureau. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. Hong Kong SAR, China, strengthened minority investor protections by introducing requirements for directors to DB2015 Hong Kong SAR, China provide more detailed disclosure of conflicts of interest to the other board members. The Republic of Korea strengthened minority investor DB2015 Korea, Rep. protections by increasing the level of transparency expected from companies on managerial compensation. DB2015 Korea, Rep. The Republic of Korea made transferring property easier by Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 113 DB year Economy Reform reducing the time needed to buy housing bonds and to register the property transfer. Hong Kong SAR, China, made starting a business more DB2015 Hong Kong SAR, China difficult by increasing the registration fee. Taiwan, China, made getting electricity easier by eliminating DB2015 Taiwan, China site inspections. In Indonesia the electricity company in Jakarta made getting electricity easier by eliminating the need for electrical contractors to obtain multiple certificates guaranteeing the DB2015 Indonesia safety of internal installations—though. The utility in Jakarta and Surabaya also increased the cost by introducing a security deposit for new connections. Thailand made dealing with construction permits less time- DB2015 Thailand consuming by introducing a fast-track approval process for building permits for smaller buildings. Singapore made enforcing contracts easier by introducing a DB2015 Singapore new electronic litigation system that streamlines litigation proceedings. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. Taiwan, China, made paying taxes easier for companies by DB2015 Taiwan, China introducing an electronic system for paying the vehicle license tax. Indonesia made paying taxes less costly for companies by DB2015 Indonesia reducing employers’ health insurance contribution rate. This reform applies to both Jakarta and Surabaya. China made paying taxes easier for companies by enhancing DB2015 China the electronic system for filing and paying taxes and adopting new communication channels within its taxpayer service, Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 114 DB year Economy Reform changes applying to both Beijing and Shanghai. In addition, China made paying taxes less costly for companies in Shanghai by reducing the social security contribution rate. Vietnam made paying taxes less costly for companies by DB2015 Vietnam reducing the corporate income tax rate. The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing DB2015 Russian Federation tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. In the United States starting a business became easier in New DB2015 United States York City thanks to faster online procedures. China made starting a business easier by eliminating both the minimum capital requirement and the requirement to obtain DB2015 China a capital verification report from an auditing firm. This reform applies to both Beijing and Shanghai. Indonesia made starting a business easier by allowing the Ministry of Law and Human Rights to electronically issue the DB2015 Indonesia approval letter for the deed of establishment. This reform applies to both Jakarta and Surabaya. In Indonesia trading across borders became more difficult DB2015 Indonesia because of insufficient infrastructure at the Tanjung Priok Port Jakarta. This change applies to both Jakarta and Surabaya. Brunei Darussalam made dealing with construction permits DB2015 Brunei Darussalam easier by consolidating final inspections. Brunei Darussalam made paying taxes easier for companies DB2015 Brunei Darussalam by allowing joint filing and payment of supplemental contributory pension and employee provident fund Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 115 DB year Economy Reform contributions and by introducing an online system for paying these 2 contributions. In the Philippines trading across borders became more DB2015 Philippines difficult because of a new city ordinance restricting truck traffic in Manila. The Philippines improved access to credit information by beginning to distribute both positive and negative DB2014 Philippines information and by enacting a data privacy act that guarantees borrowers’ right to access their data. Brunei Darussalam improved access to credit information by DB2014 Brunei Darussalam establishing a public credit registry. The Philippines made dealing with construction permits easier DB2014 Philippines by eliminating the requirement to obtain a health certificate. The Philippines made paying taxes easier for companies by DB2014 Philippines introducing an electronic filing and payment system for social security contributions. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a DB2014 Mexico “silence is consent” rule for the approval of the feasibility study for a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. New Zealand made enforcing contracts easier by improving DB2014 New Zealand its case management system to ensure a speedier and less costly adjudication of cases. DB2014 Mexico Mexico made enforcing contracts easier by creating small Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 116 DB year Economy Reform claims courts, with oral proceedings, that can hear both civil and commercial cases. China made enforcing contracts easier by amending its civil DB2014 China procedure code to streamline and speed up all court proceedings. Thailand made paying taxes less costly for companies by DB2014 Thailand reducing employers' social security contribution rate. Vietnam made paying taxes more costly for companies by DB2014 Vietnam increasing employers' social security contribution rate. Vietnam strengthened investor protections by introducing DB2014 Vietnam greater disclosure requirements for publicly held companies in cases of related-party transactions. Singapore made transferring property easier by introducing DB2014 Singapore an online procedure for property transfers. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Vietnam abolished priority rules for redundancy dismissals or DB2014 Vietnam layoffs and increased the minimum wage. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 117 DB year Economy Reform Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. Malaysia made getting electricity easier by increasing the DB2014 Malaysia efficiency of internal processes at the utility and improving its communication and dialogue with contractors. Malaysia made dealing with construction permits easier by DB2014 Malaysia establishing a one-stop shop. Hong Kong SAR, China, made transferring property more DB2014 Hong Kong SAR, China costly by increasing the stamp duty. Malaysia made starting a business less costly by reducing the DB2014 Malaysia company registration fees. Hong Kong SAR, China, made starting a business less costly DB2014 Hong Kong SAR, China by abolishing the capital duty levied on local companies. DB2014 Malaysia Malaysia introduced a minimum wage. Australia improved its credit information system through the Privacy Amendment (Enhancing Privacy Protection) DB2014 Australia Act 2012, which permits credit bureaus to collect account payment history with improved privacy protection. China improved its credit information system by introducing DB2014 China credit information industry regulations, which guarantee borrowers’ right to inspect their data. Indonesia improved its credit information system through a DB2014 Indonesia new regulation setting up a legal framework for establishing credit bureaus. Vietnam improved its credit information system through a DB2014 Vietnam decree setting up a legal framework for the establishment of private credit bureaus. Singapore improved its credit information system by DB2014 Singapore guaranteeing by law borrowers’ right to inspect their own data. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 118 DB year Economy Reform Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Thailand made starting a business easier by allowing the DB2013 Thailand registrar at the Department of Business Development to receive the company’s work regulations. Vietnam made starting a business easier by allowing DB2013 Vietnam companies to use self-printed value added tax invoices. China made starting a business less costly by exempting DB2013 China micro and small companies from paying several administrative fees from January 2012 to December 2014. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. Taiwan, China, made dealing with construction permits easier by introducing a risk-based and self-regulatory inspection DB2013 Taiwan, China system and improving operational features of the one-stop shop for building permits. China simplified the process of obtaining a construction DB2013 China permit by streamlining and centralizing preconstruction approvals. Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 119 DB year Economy Reform Taiwan, China, strengthened investor protections by increasing disclosure requirements for related-party DB2013 Taiwan, China transactions and improving the liability regime for company directors in cases where such transactions are abusive. Australia strengthened its secured transactions system by adopting a new national legal regime governing the DB2013 Australia enforceability of security interests in personal property and implementing a unified collateral registry. Canada made getting an electricity connection easier by DB2013 Canada reducing the time needed for external connection works. Malaysia made dealing with construction permits faster by DB2013 Malaysia improving the one-stop center for new buildings and by reducing the time to connect to telephone service. Malaysia substantially reduced the number of days it takes to DB2013 Malaysia register property transfers. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Brunei Darussalam made dealing with construction permits DB2013 Brunei Darussalam easier by creating a one-stop shop for preconstruction approvals. Brunei Darussalam made paying taxes less costly for DB2013 Brunei Darussalam companies by reducing the profit tax rate. Indonesia made getting electricity easier by eliminating the requirement for new customers applying for an electricity DB2013 Indonesia connection to show a neighbor’s electricity bill as a way to help determine their address. In Mexico the distribution utility made getting electricity DB2013 Mexico easier by streamlining procedures, offering training opportunities to private contractors, using a geographic Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 120 DB year Economy Reform information system (GIS) to map the electricity distribution network and increasing the stock of materials. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Japan made paying taxes less costly for companies by DB2013 Japan reducing the corporate income tax rate—though it also introduced a restoration surtax for a 3-year period. Thailand made paying taxes less costly for companies by DB2013 Thailand reducing the profit tax rate. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Vietnam strengthened investor protections by requiring DB2012 Vietnam higher standards of accountability for company directors. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Indonesia made getting electricity more difficult by increasing DB2012 Indonesia connection fees. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 121 DB year Economy Reform The Philippines adopted a new insolvency law that provides a DB2012 Philippines legal framework for liquidation and reorganization of financially distressed companies. Brunei Darussalam made getting electricity easier by DB2012 Brunei Darussalam establishing a one-stop shop and reducing the time required to obtain an excavation permit. Korea eased the administrative burden of paying taxes for firms by merging several taxes, allowing 4 labor taxes and DB2012 Korea, Rep. contributions to be paid jointly and continuing to increase the use of the online tax payment system. Malaysia made paying taxes costlier for firms by reintroducing the real estate capital gains tax—but also made DB2012 Malaysia tax compliance easier by improving electronic systems and the availability of software. DB2012 Hong Kong SAR, China Hong Kong, China introduced a Minimum Wage. Hong Kong SAR (China) made starting a business easier by DB2012 Hong Kong SAR, China introducing online electronic services for company and business registration. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Malaysia made starting a business easier by merging company, tax, social security and employment fund DB2012 Malaysia registrations at the one-stop shop and providing same-day registration. Australia clarified the priority of claims of unsecured creditors DB2012 Australia over all shareholders’ claims and introduced further regulation of the profession of insolvency practitioners. Chile made business start-up easier by starting to provide an immediate temporary operating license to new companies, DB2012 Chile eliminating the requirement for an inspection of premises by the tax authority before new companies can begin operations and allowing free online publication of the notice of a Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 122 DB year Economy Reform company’s creation. Chile strengthened its secured transactions system by DB2012 Chile implementing a unified collateral registry and a new legal framework for nonpossessory security interests. Canada made paying taxes easier and less costly for DB2012 Canada companies by reducing profit tax rates, eliminating the Ontario capital tax and harmonizing sales taxes. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Thailand made registering property more expensive by DB2012 Thailand increasing the registration fee. Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Russia increased the social security contribution rate for DB2012 Russian Federation employers. Malaysia established dedicated commercial courts to handle DB2012 Malaysia foreclosure proceedings. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 123 DB year Economy Reform Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. Taiwan (China) made dealing with construction permits easier DB2012 Taiwan, China by creating a one-stop center. Indonesia made starting a business easier by introducing a simplified application process allowing an applicant to DB2012 Indonesia simultaneously obtain both a general trading license and a business registration certificate. Taiwan (China) made starting a business easier by DB2012 Taiwan, China implementing an online one-stop shop for business registration. Thailand made starting a business easier by introducing a DB2012 Thailand one-stop shop. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Hong Kong SAR (China) made getting electricity easier by DB2012 Hong Kong SAR, China increasing the efficiency of public agencies and streamlining the utility’s procedures with other government agencies. Malaysia continued to improve the computerization of its DB2012 Malaysia courts by introducing a system making it possible to file complaints electronically. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Korea made it easier to deal with insolvency by introducing DB2011 Korea, Rep. postfiling financing, granting superpriority to the repayment of loans given to companies undergoing reorganization. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. DB2011 Taiwan, China Taiwan (China) eased business start-up by reducing the time Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 124 DB year Economy Reform required to check company names, register retirement plans and apply for health, pension and labor insurance. Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business DB2011 Vietnam license and tax license and by eliminating the need for a seal for company licensing. Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Indonesia eased business start-up by reducing the cost for company name clearance and reservation and the time DB2011 Indonesia required to reserve the name and approve the deed of incorporation. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Vietnam made dealing with construction permits easier by reducing the cost to register newly completed buildings by DB2011 Vietnam 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Thailand made registering property more costly by repealing DB2011 Thailand a 2-year temporary tax reduction for property transfers. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Vietnam improved its credit information system by allowing DB2011 Vietnam borrowers to examine their own credit report and correct errors. Singapore improved its credit information system by DB2011 Singapore collecting and distributing information on firms. DB2011 Mexico Mexico increased taxes on companies by raising several tax Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 125 DB year Economy Reform rates, including the corporate income tax and the rate on cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. In the United States the introduction of a new tax on payroll DB2011 United States increased taxes on companies operating within the New York City metropolitan commuter transportation district. DB2011 Indonesia Indonesia reduced its corporate income tax rate. China’s new corporate income tax law unified the tax regimes for domestic and foreign enterprises and clarified the DB2011 China calculation of taxable income for corporate income tax purposes. The government of Vietnam eased paying taxes by reducing DB2011 Vietnam corporate income tax rate. Taiwan (China) reduced the corporate income tax rate and DB2011 Taiwan, China simplified tax return forms, rules for assessing corporate income tax and the calculation of interim tax payments. Thailand temporarily lowered taxes on business by reducing DB2011 Thailand its specific business tax for 12 months. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. An amendment to Chile’s securities law strengthened investor protections by requiring greater corporate disclosure and DB2011 Chile regulating the approval of transactions between interested parties. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 126 DB year Economy Reform Australia introduced the severance payment obligation and reemployment consideration applicable in cases of redundancy dismissals. Annual leave was increased and DB2011 Australia averaging of hours is now allowed in shorter periods of time. In addition, notice period applicable in case of redundancy dismissals was decreased. Malaysia eliminated the requirements to notify third parties in DB2011 Malaysia cases of redundancy dismissals. Malaysia eased business start-up by introducing more online DB2011 Malaysia services. Malaysia’s introduction of online stamping reduced th e time DB2011 Malaysia and cost to transfer property. DB2011 Hong Kong SAR, China Hong Kong SAR (China) abolished the fuel tax on diesel. Reforms implemented in the civil justice system of Hong DB2011 Hong Kong SAR, China Kong SAR (China) will help increase the efficiency and cost- effectiveness of commercial dispute resolution. Japan made it easier to deal with insolvency by establishing a new entity, the Enterprise Turnaround Initiative Corporation, DB2011 Japan to support the revitalization of companies suffering from excessive debt but professionally managed. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. Indonesia reduced the time to export by launching a single- DB2011 Indonesia window service. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. The introduction of an electronic customs system in Brunei DB2011 Brunei Darussalam Darussalam made trading easier. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 127 DB year Economy Reform Brunei Darussalam instituted mandatory minimum annual DB2011 Brunei Darussalam leave and reduced notice periods applicable in case of redundancy dismissals. Brunei Darussalam reduced the corporate income tax rate DB2011 Brunei Darussalam from 23.5% to 22% while also introducing a lower tax rate for small businesses, ranging from 5.5% to 11%. Brunei Darussalam made starting a business easier by DB2011 Brunei Darussalam improving efficiency at the company registrar and implementing an electronic system for name searches. The Philippines eased business startup by setting up a one- DB2011 Philippines stop shop at the municipal level. The Philippines made construction permitting more DB2011 Philippines cumbersome through updated electricity connection costs. Operation of a new private credit bureau improved the credit DB2011 Papua New Guinea information system in Papua New Guinea. The Philippines reduced the time and cost to trade by improving its electronic customs systems, adding such DB2011 Philippines functions as electronic payments and online submission of declarations. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 128 GETTING CREDIT Two types of frameworks can facilitate access to WHAT THE GETTING CREDIT INDICATORS credit and improve its allocation: credit information MEASURE systems and borrowers and lenders in collateral and bankruptcy laws. Credit information systems enable lenders’ rights to view a potential borrower’s financial Strength of legal rights index (0–12) history (positive or negative)—valuable information to Rights of borrowers and lenders through consider when assessing risk. And they permit collateral laws borrowers to establish a good credit history that will Protection of secured creditors’ rights through allow easier access to credit. Sound collateral laws bankruptcy laws enable businesses to use their assets, especially movable property, as security to generate capital— Depth of credit information index (0–8) while strong creditors’ rights have been associated Scope and accessibility of credit information with higher ratios of private sector credit to GDP. distributed by credit bureaus and credit registries What do the indicators cover? Credit bureau coverage (% of adults) Doing Business assesses the sharing of credit information and the legal rights of borrowers and Number of individuals and firms listed in largest lenders with respect to secured transactions through credit bureau as percentage of adult population 2 sets of indicators. The depth of credit information Credit registry coverage (% of adults) index measures rules and practices affecting the coverage, scope and accessibility of credit Number of individuals and firms listed in credit registry as percentage of adult population information available through a credit registry or a credit bureau. The strength of legal rights index measures whether certain features that facilitate lending exist within the applicable collateral and bankruptcy laws. Doing Business uses two case scenarios, Case A and Case B, to determine the scope of the secured transactions system, involving a  Has up to 50 employees. secured borrower and a secured lender and  Is 100% domestically owned, as is the lender. examining legal restrictions on the use of movable  The ranking of economies on the ease of getting collateral (for more details on each case, see the Data credit is determined by sorting their distance to Notes section of the Doing Business 2017 report). frontier scores for getting credit. These scores are These scenarios assume that the borrower: the distance to frontier score for the strength of  Is a private limited liability company. legal rights index and the depth of credit  Has its headquarters and only base of operations information index. in the largest business city. For the 11 economies with a population of more than 100 million, data for a second city have been added. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 129 GETTING CREDIT Where do the region’s economies stand today? How well do the credit information systems and ease of getting credit suggest an answer (figure 6.1). The collateral and bankruptcy laws in economies in Asia- average ranking of the region and comparator regions Pacific Economic Cooperation (APEC) facilitate access to provide a useful benchmark. credit? The global rankings of these economies on the Figure 6.1 How economies in Asia-Pacific Economic Cooperation (APEC) rank on the ease of getting credit Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 130 GETTING CREDIT Another way to assess how well regulations and the strength of legal rights index for Asia-Pacific institutions support lending and borrowing in the region Economic Cooperation (APEC) and comparators on the is to see where the region stands in the distribution of strength of legal rights index. Figure 6.3 shows the same scores across regions. Figure 6.2 highlights the score on thing for the depth of credit information index. Figure 6.2 How strong are legal rights for borrowers and lenders? Region scores on strength of legal rights index Note: Higher scores indicate that collateral and bankruptcy laws are better designed to facilitate access to credit. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 131 Figure 6.3 How much credit information is shared—and how widely? Region scores on depth of credit information index Note: Higher scores indicate the availability of more credit information, from either a credit registry or a credit bureau, to facilitate lending decisions. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 132 GETTING CREDIT What are the changes over time? When economies strengthen the legal rights of lenders information, they can increase entrepreneurs’ access to and borrowers under collateral and bankruptcy laws, and credit. What credit reforms has Doing Business recorded increase the scope, coverage and accessibility of credit in Asia-Pacific Economic Cooperation (APEC) (table 6.1)? Table 6.1 How have economies in Asia-Pacific Economic Cooperation (APEC) made getting credit easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform In Malaysia the credit bureau began to provide consumer DB2017 Malaysia credit scores. Hong Kong SAR, China, streamlined the processes of DB2017 Hong Kong SAR, China reviewing applications for new electrical connections and also reduced the time needed to issue an excavation permit. Hong Kong SAR, China, made starting a business less costly DB2017 Hong Kong SAR, China by reducing the business registration fee. Malaysia made starting a business more difficult by requiring DB2017 Malaysia that companies with an annual revenue of more than MYR 500,000 register as a GST payer. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. Malaysia made paying taxes easier by introducing an online system for filing and paying the Goods and Services Tax (GST) DB2017 Malaysia while also making it is more complex by replacing sales tax with GST. Singapore made dealing with construction permits easier by streamlining procedures and improving the online one-stop DB2017 Singapore shop. Russian Federation Saint Petersburg made dealing with DB2017 Russian Federation construction permits easier by removing the requirement to obtain permission to fence the construction site. Indonesia made enforcing contracts easier by introducing a dedicated procedure for small claims that allows for parties’ DB2017 Indonesia self-representation.This reform applies to both Jakarta and Surabaya. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 133 DB year Economy Reform The Russian Federation made enforcing contracts more difficult by mandating pre-trial resolution before filing a claim, thereby lengthening the initial DB2017 Russian Federation phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. China improved access to credit information by starting to report payment histories from utility companies and DB2017 China providing credit scores to banks and financial institutions. This reform applies to both Shanghai and Beijing. Indonesia strengthened access to credit by establishing a DB2017 Indonesia modern collateral registry. Thailand improved access to credit information by starting to DB2017 Thailand provide credit scores to banks and financial institutions. Indonesia made the process for getting an electricity connection faster by reducing the time for contractors to perform external work thanks to an increase in the stock of DB2017 Indonesia electrical material supplied by the utility. In Surabaya, getting electricity was also made easier after the utility streamlined the process for new connection requests. Vietnam strengthened minority investor protections by making it easier to sue directors in cases of prejudicial transactions between interested parties, by increasing DB2017 Vietnam shareholder rights and role in major corporate decisions, by strengthening the ownership and control structures of companies and by increasing corporate transparency requirements. Thailand made resolving insolvency easier by introducing new DB2017 Thailand restructuring for small and medium-size companies and by streamlining provisions related to company liquidation. Indonesia made it easier to register property by digitizing its DB2017 Indonesia cadastral records and setting up a geographic information system. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 134 DB year Economy Reform Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Singapore made it easier to transfer a property by DB2017 Singapore introducing an independent mechanism for reporting errors on titles and maps. Thailand made starting a business easier by creating a single DB2017 Thailand window for registration payment and reducing the time to obtain a company seal. Indonesia made starting a business easier by creating a single form to apply for the company registration certificate and trading license. This reform applies to Jakarta. Indonesia also made starting a business easier by abolishing the minimum DB2017 Indonesia capital requirement for small and medium-size enterprises and by encouraging the use of an online system to reserve company names. This reform applies to both Jakarta and Surabaya. China made starting a business easier by introducing a single DB2017 China form to obtain a business license, organization code and tax registration. This reform applies to both Shanghai and Beijing. Vietnam made starting a business more difficult by requiring DB2017 Vietnam entrepreneurs to receive approval of the seal sample before using it. Vietnam made exporting and importing easier by DB2017 Vietnam implementing electronic customs clearance system. Indonesia made exporting and importing easier by improving DB2017 Indonesia the customs services and document submission functions of the Indonesia National Single Window. Singapore made paying taxes easier by introducing improvements to the online system for filing corporate DB2017 Singapore income tax returns and VAT returns. At the same, the social security contribution rate paid by employers increased and the rebate of 30% on vehicle tax expired. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 135 DB year Economy Reform New Zealand made paying taxes easier by abolishing the cheque levy. New Zealand made paying less costly by decreasing the rate of accident compensation levy paid by DB2017 New Zealand employers. At the same time, New Zealand made paying taxes more costly by raising property tax and road user levy rates. Indonesia made paying taxes easier by introducing an online system for filing and paying health contributions. Indonesia DB2017 Indonesia also made paying taxes more costly by levying a new pension contribution at a rate of 2% paid by employers. These reforms apply to both Jakarta and Surabaya. Japan made paying taxes easier by disclosing the technical specifications of the eTax platform and allowing the upload of additional information in comma separated value (CSV) format. The restoration surtax was also abolished. However, a local corporation tax was introduced and the rates of special DB2017 Japan local corporation tax, inhabitants tax and enterprise tax were raised. Welfare pension premiums were also raised. These reforms apply to both Tokyo and Osaka. However, the rate for health insurance contributions paid by employers was reduced only in Osaka. Vietnam made paying taxes easier and less costly by DB2017 Vietnam streamlining the administrative process of complying with tax obligations and abolishing environmental protection fees. Brunei Darussalam strengthened access to credit by adopting a new insolvency law that contemplates protections for secured creditors during an automatic stay in reorganization DB2017 Brunei Darussalam proceedings. Brunei also improved access to credit information by beginning to distribute data from two utility companies. The utility in Brunei Darussalam streamlined the processes of reviewing applications, and the time to issue an excavation permit was reduced. In addition, Brunei Darussalam increased the reliability of power supply by rolling out a Supervisory DB2017 Brunei Darussalam Control and Data Acquisition (SCADA) automatic energy management system for the monitoring of outages and the restoration of service. Brunei Darussalam strengthened minority investor DB2017 Brunei Darussalam protections by clarifying ownership and control structures, making it easier to sue directors in case of prejudicial related- Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 136 DB year Economy Reform party transactions, and allowing the rescission of related- party transactions that harm the company. Brunei Darussalam made resolving insolvency easier by adopting a new insolvency law that introduced a reorganization procedure and facilitated continuation of the DB2017 Brunei Darussalam debtor’s business during insolvency proceedings. Brunei Darussalam also introduced regulations for insolvency practitioners. Brunei Darussalam made paying taxes easier by fully DB2017 Brunei Darussalam implementing an electronic system for filing and paying corporate income tax. The Philippines made dealing with construction permits easier DB2017 Philippines by increasing the transparency of its building regulations. Papua New Guinea strengthened access to credit by adopting a new law on secured transactions that implemented a functional secured transactions system and established a DB2017 Papua New Guinea centralized, notice-based collateral registry. The new law broadens the scope of assets that can be used as collateral and allows out-of-court enforcement of collateral. Papua New Guinea reduced the time required to start a DB2017 Papua New Guinea business by streamlining business registration at the Investment Promotion Agency (IPA). The Philippines made paying taxes easier by introducing an online system for filing and paying health contributions and DB2017 Philippines by allowing for the online corporate income tax and VAT returns to be completed offline. Brunei Darussalam made enforcing contracts easier by DB2017 Brunei Darussalam introducing an electronic filing system as well as a platform that allows users to pay court fees electronically. The Philippines made starting a business easier by streamlining communications between the Securities and DB2016 Philippines Exchange Commission and the Social Security System and thereby expediting the process of issuing an employer registration number. Brunei Darussalam made paying taxes easier and less costly DB2016 Brunei Darussalam for companies by merging contributions for the Employee Provident Fund and the Supplemental Pension Fund and increasing the capital allowance for industrial buildings. In Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 137 DB year Economy Reform addition, it reduced the corporate income tax rate, though it also abolished the partial exemption of income and introduced a flat rate. Brunei Darussalam made starting a business easier by DB2016 Brunei Darussalam improving online procedures and simplifying registration and post registration requirements. Chile made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, introducing provisions to facilitate the continuation of the DB2016 Chile debtor’s business during insolvency, establishing a public office responsible for the general administration of insolvency proceedings and creating specialized insolvency courts. Chile made paying taxes more costly for companies by DB2016 Chile increasing the corporate income tax rate. The utility in Hong Kong SAR, China, made getting electricity easier by streamlining the process for reviewing connection DB2016 Hong Kong SAR, China applications and for completing the connection works and meter installation. In addition, the time needed to issue an excavation permit was reduced. The Republic of Korea made paying taxes more complicated and costly for companies by requiring separate filing and DB2016 Korea, Rep. payment of the local income tax and by increasing the rates for unemployment insurance and national health insurance paid by employers. Hong Kong SAR, China, made paying taxes easier and less costly for companies by simplifying compliance with the mandatory provident fund obligations and increasing the DB2016 Hong Kong SAR, China allowance for profit tax. At the same time, it increased the maximum contribution to the mandatory provident fund and reduced the property tax waiver. Malaysia made paying taxes easier and less costly for companies by making electronic filing mandatory and DB2016 Malaysia reducing the property tax rate. At the same time, it also increased the capital gains tax. Hong Kong SAR, China, made starting a business easier by DB2016 Hong Kong SAR, China eliminating the requirement for a company seal. DB2016 Hong Kong SAR, China Hong Kong SAR, China, improved access to credit by Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 138 DB year Economy Reform implementing a modern collateral registry. The utility in Vietnam reduced the time required for getting an electricity connection by reducing delays and increasing efficiency in approving connection applications and designs for connection works. Getting electricity was also made easier DB2016 Vietnam by eliminating the need to obtain a substation certification from the Fire Fighters Prevention Department for connections to the medium-voltage grid. Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. The utility in Taiwan, China, reduced the time required for getting an electricity connection through a simplified DB2016 Taiwan, China procedure for obtaining excavation permits from the municipality. The utility in New Zealand reduced the time required for getting an electricity connection by improving its payment DB2016 New Zealand monitoring and confirmation process for the connection works. Vietnam made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, modifying the standard for commencement of insolvency DB2016 Vietnam proceedings, changing provisions on voidable transactions, regulating the profession of insolvency trustees and establishing the rules for enterprise asset managers. Vietnam made paying taxes less costly for companies by reducing the corporate income tax rate—and made it easier by reducing the number of procedures and documents for filing VAT and social security contributions, reducing the DB2016 Vietnam number of filings for VAT and replacing quarterly filings of corporate income tax with quarterly advance payments. On the other hand, Vietnam increased the rate for social security contributions paid by employers. Indonesia made paying taxes easier and less costly for DB2016 Indonesia companies by introducing an online system for paying social security contributions and by reducing both the rate paid by Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 139 DB year Economy Reform employers and the ceiling for the contributions. This reform applies to both Jakarta and Surabaya. China made paying taxes less costly for companies in DB2016 China Shanghai by reducing the social security contribution rate. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be deductible. DB2016 Mexico These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Indonesia made starting a business in Jakarta easier by DB2016 Indonesia reducing the time needed to register with the Ministry of Manpower. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Vietnam made starting a business easier by reducing the time DB2016 Vietnam required to get the company seal engraved and registered. Indonesia improved access to credit by enabling searches of DB2016 Indonesia the collateral registry by the debtor’s name. This reform applies to both Jakarta and Surabaya. Russia improved access to credit by adopting a new law on DB2016 Russian Federation secured transactions that established a centralized collateral registry and allows a general description of a combined category of assets granted as collateral. This reform applies to Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 140 DB year Economy Reform both Moscow and St. Petersburg. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Vietnam guaranteed borrowers’ right to inspect their credit DB2016 Vietnam data while the new credit bureau expanded borrower coverage, improving the credit information system. Peru improved its credit information system by implementing DB2016 Peru a new law on personal data protection. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. Taiwan, China, improved access to credit information by DB2015 Taiwan, China beginning to include data from utility companies in credit reports. Vietnam improved its credit information system by DB2015 Vietnam establishing a new credit bureau. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. Hong Kong SAR, China, strengthened minority investor protections by introducing requirements for directors to DB2015 Hong Kong SAR, China provide more detailed disclosure of conflicts of interest to the other board members. The Republic of Korea strengthened minority investor DB2015 Korea, Rep. protections by increasing the level of transparency expected from companies on managerial compensation. The Republic of Korea made transferring property easier by DB2015 Korea, Rep. reducing the time needed to buy housing bonds and to register the property transfer. Hong Kong SAR, China, made starting a business more DB2015 Hong Kong SAR, China difficult by increasing the registration fee. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 141 DB year Economy Reform Taiwan, China, made getting electricity easier by eliminating DB2015 Taiwan, China site inspections. In Indonesia the electricity company in Jakarta made getting electricity easier by eliminating the need for electrical contractors to obtain multiple certificates guaranteeing the DB2015 Indonesia safety of internal installations—though. The utility in Jakarta and Surabaya also increased the cost by introducing a security deposit for new connections. Thailand made dealing with construction permits less time- DB2015 Thailand consuming by introducing a fast-track approval process for building permits for smaller buildings. Singapore made enforcing contracts easier by introducing a DB2015 Singapore new electronic litigation system that streamlines litigation proceedings. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. Taiwan, China, made paying taxes easier for companies by DB2015 Taiwan, China introducing an electronic system for paying the vehicle license tax. Indonesia made paying taxes less costly for companies by DB2015 Indonesia reducing employers’ health insurance contribution rate. This reform applies to both Jakarta and Surabaya. China made paying taxes easier for companies by enhancing the electronic system for filing and paying taxes and adopting new communication channels within its taxpayer service, DB2015 China changes applying to both Beijing and Shanghai. In addition, China made paying taxes less costly for companies in Shanghai by reducing the social security contribution rate. Vietnam made paying taxes less costly for companies by DB2015 Vietnam reducing the corporate income tax rate. The Russian Federation made transferring property easier by DB2015 Russian Federation eliminating the requirement for notarization and introducing tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 142 DB year Economy Reform The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. In the United States starting a business became easier in New DB2015 United States York City thanks to faster online procedures. China made starting a business easier by eliminating both the minimum capital requirement and the requirement to obtain DB2015 China a capital verification report from an auditing firm. This reform applies to both Beijing and Shanghai. Indonesia made starting a business easier by allowing the Ministry of Law and Human Rights to electronically issue the DB2015 Indonesia approval letter for the deed of establishment. This reform applies to both Jakarta and Surabaya. In Indonesia trading across borders became more difficult DB2015 Indonesia because of insufficient infrastructure at the Tanjung Priok Port Jakarta. This change applies to both Jakarta and Surabaya. Brunei Darussalam made dealing with construction permits DB2015 Brunei Darussalam easier by consolidating final inspections. Brunei Darussalam made paying taxes easier for companies by allowing joint filing and payment of supplemental DB2015 Brunei Darussalam contributory pension and employee provident fund contributions and by introducing an online system for paying these 2 contributions. In the Philippines trading across borders became more DB2015 Philippines difficult because of a new city ordinance restricting truck traffic in Manila. The Philippines improved access to credit information by beginning to distribute both positive and negative DB2014 Philippines information and by enacting a data privacy act that guarantees borrowers’ right to access their data. Brunei Darussalam improved access to credit information by DB2014 Brunei Darussalam establishing a public credit registry. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 143 DB year Economy Reform The Philippines made dealing with construction permits easier DB2014 Philippines by eliminating the requirement to obtain a health certificate. The Philippines made paying taxes easier for companies by DB2014 Philippines introducing an electronic filing and payment system for social security contributions. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a DB2014 Mexico “silence is consent” rule for the approval of the feasibility study for a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. New Zealand made enforcing contracts easier by improving DB2014 New Zealand its case management system to ensure a speedier and less costly adjudication of cases. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. China made enforcing contracts easier by amending its civil DB2014 China procedure code to streamline and speed up all court proceedings. Thailand made paying taxes less costly for companies by DB2014 Thailand reducing employers' social security contribution rate. Vietnam made paying taxes more costly for companies by DB2014 Vietnam increasing employers' social security contribution rate. Vietnam strengthened investor protections by introducing DB2014 Vietnam greater disclosure requirements for publicly held companies in cases of related-party transactions. Singapore made transferring property easier by introducing DB2014 Singapore an online procedure for property transfers. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 144 DB year Economy Reform Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Vietnam abolished priority rules for redundancy dismissals or DB2014 Vietnam layoffs and increased the minimum wage. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. Malaysia made getting electricity easier by increasing the DB2014 Malaysia efficiency of internal processes at the utility and improving its communication and dialogue with contractors. Malaysia made dealing with construction permits easier by DB2014 Malaysia establishing a one-stop shop. Hong Kong SAR, China, made transferring property more DB2014 Hong Kong SAR, China costly by increasing the stamp duty. Malaysia made starting a business less costly by reducing the DB2014 Malaysia company registration fees. Hong Kong SAR, China, made starting a business less costly DB2014 Hong Kong SAR, China by abolishing the capital duty levied on local companies. DB2014 Malaysia Malaysia introduced a minimum wage. Australia improved its credit information system through the DB2014 Australia Privacy Amendment (Enhancing Privacy Protection) Act 2012, which permits credit bureaus to collect account Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 145 DB year Economy Reform payment history with improved privacy protection. China improved its credit information system by introducing DB2014 China credit information industry regulations, which guarantee borrowers’ right to inspect their data. Indonesia improved its credit information system through a DB2014 Indonesia new regulation setting up a legal framework for establishing credit bureaus. Vietnam improved its credit information system through a DB2014 Vietnam decree setting up a legal framework for the establishment of private credit bureaus. Singapore improved its credit information system by DB2014 Singapore guaranteeing by law borrowers’ right to inspect their own data. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Thailand made starting a business easier by allowing the DB2013 Thailand registrar at the Department of Business Development to receive the company’s work regulations. Vietnam made starting a business easier by allowing DB2013 Vietnam companies to use self-printed value added tax invoices. China made starting a business less costly by exempting DB2013 China micro and small companies from paying several administrative fees from January 2012 to December 2014. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. Taiwan, China, made dealing with construction permits easier DB2013 Taiwan, China by introducing a risk-based and self-regulatory inspection system and improving operational features of the one-stop Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 146 DB year Economy Reform shop for building permits. China simplified the process of obtaining a construction DB2013 China permit by streamlining and centralizing preconstruction approvals. Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Taiwan, China, strengthened investor protections by increasing disclosure requirements for related-party DB2013 Taiwan, China transactions and improving the liability regime for company directors in cases where such transactions are abusive. Australia strengthened its secured transactions system by adopting a new national legal regime governing the DB2013 Australia enforceability of security interests in personal property and implementing a unified collateral registry. Canada made getting an electricity connection easier by DB2013 Canada reducing the time needed for external connection works. Malaysia made dealing with construction permits faster by DB2013 Malaysia improving the one-stop center for new buildings and by reducing the time to connect to telephone service. Malaysia substantially reduced the number of days it takes to DB2013 Malaysia register property transfers. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Brunei Darussalam made dealing with construction permits DB2013 Brunei Darussalam easier by creating a one-stop shop for preconstruction approvals. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 147 DB year Economy Reform Brunei Darussalam made paying taxes less costly for DB2013 Brunei Darussalam companies by reducing the profit tax rate. Indonesia made getting electricity easier by eliminating the requirement for new customers applying for an electricity DB2013 Indonesia connection to show a neighbor’s electricity bill as a way to help determine their address. In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training DB2013 Mexico opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Japan made paying taxes less costly for companies by DB2013 Japan reducing the corporate income tax rate—though it also introduced a restoration surtax for a 3-year period. Thailand made paying taxes less costly for companies by DB2013 Thailand reducing the profit tax rate. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Vietnam strengthened investor protections by requiring DB2012 Vietnam higher standards of accountability for company directors. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 148 DB year Economy Reform Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Indonesia made getting electricity more difficult by increasing DB2012 Indonesia connection fees. The Philippines adopted a new insolvency law that provides a DB2012 Philippines legal framework for liquidation and reorganization of financially distressed companies. Brunei Darussalam made getting electricity easier by DB2012 Brunei Darussalam establishing a one-stop shop and reducing the time required to obtain an excavation permit. Korea eased the administrative burden of paying taxes for firms by merging several taxes, allowing 4 labor taxes and DB2012 Korea, Rep. contributions to be paid jointly and continuing to increase the use of the online tax payment system. Malaysia made paying taxes costlier for firms by reintroducing the real estate capital gains tax—but also made DB2012 Malaysia tax compliance easier by improving electronic systems and the availability of software. DB2012 Hong Kong SAR, China Hong Kong, China introduced a Minimum Wage. Hong Kong SAR (China) made starting a business easier by DB2012 Hong Kong SAR, China introducing online electronic services for company and business registration. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Malaysia made starting a business easier by merging company, tax, social security and employment fund DB2012 Malaysia registrations at the one-stop shop and providing same-day registration. Australia clarified the priority of claims of unsecured creditors DB2012 Australia over all shareholders’ claims and introduced further regulation of the profession of insolvency practitioners. Chile made business start-up easier by starting to provide an immediate temporary operating license to new companies, DB2012 Chile eliminating the requirement for an inspection of premises by the tax authority before new companies can begin operations and allowing free online publication of the notice of a Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 149 DB year Economy Reform company’s creation. Chile strengthened its secured transactions system by DB2012 Chile implementing a unified collateral registry and a new legal framework for nonpossessory security interests. Canada made paying taxes easier and less costly for DB2012 Canada companies by reducing profit tax rates, eliminating the Ontario capital tax and harmonizing sales taxes. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Thailand made registering property more expensive by DB2012 Thailand increasing the registration fee. Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Russia increased the social security contribution rate for DB2012 Russian Federation employers. Malaysia established dedicated commercial courts to handle DB2012 Malaysia foreclosure proceedings. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 150 DB year Economy Reform Taiwan (China) made dealing with construction permits easier DB2012 Taiwan, China by creating a one-stop center. Indonesia made starting a business easier by introducing a simplified application process allowing an applicant to DB2012 Indonesia simultaneously obtain both a general trading license and a business registration certificate. Taiwan (China) made starting a business easier by DB2012 Taiwan, China implementing an online one-stop shop for business registration. Thailand made starting a business easier by introducing a DB2012 Thailand one-stop shop. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Hong Kong SAR (China) made getting electricity easier by DB2012 Hong Kong SAR, China increasing the efficiency of public agencies and streamlining the utility’s procedures with other government agencies. Malaysia continued to improve the computerization of its DB2012 Malaysia courts by introducing a system making it possible to file complaints electronically. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Korea made it easier to deal with insolvency by introducing DB2011 Korea, Rep. postfiling financing, granting superpriority to the repayment of loans given to companies undergoing reorganization. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Taiwan (China) eased business start-up by reducing the time DB2011 Taiwan, China required to check company names, register retirement plans and apply for health, pension and labor insurance. Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business DB2011 Vietnam license and tax license and by eliminating the need for a seal for company licensing. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 151 DB year Economy Reform Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Indonesia eased business start-up by reducing the cost for company name clearance and reservation and the time DB2011 Indonesia required to reserve the name and approve the deed of incorporation. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Vietnam made dealing with construction permits easier by reducing the cost to register newly completed buildings by DB2011 Vietnam 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Thailand made registering property more costly by repealing DB2011 Thailand a 2-year temporary tax reduction for property transfers. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Vietnam improved its credit information system by allowing DB2011 Vietnam borrowers to examine their own credit report and correct errors. Singapore improved its credit information system by DB2011 Singapore collecting and distributing information on firms. Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. In the United States the introduction of a new tax on payroll DB2011 United States increased taxes on companies operating within the New York City metropolitan commuter transportation district. DB2011 Indonesia Indonesia reduced its corporate income tax rate. DB2011 China China’s new corporate income tax law unified the tax regimes for domestic and foreign enterprises and clarified the Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 152 DB year Economy Reform calculation of taxable income for corporate income tax purposes. The government of Vietnam eased paying taxes by reducing DB2011 Vietnam corporate income tax rate. Taiwan (China) reduced the corporate income tax rate and DB2011 Taiwan, China simplified tax return forms, rules for assessing corporate income tax and the calculation of interim tax payments. Thailand temporarily lowered taxes on business by reducing DB2011 Thailand its specific business tax for 12 months. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. An amendment to Chile’s securities law strengthened investor protections by requiring greater corporate disclosure and DB2011 Chile regulating the approval of transactions between interested parties. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Australia introduced the severance payment obligation and reemployment consideration applicable in cases of redundancy dismissals. Annual leave was increased and DB2011 Australia averaging of hours is now allowed in shorter periods of time. In addition, notice period applicable in case of redundancy dismissals was decreased. Malaysia eliminated the requirements to notify third parties in DB2011 Malaysia cases of redundancy dismissals. Malaysia eased business start-up by introducing more online DB2011 Malaysia services. Malaysia’s introduction of online stamping reduced the time DB2011 Malaysia and cost to transfer property. DB2011 Hong Kong SAR, China Hong Kong SAR (China) abolished the fuel tax on diesel. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 153 DB year Economy Reform Reforms implemented in the civil justice system of Hong DB2011 Hong Kong SAR, China Kong SAR (China) will help increase the efficiency and cost- effectiveness of commercial dispute resolution. Japan made it easier to deal with insolvency by establishing a new entity, the Enterprise Turnaround Initiative Corporation, DB2011 Japan to support the revitalization of companies suffering from excessive debt but professionally managed. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. Indonesia reduced the time to export by launching a single- DB2011 Indonesia window service. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. The introduction of an electronic customs system in Brunei DB2011 Brunei Darussalam Darussalam made trading easier. Brunei Darussalam instituted mandatory minimum annual DB2011 Brunei Darussalam leave and reduced notice periods applicable in case of redundancy dismissals. Brunei Darussalam reduced the corporate income tax rate DB2011 Brunei Darussalam from 23.5% to 22% while also introducing a lower tax rate for small businesses, ranging from 5.5% to 11%. Brunei Darussalam made starting a business easier by DB2011 Brunei Darussalam improving efficiency at the company registrar and implementing an electronic system for name searches. The Philippines eased business startup by setting up a one- DB2011 Philippines stop shop at the municipal level. The Philippines made construction permitting more DB2011 Philippines cumbersome through updated electricity connection costs. Operation of a new private credit bureau improved the credit DB2011 Papua New Guinea information system in Papua New Guinea. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 154 DB year Economy Reform The Philippines reduced the time and cost to trade by improving its electronic customs systems, adding such DB2011 Philippines functions as electronic payments and online submission of declarations. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 155 PROTECTING MINORITY INVESTORS Protecting minority investors matters for the ability of WHAT THE PROTECTING MINORITY INVESTORS companies to raise the capital they need to grow, INDICATORS MEASURE innovate, diversify and compete. Effective regulations define related-party transactions precisely, promote clear and efficient disclosure requirements, require Extent of disclosure index (0–10) shareholder participation in major decisions of the Review and approval requirements for related-party company and set detailed standards of accountability transactions ; Disclosure requirements for related-party for company insiders. transactions What do the indicators cover? Extent of director liability index (0–10) Doing Business measures the protection of minority Ability of minority shareholders to sue and hold interested investors from conflicts of interest through one set of directors liable for prejudicial related-party transactions; indicators and shareholders’ rights in corporate Available legal remedies (damages, disgorgement of profits, governance through another. The ranking of economies fines, imprisonment, rescission of the transaction) on the strength of minority investor protections is determined by sorting their distance to frontier scores Ease of shareholder suits index (0–10) for protecting minority investors. These scores are the Access to internal corporate documents; Evidence simple average of the distance to frontier scores for the obtainable during trial and allocation of legal expenses extent of conflict of interest regulation index and the Extent of conflict of interest regulation index extent of shareholder governance index. To make the (0–10) data comparable across economies, a case study uses Simple average of the extent of disclosure, extent of director several assumptions about the business and the liability and ease of shareholder indices transaction. Extent of shareholder rights index (0-10) The business (Buyer): Shareholders’ rights and role in major corporate decisions  Is a publicly traded corporation listed on the economy’s most important stock exchange. If Extent of ownership and control index (0-10) the number of publicly traded companies listed Governance safeguards protecting shareholders from undue on that exchange is less than 10, or if there is board control and entrenchment no stock exchange in the economy, it is Extent of corporate transparency index (0-10) assumed that Buyer is a large private company with multiple shareholders. Corporate transparency on ownership stakes, compensation,  Has a board of directors and a chief executive audits and financial prospects officer (CEO) who may legally act on behalf of Extent of shareholder governance index (0– Buyer where permitted, even if this is not 10) specifically required by law. Simple average of the extent of shareholders rights, extent  Has a supervisory board (applicable to of ownership and control and extent of corporate economies with a two-tier board system) on transparency indices which 60% of the shareholder-elected Strength of investor protection index (0–10) members have been appointed by Mr. James, who is Buyer’s controlling shareholder and a Simple average of the extent of conflict of interest regulation and extent of shareholder governance indices member of Buyer’s board of directors.  Has not adopted any bylaws or articles of association that differ from default minimum  standards and does not follow any nonmandatory codes, principles, Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 156 recommendations or guidelines relating to corporate governance.  Is a manufacturing company with its own distribution network The transaction involves the following details:  Mr. James owns 60% of Buyer and elected two directors to Buyer’s five-member board.  Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores. Seller recently closed a large number of its stores.  Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of Buyer’s assets and is higher than the market value.  The proposed transaction is part of the company’s ordinary course of business and is not outside the authority of the company.  Buyer enters into the transaction. All required approvals are obtained, and all required disclosures made (that is, the transaction is not fraudulent).  The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. . Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 157 PROTECTING MINORITY INVESTORS Where do the region’s economies stand today? How strong are investor protections against self-dealing aspects related to the protection of minority investors, a in economies in Asia-Pacific Economic Cooperation higher ranking does indicate that an economy’s (APEC)? The global rankings of these economies on the regulations offer stronger investor protections against strength of investor protection index suggest an answer self-dealing in the areas measured. (figure 7.1). While the indicator does not measure all Figure 7.1 How economies in Asia-Pacific Economic Cooperation (APEC) rank on the strength of investor protection index Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 158 PROTECTING MINORITY INVESTORS The strength of minority investor protection index is the highlight the scores on the various minority investor average of the extent of conflict of interest regulation protection indices for Asia-Pacific Economic Cooperation index and the extent of shareholder governance index. (APEC). Comparing the scores across the region and The index ranges from 0 to 10, rounded to the nearest with averages both for the region and for comparator decimal place, with higher values indicating stronger regions can provide useful insights. minority investor protections. Figures 7.2 and 7.3 Figure 7.2 How extensive are conflict of interest regulations? Extent of conflict of interest regulation index (0-10) Note: Higher values indicate stronger regulation of conflicts of interest. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 159 Figure 7.3 How extensive is shareholder governance? Extent of shareholder governance index (0-10) Note: Higher scores indicate stronger rights of shareholders in corporate governance. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 160 PROTECTING MINORITY INVESTORS What are the changes over time? Economies with the strongest protections of minority reforms to strengthen minority investor protections may investors from self-dealing require detailed disclosure move ahead on different fronts—such as through new or and define clear duties for directors. They also have well- amended company laws, securities regulations or functioning courts and up-to-date procedural rules that revisions to court procedures. What minority investor give minority shareholders the means to prove their case protection reforms has Doing Business recorded in Asia- and obtain a judgment within a reasonable time. So Pacific Economic Cooperation (APEC) (table 7.1)? Table 7.1 How have economies in Asia-Pacific Economic Cooperation (APEC) strengthened minority investor protections—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform In Malaysia the credit bureau began to provide consumer DB2017 Malaysia credit scores. Hong Kong SAR, China, streamlined the processes of DB2017 Hong Kong SAR, China reviewing applications for new electrical connections and also reduced the time needed to issue an excavation permit. Hong Kong SAR, China, made starting a business less costly DB2017 Hong Kong SAR, China by reducing the business registration fee. Malaysia made starting a business more difficult by requiring DB2017 Malaysia that companies with an annual revenue of more than MYR 500,000 register as a GST payer. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. Malaysia made paying taxes easier by introducing an online system for filing and paying the Goods and Services Tax (GST) DB2017 Malaysia while also making it is more complex by replacing sales tax with GST. Singapore made dealing with construction permits easier by streamlining procedures and improving the online one-stop DB2017 Singapore shop. DB2017 Russian Federation Russian Federation Saint Petersburg made dealing with construction permits easier by removing the requirement to Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 161 DB year Economy Reform obtain permission to fence the construction site. Indonesia made enforcing contracts easier by introducing a dedicated procedure for small claims that allows for parties’ DB2017 Indonesia self-representation.This reform applies to both Jakarta and Surabaya. The Russian Federation made enforcing contracts more difficult by mandating pre-trial resolution before filing a claim, thereby lengthening the initial DB2017 Russian Federation phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. China improved access to credit information by starting to report payment histories from utility companies and DB2017 China providing credit scores to banks and financial institutions. This reform applies to both Shanghai and Beijing. Indonesia strengthened access to credit by establishing a DB2017 Indonesia modern collateral registry. Thailand improved access to credit information by starting to DB2017 Thailand provide credit scores to banks and financial institutions. Indonesia made the process for getting an electricity connection faster by reducing the time for contractors to perform external work thanks to an increase in the stock of DB2017 Indonesia electrical material supplied by the utility. In Surabaya, getting electricity was also made easier after the utility streamlined the process for new connection requests. Vietnam strengthened minority investor protections by making it easier to sue directors in cases of prejudicial DB2017 Vietnam transactions between interested parties, by increasing shareholder rights and role in major corporate decisions, by strengthening the ownership and control structures of companies and by increasing corporate transparency Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 162 DB year Economy Reform requirements. Thailand made resolving insolvency easier by introducing new DB2017 Thailand restructuring for small and medium-size companies and by streamlining provisions related to company liquidation. Indonesia made it easier to register property by digitizing its DB2017 Indonesia cadastral records and setting up a geographic information system. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Singapore made it easier to transfer a property by DB2017 Singapore introducing an independent mechanism for reporting errors on titles and maps. Thailand made starting a business easier by creating a single DB2017 Thailand window for registration payment and reducing the time to obtain a company seal. Indonesia made starting a business easier by creating a single form to apply for the company registration certificate and trading license. This reform applies to Jakarta. Indonesia also made starting a business easier by abolishing the minimum DB2017 Indonesia capital requirement for small and medium-size enterprises and by encouraging the use of an online system to reserve company names. This reform applies to both Jakarta and Surabaya. China made starting a business easier by introducing a single DB2017 China form to obtain a business license, organization code and tax registration. This reform applies to both Shanghai and Beijing. Vietnam made starting a business more difficult by requiring DB2017 Vietnam entrepreneurs to receive approval of the seal sample before using it. Vietnam made exporting and importing easier by DB2017 Vietnam implementing electronic customs clearance system. DB2017 Indonesia Indonesia made exporting and importing easier by improving Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 163 DB year Economy Reform the customs services and document submission functions of the Indonesia National Single Window. Singapore made paying taxes easier by introducing improvements to the online system for filing corporate DB2017 Singapore income tax returns and VAT returns. At the same, the social security contribution rate paid by employers increased and the rebate of 30% on vehicle tax expired. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. New Zealand made paying taxes easier by abolishing the cheque levy. New Zealand made paying less costly by decreasing the rate of accident compensation levy paid by DB2017 New Zealand employers. At the same time, New Zealand made paying taxes more costly by raising property tax and road user levy rates. Indonesia made paying taxes easier by introducing an online system for filing and paying health contributions. Indonesia DB2017 Indonesia also made paying taxes more costly by levying a new pension contribution at a rate of 2% paid by employers. These reforms apply to both Jakarta and Surabaya. Japan made paying taxes easier by disclosing the technical specifications of the eTax platform and allowing the upload of additional information in comma separated value (CSV) format. The restoration surtax was also abolished. However, a local corporation tax was introduced and the rates of special DB2017 Japan local corporation tax, inhabitants tax and enterprise tax were raised. Welfare pension premiums were also raised. These reforms apply to both Tokyo and Osaka. However, the rate for health insurance contributions paid by employers was reduced only in Osaka. Vietnam made paying taxes easier and less costly by DB2017 Vietnam streamlining the administrative process of complying with tax obligations and abolishing environmental protection fees. Brunei Darussalam strengthened access to credit by adopting DB2017 Brunei Darussalam a new insolvency law that contemplates protections for secured creditors during an automatic stay in reorganization proceedings. Brunei also improved access to credit Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 164 DB year Economy Reform information by beginning to distribute data from two utility companies. The utility in Brunei Darussalam streamlined the processes of reviewing applications, and the time to issue an excavation permit was reduced. In addition, Brunei Darussalam increased the reliability of power supply by rolling out a Supervisory DB2017 Brunei Darussalam Control and Data Acquisition (SCADA) automatic energy management system for the monitoring of outages and the restoration of service. Brunei Darussalam strengthened minority investor protections by clarifying ownership and control structures, DB2017 Brunei Darussalam making it easier to sue directors in case of prejudicial related- party transactions, and allowing the rescission of related- party transactions that harm the company. Brunei Darussalam made resolving insolvency easier by adopting a new insolvency law that introduced a reorganization procedure and facilitated continuation of the DB2017 Brunei Darussalam debtor’s business during insolvency proceedings. Brunei Darussalam also introduced regulations for insolvency practitioners. Brunei Darussalam made paying taxes easier by fully DB2017 Brunei Darussalam implementing an electronic system for filing and paying corporate income tax. Brunei Darussalam made enforcing contracts easier by DB2017 Brunei Darussalam introducing an electronic filing system as well as a platform that allows users to pay court fees electronically. The Philippines made dealing with construction permits easier DB2017 Philippines by increasing the transparency of its building regulations. Papua New Guinea strengthened access to credit by adopting a new law on secured transactions that implemented a functional secured transactions system and established a DB2017 Papua New Guinea centralized, notice-based collateral registry. The new law broadens the scope of assets that can be used as collateral and allows out-of-court enforcement of collateral. DB2017 Papua New Guinea Papua New Guinea reduced the time required to start a Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 165 DB year Economy Reform business by streamlining business registration at the Investment Promotion Agency (IPA). The Philippines made paying taxes easier by introducing an online system for filing and paying health contributions and DB2017 Philippines by allowing for the online corporate income tax and VAT returns to be completed offline. The Philippines made starting a business easier by streamlining communications between the Securities and DB2016 Philippines Exchange Commission and the Social Security System and thereby expediting the process of issuing an employer registration number. Brunei Darussalam made paying taxes easier and less costly for companies by merging contributions for the Employee Provident Fund and the Supplemental Pension Fund and DB2016 Brunei Darussalam increasing the capital allowance for industrial buildings. In addition, it reduced the corporate income tax rate, though it also abolished the partial exemption of income and introduced a flat rate. Brunei Darussalam made starting a business easier by DB2016 Brunei Darussalam improving online procedures and simplifying registration and post registration requirements. Chile made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, introducing provisions to facilitate the continuation of the DB2016 Chile debtor’s business during insolvency, establishing a public office responsible for the general administration of insolvency proceedings and creating specialized insolvency courts. Chile made paying taxes more costly for companies by DB2016 Chile increasing the corporate income tax rate. The utility in Hong Kong SAR, China, made getting electricity easier by streamlining the process for reviewing connection DB2016 Hong Kong SAR, China applications and for completing the connection works and meter installation. In addition, the time needed to issue an excavation permit was reduced. DB2016 Korea, Rep. The Republic of Korea made paying taxes more complicated and costly for companies by requiring separate filing and Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 166 DB year Economy Reform payment of the local income tax and by increasing the rates for unemployment insurance and national health insurance paid by employers. Hong Kong SAR, China, made paying taxes easier and less costly for companies by simplifying compliance with the mandatory provident fund obligations and increasing the DB2016 Hong Kong SAR, China allowance for profit tax. At the same time, it increased the maximum contribution to the mandatory provident fund and reduced the property tax waiver. Malaysia made paying taxes easier and less costly for companies by making electronic filing mandatory and DB2016 Malaysia reducing the property tax rate. At the same time, it also increased the capital gains tax. Hong Kong SAR, China, made starting a business easier by DB2016 Hong Kong SAR, China eliminating the requirement for a company seal. Hong Kong SAR, China, improved access to credit by DB2016 Hong Kong SAR, China implementing a modern collateral registry. The utility in Vietnam reduced the time required for getting an electricity connection by reducing delays and increasing efficiency in approving connection applications and designs for connection works. Getting electricity was also made easier DB2016 Vietnam by eliminating the need to obtain a substation certification from the Fire Fighters Prevention Department for connections to the medium-voltage grid. Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. The utility in Taiwan, China, reduced the time required for getting an electricity connection through a simplified DB2016 Taiwan, China procedure for obtaining excavation permits from the municipality. DB2016 New Zealand The utility in New Zealand reduced the time required for Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 167 DB year Economy Reform getting an electricity connection by improving its payment monitoring and confirmation process for the connection works. Vietnam made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, modifying the standard for commencement of insolvency DB2016 Vietnam proceedings, changing provisions on voidable transactions, regulating the profession of insolvency trustees and establishing the rules for enterprise asset managers. Vietnam made paying taxes less costly for companies by reducing the corporate income tax rate—and made it easier by reducing the number of procedures and documents for filing VAT and social security contributions, reducing the DB2016 Vietnam number of filings for VAT and replacing quarterly filings of corporate income tax with quarterly advance payments. On the other hand, Vietnam increased the rate for social security contributions paid by employers. Indonesia made paying taxes easier and less costly for companies by introducing an online system for paying social DB2016 Indonesia security contributions and by reducing both the rate paid by employers and the ceiling for the contributions. This reform applies to both Jakarta and Surabaya. China made paying taxes less costly for companies in DB2016 China Shanghai by reducing the social security contribution rate. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be deductible. DB2016 Mexico These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. DB2016 Peru Peru made paying taxes easier for companies by creating an Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 168 DB year Economy Reform advanced online registry with up-to-date information on employees. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Indonesia made starting a business in Jakarta easier by DB2016 Indonesia reducing the time needed to register with the Ministry of Manpower. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Vietnam made starting a business easier by reducing the time DB2016 Vietnam required to get the company seal engraved and registered. Indonesia improved access to credit by enabling searches of DB2016 Indonesia the collateral registry by the debtor’s name. This reform applies to both Jakarta and Surabaya. Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral DB2016 Russian Federation registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Vietnam guaranteed borrowers’ right to inspect their credit DB2016 Vietnam data while the new credit bureau expanded borrower coverage, improving the credit information system. Peru improved its credit information system by implementing DB2016 Peru a new law on personal data protection. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. DB2015 Taiwan, China Taiwan, China, improved access to credit information by beginning to include data from utility companies in credit Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 169 DB year Economy Reform reports. Vietnam improved its credit information system by DB2015 Vietnam establishing a new credit bureau. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. Hong Kong SAR, China, strengthened minority investor protections by introducing requirements for directors to DB2015 Hong Kong SAR, China provide more detailed disclosure of conflicts of interest to the other board members. The Republic of Korea strengthened minority investor DB2015 Korea, Rep. protections by increasing the level of transparency expected from companies on managerial compensation. The Republic of Korea made transferring property easier by DB2015 Korea, Rep. reducing the time needed to buy housing bonds and to register the property transfer. Hong Kong SAR, China, made starting a business more DB2015 Hong Kong SAR, China difficult by increasing the registration fee. Taiwan, China, made getting electricity easier by eliminating DB2015 Taiwan, China site inspections. In Indonesia the electricity company in Jakarta made getting electricity easier by eliminating the need for electrical contractors to obtain multiple certificates guaranteeing the DB2015 Indonesia safety of internal installations—though. The utility in Jakarta and Surabaya also increased the cost by introducing a security deposit for new connections. Thailand made dealing with construction permits less time- DB2015 Thailand consuming by introducing a fast-track approval process for building permits for smaller buildings. Singapore made enforcing contracts easier by introducing a DB2015 Singapore new electronic litigation system that streamlines litigation proceedings. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 170 DB year Economy Reform Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. Taiwan, China, made paying taxes easier for companies by DB2015 Taiwan, China introducing an electronic system for paying the vehicle license tax. Indonesia made paying taxes less costly for companies by DB2015 Indonesia reducing employers’ health insurance contribution rate. This reform applies to both Jakarta and Surabaya. China made paying taxes easier for companies by enhancing the electronic system for filing and paying taxes and adopting new communication channels within its taxpayer service, DB2015 China changes applying to both Beijing and Shanghai. In addition, China made paying taxes less costly for companies in Shanghai by reducing the social security contribution rate. Vietnam made paying taxes less costly for companies by DB2015 Vietnam reducing the corporate income tax rate. The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing DB2015 Russian Federation tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. In the United States starting a business became easier in New DB2015 United States York City thanks to faster online procedures. China made starting a business easier by eliminating both the minimum capital requirement and the requirement to obtain DB2015 China a capital verification report from an auditing firm. This reform applies to both Beijing and Shanghai. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 171 DB year Economy Reform Indonesia made starting a business easier by allowing the Ministry of Law and Human Rights to electronically issue the DB2015 Indonesia approval letter for the deed of establishment. This reform applies to both Jakarta and Surabaya. In Indonesia trading across borders became more difficult DB2015 Indonesia because of insufficient infrastructure at the Tanjung Priok Port Jakarta. This change applies to both Jakarta and Surabaya. Brunei Darussalam made dealing with construction permits DB2015 Brunei Darussalam easier by consolidating final inspections. Brunei Darussalam made paying taxes easier for companies by allowing joint filing and payment of supplemental DB2015 Brunei Darussalam contributory pension and employee provident fund contributions and by introducing an online system for paying these 2 contributions. In the Philippines trading across borders became more DB2015 Philippines difficult because of a new city ordinance restricting truck traffic in Manila. Brunei Darussalam improved access to credit information by DB2014 Brunei Darussalam establishing a public credit registry. The Philippines improved access to credit information by beginning to distribute both positive and negative DB2014 Philippines information and by enacting a data privacy act that guarantees borrowers’ right to access their data. The Philippines made dealing with construction permits easier DB2014 Philippines by eliminating the requirement to obtain a health certificate. The Philippines made paying taxes easier for companies by DB2014 Philippines introducing an electronic filing and payment system for social security contributions. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a DB2014 Mexico “silence is consent” rule for the approval of the feasibility study for a new connection. DB2014 Russian Federation Russia made getting electricity simpler and less costly by setting standard connection tariffs and eliminating many Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 172 DB year Economy Reform procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. New Zealand made enforcing contracts easier by improving DB2014 New Zealand its case management system to ensure a speedier and less costly adjudication of cases. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. China made enforcing contracts easier by amending its civil DB2014 China procedure code to streamline and speed up all court proceedings. Thailand made paying taxes less costly for companies by DB2014 Thailand reducing employers' social security contribution rate. Vietnam made paying taxes more costly for companies by DB2014 Vietnam increasing employers' social security contribution rate. Vietnam strengthened investor protections by introducing DB2014 Vietnam greater disclosure requirements for publicly held companies in cases of related-party transactions. Singapore made transferring property easier by introducing DB2014 Singapore an online procedure for property transfers. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Vietnam abolished priority rules for redundancy dismissals or DB2014 Vietnam layoffs and increased the minimum wage. DB2014 Russian Federation Russia made trading across borders easier by implementing an electronic system for submitting export and import Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 173 DB year Economy Reform documents and by reducing the number of physical inspections. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. Malaysia made getting electricity easier by increasing the DB2014 Malaysia efficiency of internal processes at the utility and improving its communication and dialogue with contractors. Malaysia made dealing with construction permits easier by DB2014 Malaysia establishing a one-stop shop. Hong Kong SAR, China, made transferring property more DB2014 Hong Kong SAR, China costly by increasing the stamp duty. Malaysia made starting a business less costly by reducing the DB2014 Malaysia company registration fees. Hong Kong SAR, China, made starting a business less costly DB2014 Hong Kong SAR, China by abolishing the capital duty levied on local companies. DB2014 Malaysia Malaysia introduced a minimum wage. Australia improved its credit information system through the Privacy Amendment (Enhancing Privacy Protection) DB2014 Australia Act 2012, which permits credit bureaus to collect account payment history with improved privacy protection. China improved its credit information system by introducing DB2014 China credit information industry regulations, which guarantee borrowers’ right to inspect their data. Indonesia improved its credit information system through a DB2014 Indonesia new regulation setting up a legal framework for establishing credit bureaus. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 174 DB year Economy Reform Vietnam improved its credit information system through a DB2014 Vietnam decree setting up a legal framework for the establishment of private credit bureaus. Singapore improved its credit information system by DB2014 Singapore guaranteeing by law borrowers’ right to inspect their own data. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Thailand made starting a business easier by allowing the DB2013 Thailand registrar at the Department of Business Development to receive the company’s work regulations. Vietnam made starting a business easier by allowing DB2013 Vietnam companies to use self-printed value added tax invoices. China made starting a business less costly by exempting DB2013 China micro and small companies from paying several administrative fees from January 2012 to December 2014. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. Taiwan, China, made dealing with construction permits easier by introducing a risk-based and self-regulatory inspection DB2013 Taiwan, China system and improving operational features of the one-stop shop for building permits. China simplified the process of obtaining a construction DB2013 China permit by streamlining and centralizing preconstruction approvals. DB2013 Russian Federation Russia made obtaining a construction permit simpler by eliminating requirements for several preconstruction Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 175 DB year Economy Reform approvals. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Taiwan, China, strengthened investor protections by increasing disclosure requirements for related-party DB2013 Taiwan, China transactions and improving the liability regime for company directors in cases where such transactions are abusive. Australia strengthened its secured transactions system by adopting a new national legal regime governing the DB2013 Australia enforceability of security interests in personal property and implementing a unified collateral registry. Canada made getting an electricity connection easier by DB2013 Canada reducing the time needed for external connection works. Malaysia made dealing with construction permits faster by DB2013 Malaysia improving the one-stop center for new buildings and by reducing the time to connect to telephone service. Malaysia substantially reduced the number of days it takes to DB2013 Malaysia register property transfers. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Brunei Darussalam made dealing with construction permits DB2013 Brunei Darussalam easier by creating a one-stop shop for preconstruction approvals. Brunei Darussalam made paying taxes less costly for DB2013 Brunei Darussalam companies by reducing the profit tax rate. Indonesia made getting electricity easier by eliminating the DB2013 Indonesia requirement for new customers applying for an electricity connection to show a neighbor’s electricity bill as a way to Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 176 DB year Economy Reform help determine their address. In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training DB2013 Mexico opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Japan made paying taxes less costly for companies by DB2013 Japan reducing the corporate income tax rate—though it also introduced a restoration surtax for a 3-year period. Thailand made paying taxes less costly for companies by DB2013 Thailand reducing the profit tax rate. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Vietnam strengthened investor protections by requiring DB2012 Vietnam higher standards of accountability for company directors. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 177 DB year Economy Reform Indonesia made getting electricity more difficult by increasing DB2012 Indonesia connection fees. Brunei Darussalam made getting electricity easier by DB2012 Brunei Darussalam establishing a one-stop shop and reducing the time required to obtain an excavation permit. The Philippines adopted a new insolvency law that provides a DB2012 Philippines legal framework for liquidation and reorganization of financially distressed companies. Korea eased the administrative burden of paying taxes for firms by merging several taxes, allowing 4 labor taxes and DB2012 Korea, Rep. contributions to be paid jointly and continuing to increase the use of the online tax payment system. Malaysia made paying taxes costlier for firms by reintroducing the real estate capital gains tax—but also made DB2012 Malaysia tax compliance easier by improving electronic systems and the availability of software. DB2012 Hong Kong SAR, China Hong Kong, China introduced a Minimum Wage. Hong Kong SAR (China) made starting a business easier by DB2012 Hong Kong SAR, China introducing online electronic services for company and business registration. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Malaysia made starting a business easier by merging company, tax, social security and employment fund DB2012 Malaysia registrations at the one-stop shop and providing same-day registration. Australia clarified the priority of claims of unsecured creditors DB2012 Australia over all shareholders’ claims and introduced further regulation of the profession of insolvency practitioners. Chile made business start-up easier by starting to provide an immediate temporary operating license to new companies, DB2012 Chile eliminating the requirement for an inspection of premises by the tax authority before new companies can begin operations and allowing free online publication of the notice of a Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 178 DB year Economy Reform company’s creation. Chile strengthened its secured transactions system by DB2012 Chile implementing a unified collateral registry and a new legal framework for nonpossessory security interests. Canada made paying taxes easier and less costly for DB2012 Canada companies by reducing profit tax rates, eliminating the Ontario capital tax and harmonizing sales taxes. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Thailand made registering property more expensive by DB2012 Thailand increasing the registration fee. Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Russia increased the social security contribution rate for DB2012 Russian Federation employers. Malaysia established dedicated commercial courts to handle DB2012 Malaysia foreclosure proceedings. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. DB2012 Japan Japan made dealing with construction permits costlier by Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 179 DB year Economy Reform increasing inspection fees. Taiwan (China) made dealing with construction permits easier DB2012 Taiwan, China by creating a one-stop center. Indonesia made starting a business easier by introducing a simplified application process allowing an applicant to DB2012 Indonesia simultaneously obtain both a general trading license and a business registration certificate. Taiwan (China) made starting a business easier by DB2012 Taiwan, China implementing an online one-stop shop for business registration. Thailand made starting a business easier by introducing a DB2012 Thailand one-stop shop. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Hong Kong SAR (China) made getting electricity easier by DB2012 Hong Kong SAR, China increasing the efficiency of public agencies and streamlining the utility’s procedures with other government agencies. Malaysia continued to improve the computerization of its DB2012 Malaysia courts by introducing a system making it possible to file complaints electronically. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Korea made it easier to deal with insolvency by introducing DB2011 Korea, Rep. postfiling financing, granting superpriority to the repayment of loans given to companies undergoing reorganization. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Taiwan (China) eased business start-up by reducing the time DB2011 Taiwan, China required to check company names, register retirement plans and apply for health, pension and labor insurance. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 180 DB year Economy Reform Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business DB2011 Vietnam license and tax license and by eliminating the need for a seal for company licensing. Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Indonesia eased business start-up by reducing the cost for company name clearance and reservation and the time DB2011 Indonesia required to reserve the name and approve the deed of incorporation. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Vietnam made dealing with construction permits easier by reducing the cost to register newly completed buildings by DB2011 Vietnam 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Thailand made registering property more costly by repealing DB2011 Thailand a 2-year temporary tax reduction for property transfers. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Vietnam improved its credit information system by allowing DB2011 Vietnam borrowers to examine their own credit report and correct errors. Singapore improved its credit information system by DB2011 Singapore collecting and distributing information on firms. Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 181 DB year Economy Reform In the United States the introduction of a new tax on payroll DB2011 United States increased taxes on companies operating within the New York City metropolitan commuter transportation district. DB2011 Indonesia Indonesia reduced its corporate income tax rate. China’s new corporate income tax law unified the tax regimes for domestic and foreign enterprises and clarified the DB2011 China calculation of taxable income for corporate income tax purposes. The government of Vietnam eased paying taxes by reducing DB2011 Vietnam corporate income tax rate. Taiwan (China) reduced the corporate income tax rate and DB2011 Taiwan, China simplified tax return forms, rules for assessing corporate income tax and the calculation of interim tax payments. Thailand temporarily lowered taxes on business by reducing DB2011 Thailand its specific business tax for 12 months. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. An amendment to Chile’s securities law strengthened investor protections by requiring greater corporate disclosure and DB2011 Chile regulating the approval of transactions between interested parties. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Australia introduced the severance payment obligation and reemployment consideration applicable in cases of redundancy dismissals. Annual leave was increased and DB2011 Australia averaging of hours is now allowed in shorter periods of time. In addition, notice period applicable in case of redundancy dismissals was decreased. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 182 DB year Economy Reform Malaysia eliminated the requirements to notify third parties in DB2011 Malaysia cases of redundancy dismissals. Malaysia eased business start-up by introducing more online DB2011 Malaysia services. Malaysia’s introduction of online stamping reduced the time DB2011 Malaysia and cost to transfer property. DB2011 Hong Kong SAR, China Hong Kong SAR (China) abolished the fuel tax on diesel. Reforms implemented in the civil justice system of Hong DB2011 Hong Kong SAR, China Kong SAR (China) will help increase the efficiency and cost- effectiveness of commercial dispute resolution. Japan made it easier to deal with insolvency by establishing a new entity, the Enterprise Turnaround Initiative Corporation, DB2011 Japan to support the revitalization of companies suffering from excessive debt but professionally managed. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. Indonesia reduced the time to export by launching a single- DB2011 Indonesia window service. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. The introduction of an electronic customs system in Brunei DB2011 Brunei Darussalam Darussalam made trading easier. Operation of a new private credit bureau improved the credit DB2011 Papua New Guinea information system in Papua New Guinea. The Philippines reduced the time and cost to trade by improving its electronic customs systems, adding such DB2011 Philippines functions as electronic payments and online submission of declarations. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 183 DB year Economy Reform Brunei Darussalam instituted mandatory minimum annual DB2011 Brunei Darussalam leave and reduced notice periods applicable in case of redundancy dismissals. Brunei Darussalam reduced the corporate income tax rate DB2011 Brunei Darussalam from 23.5% to 22% while also introducing a lower tax rate for small businesses, ranging from 5.5% to 11%. The Philippines eased business startup by setting up a one- DB2011 Philippines stop shop at the municipal level. The Philippines made construction permitting more DB2011 Philippines cumbersome through updated electricity connection costs. Brunei Darussalam made starting a business easier by DB2011 Brunei Darussalam improving efficiency at the company registrar and implementing an electronic system for name searches. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 184 WHAT THE PAYING TAXES INDICATORS PAYING TAXES Taxes are essential. The level of tax rates needs to MEASURE be carefully chosen—and needless complexity in tax rules avoided. Firms in economies that rank Tax payments for a manufacturing company better on the ease of paying taxes in the Doing in 2014 (number per year adjusted for Business study tend to perceive both tax rates and electronic and joint filing and payment) tax administration as less of an obstacle to Total number of taxes and contributions paid, business according to the World Bank Enterprise including consumption taxes (value added tax, Survey research. sales tax or goods and service tax) Method and frequency of filing and payment What do the indicators cover? Time required to comply with 3 major taxes Using a case scenario, Doing Business records the (hours per year) taxes and mandatory contributions that a medium- size company must pay in a given year as well as Collecting information and computing the tax measures of the administrative burden of paying payable taxes and contributions and dealing with postfiling Completing tax return forms, filing with processes. This case scenario uses a set of financial proper agencies statements and assumptions about transactions Arranging payment or withholding made over the year. Information is also compiled on the frequency of filing and payments, time taken to Preparing separate tax accounting books, if comply with tax laws, time taken to comply with the required requirements of postfiling processes and time Total tax rate (% of profit before all taxes) waiting for these processes to be completed. The ranking of economies on the ease of paying taxes is Profit or corporate income tax determined by sorting their distance to frontier Social contributions and labor taxes paid by scores on the ease of paying taxes. These scores are the employer the simple average of the distance to frontier scores Property and property transfer taxes for each of the four component indicators – number of tax payments. time, total tax rate and postfiling Dividend, capital gains and financial index – with a threshold and a nonlinear transactions taxes transformation applied to one of the component Waste collection, vehicle, road and other taxes indicators, the total tax rate2. If both VAT (or GST) Postfiling Index and corporate income tax apply, the postfiling index is the simple average of the distance to frontier sores The time to comply with a VAT or GST refund for each of the four components: the time to comply The time to receive a VAT or GST refund with a VAT or GST refund, the time to obtain a VAT The time to comply with a corporate income or GST refund, the time to comply with a corporate tax audit income tax audit and the time to complete a The time to complete a corporate income corporate income tax audit. If only VAT (or GST) or tax audit corporate income applies, the postfiling index is the simple average of the scores for only the two components pertaining to the applicable tax. If  neither VAT (or GST) nor corporate income tax  applies, the postfiling index is not included in the ranking of the ease of paying taxes.  2 The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is defined as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 185  Taxes and mandatory contributions include Assumptions about the corporate income tax corporate income tax, turnover tax and all labor audit process: taxes and contributions paid by the company. A range of standard deductions and exemptions  An error in the calculation of the income tax liability are also recorded. (for example, use of incorrect tax depreciation rates, or incorrectly treating an expense as tax deductible) All financial statement variables are proportional to leads to an incorrect income tax return and 2012 income per capita. To make the data consequently an underpayment of corporate comparable across economies, several assumptions income tax. are used.  TaxpayerCo. discovered the error and voluntarily  TaxpayerCo is a medium-size business that notified the tax authority of the error in the started operations on January 1, 2014. corporate income tax return.  The business starts from the same financial  position in each economy. All the taxes and mandatory contributions paid during the second  year of operation are recorded.   Taxes and mandatory contributions are measured at all levels of government. Assumptions about the VAT refund process:  In June 2015, TaxpayerCo. makes a large capital purchase: one additional machine for manufacturing pots.  The value of the machine is 65 times income per capita of the economy.  Sales are equally spread per month (that is, 1,050 times income per capita divided by 12).  Cost of goods sold are equally expensed per month (that is, 875 times income per capita divided by 12).  The seller of the machinery is registered for VAT or general sales tax (GST).  Excess input VAT incurred in June will be fully recovered after four consecutive months if the VAT or GST rate is the same for inputs, sales and the machine and the tax reporting period is every month.   Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 186 PAYING TAXES Where do the region’s economies stand today? What is the administrative burden of complying with offer useful information for assessing the tax compliance taxes in economies in Asia-Pacific Economic Cooperation burden for businesses (figure 8.1). The average ranking (APEC)—and how much do firms pay in taxes? The global of the region provides a useful benchmark. rankings of these economies on the ease of paying taxes Figure 8.1 How economies in Asia-Pacific Economic Cooperation (APEC) rank on the ease of paying taxes Note: All economies with a total tax rate below the threshold of 26.1% applied in DB2015, receive the same distance to frontier score for the total tax rate (a distance to frontier score of 100 for the total tax rate) for the purpose of calculating the ranking on the ease of paying taxes. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 187 PAYING TAXES The indicators underlying the rankings may be more major taxes (corporate income tax, VAT or sales tax and revealing. Data collected by Doing Business show what it labor taxes and mandatory contributions)—as well as the takes to comply with tax regulations in each economy in total tax rate (figure 8.2). Comparing these indicators the region—the number of payments per year and the across the region and with averages both for the region time required to prepare, and file and pay taxes the 3 and for comparator regions can provide useful insights. Figure 8.2 How easy is it to pay taxes in economies in Asia-Pacific Economic Cooperation (APEC)—and what are the total tax rates? Payments (number per year) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 188 PAYING TAXES Time (hours per year) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 189 PAYING TAXES Total tax rate (% of profit) Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 190 PAYING TAXES Postfiling Index (DTF) Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 191 PAYING TAXES What are the changes over time? Economies around the world have made paying taxes concrete results. Some economies simplifying faster and easier for businesses—such as by compliance with tax obligations and reducing rates have consolidating filings, reducing the frequency of seen tax revenue rise. What tax reforms has Doing payments or offering electronic filing and payment. Business recorded in Asia-Pacific Economic Cooperation Many have lowered tax rates. Changes have brought (APEC) (table 8.1)? Table 8.1 How have economies in Asia-Pacific Economic Cooperation (APEC) made paying taxes easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform In Malaysia the credit bureau began to provide consumer DB2017 Malaysia credit scores. Hong Kong SAR, China, streamlined the processes of DB2017 Hong Kong SAR, China reviewing applications for new electrical connections and also reduced the time needed to issue an excavation permit. Hong Kong SAR, China, made starting a business less costly DB2017 Hong Kong SAR, China by reducing the business registration fee. Malaysia made starting a business more difficult by requiring DB2017 Malaysia that companies with an annual revenue of more than MYR 500,000 register as a GST payer. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. Malaysia made paying taxes easier by introducing an online system for filing and paying the Goods and Services Tax (GST) DB2017 Malaysia while also making it is more complex by replacing sales tax with GST. Singapore made dealing with construction permits easier by streamlining procedures and improving the online one-stop DB2017 Singapore shop. DB2017 Russian Federation Russian Federation Saint Petersburg made dealing with construction permits easier by removing the requirement to Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 192 DB year Economy Reform obtain permission to fence the construction site. Indonesia made enforcing contracts easier by introducing a dedicated procedure for small claims that allows for parties’ DB2017 Indonesia self-representation.This reform applies to both Jakarta and Surabaya. The Russian Federation made enforcing contracts more difficult by mandating pre-trial resolution before filing a claim, thereby lengthening the initial DB2017 Russian Federation phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. China improved access to credit information by starting to report payment histories from utility companies and DB2017 China providing credit scores to banks and financial institutions. This reform applies to both Shanghai and Beijing. Indonesia strengthened access to credit by establishing a DB2017 Indonesia modern collateral registry. Thailand improved access to credit information by starting to DB2017 Thailand provide credit scores to banks and financial institutions. Indonesia made the process for getting an electricity connection faster by reducing the time for contractors to perform external work thanks to an increase in the stock of DB2017 Indonesia electrical material supplied by the utility. In Surabaya, getting electricity was also made easier after the utility streamlined the process for new connection requests. Vietnam strengthened minority investor protections by making it easier to sue directors in cases of prejudicial DB2017 Vietnam transactions between interested parties, by increasing shareholder rights and role in major corporate decisions, by strengthening the ownership and control structures of Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 193 DB year Economy Reform companies and by increasing corporate transparency requirements. Thailand made resolving insolvency easier by introducing new DB2017 Thailand restructuring for small and medium-size companies and by streamlining provisions related to company liquidation. Indonesia made it easier to register property by digitizing its DB2017 Indonesia cadastral records and setting up a geographic information system. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Singapore made it easier to transfer a property by DB2017 Singapore introducing an independent mechanism for reporting errors on titles and maps. Thailand made starting a business easier by creating a single DB2017 Thailand window for registration payment and reducing the time to obtain a company seal. Indonesia made starting a business easier by creating a single form to apply for the company registration certificate and trading license. This reform applies to Jakarta. Indonesia also made starting a business easier by abolishing the minimum DB2017 Indonesia capital requirement for small and medium-size enterprises and by encouraging the use of an online system to reserve company names. This reform applies to both Jakarta and Surabaya. China made starting a business easier by introducing a single DB2017 China form to obtain a business license, organization code and tax registration. This reform applies to both Shanghai and Beijing. Vietnam made starting a business more difficult by requiring DB2017 Vietnam entrepreneurs to receive approval of the seal sample before using it. Vietnam made exporting and importing easier by DB2017 Vietnam implementing electronic customs clearance system. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 194 DB year Economy Reform Indonesia made exporting and importing easier by improving DB2017 Indonesia the customs services and document submission functions of the Indonesia National Single Window. Singapore made paying taxes easier by introducing improvements to the online system for filing corporate DB2017 Singapore income tax returns and VAT returns. At the same, the social security contribution rate paid by employers increased and the rebate of 30% on vehicle tax expired. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. New Zealand made paying taxes easier by abolishing the cheque levy. New Zealand made paying less costly by decreasing the rate of accident compensation levy paid by DB2017 New Zealand employers. At the same time, New Zealand made paying taxes more costly by raising property tax and road user levy rates. Indonesia made paying taxes easier by introducing an online system for filing and paying health contributions. Indonesia DB2017 Indonesia also made paying taxes more costly by levying a new pension contribution at a rate of 2% paid by employers. These reforms apply to both Jakarta and Surabaya. Japan made paying taxes easier by disclosing the technical specifications of the eTax platform and allowing the upload of additional information in comma separated value (CSV) format. The restoration surtax was also abolished. However, a local corporation tax was introduced and the rates of special DB2017 Japan local corporation tax, inhabitants tax and enterprise tax were raised. Welfare pension premiums were also raised. These reforms apply to both Tokyo and Osaka. However, the rate for health insurance contributions paid by employers was reduced only in Osaka. Vietnam made paying taxes easier and less costly by DB2017 Vietnam streamlining the administrative process of complying with tax obligations and abolishing environmental protection fees. DB2017 Brunei Darussalam Brunei Darussalam strengthened access to credit by adopting a new insolvency law that contemplates protections for Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 195 DB year Economy Reform secured creditors during an automatic stay in reorganization proceedings. Brunei also improved access to credit information by beginning to distribute data from two utility companies. The utility in Brunei Darussalam streamlined the processes of reviewing applications, and the time to issue an excavation permit was reduced. In addition, Brunei Darussalam increased the reliability of power supply by rolling out a Supervisory DB2017 Brunei Darussalam Control and Data Acquisition (SCADA) automatic energy management system for the monitoring of outages and the restoration of service. Brunei Darussalam strengthened minority investor protections by clarifying ownership and control structures, DB2017 Brunei Darussalam making it easier to sue directors in case of prejudicial related- party transactions, and allowing the rescission of related- party transactions that harm the company. Brunei Darussalam made resolving insolvency easier by adopting a new insolvency law that introduced a reorganization procedure and facilitated continuation of the DB2017 Brunei Darussalam debtor’s business during insolvency proceedings. Brunei Darussalam also introduced regulations for insolvency practitioners. Brunei Darussalam made paying taxes easier by fully DB2017 Brunei Darussalam implementing an electronic system for filing and paying corporate income tax. The Philippines made dealing with construction permits easier DB2017 Philippines by increasing the transparency of its building regulations. Papua New Guinea strengthened access to credit by adopting a new law on secured transactions that implemented a functional secured transactions system and established a DB2017 Papua New Guinea centralized, notice-based collateral registry. The new law broadens the scope of assets that can be used as collateral and allows out-of-court enforcement of collateral. DB2017 Papua New Guinea Papua New Guinea reduced the time required to start a business by streamlining business registration at the Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 196 DB year Economy Reform Investment Promotion Agency (IPA). The Philippines made paying taxes easier by introducing an online system for filing and paying health contributions and DB2017 Philippines by allowing for the online corporate income tax and VAT returns to be completed offline. Brunei Darussalam made enforcing contracts easier by DB2017 Brunei Darussalam introducing an electronic filing system as well as a platform that allows users to pay court fees electronically. The Philippines made starting a business easier by streamlining communications between the Securities and DB2016 Philippines Exchange Commission and the Social Security System and thereby expediting the process of issuing an employer registration number. Brunei Darussalam made paying taxes easier and less costly for companies by merging contributions for the Employee Provident Fund and the Supplemental Pension Fund and DB2016 Brunei Darussalam increasing the capital allowance for industrial buildings. In addition, it reduced the corporate income tax rate, though it also abolished the partial exemption of income and introduced a flat rate. Brunei Darussalam made starting a business easier by DB2016 Brunei Darussalam improving online procedures and simplifying registration and post registration requirements. Chile made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, introducing provisions to facilitate the continuation of the DB2016 Chile debtor’s business during insolvency, establishing a public office responsible for the general administration of insolvency proceedings and creating specialized insolvency courts. Chile made paying taxes more costly for companies by DB2016 Chile increasing the corporate income tax rate. The utility in Hong Kong SAR, China, made getting electricity DB2016 Hong Kong SAR, China easier by streamlining the process for reviewing connection applications and for completing the connection works and meter installation. In addition, the time needed to issue an Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 197 DB year Economy Reform excavation permit was reduced. The Republic of Korea made paying taxes more complicated and costly for companies by requiring separate filing and DB2016 Korea, Rep. payment of the local income tax and by increasing the rates for unemployment insurance and national health insurance paid by employers. Hong Kong SAR, China, made paying taxes easier and less costly for companies by simplifying compliance with the mandatory provident fund obligations and increasing the DB2016 Hong Kong SAR, China allowance for profit tax. At the same time, it increased the maximum contribution to the mandatory provident fund and reduced the property tax waiver. Malaysia made paying taxes easier and less costly for companies by making electronic filing mandatory and DB2016 Malaysia reducing the property tax rate. At the same time, it also increased the capital gains tax. Hong Kong SAR, China, made starting a business easier by DB2016 Hong Kong SAR, China eliminating the requirement for a company seal. Hong Kong SAR, China, improved access to credit by DB2016 Hong Kong SAR, China implementing a modern collateral registry. The utility in Vietnam reduced the time required for getting an electricity connection by reducing delays and increasing efficiency in approving connection applications and designs for connection works. Getting electricity was also made easier DB2016 Vietnam by eliminating the need to obtain a substation certification from the Fire Fighters Prevention Department for connections to the medium-voltage grid. Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. DB2016 Taiwan, China The utility in Taiwan, China, reduced the time required for Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 198 DB year Economy Reform getting an electricity connection through a simplified procedure for obtaining excavation permits from the municipality. The utility in New Zealand reduced the time required for getting an electricity connection by improving its payment DB2016 New Zealand monitoring and confirmation process for the connection works. Vietnam made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, modifying the standard for commencement of insolvency DB2016 Vietnam proceedings, changing provisions on voidable transactions, regulating the profession of insolvency trustees and establishing the rules for enterprise asset managers. Vietnam made paying taxes less costly for companies by reducing the corporate income tax rate—and made it easier by reducing the number of procedures and documents for filing VAT and social security contributions, reducing the DB2016 Vietnam number of filings for VAT and replacing quarterly filings of corporate income tax with quarterly advance payments. On the other hand, Vietnam increased the rate for social security contributions paid by employers. Indonesia made paying taxes easier and less costly for companies by introducing an online system for paying social DB2016 Indonesia security contributions and by reducing both the rate paid by employers and the ceiling for the contributions. This reform applies to both Jakarta and Surabaya. China made paying taxes less costly for companies in DB2016 China Shanghai by reducing the social security contribution rate. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. DB2016 Mexico Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 199 DB year Economy Reform costly by allowing only a portion of salaries to be deductible. These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Indonesia made starting a business in Jakarta easier by DB2016 Indonesia reducing the time needed to register with the Ministry of Manpower. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Vietnam made starting a business easier by reducing the time DB2016 Vietnam required to get the company seal engraved and registered. Indonesia improved access to credit by enabling searches of DB2016 Indonesia the collateral registry by the debtor’s name. This reform applies to both Jakarta and Surabaya. Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral DB2016 Russian Federation registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Vietnam guaranteed borrowers’ right to inspect their credit DB2016 Vietnam data while the new credit bureau expanded borrower coverage, improving the credit information system. DB2016 Peru Peru improved its credit information system by implementing Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 200 DB year Economy Reform a new law on personal data protection. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. Taiwan, China, improved access to credit information by DB2015 Taiwan, China beginning to include data from utility companies in credit reports. Vietnam improved its credit information system by DB2015 Vietnam establishing a new credit bureau. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. Hong Kong SAR, China, strengthened minority investor protections by introducing requirements for directors to DB2015 Hong Kong SAR, China provide more detailed disclosure of conflicts of interest to the other board members. The Republic of Korea strengthened minority investor DB2015 Korea, Rep. protections by increasing the level of transparency expected from companies on managerial compensation. The Republic of Korea made transferring property easier by DB2015 Korea, Rep. reducing the time needed to buy housing bonds and to register the property transfer. Hong Kong SAR, China, made starting a business more DB2015 Hong Kong SAR, China difficult by increasing the registration fee. Taiwan, China, made getting electricity easier by eliminating DB2015 Taiwan, China site inspections. In Indonesia the electricity company in Jakarta made getting electricity easier by eliminating the need for electrical DB2015 Indonesia contractors to obtain multiple certificates guaranteeing the safety of internal installations—though. The utility in Jakarta and Surabaya also increased the cost by introducing a Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 201 DB year Economy Reform security deposit for new connections. Thailand made dealing with construction permits less time- DB2015 Thailand consuming by introducing a fast-track approval process for building permits for smaller buildings. Singapore made enforcing contracts easier by introducing a DB2015 Singapore new electronic litigation system that streamlines litigation proceedings. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. Taiwan, China, made paying taxes easier for companies by DB2015 Taiwan, China introducing an electronic system for paying the vehicle license tax. Indonesia made paying taxes less costly for companies by DB2015 Indonesia reducing employers’ health insurance contribution rate. This reform applies to both Jakarta and Surabaya. China made paying taxes easier for companies by enhancing the electronic system for filing and paying taxes and adopting new communication channels within its taxpayer service, DB2015 China changes applying to both Beijing and Shanghai. In addition, China made paying taxes less costly for companies in Shanghai by reducing the social security contribution rate. Vietnam made paying taxes less costly for companies by DB2015 Vietnam reducing the corporate income tax rate. The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing DB2015 Russian Federation tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. DB2015 Russian Federation The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 202 DB year Economy Reform before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. In the United States starting a business became easier in New DB2015 United States York City thanks to faster online procedures. China made starting a business easier by eliminating both the minimum capital requirement and the requirement to obtain DB2015 China a capital verification report from an auditing firm. This reform applies to both Beijing and Shanghai. Indonesia made starting a business easier by allowing the Ministry of Law and Human Rights to electronically issue the DB2015 Indonesia approval letter for the deed of establishment. This reform applies to both Jakarta and Surabaya. In Indonesia trading across borders became more difficult DB2015 Indonesia because of insufficient infrastructure at the Tanjung Priok Port Jakarta. This change applies to both Jakarta and Surabaya. Brunei Darussalam made dealing with construction permits DB2015 Brunei Darussalam easier by consolidating final inspections. Brunei Darussalam made paying taxes easier for companies by allowing joint filing and payment of supplemental DB2015 Brunei Darussalam contributory pension and employee provident fund contributions and by introducing an online system for paying these 2 contributions. In the Philippines trading across borders became more DB2015 Philippines difficult because of a new city ordinance restricting truck traffic in Manila. The Philippines improved access to credit information by beginning to distribute both positive and negative DB2014 Philippines information and by enacting a data privacy act that guarantees borrowers’ right to access their data. Brunei Darussalam improved access to credit information by DB2014 Brunei Darussalam establishing a public credit registry. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 203 DB year Economy Reform The Philippines made dealing with construction permits easier DB2014 Philippines by eliminating the requirement to obtain a health certificate. The Philippines made paying taxes easier for companies by DB2014 Philippines introducing an electronic filing and payment system for social security contributions. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a DB2014 Mexico “silence is consent” rule for the approval of the feasibility study for a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. New Zealand made enforcing contracts easier by improving DB2014 New Zealand its case management system to ensure a speedier and less costly adjudication of cases. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. China made enforcing contracts easier by amending its civil DB2014 China procedure code to streamline and speed up all court proceedings. Thailand made paying taxes less costly for companies by DB2014 Thailand reducing employers' social security contribution rate. Vietnam made paying taxes more costly for companies by DB2014 Vietnam increasing employers' social security contribution rate. Vietnam strengthened investor protections by introducing DB2014 Vietnam greater disclosure requirements for publicly held companies in cases of related-party transactions. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 204 DB year Economy Reform Singapore made transferring property easier by introducing DB2014 Singapore an online procedure for property transfers. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Vietnam abolished priority rules for redundancy dismissals or DB2014 Vietnam layoffs and increased the minimum wage. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. Malaysia made getting electricity easier by increasing the DB2014 Malaysia efficiency of internal processes at the utility and improving its communication and dialogue with contractors. Malaysia made dealing with construction permits easier by DB2014 Malaysia establishing a one-stop shop. Hong Kong SAR, China, made transferring property more DB2014 Hong Kong SAR, China costly by increasing the stamp duty. Malaysia made starting a business less costly by reducing the DB2014 Malaysia company registration fees. DB2014 Hong Kong SAR, China Hong Kong SAR, China, made starting a business less costly Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 205 DB year Economy Reform by abolishing the capital duty levied on local companies. DB2014 Malaysia Malaysia introduced a minimum wage. Australia improved its credit information system through the Privacy Amendment (Enhancing Privacy Protection) DB2014 Australia Act 2012, which permits credit bureaus to collect account payment history with improved privacy protection. China improved its credit information system by introducing DB2014 China credit information industry regulations, which guarantee borrowers’ right to inspect their data. Indonesia improved its credit information system through a DB2014 Indonesia new regulation setting up a legal framework for establishing credit bureaus. Vietnam improved its credit information system through a DB2014 Vietnam decree setting up a legal framework for the establishment of private credit bureaus. Singapore improved its credit information system by DB2014 Singapore guaranteeing by law borrowers’ right to inspect their own data. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Thailand made starting a business easier by allowing the DB2013 Thailand registrar at the Department of Business Development to receive the company’s work regulations. Vietnam made starting a business easier by allowing DB2013 Vietnam companies to use self-printed value added tax invoices. China made starting a business less costly by exempting DB2013 China micro and small companies from paying several administrative fees from January 2012 to December 2014. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. DB2013 Korea, Rep. Korea made getting electricity less costly by introducing a new connection fee schedule and an installment payment Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 206 DB year Economy Reform system. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. Taiwan, China, made dealing with construction permits easier by introducing a risk-based and self-regulatory inspection DB2013 Taiwan, China system and improving operational features of the one-stop shop for building permits. China simplified the process of obtaining a construction DB2013 China permit by streamlining and centralizing preconstruction approvals. Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Taiwan, China, strengthened investor protections by increasing disclosure requirements for related-party DB2013 Taiwan, China transactions and improving the liability regime for company directors in cases where such transactions are abusive. Australia strengthened its secured transactions system by adopting a new national legal regime governing the DB2013 Australia enforceability of security interests in personal property and implementing a unified collateral registry. Canada made getting an electricity connection easier by DB2013 Canada reducing the time needed for external connection works. Malaysia made dealing with construction permits faster by DB2013 Malaysia improving the one-stop center for new buildings and by reducing the time to connect to telephone service. Malaysia substantially reduced the number of days it takes to DB2013 Malaysia register property transfers. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 207 DB year Economy Reform Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Brunei Darussalam made dealing with construction permits DB2013 Brunei Darussalam easier by creating a one-stop shop for preconstruction approvals. Brunei Darussalam made paying taxes less costly for DB2013 Brunei Darussalam companies by reducing the profit tax rate. Indonesia made getting electricity easier by eliminating the requirement for new customers applying for an electricity DB2013 Indonesia connection to show a neighbor’s electricity bill as a way to help determine their address. In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training DB2013 Mexico opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Japan made paying taxes less costly for companies by DB2013 Japan reducing the corporate income tax rate—though it also introduced a restoration surtax for a 3-year period. Thailand made paying taxes less costly for companies by DB2013 Thailand reducing the profit tax rate. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. DB2012 Peru Peru strengthened investor protections through a new law allowing minority shareholders to request access to Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 208 DB year Economy Reform nonconfidential corporate documents. Vietnam strengthened investor protections by requiring DB2012 Vietnam higher standards of accountability for company directors. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Indonesia made getting electricity more difficult by increasing DB2012 Indonesia connection fees. The Philippines adopted a new insolvency law that provides a DB2012 Philippines legal framework for liquidation and reorganization of financially distressed companies. Brunei Darussalam made getting electricity easier by DB2012 Brunei Darussalam establishing a one-stop shop and reducing the time required to obtain an excavation permit. Korea eased the administrative burden of paying taxes for firms by merging several taxes, allowing 4 labor taxes and DB2012 Korea, Rep. contributions to be paid jointly and continuing to increase the use of the online tax payment system. Malaysia made paying taxes costlier for firms by reintroducing the real estate capital gains tax—but also made DB2012 Malaysia tax compliance easier by improving electronic systems and the availability of software. DB2012 Hong Kong SAR, China Hong Kong, China introduced a Minimum Wage. DB2012 Hong Kong SAR, China Hong Kong SAR (China) made starting a business easier by introducing online electronic services for company and Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 209 DB year Economy Reform business registration. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Malaysia made starting a business easier by merging company, tax, social security and employment fund DB2012 Malaysia registrations at the one-stop shop and providing same-day registration. Australia clarified the priority of claims of unsecured creditors DB2012 Australia over all shareholders’ claims and introduced further regulation of the profession of insolvency practitioners. Chile made business start-up easier by starting to provide an immediate temporary operating license to new companies, eliminating the requirement for an inspection of premises by DB2012 Chile the tax authority before new companies can begin operations and allowing free online publication of the notice of a company’s creation. Chile strengthened its secured transactions system by DB2012 Chile implementing a unified collateral registry and a new legal framework for nonpossessory security interests. Canada made paying taxes easier and less costly for DB2012 Canada companies by reducing profit tax rates, eliminating the Ontario capital tax and harmonizing sales taxes. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Thailand made registering property more expensive by DB2012 Thailand increasing the registration fee. Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 210 DB year Economy Reform Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Russia increased the social security contribution rate for DB2012 Russian Federation employers. Malaysia established dedicated commercial courts to handle DB2012 Malaysia foreclosure proceedings. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. Taiwan (China) made dealing with construction permits easier DB2012 Taiwan, China by creating a one-stop center. Indonesia made starting a business easier by introducing a simplified application process allowing an applicant to DB2012 Indonesia simultaneously obtain both a general trading license and a business registration certificate. Taiwan (China) made starting a business easier by DB2012 Taiwan, China implementing an online one-stop shop for business registration. Thailand made starting a business easier by introducing a DB2012 Thailand one-stop shop. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. DB2012 Hong Kong SAR, China Hong Kong SAR (China) made getting electricity easier by increasing the efficiency of public agencies and streamlining Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 211 DB year Economy Reform the utility’s procedures with other government agencies. Malaysia continued to improve the computerization of its DB2012 Malaysia courts by introducing a system making it possible to file complaints electronically. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Korea made it easier to deal with insolvency by introducing DB2011 Korea, Rep. postfiling financing, granting superpriority to the repayment of loans given to companies undergoing reorganization. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Taiwan (China) eased business start-up by reducing the time DB2011 Taiwan, China required to check company names, register retirement plans and apply for health, pension and labor insurance. Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business DB2011 Vietnam license and tax license and by eliminating the need for a seal for company licensing. Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Indonesia eased business start-up by reducing the cost for company name clearance and reservation and the time DB2011 Indonesia required to reserve the name and approve the deed of incorporation. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Vietnam made dealing with construction permits easier by reducing the cost to register newly completed buildings by DB2011 Vietnam 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 212 DB year Economy Reform Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Thailand made registering property more costly by repealing DB2011 Thailand a 2-year temporary tax reduction for property transfers. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Vietnam improved its credit information system by allowing DB2011 Vietnam borrowers to examine their own credit report and correct errors. Singapore improved its credit information system by DB2011 Singapore collecting and distributing information on firms. Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. In the United States the introduction of a new tax on payroll DB2011 United States increased taxes on companies operating within the New York City metropolitan commuter transportation district. DB2011 Indonesia Indonesia reduced its corporate income tax rate. China’s new corporate income tax law unified the tax regimes for domestic and foreign enterprises and clarified the DB2011 China calculation of taxable income for corporate income tax purposes. The government of Vietnam eased paying taxes by reducing DB2011 Vietnam corporate income tax rate. Taiwan (China) reduced the corporate income tax rate and DB2011 Taiwan, China simplified tax return forms, rules for assessing corporate income tax and the calculation of interim tax payments. Thailand temporarily lowered taxes on business by reducing DB2011 Thailand its specific business tax for 12 months. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 213 DB year Economy Reform Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. An amendment to Chile’s securities law strengthened investor protections by requiring greater corporate disclosure and DB2011 Chile regulating the approval of transactions between interested parties. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Australia introduced the severance payment obligation and reemployment consideration applicable in cases of redundancy dismissals. Annual leave was increased and DB2011 Australia averaging of hours is now allowed in shorter periods of time. In addition, notice period applicable in case of redundancy dismissals was decreased. Malaysia eliminated the requirements to notify third parties in DB2011 Malaysia cases of redundancy dismissals. Malaysia eased business start-up by introducing more online DB2011 Malaysia services. Malaysia’s introduction of online stamping reduced the time DB2011 Malaysia and cost to transfer property. DB2011 Hong Kong SAR, China Hong Kong SAR (China) abolished the fuel tax on diesel. Reforms implemented in the civil justice system of Hong DB2011 Hong Kong SAR, China Kong SAR (China) will help increase the efficiency and cost- effectiveness of commercial dispute resolution. Japan made it easier to deal with insolvency by establishing a new entity, the Enterprise Turnaround Initiative Corporation, DB2011 Japan to support the revitalization of companies suffering from excessive debt but professionally managed. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 214 DB year Economy Reform Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. Indonesia reduced the time to export by launching a single- DB2011 Indonesia window service. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. The introduction of an electronic customs system in Brunei DB2011 Brunei Darussalam Darussalam made trading easier. Brunei Darussalam instituted mandatory minimum annual DB2011 Brunei Darussalam leave and reduced notice periods applicable in case of redundancy dismissals. Brunei Darussalam reduced the corporate income tax rate DB2011 Brunei Darussalam from 23.5% to 22% while also introducing a lower tax rate for small businesses, ranging from 5.5% to 11%. Brunei Darussalam made starting a business easier by DB2011 Brunei Darussalam improving efficiency at the company registrar and implementing an electronic system for name searches. The Philippines eased business startup by setting up a one- DB2011 Philippines stop shop at the municipal level. The Philippines made construction permitting more DB2011 Philippines cumbersome through updated electricity connection costs. Operation of a new private credit bureau improved the credit DB2011 Papua New Guinea information system in Papua New Guinea. The Philippines reduced the time and cost to trade by improving its electronic customs systems, adding such DB2011 Philippines functions as electronic payments and online submission of declarations. Note: For information on reforms in earlier years (back to DB2006), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 215 TRADING ACROSS BORDERS In today’s globalized world, making trade between WHAT THE TRADING ACROSS BORDERS economies easier is increasingly important for INDICATORS MEASURE FOR IMPORT & EXPORT business. Excessive document requirements, burdensome customs procedures, inefficient port Documentary compliance – cost (US$) & time operations and inadequate infrastructure all lead to (hours) extra costs and delays for exporters and importers, stifling trade potential. Obtain, prepare and submit documents: What do the indicators cover? -During transport, clearance, inspections and port or border handling in origin economy Doing Business records the time and cost associated with the logistical process of exporting and -Required by origin, transit and destination economies importing goods. Under the new methodology introduced this year, Doing Business measures the Covers all documents by law and in practice time and cost (excluding tariffs) associated with three Border compliance – cost (US$) & time sets of procedures—documentary compliance, (hours) border compliance and domestic transport—within the overall process of exporting or importing a Customs clearance and inspections shipment of goods. The ranking of economies on the Inspections by other agencies ease of trading across borders is determined by Port or border handling sorting their distance to frontier scores for trading across borders. These scores are the simple average Obtaining, preparing and submitting of the distance to frontier scores for the time and documents during clearance, inspections and port or border handling cost for documentary compliance and border compliance to export and import. Domestic transport* Loading and unloading of shipment To make the data comparable across economies, a few assumptions are made about the traded goods Transport between warehouse and terminal/port and the transactions: Transport between terminal/port and border Time Obtaining, preparing and submitting  Time is measured in hours, and 1 day is 24 hours documents during domestic transport (for example, 22 days are recorded as 22 × 24 = Traffic delays and road police checks while 528 hours). If customs clearance takes 7.5 hours, shipment is en route the data are recorded as is. Alternatively, suppose that documents are submitted to a * Although Doing Business collects and publishes data on customs agency at 8:00 a.m., are processed the time and cost for domestic transport, it does not use overnight and can be picked up at 8:00 a.m. the these data in calculating the distance to frontier score for next day. In this case the time for customs trading across borders or the ranking on the ease of trading clearance would be recorded as 24 hours across borders. because the actual procedure took 24 hours. Cost   Insurance cost and informal payments for which no  receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars.  Contributors are asked to convert local currency into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 216 Assumptions of the case study  For each of the 190 economies covered by Doing  Shipping cost based on weight is assumed to be Business, it is assumed that a shipment travels greater than shipping cost based on volume. from a warehouse in the largest business city of  If government fees are determined by the value of the exporting economy to a warehouse in the the shipment, the value is assumed to be $50,000. largest business city of the importing economy. For 11 economies the data are also collected,  The product is new, not secondhand or used under the same case study assumptions, for the merchandise. second largest business city.  The exporting firm is responsible for hiring and  The import and export case studies assume paying for a freight forwarder or customs broker (or different traded products. It is assumed that each both) and pays for all costs related to international economy imports a standardized shipment of 15 shipping, domestic transport, clearance and metric tons of containerized auto parts (HS 8708) mandatory inspections by customs and other from its natural import partner—the economy government agencies, port or border handling, from which it imports the largest value (price documentary compliance fees and the like for times quantity) of auto parts. It is assumed that exports. The importing firm is responsible for the each economy exports the product of its above costs for imports. comparative advantage (defined by the largest  The mode of transport is the one most widely used export value) to its natural export partner—the for the chosen export or import product and the economy that is the largest purchaser of this trading partner, as is the seaport, airport or land product. Precious metal and gems, live animals border crossing. and pharmaceuticals are excluded from the list of possible export products, however, and the  All electronic submissions of information requested second largest product category is considered as by any government agency in connection with the needed. shipment are considered to be documents obtained, prepared and submitted during the  A shipment is a unit of trade. Export shipments do export or import process. not necessarily need to be containerized, while import shipments of auto parts are assumed to be  A port or border is defined as a place (seaport, containerized. airport or land border crossing) where merchandise can enter or leave an economy.  Government agencies considered relevant are agencies such as customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 217 TRADING ACROSS BORDERS Where do the region’s economies stand today? How easy it is for businesses in economies in Asia-Pacific ease of trading across borders suggest an answer (figure Economic Cooperation (APEC) to export and import 9.1). The average ranking of the region and comparator goods? The global rankings of these economies on the regions provide a useful benchmark. Figure 9.1 How economies in Asia-Pacific Economic Cooperation (APEC) rank on the ease of trading across borders Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 218 TRADING ACROSS BORDERS The indicators reported here are for trading a shipment and import is collected from local freight forwarders, of goods by the most widely used mode of transport customs brokers and traders. Comparing these indicators (whether sea, land, air or some combination of these). across the region and with averages both for the region The information on the time and cost to complete export and for comparator regions can provide useful insights. Figure 9.2 What it takes to trade across borders in economies in Asia-Pacific Economic Cooperation (APEC) Time to export: Border compliance (hours) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 219 TRADING ACROSS BORDERS Cost to export: Border compliance (USD) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 220 TRADING ACROSS BORDERS Time to export: Documentary compliance (hours) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 221 TRADING ACROSS BORDERS Cost to export: Documentary compliance (USD) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 222 TRADING ACROSS BORDERS Time to import: Border compliance (hours) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 223 TRADING ACROSS BORDERS Cost to import: Border compliance (USD) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 224 TRADING ACROSS BORDERS Time to import: Documentary compliance (hours) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 225 TRADING ACROSS BORDERS Cost to import: Documentary compliance (USD) Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 226 TRADING ACROSS BORDERS What are the changes over time? In economies around the world, trading across borders systems. These changes help improve their trading as measured by Doing Business has become faster and environment and boost firms’ international easier over the years. Governments have introduced competitiveness. What trade reforms has Doing Business tools to facilitate trade—including single windows, risk- recorded in Asia-Pacific Economic Cooperation (APEC) based inspections and electronic data interchange (table 9.1)? Table 9.1 How have economies in Asia-Pacific Economic Cooperation (APEC) made trading across borders easier— or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform In Malaysia the credit bureau began to provide consumer DB2017 Malaysia credit scores. Hong Kong SAR, China, streamlined the processes of DB2017 Hong Kong SAR, China reviewing applications for new electrical connections and also reduced the time needed to issue an excavation permit. Hong Kong SAR, China, made starting a business less costly DB2017 Hong Kong SAR, China by reducing the business registration fee. Malaysia made starting a business more difficult by requiring DB2017 Malaysia that companies with an annual revenue of more than MYR 500,000 register as a GST payer. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. Malaysia made paying taxes easier by introducing an online system for filing and paying the Goods and Services Tax (GST) DB2017 Malaysia while also making it is more complex by replacing sales tax with GST. Singapore made dealing with construction permits easier by streamlining procedures and improving the online one-stop DB2017 Singapore shop. DB2017 Russian Federation Russian Federation Saint Petersburg made dealing with construction permits easier by removing the requirement to Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 227 DB year Economy Reform obtain permission to fence the construction site. Indonesia made enforcing contracts easier by introducing a dedicated procedure for small claims that allows for parties’ DB2017 Indonesia self-representation.This reform applies to both Jakarta and Surabaya. The Russian Federation made enforcing contracts more difficult by mandating pre-trial resolution before filing a claim, thereby lengthening the initial DB2017 Russian Federation phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. China improved access to credit information by starting to report payment histories from utility companies and DB2017 China providing credit scores to banks and financial institutions. This reform applies to both Shanghai and Beijing. Indonesia strengthened access to credit by establishing a DB2017 Indonesia modern collateral registry. Thailand improved access to credit information by starting to DB2017 Thailand provide credit scores to banks and financial institutions. Indonesia made the process for getting an electricity connection faster by reducing the time for contractors to perform external work thanks to an increase in the stock of DB2017 Indonesia electrical material supplied by the utility. In Surabaya, getting electricity was also made easier after the utility streamlined the process for new connection requests. Vietnam strengthened minority investor protections by DB2017 Vietnam making it easier to sue directors in cases of prejudicial transactions between interested parties, by increasing shareholder rights and role in major corporate decisions, by Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 228 DB year Economy Reform strengthening the ownership and control structures of companies and by increasing corporate transparency requirements. Thailand made resolving insolvency easier by introducing new DB2017 Thailand restructuring for small and medium-size companies and by streamlining provisions related to company liquidation. Indonesia made it easier to register property by digitizing its DB2017 Indonesia cadastral records and setting up a geographic information system. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Singapore made it easier to transfer a property by DB2017 Singapore introducing an independent mechanism for reporting errors on titles and maps. Thailand made starting a business easier by creating a single DB2017 Thailand window for registration payment and reducing the time to obtain a company seal. Indonesia made starting a business easier by creating a single form to apply for the company registration certificate and trading license. This reform applies to Jakarta. Indonesia also made starting a business easier by abolishing the minimum DB2017 Indonesia capital requirement for small and medium-size enterprises and by encouraging the use of an online system to reserve company names. This reform applies to both Jakarta and Surabaya. China made starting a business easier by introducing a single DB2017 China form to obtain a business license, organization code and tax registration. This reform applies to both Shanghai and Beijing. Vietnam made starting a business more difficult by requiring DB2017 Vietnam entrepreneurs to receive approval of the seal sample before using it. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 229 DB year Economy Reform Vietnam made exporting and importing easier by DB2017 Vietnam implementing electronic customs clearance system. Indonesia made exporting and importing easier by improving DB2017 Indonesia the customs services and document submission functions of the Indonesia National Single Window. Singapore made paying taxes easier by introducing improvements to the online system for filing corporate DB2017 Singapore income tax returns and VAT returns. At the same, the social security contribution rate paid by employers increased and the rebate of 30% on vehicle tax expired. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. New Zealand made paying taxes easier by abolishing the cheque levy. New Zealand made paying less costly by decreasing the rate of accident compensation levy paid by DB2017 New Zealand employers. At the same time, New Zealand made paying taxes more costly by raising property tax and road user levy rates. Indonesia made paying taxes easier by introducing an online system for filing and paying health contributions. Indonesia DB2017 Indonesia also made paying taxes more costly by levying a new pension contribution at a rate of 2% paid by employers. These reforms apply to both Jakarta and Surabaya. Japan made paying taxes easier by disclosing the technical specifications of the eTax platform and allowing the upload of additional information in comma separated value (CSV) format. The restoration surtax was also abolished. However, a local corporation tax was introduced and the rates of special DB2017 Japan local corporation tax, inhabitants tax and enterprise tax were raised. Welfare pension premiums were also raised. These reforms apply to both Tokyo and Osaka. However, the rate for health insurance contributions paid by employers was reduced only in Osaka. DB2017 Vietnam Vietnam made paying taxes easier and less costly by Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 230 DB year Economy Reform streamlining the administrative process of complying with tax obligations and abolishing environmental protection fees. Brunei Darussalam strengthened access to credit by adopting a new insolvency law that contemplates protections for secured creditors during an automatic stay in reorganization DB2017 Brunei Darussalam proceedings. Brunei also improved access to credit information by beginning to distribute data from two utility companies. The utility in Brunei Darussalam streamlined the processes of reviewing applications, and the time to issue an excavation permit was reduced. In addition, Brunei Darussalam increased the reliability of power supply by rolling out a Supervisory DB2017 Brunei Darussalam Control and Data Acquisition (SCADA) automatic energy management system for the monitoring of outages and the restoration of service. Brunei Darussalam strengthened minority investor protections by clarifying ownership and control structures, DB2017 Brunei Darussalam making it easier to sue directors in case of prejudicial related- party transactions, and allowing the rescission of related- party transactions that harm the company. Brunei Darussalam made resolving insolvency easier by adopting a new insolvency law that introduced a reorganization procedure and facilitated continuation of the DB2017 Brunei Darussalam debtor’s business during insolvency proceedings. Brunei Darussalam also introduced regulations for insolvency practitioners. Brunei Darussalam made paying taxes easier by fully DB2017 Brunei Darussalam implementing an electronic system for filing and paying corporate income tax. The Philippines made dealing with construction permits easier DB2017 Philippines by increasing the transparency of its building regulations. DB2017 Papua New Guinea Papua New Guinea strengthened access to credit by adopting a new law on secured transactions that implemented a Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 231 DB year Economy Reform functional secured transactions system and established a centralized, notice-based collateral registry. The new law broadens the scope of assets that can be used as collateral and allows out-of-court enforcement of collateral. Papua New Guinea reduced the time required to start a DB2017 Papua New Guinea business by streamlining business registration at the Investment Promotion Agency (IPA). The Philippines made paying taxes easier by introducing an online system for filing and paying health contributions and DB2017 Philippines by allowing for the online corporate income tax and VAT returns to be completed offline. Brunei Darussalam made enforcing contracts easier by DB2017 Brunei Darussalam introducing an electronic filing system as well as a platform that allows users to pay court fees electronically. The Philippines made starting a business easier by streamlining communications between the Securities and DB2016 Philippines Exchange Commission and the Social Security System and thereby expediting the process of issuing an employer registration number. Brunei Darussalam made paying taxes easier and less costly for companies by merging contributions for the Employee Provident Fund and the Supplemental Pension Fund and DB2016 Brunei Darussalam increasing the capital allowance for industrial buildings. In addition, it reduced the corporate income tax rate, though it also abolished the partial exemption of income and introduced a flat rate. Brunei Darussalam made starting a business easier by DB2016 Brunei Darussalam improving online procedures and simplifying registration and post registration requirements. Chile made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, DB2016 Chile introducing provisions to facilitate the continuation of the debtor’s business during insolvency, establishing a public office responsible for the general administration of insolvency Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 232 DB year Economy Reform proceedings and creating specialized insolvency courts. Chile made paying taxes more costly for companies by DB2016 Chile increasing the corporate income tax rate. The utility in Hong Kong SAR, China, made getting electricity easier by streamlining the process for reviewing connection DB2016 Hong Kong SAR, China applications and for completing the connection works and meter installation. In addition, the time needed to issue an excavation permit was reduced. The Republic of Korea made paying taxes more complicated and costly for companies by requiring separate filing and DB2016 Korea, Rep. payment of the local income tax and by increasing the rates for unemployment insurance and national health insurance paid by employers. Hong Kong SAR, China, made paying taxes easier and less costly for companies by simplifying compliance with the mandatory provident fund obligations and increasing the DB2016 Hong Kong SAR, China allowance for profit tax. At the same time, it increased the maximum contribution to the mandatory provident fund and reduced the property tax waiver. Malaysia made paying taxes easier and less costly for companies by making electronic filing mandatory and DB2016 Malaysia reducing the property tax rate. At the same time, it also increased the capital gains tax. Hong Kong SAR, China, made starting a business easier by DB2016 Hong Kong SAR, China eliminating the requirement for a company seal. Hong Kong SAR, China, improved access to credit by DB2016 Hong Kong SAR, China implementing a modern collateral registry. The utility in Vietnam reduced the time required for getting an electricity connection by reducing delays and increasing efficiency in approving connection applications and designs DB2016 Vietnam for connection works. Getting electricity was also made easier by eliminating the need to obtain a substation certification from the Fire Fighters Prevention Department for connections to the medium-voltage grid. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 233 DB year Economy Reform Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. The utility in Taiwan, China, reduced the time required for getting an electricity connection through a simplified DB2016 Taiwan, China procedure for obtaining excavation permits from the municipality. The utility in New Zealand reduced the time required for getting an electricity connection by improving its payment DB2016 New Zealand monitoring and confirmation process for the connection works. Vietnam made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, modifying the standard for commencement of insolvency DB2016 Vietnam proceedings, changing provisions on voidable transactions, regulating the profession of insolvency trustees and establishing the rules for enterprise asset managers. Vietnam made paying taxes less costly for companies by reducing the corporate income tax rate—and made it easier by reducing the number of procedures and documents for filing VAT and social security contributions, reducing the DB2016 Vietnam number of filings for VAT and replacing quarterly filings of corporate income tax with quarterly advance payments. On the other hand, Vietnam increased the rate for social security contributions paid by employers. Indonesia made paying taxes easier and less costly for companies by introducing an online system for paying social DB2016 Indonesia security contributions and by reducing both the rate paid by employers and the ceiling for the contributions. This reform applies to both Jakarta and Surabaya. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 234 DB year Economy Reform China made paying taxes less costly for companies in DB2016 China Shanghai by reducing the social security contribution rate. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be deductible. DB2016 Mexico These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Indonesia made starting a business in Jakarta easier by DB2016 Indonesia reducing the time needed to register with the Ministry of Manpower. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Vietnam made starting a business easier by reducing the time DB2016 Vietnam required to get the company seal engraved and registered. Indonesia improved access to credit by enabling searches of DB2016 Indonesia the collateral registry by the debtor’s name. This reform applies to both Jakarta and Surabaya. DB2016 Russian Federation Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 235 DB year Economy Reform registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Vietnam guaranteed borrowers’ right to inspect their credit DB2016 Vietnam data while the new credit bureau expanded borrower coverage, improving the credit information system. Peru improved its credit information system by implementing DB2016 Peru a new law on personal data protection. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. Taiwan, China, improved access to credit information by DB2015 Taiwan, China beginning to include data from utility companies in credit reports. Vietnam improved its credit information system by DB2015 Vietnam establishing a new credit bureau. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. Hong Kong SAR, China, strengthened minority investor protections by introducing requirements for directors to DB2015 Hong Kong SAR, China provide more detailed disclosure of conflicts of interest to the other board members. The Republic of Korea strengthened minority investor DB2015 Korea, Rep. protections by increasing the level of transparency expected from companies on managerial compensation. DB2015 Korea, Rep. The Republic of Korea made transferring property easier by Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 236 DB year Economy Reform reducing the time needed to buy housing bonds and to register the property transfer. Hong Kong SAR, China, made starting a business more DB2015 Hong Kong SAR, China difficult by increasing the registration fee. Taiwan, China, made getting electricity easier by eliminating DB2015 Taiwan, China site inspections. In Indonesia the electricity company in Jakarta made getting electricity easier by eliminating the need for electrical contractors to obtain multiple certificates guaranteeing the DB2015 Indonesia safety of internal installations—though. The utility in Jakarta and Surabaya also increased the cost by introducing a security deposit for new connections. Thailand made dealing with construction permits less time- DB2015 Thailand consuming by introducing a fast-track approval process for building permits for smaller buildings. Singapore made enforcing contracts easier by introducing a DB2015 Singapore new electronic litigation system that streamlines litigation proceedings. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. Taiwan, China, made paying taxes easier for companies by DB2015 Taiwan, China introducing an electronic system for paying the vehicle license tax. Indonesia made paying taxes less costly for companies by DB2015 Indonesia reducing employers’ health insurance contribution rate. This reform applies to both Jakarta and Surabaya. China made paying taxes easier for companies by enhancing DB2015 China the electronic system for filing and paying taxes and adopting new communication channels within its taxpayer service, Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 237 DB year Economy Reform changes applying to both Beijing and Shanghai. In addition, China made paying taxes less costly for companies in Shanghai by reducing the social security contribution rate. Vietnam made paying taxes less costly for companies by DB2015 Vietnam reducing the corporate income tax rate. The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing DB2015 Russian Federation tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. In the United States starting a business became easier in New DB2015 United States York City thanks to faster online procedures. China made starting a business easier by eliminating both the minimum capital requirement and the requirement to obtain DB2015 China a capital verification report from an auditing firm. This reform applies to both Beijing and Shanghai. Indonesia made starting a business easier by allowing the Ministry of Law and Human Rights to electronically issue the DB2015 Indonesia approval letter for the deed of establishment. This reform applies to both Jakarta and Surabaya. In Indonesia trading across borders became more difficult DB2015 Indonesia because of insufficient infrastructure at the Tanjung Priok Port Jakarta. This change applies to both Jakarta and Surabaya. Brunei Darussalam made dealing with construction permits DB2015 Brunei Darussalam easier by consolidating final inspections. Brunei Darussalam made paying taxes easier for companies DB2015 Brunei Darussalam by allowing joint filing and payment of supplemental contributory pension and employee provident fund Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 238 DB year Economy Reform contributions and by introducing an online system for paying these 2 contributions. In the Philippines trading across borders became more DB2015 Philippines difficult because of a new city ordinance restricting truck traffic in Manila. The Philippines improved access to credit information by beginning to distribute both positive and negative DB2014 Philippines information and by enacting a data privacy act that guarantees borrowers’ right to access their data. Brunei Darussalam improved access to credit information by DB2014 Brunei Darussalam establishing a public credit registry. The Philippines made dealing with construction permits easier DB2014 Philippines by eliminating the requirement to obtain a health certificate. The Philippines made paying taxes easier for companies by DB2014 Philippines introducing an electronic filing and payment system for social security contributions. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a DB2014 Mexico “silence is consent” rule for the approval of the feasibility study for a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. New Zealand made enforcing contracts easier by improving DB2014 New Zealand its case management system to ensure a speedier and less costly adjudication of cases. DB2014 Mexico Mexico made enforcing contracts easier by creating small Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 239 DB year Economy Reform claims courts, with oral proceedings, that can hear both civil and commercial cases. China made enforcing contracts easier by amending its civil DB2014 China procedure code to streamline and speed up all court proceedings. Thailand made paying taxes less costly for companies by DB2014 Thailand reducing employers' social security contribution rate. Vietnam made paying taxes more costly for companies by DB2014 Vietnam increasing employers' social security contribution rate. Vietnam strengthened investor protections by introducing DB2014 Vietnam greater disclosure requirements for publicly held companies in cases of related-party transactions. Singapore made transferring property easier by introducing DB2014 Singapore an online procedure for property transfers. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Vietnam abolished priority rules for redundancy dismissals or DB2014 Vietnam layoffs and increased the minimum wage. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 240 DB year Economy Reform Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. Malaysia made getting electricity easier by increasing the DB2014 Malaysia efficiency of internal processes at the utility and improving its communication and dialogue with contractors. Malaysia made dealing with construction permits easier by DB2014 Malaysia establishing a one-stop shop. Hong Kong SAR, China, made transferring property more DB2014 Hong Kong SAR, China costly by increasing the stamp duty. Malaysia made starting a business less costly by reducing the DB2014 Malaysia company registration fees. Hong Kong SAR, China, made starting a business less costly DB2014 Hong Kong SAR, China by abolishing the capital duty levied on local companies. DB2014 Malaysia Malaysia introduced a minimum wage. Australia improved its credit information system through the Privacy Amendment (Enhancing Privacy Protection) DB2014 Australia Act 2012, which permits credit bureaus to collect account payment history with improved privacy protection. China improved its credit information system by introducing DB2014 China credit information industry regulations, which guarantee borrowers’ right to inspect their data. Indonesia improved its credit information system through a DB2014 Indonesia new regulation setting up a legal framework for establishing credit bureaus. Vietnam improved its credit information system through a DB2014 Vietnam decree setting up a legal framework for the establishment of private credit bureaus. Singapore improved its credit information system by DB2014 Singapore guaranteeing by law borrowers’ right to inspect their own data. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 241 DB year Economy Reform Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Thailand made starting a business easier by allowing the DB2013 Thailand registrar at the Department of Business Development to receive the company’s work regulations. Vietnam made starting a business easier by allowing DB2013 Vietnam companies to use self-printed value added tax invoices. China made starting a business less costly by exempting DB2013 China micro and small companies from paying several administrative fees from January 2012 to December 2014. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. Taiwan, China, made dealing with construction permits easier by introducing a risk-based and self-regulatory inspection DB2013 Taiwan, China system and improving operational features of the one-stop shop for building permits. China simplified the process of obtaining a construction DB2013 China permit by streamlining and centralizing preconstruction approvals. Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 242 DB year Economy Reform Taiwan, China, strengthened investor protections by increasing disclosure requirements for related-party DB2013 Taiwan, China transactions and improving the liability regime for company directors in cases where such transactions are abusive. Australia strengthened its secured transactions system by adopting a new national legal regime governing the DB2013 Australia enforceability of security interests in personal property and implementing a unified collateral registry. Canada made getting an electricity connection easier by DB2013 Canada reducing the time needed for external connection works. Malaysia made dealing with construction permits faster by DB2013 Malaysia improving the one-stop center for new buildings and by reducing the time to connect to telephone service. Malaysia substantially reduced the number of days it takes to DB2013 Malaysia register property transfers. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Brunei Darussalam made dealing with construction permits DB2013 Brunei Darussalam easier by creating a one-stop shop for preconstruction approvals. Brunei Darussalam made paying taxes less costly for DB2013 Brunei Darussalam companies by reducing the profit tax rate. Indonesia made getting electricity easier by eliminating the requirement for new customers applying for an electricity DB2013 Indonesia connection to show a neighbor’s electricity bill as a way to help determine their address. In Mexico the distribution utility made getting electricity DB2013 Mexico easier by streamlining procedures, offering training opportunities to private contractors, using a geographic Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 243 DB year Economy Reform information system (GIS) to map the electricity distribution network and increasing the stock of materials. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Japan made paying taxes less costly for companies by DB2013 Japan reducing the corporate income tax rate—though it also introduced a restoration surtax for a 3-year period. Thailand made paying taxes less costly for companies by DB2013 Thailand reducing the profit tax rate. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Vietnam strengthened investor protections by requiring DB2012 Vietnam higher standards of accountability for company directors. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Indonesia made getting electricity more difficult by increasing DB2012 Indonesia connection fees. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 244 DB year Economy Reform The Philippines adopted a new insolvency law that provides a DB2012 Philippines legal framework for liquidation and reorganization of financially distressed companies. Brunei Darussalam made getting electricity easier by DB2012 Brunei Darussalam establishing a one-stop shop and reducing the time required to obtain an excavation permit. Korea eased the administrative burden of paying taxes for firms by merging several taxes, allowing 4 labor taxes and DB2012 Korea, Rep. contributions to be paid jointly and continuing to increase the use of the online tax payment system. Malaysia made paying taxes costlier for firms by reintroducing the real estate capital gains tax—but also made DB2012 Malaysia tax compliance easier by improving electronic systems and the availability of software. DB2012 Hong Kong SAR, China Hong Kong, China introduced a Minimum Wage. Hong Kong SAR (China) made starting a business easier by DB2012 Hong Kong SAR, China introducing online electronic services for company and business registration. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Malaysia made starting a business easier by merging company, tax, social security and employment fund DB2012 Malaysia registrations at the one-stop shop and providing same-day registration. Australia clarified the priority of claims of unsecured creditors DB2012 Australia over all shareholders’ claims and introduced further regulation of the profession of insolvency practitioners. Chile made business start-up easier by starting to provide an immediate temporary operating license to new companies, DB2012 Chile eliminating the requirement for an inspection of premises by the tax authority before new companies can begin operations and allowing free online publication of the notice of a Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 245 DB year Economy Reform company’s creation. Chile strengthened its secured transactions system by DB2012 Chile implementing a unified collateral registry and a new legal framework for nonpossessory security interests. Canada made paying taxes easier and less costly for DB2012 Canada companies by reducing profit tax rates, eliminating the Ontario capital tax and harmonizing sales taxes. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Thailand made registering property more expensive by DB2012 Thailand increasing the registration fee. Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Russia increased the social security contribution rate for DB2012 Russian Federation employers. Malaysia established dedicated commercial courts to handle DB2012 Malaysia foreclosure proceedings. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 246 DB year Economy Reform Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. Taiwan (China) made dealing with construction permits easier DB2012 Taiwan, China by creating a one-stop center. Indonesia made starting a business easier by introducing a simplified application process allowing an applicant to DB2012 Indonesia simultaneously obtain both a general trading license and a business registration certificate. Taiwan (China) made starting a business easier by DB2012 Taiwan, China implementing an online one-stop shop for business registration. Thailand made starting a business easier by introducing a DB2012 Thailand one-stop shop. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Hong Kong SAR (China) made getting electricity easier by DB2012 Hong Kong SAR, China increasing the efficiency of public agencies and streamlining the utility’s procedures with other government agencies. Malaysia continued to improve the computerization of its DB2012 Malaysia courts by introducing a system making it possible to file complaints electronically. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Korea made it easier to deal with insolvency by introducing DB2011 Korea, Rep. postfiling financing, granting superpriority to the repayment of loans given to companies undergoing reorganization. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. DB2011 Taiwan, China Taiwan (China) eased business start-up by reducing the time Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 247 DB year Economy Reform required to check company names, register retirement plans and apply for health, pension and labor insurance. Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business DB2011 Vietnam license and tax license and by eliminating the need for a seal for company licensing. Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Indonesia eased business start-up by reducing the cost for company name clearance and reservation and the time DB2011 Indonesia required to reserve the name and approve the deed of incorporation. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Vietnam made dealing with construction permits easier by reducing the cost to register newly completed buildings by DB2011 Vietnam 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Thailand made registering property more costly by repealing DB2011 Thailand a 2-year temporary tax reduction for property transfers. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Vietnam improved its credit information system by allowing DB2011 Vietnam borrowers to examine their own credit report and correct errors. Singapore improved its credit information system by DB2011 Singapore collecting and distributing information on firms. DB2011 Mexico Mexico increased taxes on companies by raising several tax Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 248 DB year Economy Reform rates, including the corporate income tax and the rate on cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. In the United States the introduction of a new tax on payroll DB2011 United States increased taxes on companies operating within the New York City metropolitan commuter transportation district. DB2011 Indonesia Indonesia reduced its corporate income tax rate. China’s new corporate income tax law unified the tax regimes for domestic and foreign enterprises and clarified the DB2011 China calculation of taxable income for corporate income tax purposes. The government of Vietnam eased paying taxes by reducing DB2011 Vietnam corporate income tax rate. Taiwan (China) reduced the corporate income tax rate and DB2011 Taiwan, China simplified tax return forms, rules for assessing corporate income tax and the calculation of interim tax payments. Thailand temporarily lowered taxes on business by reducing DB2011 Thailand its specific business tax for 12 months. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. An amendment to Chile’s securities law strengthened investor protections by requiring greater corporate disclosure and DB2011 Chile regulating the approval of transactions between interested parties. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 249 DB year Economy Reform Australia introduced the severance payment obligation and reemployment consideration applicable in cases of redundancy dismissals. Annual leave was increased and DB2011 Australia averaging of hours is now allowed in shorter periods of time. In addition, notice period applicable in case of redundancy dismissals was decreased. Malaysia eliminated the requirements to notify third parties in DB2011 Malaysia cases of redundancy dismissals. Malaysia eased business start-up by introducing more online DB2011 Malaysia services. Malaysia’s introduction of online stamping reduced the time DB2011 Malaysia and cost to transfer property. DB2011 Hong Kong SAR, China Hong Kong SAR (China) abolished the fuel tax on diesel. Reforms implemented in the civil justice system of Hong DB2011 Hong Kong SAR, China Kong SAR (China) will help increase the efficiency and cost- effectiveness of commercial dispute resolution. Japan made it easier to deal with insolvency by establishing a new entity, the Enterprise Turnaround Initiative Corporation, DB2011 Japan to support the revitalization of companies suffering from excessive debt but professionally managed. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. Indonesia reduced the time to export by launching a single- DB2011 Indonesia window service. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. The introduction of an electronic customs system in Brunei DB2011 Brunei Darussalam Darussalam made trading easier. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 250 DB year Economy Reform Brunei Darussalam instituted mandatory minimum annual DB2011 Brunei Darussalam leave and reduced notice periods applicable in case of redundancy dismissals. Brunei Darussalam reduced the corporate income tax rate DB2011 Brunei Darussalam from 23.5% to 22% while also introducing a lower tax rate for small businesses, ranging from 5.5% to 11%. Brunei Darussalam made starting a business easier by DB2011 Brunei Darussalam improving efficiency at the company registrar and implementing an electronic system for name searches. The Philippines eased business startup by setting up a one- DB2011 Philippines stop shop at the municipal level. The Philippines made construction permitting more DB2011 Philippines cumbersome through updated electricity connection costs. Operation of a new private credit bureau improved the credit DB2011 Papua New Guinea information system in Papua New Guinea. The Philippines reduced the time and cost to trade by improving its electronic customs systems, adding such DB2011 Philippines functions as electronic payments and online submission of declarations. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 251 ENFORCING CONTRACTS Effective commercial dispute resolution has many WHAT THE ENFORCING CONTRACTS benefits. Courts are essential for entrepreneurs INDICATORS MEASURE because they interpret the rules of the market and protect economic rights. Efficient and transparent Time required to enforce a contract through courts encourage new business relationships because the courts (calendar days) businesses know they can rely on the courts if a new customer fails to pay. Speedy trials are essential for Time to file and serve the case small enterprises, which may lack the resources to Time for trial and to obtain the judgment stay in business while awaiting the outcome of a long court dispute. Time to enforce the judgment What do the indicators cover? Cost required to enforce a contract through the courts (% of claim) Doing Business measures the time and cost for resolving a standardized commercial dispute through Attorney fees a local first-instance court. In addition, this year it Court fees introduces a new measure, the quality of judicial Enforcement fees processes index, evaluating whether each economy has adopted a series of good practices that promote Quality of judicial processes index (0-18) quality and efficiency in the court system. This new Court structure and proceedings (0-5) index replaces the indicator on procedures, which was eliminated this year. The ranking of economies Case management (0-6) on the ease of enforcing contracts is determined by Court automation (0-4) sorting their distance to frontier scores. These scores Alternative dispute resolution (0-3) are the simple average of the distance to frontier scores for each of the component indicators The dispute in the case study involves the breach of a sales contract between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes the case from simple debt enforcement. To make the data comparable across economies, Doing Business uses several assumptions about the case:  The value of the claim is equal to 200% of the economy’s income per capita or $5,000, whichever is greater.  The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.  Seller (the plaintiff) sues Buyer (the defendant) to recover the amount under the sales agreement. The dispute is brought before the court located in the economy’s largest business city with jurisdiction over commercial cases worth 200% Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 252 of income per capita or $5,000, whichever is greater. As noted, for 11 economies the data are also collected for the second largest business city.  At the outset of the dispute, Seller decides to attach Buyer’s movable assets (for example, office equipment and vehicles) because Seller fears that Buyer may hide its assets or otherwise become insolvent.  The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods was not adequate. Because the court cannot decide the case on the basis of documentary evidence or legal title alone, an expert opinion is given on the quality of the goods. If it is standard practice in the economy for each party to call its own expert witness, the parties each call one expert witness. If it is standard practice for the judge to appoint an independent expert, the judge does so. In this case the judge does not allow opposing expert testimony  Following the expert opinion, the judge decides that the goods delivered by Seller were of adequate quality and that Buyer must pay the contract price. The judge thus renders a final judgment that is 100% in favor of Seller.  Buyer does not appeal the judgment. Seller decides to start enforcing the judgment as soon as the time allocated by law for appeal lapses.  Seller takes all required steps for prompt enforcement of the judgment. The money is successfully collected through a public sale of Buyer’s movable assets (for example, office equipment and vehicles). Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 253 ENFORCING CONTRACTS Where do the region’s economies stand today? How efficient is the process of resolving a commercial suggest an answer (figure 10.1). The average ranking of dispute through the courts in economies in Asia-Pacific the region and comparator regions provide a useful Economic Cooperation (APEC)? The global rankings of benchmark. these economies on the ease of enforcing contracts Figure 10.1 How economies in Asia-Pacific Economic Cooperation (APEC) rank on the ease of enforcing contracts Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 254 ENFORCING CONTRACTS The indicators underlying the rankings may also be judicial processes index (figure 10.2). Comparing these revealing. Data collected by Doing Business show what it indicators across the region and with averages both for takes to enforce a contract through the courts in each the region and for comparator regions can provide economy in the region: the time, the cost and quality of useful insights. Figure 10.2 What it takes to enforce a contract through the courts in economies in Asia-Pacific Economic Cooperation (APEC) Time (days) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 255 ENFORCING CONTRACTS Cost (% of claim) Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 256 ENFORCING CONTRACTS Quality of Judicial Processes Index (0-18) Source: Doing Business database. Note: Higher values indicate more efficient judicial processes. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 257 ENFORCING CONTRACTS What are the changes over time? Economies in all regions have improved contract clear inactive cases from the docket and by making enforcement in recent years. A judiciary can be improved procedures faster. What reforms making it easier (or in different ways. Higher-income economies tend to look more difficult) to enforce contracts has Doing Business for ways to enhance efficiency by introducing new recorded in Asia-Pacific Economic Cooperation (APEC) technology. Lower-income economies often work on (table 10.1)? reducing backlogs by introducing periodic reviews to Table 10.1 How have economies in Asia-Pacific Economic Cooperation (APEC) made enforcing contracts easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform In Malaysia the credit bureau began to provide consumer DB2017 Malaysia credit scores. Hong Kong SAR, China, streamlined the processes of DB2017 Hong Kong SAR, China reviewing applications for new electrical connections and also reduced the time needed to issue an excavation permit. Hong Kong SAR, China, made starting a business less costly DB2017 Hong Kong SAR, China by reducing the business registration fee. Malaysia made starting a business more difficult by requiring DB2017 Malaysia that companies with an annual revenue of more than MYR 500,000 register as a GST payer. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. Malaysia made paying taxes easier by introducing an online system for filing and paying the Goods and Services Tax (GST) DB2017 Malaysia while also making it is more complex by replacing sales tax with GST. Singapore made dealing with construction permits easier by streamlining procedures and improving the online one-stop DB2017 Singapore shop. Russian Federation Saint Petersburg made dealing with DB2017 Russian Federation construction permits easier by removing the requirement to obtain permission to fence the construction site. Indonesia made enforcing contracts easier by introducing a DB2017 Indonesia dedicated procedure for small claims that allows for parties’ self-representation.This reform applies to both Jakarta and Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 258 DB year Economy Reform Surabaya. The Russian Federation made enforcing contracts more difficult by mandating pre-trial resolution before filing a claim, thereby lengthening the initial DB2017 Russian Federation phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. China improved access to credit information by starting to report payment histories from utility companies and DB2017 China providing credit scores to banks and financial institutions. This reform applies to both Shanghai and Beijing. Indonesia strengthened access to credit by establishing a DB2017 Indonesia modern collateral registry. Thailand improved access to credit information by starting to DB2017 Thailand provide credit scores to banks and financial institutions. Indonesia made the process for getting an electricity connection faster by reducing the time for contractors to perform external work thanks to an increase in the stock of DB2017 Indonesia electrical material supplied by the utility. In Surabaya, getting electricity was also made easier after the utility streamlined the process for new connection requests. Vietnam strengthened minority investor protections by making it easier to sue directors in cases of prejudicial transactions between interested parties, by increasing DB2017 Vietnam shareholder rights and role in major corporate decisions, by strengthening the ownership and control structures of companies and by increasing corporate transparency requirements. Thailand made resolving insolvency easier by introducing new DB2017 Thailand restructuring for small and medium-size companies and by streamlining provisions related to company liquidation. Indonesia made it easier to register property by digitizing its DB2017 Indonesia cadastral records and setting up a geographic information system. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 259 DB year Economy Reform Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Singapore made it easier to transfer a property by DB2017 Singapore introducing an independent mechanism for reporting errors on titles and maps. Thailand made starting a business easier by creating a single DB2017 Thailand window for registration payment and reducing the time to obtain a company seal. Indonesia made starting a business easier by creating a single form to apply for the company registration certificate and trading license. This reform applies to Jakarta. Indonesia also made starting a business easier by abolishing the minimum DB2017 Indonesia capital requirement for small and medium-size enterprises and by encouraging the use of an online system to reserve company names. This reform applies to both Jakarta and Surabaya. China made starting a business easier by introducing a single DB2017 China form to obtain a business license, organization code and tax registration. This reform applies to both Shanghai and Beijing. Vietnam made starting a business more difficult by requiring DB2017 Vietnam entrepreneurs to receive approval of the seal sample before using it. Vietnam made exporting and importing easier by DB2017 Vietnam implementing electronic customs clearance system. Indonesia made exporting and importing easier by improving DB2017 Indonesia the customs services and document submission functions of the Indonesia National Single Window. Singapore made paying taxes easier by introducing improvements to the online system for filing corporate DB2017 Singapore income tax returns and VAT returns. At the same, the social security contribution rate paid by employers increased and the rebate of 30% on vehicle tax expired. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. New Zealand made paying taxes easier by abolishing the cheque levy. New Zealand made paying less costly by DB2017 New Zealand decreasing the rate of accident compensation levy paid by employers. At the same time, New Zealand made paying taxes more costly by raising property tax and road user levy Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 260 DB year Economy Reform rates. Indonesia made paying taxes easier by introducing an online system for filing and paying health contributions. Indonesia DB2017 Indonesia also made paying taxes more costly by levying a new pension contribution at a rate of 2% paid by employers. These reforms apply to both Jakarta and Surabaya. Japan made paying taxes easier by disclosing the technical specifications of the eTax platform and allowing the upload of additional information in comma separated value (CSV) format. The restoration surtax was also abolished. However, a local corporation tax was introduced and the rates of special DB2017 Japan local corporation tax, inhabitants tax and enterprise tax were raised. Welfare pension premiums were also raised. These reforms apply to both Tokyo and Osaka. However, the rate for health insurance contributions paid by employers was reduced only in Osaka. Vietnam made paying taxes easier and less costly by DB2017 Vietnam streamlining the administrative process of complying with tax obligations and abolishing environmental protection fees. Brunei Darussalam strengthened access to credit by adopting a new insolvency law that contemplates protections for secured creditors during an automatic stay in reorganization DB2017 Brunei Darussalam proceedings. Brunei also improved access to credit information by beginning to distribute data from two utility companies. The utility in Brunei Darussalam streamlined the processes of reviewing applications, and the time to issue an excavation permit was reduced. In addition, Brunei Darussalam increased the reliability of power supply by rolling out a Supervisory DB2017 Brunei Darussalam Control and Data Acquisition (SCADA) automatic energy management system for the monitoring of outages and the restoration of service. Brunei Darussalam strengthened minority investor protections by clarifying ownership and control structures, DB2017 Brunei Darussalam making it easier to sue directors in case of prejudicial related- party transactions, and allowing the rescission of related- party transactions that harm the company. Brunei Darussalam made resolving insolvency easier by DB2017 Brunei Darussalam adopting a new insolvency law that introduced a reorganization procedure and facilitated continuation of the Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 261 DB year Economy Reform debtor’s business during insolvency proceedings. Brunei Darussalam also introduced regulations for insolvency practitioners. Brunei Darussalam made paying taxes easier by fully DB2017 Brunei Darussalam implementing an electronic system for filing and paying corporate income tax. The Philippines made dealing with construction permits easier DB2017 Philippines by increasing the transparency of its building regulations. Papua New Guinea strengthened access to credit by adopting a new law on secured transactions that implemented a functional secured transactions system and established a DB2017 Papua New Guinea centralized, notice-based collateral registry. The new law broadens the scope of assets that can be used as collateral and allows out-of-court enforcement of collateral. Papua New Guinea reduced the time required to start a DB2017 Papua New Guinea business by streamlining business registration at the Investment Promotion Agency (IPA). The Philippines made paying taxes easier by introducing an online system for filing and paying health contributions and DB2017 Philippines by allowing for the online corporate income tax and VAT returns to be completed offline. Brunei Darussalam made enforcing contracts easier by DB2017 Brunei Darussalam introducing an electronic filing system as well as a platform that allows users to pay court fees electronically. The Philippines made starting a business easier by streamlining communications between the Securities and DB2016 Philippines Exchange Commission and the Social Security System and thereby expediting the process of issuing an employer registration number. Brunei Darussalam made paying taxes easier and less costly for companies by merging contributions for the Employee Provident Fund and the Supplemental Pension Fund and DB2016 Brunei Darussalam increasing the capital allowance for industrial buildings. In addition, it reduced the corporate income tax rate, though it also abolished the partial exemption of income and introduced a flat rate. Brunei Darussalam made starting a business easier by DB2016 Brunei Darussalam improving online procedures and simplifying registration and post registration requirements. Chile made resolving insolvency easier by clarifying and DB2016 Chile simplifying provisions on liquidation and reorganization, Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 262 DB year Economy Reform introducing provisions to facilitate the continuation of the debtor’s business during insolvency, establishing a public office responsible for the general administration of insolvency proceedings and creating specialized insolvency courts. Chile made paying taxes more costly for companies by DB2016 Chile increasing the corporate income tax rate. The utility in Hong Kong SAR, China, made getting electricity easier by streamlining the process for reviewing connection DB2016 Hong Kong SAR, China applications and for completing the connection works and meter installation. In addition, the time needed to issue an excavation permit was reduced. The Republic of Korea made paying taxes more complicated and costly for companies by requiring separate filing and DB2016 Korea, Rep. payment of the local income tax and by increasing the rates for unemployment insurance and national health insurance paid by employers. Hong Kong SAR, China, made paying taxes easier and less costly for companies by simplifying compliance with the mandatory provident fund obligations and increasing the DB2016 Hong Kong SAR, China allowance for profit tax. At the same time, it increased the maximum contribution to the mandatory provident fund and reduced the property tax waiver. Malaysia made paying taxes easier and less costly for companies by making electronic filing mandatory and DB2016 Malaysia reducing the property tax rate. At the same time, it also increased the capital gains tax. Hong Kong SAR, China, made starting a business easier by DB2016 Hong Kong SAR, China eliminating the requirement for a company seal. Hong Kong SAR, China, improved access to credit by DB2016 Hong Kong SAR, China implementing a modern collateral registry. The utility in Vietnam reduced the time required for getting an electricity connection by reducing delays and increasing efficiency in approving connection applications and designs for connection works. Getting electricity was also made easier DB2016 Vietnam by eliminating the need to obtain a substation certification from the Fire Fighters Prevention Department for connections to the medium-voltage grid. Russia made the process of obtaining an electricity DB2016 Russian Federation connection simpler, faster and less costly by eliminating a Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 263 DB year Economy Reform meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. The utility in Taiwan, China, reduced the time required for getting an electricity connection through a simplified DB2016 Taiwan, China procedure for obtaining excavation permits from the municipality. The utility in New Zealand reduced the time required for getting an electricity connection by improving its payment DB2016 New Zealand monitoring and confirmation process for the connection works. Vietnam made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, modifying the standard for commencement of insolvency DB2016 Vietnam proceedings, changing provisions on voidable transactions, regulating the profession of insolvency trustees and establishing the rules for enterprise asset managers. Vietnam made paying taxes less costly for companies by reducing the corporate income tax rate—and made it easier by reducing the number of procedures and documents for filing VAT and social security contributions, reducing the DB2016 Vietnam number of filings for VAT and replacing quarterly filings of corporate income tax with quarterly advance payments. On the other hand, Vietnam increased the rate for social security contributions paid by employers. Indonesia made paying taxes easier and less costly for companies by introducing an online system for paying social DB2016 Indonesia security contributions and by reducing both the rate paid by employers and the ceiling for the contributions. This reform applies to both Jakarta and Surabaya. China made paying taxes less costly for companies in DB2016 China Shanghai by reducing the social security contribution rate. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more DB2016 Mexico costly by allowing only a portion of salaries to be deductible. These changes apply to both Mexico City and Monterrey. In Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 264 DB year Economy Reform addition, the payroll tax rate paid by employers was increased for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Indonesia made starting a business in Jakarta easier by DB2016 Indonesia reducing the time needed to register with the Ministry of Manpower. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Vietnam made starting a business easier by reducing the time DB2016 Vietnam required to get the company seal engraved and registered. Indonesia improved access to credit by enabling searches of DB2016 Indonesia the collateral registry by the debtor’s name. This reform applies to both Jakarta and Surabaya. Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral DB2016 Russian Federation registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Vietnam guaranteed borrowers’ right to inspect their credit DB2016 Vietnam data while the new credit bureau expanded borrower coverage, improving the credit information system. Peru improved its credit information system by implementing DB2016 Peru a new law on personal data protection. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. Taiwan, China, improved access to credit information by DB2015 Taiwan, China beginning to include data from utility companies in credit reports. DB2015 Vietnam Vietnam improved its credit information system by Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 265 DB year Economy Reform establishing a new credit bureau. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. Hong Kong SAR, China, strengthened minority investor protections by introducing requirements for directors to DB2015 Hong Kong SAR, China provide more detailed disclosure of conflicts of interest to the other board members. The Republic of Korea strengthened minority investor DB2015 Korea, Rep. protections by increasing the level of transparency expected from companies on managerial compensation. The Republic of Korea made transferring property easier by DB2015 Korea, Rep. reducing the time needed to buy housing bonds and to register the property transfer. Hong Kong SAR, China, made starting a business more DB2015 Hong Kong SAR, China difficult by increasing the registration fee. Taiwan, China, made getting electricity easier by eliminating DB2015 Taiwan, China site inspections. In Indonesia the electricity company in Jakarta made getting electricity easier by eliminating the need for electrical contractors to obtain multiple certificates guaranteeing the DB2015 Indonesia safety of internal installations—though. The utility in Jakarta and Surabaya also increased the cost by introducing a security deposit for new connections. Thailand made dealing with construction permits less time- DB2015 Thailand consuming by introducing a fast-track approval process for building permits for smaller buildings. Singapore made enforcing contracts easier by introducing a DB2015 Singapore new electronic litigation system that streamlines litigation proceedings. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. Taiwan, China, made paying taxes easier for companies by DB2015 Taiwan, China introducing an electronic system for paying the vehicle Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 266 DB year Economy Reform license tax. Indonesia made paying taxes less costly for companies by DB2015 Indonesia reducing employers’ health insurance contribution rate. This reform applies to both Jakarta and Surabaya. China made paying taxes easier for companies by enhancing the electronic system for filing and paying taxes and adopting new communication channels within its taxpayer service, DB2015 China changes applying to both Beijing and Shanghai. In addition, China made paying taxes less costly for companies in Shanghai by reducing the social security contribution rate. Vietnam made paying taxes less costly for companies by DB2015 Vietnam reducing the corporate income tax rate. The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing DB2015 Russian Federation tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. In the United States starting a business became easier in New DB2015 United States York City thanks to faster online procedures. China made starting a business easier by eliminating both the minimum capital requirement and the requirement to obtain DB2015 China a capital verification report from an auditing firm. This reform applies to both Beijing and Shanghai. Indonesia made starting a business easier by allowing the Ministry of Law and Human Rights to electronically issue the DB2015 Indonesia approval letter for the deed of establishment. This reform applies to both Jakarta and Surabaya. In Indonesia trading across borders became more difficult DB2015 Indonesia because of insufficient infrastructure at the Tanjung Priok Port Jakarta. This change applies to both Jakarta and Surabaya. Brunei Darussalam made dealing with construction permits DB2015 Brunei Darussalam easier by consolidating final inspections. Brunei Darussalam made paying taxes easier for companies DB2015 Brunei Darussalam by allowing joint filing and payment of supplemental contributory pension and employee provident fund Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 267 DB year Economy Reform contributions and by introducing an online system for paying these 2 contributions. In the Philippines trading across borders became more DB2015 Philippines difficult because of a new city ordinance restricting truck traffic in Manila. The Philippines improved access to credit information by beginning to distribute both positive and negative DB2014 Philippines information and by enacting a data privacy act that guarantees borrowers’ right to access their data. Brunei Darussalam improved access to credit information by DB2014 Brunei Darussalam establishing a public credit registry. The Philippines made dealing with construction permits easier DB2014 Philippines by eliminating the requirement to obtain a health certificate. The Philippines made paying taxes easier for companies by DB2014 Philippines introducing an electronic filing and payment system for social security contributions. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a DB2014 Mexico “silence is consent” rule for the approval of the feasibility study for a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. New Zealand made enforcing contracts easier by improving DB2014 New Zealand its case management system to ensure a speedier and less costly adjudication of cases. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. China made enforcing contracts easier by amending its civil DB2014 China procedure code to streamline and speed up all court proceedings. Thailand made paying taxes less costly for companies by DB2014 Thailand reducing employers' social security contribution rate. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 268 DB year Economy Reform Vietnam made paying taxes more costly for companies by DB2014 Vietnam increasing employers' social security contribution rate. Vietnam strengthened investor protections by introducing DB2014 Vietnam greater disclosure requirements for publicly held companies in cases of related-party transactions. Singapore made transferring property easier by introducing DB2014 Singapore an online procedure for property transfers. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Vietnam abolished priority rules for redundancy dismissals or DB2014 Vietnam layoffs and increased the minimum wage. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. Malaysia made getting electricity easier by increasing the DB2014 Malaysia efficiency of internal processes at the utility and improving its communication and dialogue with contractors. Malaysia made dealing with construction permits easier by DB2014 Malaysia establishing a one-stop shop. Hong Kong SAR, China, made transferring property more DB2014 Hong Kong SAR, China costly by increasing the stamp duty. Malaysia made starting a business less costly by reducing the DB2014 Malaysia company registration fees. Hong Kong SAR, China, made starting a business less costly DB2014 Hong Kong SAR, China by abolishing the capital duty levied on local companies. DB2014 Malaysia Malaysia introduced a minimum wage. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 269 DB year Economy Reform Australia improved its credit information system through the Privacy Amendment (Enhancing Privacy Protection) DB2014 Australia Act 2012, which permits credit bureaus to collect account payment history with improved privacy protection. China improved its credit information system by introducing DB2014 China credit information industry regulations, which guarantee borrowers’ right to inspect their data. Indonesia improved its credit information system through a DB2014 Indonesia new regulation setting up a legal framework for establishing credit bureaus. Vietnam improved its credit information system through a DB2014 Vietnam decree setting up a legal framework for the establishment of private credit bureaus. Singapore improved its credit information system by DB2014 Singapore guaranteeing by law borrowers’ right to inspect their own data. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Thailand made starting a business easier by allowing the DB2013 Thailand registrar at the Department of Business Development to receive the company’s work regulations. Vietnam made starting a business easier by allowing DB2013 Vietnam companies to use self-printed value added tax invoices. China made starting a business less costly by exempting DB2013 China micro and small companies from paying several administrative fees from January 2012 to December 2014. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. Taiwan, China, made dealing with construction permits easier by introducing a risk-based and self-regulatory inspection DB2013 Taiwan, China system and improving operational features of the one-stop shop for building permits. DB2013 China China simplified the process of obtaining a construction Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 270 DB year Economy Reform permit by streamlining and centralizing preconstruction approvals. Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Taiwan, China, strengthened investor protections by increasing disclosure requirements for related-party DB2013 Taiwan, China transactions and improving the liability regime for company directors in cases where such transactions are abusive. Australia strengthened its secured transactions system by adopting a new national legal regime governing the DB2013 Australia enforceability of security interests in personal property and implementing a unified collateral registry. Canada made getting an electricity connection easier by DB2013 Canada reducing the time needed for external connection works. Malaysia made dealing with construction permits faster by DB2013 Malaysia improving the one-stop center for new buildings and by reducing the time to connect to telephone service. Malaysia substantially reduced the number of days it takes to DB2013 Malaysia register property transfers. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Brunei Darussalam made dealing with construction permits DB2013 Brunei Darussalam easier by creating a one-stop shop for preconstruction approvals. Brunei Darussalam made paying taxes less costly for DB2013 Brunei Darussalam companies by reducing the profit tax rate. Indonesia made getting electricity easier by eliminating the requirement for new customers applying for an electricity DB2013 Indonesia connection to show a neighbor’s electricity bill as a way to help determine their address. DB2013 Mexico In Mexico the distribution utility made getting electricity Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 271 DB year Economy Reform easier by streamlining procedures, offering training opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Japan made paying taxes less costly for companies by DB2013 Japan reducing the corporate income tax rate—though it also introduced a restoration surtax for a 3-year period. Thailand made paying taxes less costly for companies by DB2013 Thailand reducing the profit tax rate. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Vietnam strengthened investor protections by requiring DB2012 Vietnam higher standards of accountability for company directors. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Indonesia made getting electricity more difficult by increasing DB2012 Indonesia connection fees. The Philippines adopted a new insolvency law that provides a DB2012 Philippines legal framework for liquidation and reorganization of financially distressed companies. Brunei Darussalam made getting electricity easier by DB2012 Brunei Darussalam establishing a one-stop shop and reducing the time required to obtain an excavation permit. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 272 DB year Economy Reform Korea eased the administrative burden of paying taxes for firms by merging several taxes, allowing 4 labor taxes and DB2012 Korea, Rep. contributions to be paid jointly and continuing to increase the use of the online tax payment system. Malaysia made paying taxes costlier for firms by reintroducing the real estate capital gains tax—but also made DB2012 Malaysia tax compliance easier by improving electronic systems and the availability of software. DB2012 Hong Kong SAR, China Hong Kong, China introduced a Minimum Wage. Hong Kong SAR (China) made starting a business easier by DB2012 Hong Kong SAR, China introducing online electronic services for company and business registration. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Malaysia made starting a business easier by merging company, tax, social security and employment fund DB2012 Malaysia registrations at the one-stop shop and providing same-day registration. Australia clarified the priority of claims of unsecured creditors DB2012 Australia over all shareholders’ claims and introduced further regulation of the profession of insolvency practitioners. Chile made business start-up easier by starting to provide an immediate temporary operating license to new companies, eliminating the requirement for an inspection of premises by DB2012 Chile the tax authority before new companies can begin operations and allowing free online publication of the notice of a company’s creation. Chile strengthened its secured transactions system by DB2012 Chile implementing a unified collateral registry and a new legal framework for nonpossessory security interests. Canada made paying taxes easier and less costly for DB2012 Canada companies by reducing profit tax rates, eliminating the Ontario capital tax and harmonizing sales taxes. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Thailand made registering property more expensive by DB2012 Thailand increasing the registration fee. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 273 DB year Economy Reform Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Russia increased the social security contribution rate for DB2012 Russian Federation employers. Malaysia established dedicated commercial courts to handle DB2012 Malaysia foreclosure proceedings. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. Taiwan (China) made dealing with construction permits easier DB2012 Taiwan, China by creating a one-stop center. Indonesia made starting a business easier by introducing a simplified application process allowing an applicant to DB2012 Indonesia simultaneously obtain both a general trading license and a business registration certificate. Taiwan (China) made starting a business easier by DB2012 Taiwan, China implementing an online one-stop shop for business registration. Thailand made starting a business easier by introducing a DB2012 Thailand one-stop shop. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Hong Kong SAR (China) made getting electricity easier by DB2012 Hong Kong SAR, China increasing the efficiency of public agencies and streamlining the utility’s procedures with other government agencies. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 274 DB year Economy Reform Malaysia continued to improve the computerization of its DB2012 Malaysia courts by introducing a system making it possible to file complaints electronically. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Korea made it easier to deal with insolvency by introducing DB2011 Korea, Rep. postfiling financing, granting superpriority to the repayment of loans given to companies undergoing reorganization. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Taiwan (China) eased business start-up by reducing the time DB2011 Taiwan, China required to check company names, register retirement plans and apply for health, pension and labor insurance. Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business DB2011 Vietnam license and tax license and by eliminating the need for a seal for company licensing. Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Indonesia eased business start-up by reducing the cost for company name clearance and reservation and the time DB2011 Indonesia required to reserve the name and approve the deed of incorporation. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Vietnam made dealing with construction permits easier by reducing the cost to register newly completed buildings by DB2011 Vietnam 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Thailand made registering property more costly by repealing DB2011 Thailand a 2-year temporary tax reduction for property transfers. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Vietnam improved its credit information system by allowing DB2011 Vietnam borrowers to examine their own credit report and correct Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 275 DB year Economy Reform errors. Singapore improved its credit information system by DB2011 Singapore collecting and distributing information on firms. Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. In the United States the introduction of a new tax on payroll DB2011 United States increased taxes on companies operating within the New York City metropolitan commuter transportation district. DB2011 Indonesia Indonesia reduced its corporate income tax rate. China’s new corporate income tax law unified the tax regimes for domestic and foreign enterprises and clarified the DB2011 China calculation of taxable income for corporate income tax purposes. The government of Vietnam eased paying taxes by reducing DB2011 Vietnam corporate income tax rate. Taiwan (China) reduced the corporate income tax rate and DB2011 Taiwan, China simplified tax return forms, rules for assessing corporate income tax and the calculation of interim tax payments. Thailand temporarily lowered taxes on business by reducing DB2011 Thailand its specific business tax for 12 months. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. An amendment to Chile’s securities law strengthened investor protections by requiring greater corporate disclosure and DB2011 Chile regulating the approval of transactions between interested parties. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Australia introduced the severance payment obligation and DB2011 Australia reemployment consideration applicable in cases of redundancy dismissals. Annual leave was increased and Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 276 DB year Economy Reform averaging of hours is now allowed in shorter periods of time. In addition, notice period applicable in case of redundancy dismissals was decreased. Malaysia eliminated the requirements to notify third parties in DB2011 Malaysia cases of redundancy dismissals. Malaysia eased business start-up by introducing more online DB2011 Malaysia services. Malaysia’s introduction of online stamping reduced the time DB2011 Malaysia and cost to transfer property. DB2011 Hong Kong SAR, China Hong Kong SAR (China) abolished the fuel tax on diesel. Reforms implemented in the civil justice system of Hong DB2011 Hong Kong SAR, China Kong SAR (China) will help increase the efficiency and cost- effectiveness of commercial dispute resolution. Japan made it easier to deal with insolvency by establishing a new entity, the Enterprise Turnaround Initiative Corporation, DB2011 Japan to support the revitalization of companies suffering from excessive debt but professionally managed. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. Indonesia reduced the time to export by launching a single- DB2011 Indonesia window service. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. The introduction of an electronic customs system in Brunei DB2011 Brunei Darussalam Darussalam made trading easier. Brunei Darussalam instituted mandatory minimum annual DB2011 Brunei Darussalam leave and reduced notice periods applicable in case of redundancy dismissals. Brunei Darussalam reduced the corporate income tax rate DB2011 Brunei Darussalam from 23.5% to 22% while also introducing a lower tax rate for small businesses, ranging from 5.5% to 11%. Brunei Darussalam made starting a business easier by DB2011 Brunei Darussalam improving efficiency at the company registrar and implementing an electronic system for name searches. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 277 DB year Economy Reform The Philippines eased business startup by setting up a one- DB2011 Philippines stop shop at the municipal level. The Philippines made construction permitting more DB2011 Philippines cumbersome through updated electricity connection costs. Operation of a new private credit bureau improved the credit DB2011 Papua New Guinea information system in Papua New Guinea. The Philippines reduced the time and cost to trade by improving its electronic customs systems, adding such DB2011 Philippines functions as electronic payments and online submission of declarations. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 278 RESOLVING INSOLVENCY A robust bankruptcy system functions as a filter, WHAT THE RESOLVING INSOLVENCY ensuring the survival of economically efficient companies and reallocating the resources of INDICATORS MEASURE inefficient ones. Fast and cheap insolvency proceedings result in the speedy return of businesses to normal operation and increase returns to Time required to recover debt (years) creditors. By clarifying the expectations of creditors Measured in calendar years and debtors about the outcome of insolvency Appeals and requests for extension are proceedings, well-functioning insolvency systems can included facilitate access to finance, save more viable businesses and sustainably grow the economy. Cost required to recover debt (% of debtor’s estate) What do the indicators cover? Doing Business studies the time, cost and outcome of Measured as percentage of estate value insolvency proceedings involving domestic legal Court fees entities. These variables are used to calculate the Fees of insolvency administrators recovery rate, which is recorded as cents on the dollar recovered by secured creditors through Lawyers’ fees reorganization, liquidation or debt enforcement Assessors’ and auctioneers’ fees (foreclosure or receivership) proceedings. To Other related fees determine the present value of the amount recovered by creditors, Doing Business uses the Outcome lending rates from the International Monetary Fund, Whether business continues operating as a supplemented with data from central banks and the going concern or business assets are sold Economist Intelligence Unit. piecemeal In addition, Doing Business evaluates the adequacy Recovery rate for creditors and integrity of the existing legal framework applicable to liquidation and reorganization Measures the cents on the dollar recovered by proceedings through the strength of insolvency secured creditors framework index. The index tests whether economies Outcome for the business (survival or not) adopted internationally accepted good practices in determines the maximum value that can be four areas: commencement of proceedings, recovered management of debtor’s assets, reorganization Official costs of the insolvency proceedings are proceedings and creditor participation. deducted The ranking of economies on the ease of resolving Depreciation of furniture is taken into account insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores Present value of debt recovered are the simple average of the distance to frontier Strength of insolvency framework index (0- scores for the recovery rate and the strength of 16) insolvency framework index. The Resolving Sum of the scores of four component indices: Insolvency indicator does not measure insolvency proceedings of individuals and financial institutions. Commencement of proceedings index (0-3) The data are derived from questionnaire responses Management of debtor’s assets index (0-6) by local insolvency practitioners and verified through a study of laws and regulations as well as public Reorganization proceedings index (0-3) information on bankruptcy systems Creditor participation index (0-4) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 279 . A robust bankruptcy system functions as a filter, In addition, Doing Business evaluates the adequacy ensuring the survival of economically efficient and integrity of the existing legal framework companies and reallocating the resources of applicable to liquidation and reorganization inefficient ones. Fast and cheap insolvency proceedings through the strength of insolvency proceedings result in the speedy return of businesses framework index. The index tests whether to normal operation and increase returns to economies adopted internationally accepted good creditors. By clarifying the expectations of creditors practices in four areas: commencement of and debtors about the outcome of insolvency proceedings, management of debtor’s assets, proceedings, well-functioning insolvency systems can reorganization proceedings and creditor facilitate access to finance, save more viable participation. businesses and sustainably grow the economy. What do the indicators cover? Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are used:  A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel experiences financial difficulties.  The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD 200,000, whichever is greater.  The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate. The hotel cannot pay back the loan, but makes enough money to operate otherwise. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 280 RESOLVING INSOLVENCY Where do the region’s economies stand today? How efficient are insolvency proceedings in economies in useful benchmark for assessing the efficiency of Asia-Pacific Economic Cooperation (APEC)? The global insolvency proceedings. Speed, low costs and rankings of these economies on the ease of resolving continuation of viable businesses characterize the top- insolvency suggest an answer (figure 11.1). The average performing economies. ranking of the region and comparator regions provide a Figure 11.1 How economies in Asia-Pacific Economic Cooperation (APEC) rank on the ease of resolving insolvency Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 281 RESOLVING INSOLVENCY The indicators underlying the rankings may be more these indicators across the region and with averages revealing. Data collected by Doing Business show the both for the region and for comparator regions can average recovery rate and the average strength of provide useful insights. insolvency framework index (figure 11.2). Comparing Figure 11.2 How efficient is the insolvency process in economies in Asia-Pacific Economic Cooperation (APEC) Recovery Rate (0–100) Source: Doing Business database. Total Strength of Insolvency Framework index (0-16) Source: Doing Business database. * Indicates a “no practice” mark. See the data notes for details. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice” mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a competing regulation prohibits such practice. Either way, a “no practice” mark puts the economy at the bottom of the ranking on the relevant indicator. Source: Doing Business database. Note: Higher values indicate insolvency legislation that is better designed for rehabilitating viable firms and liquidating nonviable ones. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 282 RESOLVING INSOLVENCY What are the changes over time? A well-balanced bankruptcy system distinguishes change. Many recent reforms of bankruptcy laws have companies that are financially distressed but been aimed at helping more of the viable businesses economically viable from inefficient companies that survive. What insolvency reforms has Doing Business should be liquidated. But in some insolvency systems recorded in Asia-Pacific Economic Cooperation (APEC) even viable businesses are liquidated. This is starting to (table 11.1)? Table 11.1 How have economies in Asia-Pacific Economic Cooperation (APEC) made resolving insolvency easier— or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform In Malaysia the credit bureau began to provide consumer DB2017 Malaysia credit scores. Hong Kong SAR, China, streamlined the processes of DB2017 Hong Kong SAR, China reviewing applications for new electrical connections and also reduced the time needed to issue an excavation permit. Hong Kong SAR, China, made starting a business less costly DB2017 Hong Kong SAR, China by reducing the business registration fee. Malaysia made starting a business more difficult by requiring DB2017 Malaysia that companies with an annual revenue of more than MYR 500,000 register as a GST payer. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. Malaysia made paying taxes easier by introducing an online system for filing and paying the Goods and Services Tax (GST) DB2017 Malaysia while also making it is more complex by replacing sales tax with GST. Singapore made dealing with construction permits easier by streamlining procedures and improving the online one-stop DB2017 Singapore shop. Russian Federation Saint Petersburg made dealing with DB2017 Russian Federation construction permits easier by removing the requirement to obtain permission to fence the construction site. Indonesia made enforcing contracts easier by introducing a dedicated procedure for small claims that allows for parties’ DB2017 Indonesia self-representation.This reform applies to both Jakarta and Surabaya. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 283 DB year Economy Reform The Russian Federation made enforcing contracts more difficult by mandating pre-trial resolution before filing a claim, thereby lengthening the initial DB2017 Russian Federation phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. China improved access to credit information by starting to report payment histories from utility companies and DB2017 China providing credit scores to banks and financial institutions. This reform applies to both Shanghai and Beijing. Indonesia strengthened access to credit by establishing a DB2017 Indonesia modern collateral registry. Thailand improved access to credit information by starting to DB2017 Thailand provide credit scores to banks and financial institutions. Indonesia made the process for getting an electricity connection faster by reducing the time for contractors to perform external work thanks to an increase in the stock of DB2017 Indonesia electrical material supplied by the utility. In Surabaya, getting electricity was also made easier after the utility streamlined the process for new connection requests. Vietnam strengthened minority investor protections by making it easier to sue directors in cases of prejudicial transactions between interested parties, by increasing DB2017 Vietnam shareholder rights and role in major corporate decisions, by strengthening the ownership and control structures of companies and by increasing corporate transparency requirements. Thailand made resolving insolvency easier by introducing new DB2017 Thailand restructuring for small and medium-size companies and by streamlining provisions related to company liquidation. Indonesia made it easier to register property by digitizing its DB2017 Indonesia cadastral records and setting up a geographic information system. Mexico made registering property easier by digitizing its land DB2017 Mexico records, improving the quality of the Land Registry infrastructure and making the registration process more Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 284 DB year Economy Reform efficient. Singapore made it easier to transfer a property by DB2017 Singapore introducing an independent mechanism for reporting errors on titles and maps. Thailand made starting a business easier by creating a single DB2017 Thailand window for registration payment and reducing the time to obtain a company seal. Indonesia made starting a business easier by creating a single form to apply for the company registration certificate and trading license. This reform applies to Jakarta. Indonesia also made starting a business easier by abolishing the minimum DB2017 Indonesia capital requirement for small and medium-size enterprises and by encouraging the use of an online system to reserve company names. This reform applies to both Jakarta and Surabaya. China made starting a business easier by introducing a single DB2017 China form to obtain a business license, organization code and tax registration. This reform applies to both Shanghai and Beijing. Vietnam made starting a business more difficult by requiring DB2017 Vietnam entrepreneurs to receive approval of the seal sample before using it. Vietnam made exporting and importing easier by DB2017 Vietnam implementing electronic customs clearance system. Indonesia made exporting and importing easier by improving DB2017 Indonesia the customs services and document submission functions of the Indonesia National Single Window. Singapore made paying taxes easier by introducing improvements to the online system for filing corporate DB2017 Singapore income tax returns and VAT returns. At the same, the social security contribution rate paid by employers increased and the rebate of 30% on vehicle tax expired. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. New Zealand made paying taxes easier by abolishing the cheque levy. New Zealand made paying less costly by decreasing the rate of accident compensation levy paid by DB2017 New Zealand employers. At the same time, New Zealand made paying taxes more costly by raising property tax and road user levy rates. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 285 DB year Economy Reform Indonesia made paying taxes easier by introducing an online system for filing and paying health contributions. Indonesia DB2017 Indonesia also made paying taxes more costly by levying a new pension contribution at a rate of 2% paid by employers. These reforms apply to both Jakarta and Surabaya. Japan made paying taxes easier by disclosing the technical specifications of the eTax platform and allowing the upload of additional information in comma separated value (CSV) format. The restoration surtax was also abolished. However, a local corporation tax was introduced and the rates of special DB2017 Japan local corporation tax, inhabitants tax and enterprise tax were raised. Welfare pension premiums were also raised. These reforms apply to both Tokyo and Osaka. However, the rate for health insurance contributions paid by employers was reduced only in Osaka. Vietnam made paying taxes easier and less costly by DB2017 Vietnam streamlining the administrative process of complying with tax obligations and abolishing environmental protection fees. Brunei Darussalam strengthened access to credit by adopting a new insolvency law that contemplates protections for secured creditors during an automatic stay in reorganization DB2017 Brunei Darussalam proceedings. Brunei also improved access to credit information by beginning to distribute data from two utility companies. The utility in Brunei Darussalam streamlined the processes of reviewing applications, and the time to issue an excavation permit was reduced. In addition, Brunei Darussalam increased the reliability of power supply by rolling out a Supervisory DB2017 Brunei Darussalam Control and Data Acquisition (SCADA) automatic energy management system for the monitoring of outages and the restoration of service. Brunei Darussalam strengthened minority investor protections by clarifying ownership and control structures, DB2017 Brunei Darussalam making it easier to sue directors in case of prejudicial related- party transactions, and allowing the rescission of related- party transactions that harm the company. Brunei Darussalam made resolving insolvency easier by adopting a new insolvency law that introduced a reorganization procedure and facilitated continuation of the DB2017 Brunei Darussalam debtor’s business during insolvency proceedings. Brunei Darussalam also introduced regulations for insolvency practitioners. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 286 DB year Economy Reform Brunei Darussalam made paying taxes easier by fully DB2017 Brunei Darussalam implementing an electronic system for filing and paying corporate income tax. The Philippines made dealing with construction permits easier DB2017 Philippines by increasing the transparency of its building regulations. Papua New Guinea strengthened access to credit by adopting a new law on secured transactions that implemented a functional secured transactions system and established a DB2017 Papua New Guinea centralized, notice-based collateral registry. The new law broadens the scope of assets that can be used as collateral and allows out-of-court enforcement of collateral. Papua New Guinea reduced the time required to start a DB2017 Papua New Guinea business by streamlining business registration at the Investment Promotion Agency (IPA). The Philippines made paying taxes easier by introducing an online system for filing and paying health contributions and DB2017 Philippines by allowing for the online corporate income tax and VAT returns to be completed offline. Brunei Darussalam made enforcing contracts easier by DB2017 Brunei Darussalam introducing an electronic filing system as well as a platform that allows users to pay court fees electronically. The Philippines made starting a business easier by streamlining communications between the Securities and DB2016 Philippines Exchange Commission and the Social Security System and thereby expediting the process of issuing an employer registration number. Brunei Darussalam made paying taxes easier and less costly for companies by merging contributions for the Employee Provident Fund and the Supplemental Pension Fund and DB2016 Brunei Darussalam increasing the capital allowance for industrial buildings. In addition, it reduced the corporate income tax rate, though it also abolished the partial exemption of income and introduced a flat rate. Brunei Darussalam made starting a business easier by DB2016 Brunei Darussalam improving online procedures and simplifying registration and post registration requirements. Chile made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, DB2016 Chile introducing provisions to facilitate the continuation of the debtor’s business during insolvency, establishing a public office responsible for the general administration of insolvency Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 287 DB year Economy Reform proceedings and creating specialized insolvency courts. Chile made paying taxes more costly for companies by DB2016 Chile increasing the corporate income tax rate. The utility in Hong Kong SAR, China, made getting electricity easier by streamlining the process for reviewing connection DB2016 Hong Kong SAR, China applications and for completing the connection works and meter installation. In addition, the time needed to issue an excavation permit was reduced. The Republic of Korea made paying taxes more complicated and costly for companies by requiring separate filing and DB2016 Korea, Rep. payment of the local income tax and by increasing the rates for unemployment insurance and national health insurance paid by employers. Hong Kong SAR, China, made paying taxes easier and less costly for companies by simplifying compliance with the mandatory provident fund obligations and increasing the DB2016 Hong Kong SAR, China allowance for profit tax. At the same time, it increased the maximum contribution to the mandatory provident fund and reduced the property tax waiver. Malaysia made paying taxes easier and less costly for companies by making electronic filing mandatory and DB2016 Malaysia reducing the property tax rate. At the same time, it also increased the capital gains tax. Hong Kong SAR, China, made starting a business easier by DB2016 Hong Kong SAR, China eliminating the requirement for a company seal. Hong Kong SAR, China, improved access to credit by DB2016 Hong Kong SAR, China implementing a modern collateral registry. The utility in Vietnam reduced the time required for getting an electricity connection by reducing delays and increasing efficiency in approving connection applications and designs for connection works. Getting electricity was also made easier DB2016 Vietnam by eliminating the need to obtain a substation certification from the Fire Fighters Prevention Department for connections to the medium-voltage grid. Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 288 DB year Economy Reform St. Petersburg. The utility in Taiwan, China, reduced the time required for getting an electricity connection through a simplified DB2016 Taiwan, China procedure for obtaining excavation permits from the municipality. The utility in New Zealand reduced the time required for getting an electricity connection by improving its payment DB2016 New Zealand monitoring and confirmation process for the connection works. Vietnam made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, modifying the standard for commencement of insolvency DB2016 Vietnam proceedings, changing provisions on voidable transactions, regulating the profession of insolvency trustees and establishing the rules for enterprise asset managers. Vietnam made paying taxes less costly for companies by reducing the corporate income tax rate—and made it easier by reducing the number of procedures and documents for filing VAT and social security contributions, reducing the DB2016 Vietnam number of filings for VAT and replacing quarterly filings of corporate income tax with quarterly advance payments. On the other hand, Vietnam increased the rate for social security contributions paid by employers. Indonesia made paying taxes easier and less costly for companies by introducing an online system for paying social DB2016 Indonesia security contributions and by reducing both the rate paid by employers and the ceiling for the contributions. This reform applies to both Jakarta and Surabaya. China made paying taxes less costly for companies in DB2016 China Shanghai by reducing the social security contribution rate. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more DB2016 Mexico costly by allowing only a portion of salaries to be deductible. These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 289 DB year Economy Reform for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Indonesia made starting a business in Jakarta easier by DB2016 Indonesia reducing the time needed to register with the Ministry of Manpower. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Vietnam made starting a business easier by reducing the time DB2016 Vietnam required to get the company seal engraved and registered. Indonesia improved access to credit by enabling searches of DB2016 Indonesia the collateral registry by the debtor’s name. This reform applies to both Jakarta and Surabaya. Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral DB2016 Russian Federation registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Vietnam guaranteed borrowers’ right to inspect their credit DB2016 Vietnam data while the new credit bureau expanded borrower coverage, improving the credit information system. Peru improved its credit information system by implementing DB2016 Peru a new law on personal data protection. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. Taiwan, China, improved access to credit information by DB2015 Taiwan, China beginning to include data from utility companies in credit reports. Vietnam improved its credit information system by DB2015 Vietnam establishing a new credit bureau. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 290 DB year Economy Reform Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. Hong Kong SAR, China, strengthened minority investor protections by introducing requirements for directors to DB2015 Hong Kong SAR, China provide more detailed disclosure of conflicts of interest to the other board members. The Republic of Korea strengthened minority investor DB2015 Korea, Rep. protections by increasing the level of transparency expected from companies on managerial compensation. The Republic of Korea made transferring property easier by DB2015 Korea, Rep. reducing the time needed to buy housing bonds and to register the property transfer. Hong Kong SAR, China, made starting a business more DB2015 Hong Kong SAR, China difficult by increasing the registration fee. Taiwan, China, made getting electricity easier by eliminating DB2015 Taiwan, China site inspections. In Indonesia the electricity company in Jakarta made getting electricity easier by eliminating the need for electrical contractors to obtain multiple certificates guaranteeing the DB2015 Indonesia safety of internal installations—though. The utility in Jakarta and Surabaya also increased the cost by introducing a security deposit for new connections. Thailand made dealing with construction permits less time- DB2015 Thailand consuming by introducing a fast-track approval process for building permits for smaller buildings. Singapore made enforcing contracts easier by introducing a DB2015 Singapore new electronic litigation system that streamlines litigation proceedings. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. Taiwan, China, made paying taxes easier for companies by DB2015 Taiwan, China introducing an electronic system for paying the vehicle license tax. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 291 DB year Economy Reform Indonesia made paying taxes less costly for companies by DB2015 Indonesia reducing employers’ health insurance contribution rate. This reform applies to both Jakarta and Surabaya. China made paying taxes easier for companies by enhancing the electronic system for filing and paying taxes and adopting new communication channels within its taxpayer service, DB2015 China changes applying to both Beijing and Shanghai. In addition, China made paying taxes less costly for companies in Shanghai by reducing the social security contribution rate. Vietnam made paying taxes less costly for companies by DB2015 Vietnam reducing the corporate income tax rate. The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing DB2015 Russian Federation tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. In the United States starting a business became easier in New DB2015 United States York City thanks to faster online procedures. China made starting a business easier by eliminating both the minimum capital requirement and the requirement to obtain DB2015 China a capital verification report from an auditing firm. This reform applies to both Beijing and Shanghai. Indonesia made starting a business easier by allowing the Ministry of Law and Human Rights to electronically issue the DB2015 Indonesia approval letter for the deed of establishment. This reform applies to both Jakarta and Surabaya. In Indonesia trading across borders became more difficult DB2015 Indonesia because of insufficient infrastructure at the Tanjung Priok Port Jakarta. This change applies to both Jakarta and Surabaya. Brunei Darussalam made dealing with construction permits DB2015 Brunei Darussalam easier by consolidating final inspections. Brunei Darussalam made paying taxes easier for companies by allowing joint filing and payment of supplemental DB2015 Brunei Darussalam contributory pension and employee provident fund contributions and by introducing an online system for paying these 2 contributions. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 292 DB year Economy Reform In the Philippines trading across borders became more DB2015 Philippines difficult because of a new city ordinance restricting truck traffic in Manila. The Philippines improved access to credit information by beginning to distribute both positive and negative DB2014 Philippines information and by enacting a data privacy act that guarantees borrowers’ right to access their data. Brunei Darussalam improved access to credit information by DB2014 Brunei Darussalam establishing a public credit registry. The Philippines made dealing with construction permits easier DB2014 Philippines by eliminating the requirement to obtain a health certificate. The Philippines made paying taxes easier for companies by DB2014 Philippines introducing an electronic filing and payment system for social security contributions. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a DB2014 Mexico “silence is consent” rule for the approval of the feasibility study for a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. New Zealand made enforcing contracts easier by improving DB2014 New Zealand its case management system to ensure a speedier and less costly adjudication of cases. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. China made enforcing contracts easier by amending its civil DB2014 China procedure code to streamline and speed up all court proceedings. Thailand made paying taxes less costly for companies by DB2014 Thailand reducing employers' social security contribution rate. Vietnam made paying taxes more costly for companies by DB2014 Vietnam increasing employers' social security contribution rate. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 293 DB year Economy Reform Vietnam strengthened investor protections by introducing DB2014 Vietnam greater disclosure requirements for publicly held companies in cases of related-party transactions. Singapore made transferring property easier by introducing DB2014 Singapore an online procedure for property transfers. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Vietnam abolished priority rules for redundancy dismissals or DB2014 Vietnam layoffs and increased the minimum wage. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. Malaysia made getting electricity easier by increasing the DB2014 Malaysia efficiency of internal processes at the utility and improving its communication and dialogue with contractors. Malaysia made dealing with construction permits easier by DB2014 Malaysia establishing a one-stop shop. Hong Kong SAR, China, made transferring property more DB2014 Hong Kong SAR, China costly by increasing the stamp duty. Malaysia made starting a business less costly by reducing the DB2014 Malaysia company registration fees. Hong Kong SAR, China, made starting a business less costly DB2014 Hong Kong SAR, China by abolishing the capital duty levied on local companies. DB2014 Malaysia Malaysia introduced a minimum wage. Australia improved its credit information system through the DB2014 Australia Privacy Amendment (Enhancing Privacy Protection) Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 294 DB year Economy Reform Act 2012, which permits credit bureaus to collect account payment history with improved privacy protection. China improved its credit information system by introducing DB2014 China credit information industry regulations, which guarantee borrowers’ right to inspect their data. Indonesia improved its credit information system through a DB2014 Indonesia new regulation setting up a legal framework for establishing credit bureaus. Vietnam improved its credit information system through a DB2014 Vietnam decree setting up a legal framework for the establishment of private credit bureaus. Singapore improved its credit information system by DB2014 Singapore guaranteeing by law borrowers’ right to inspect their own data. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Thailand made starting a business easier by allowing the DB2013 Thailand registrar at the Department of Business Development to receive the company’s work regulations. Vietnam made starting a business easier by allowing DB2013 Vietnam companies to use self-printed value added tax invoices. China made starting a business less costly by exempting DB2013 China micro and small companies from paying several administrative fees from January 2012 to December 2014. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. Taiwan, China, made dealing with construction permits easier by introducing a risk-based and self-regulatory inspection DB2013 Taiwan, China system and improving operational features of the one-stop shop for building permits. China simplified the process of obtaining a construction DB2013 China permit by streamlining and centralizing preconstruction approvals. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 295 DB year Economy Reform Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Taiwan, China, strengthened investor protections by increasing disclosure requirements for related-party DB2013 Taiwan, China transactions and improving the liability regime for company directors in cases where such transactions are abusive. Australia strengthened its secured transactions system by adopting a new national legal regime governing the DB2013 Australia enforceability of security interests in personal property and implementing a unified collateral registry. Canada made getting an electricity connection easier by DB2013 Canada reducing the time needed for external connection works. Malaysia made dealing with construction permits faster by DB2013 Malaysia improving the one-stop center for new buildings and by reducing the time to connect to telephone service. Malaysia substantially reduced the number of days it takes to DB2013 Malaysia register property transfers. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Brunei Darussalam made dealing with construction permits DB2013 Brunei Darussalam easier by creating a one-stop shop for preconstruction approvals. Brunei Darussalam made paying taxes less costly for DB2013 Brunei Darussalam companies by reducing the profit tax rate. Indonesia made getting electricity easier by eliminating the requirement for new customers applying for an electricity DB2013 Indonesia connection to show a neighbor’s electricity bill as a way to help determine their address. In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training DB2013 Mexico opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 296 DB year Economy Reform network and increasing the stock of materials. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Japan made paying taxes less costly for companies by DB2013 Japan reducing the corporate income tax rate—though it also introduced a restoration surtax for a 3-year period. Thailand made paying taxes less costly for companies by DB2013 Thailand reducing the profit tax rate. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Vietnam strengthened investor protections by requiring DB2012 Vietnam higher standards of accountability for company directors. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Indonesia made getting electricity more difficult by increasing DB2012 Indonesia connection fees. The Philippines adopted a new insolvency law that provides a DB2012 Philippines legal framework for liquidation and reorganization of financially distressed companies. Brunei Darussalam made getting electricity easier by DB2012 Brunei Darussalam establishing a one-stop shop and reducing the time required to obtain an excavation permit. Korea eased the administrative burden of paying taxes for DB2012 Korea, Rep. firms by merging several taxes, allowing 4 labor taxes and Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 297 DB year Economy Reform contributions to be paid jointly and continuing to increase the use of the online tax payment system. Malaysia made paying taxes costlier for firms by reintroducing the real estate capital gains tax—but also made DB2012 Malaysia tax compliance easier by improving electronic systems and the availability of software. DB2012 Hong Kong SAR, China Hong Kong, China introduced a Minimum Wage. Hong Kong SAR (China) made starting a business easier by DB2012 Hong Kong SAR, China introducing online electronic services for company and business registration. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Malaysia made starting a business easier by merging company, tax, social security and employment fund DB2012 Malaysia registrations at the one-stop shop and providing same-day registration. Australia clarified the priority of claims of unsecured creditors DB2012 Australia over all shareholders’ claims and introduced further regulation of the profession of insolvency practitioners. Chile made business start-up easier by starting to provide an immediate temporary operating license to new companies, eliminating the requirement for an inspection of premises by DB2012 Chile the tax authority before new companies can begin operations and allowing free online publication of the notice of a company’s creation. Chile strengthened its secured transactions system by DB2012 Chile implementing a unified collateral registry and a new legal framework for nonpossessory security interests. Canada made paying taxes easier and less costly for DB2012 Canada companies by reducing profit tax rates, eliminating the Ontario capital tax and harmonizing sales taxes. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Thailand made registering property more expensive by DB2012 Thailand increasing the registration fee. Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 298 DB year Economy Reform New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Russia increased the social security contribution rate for DB2012 Russian Federation employers. Malaysia established dedicated commercial courts to handle DB2012 Malaysia foreclosure proceedings. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. Taiwan (China) made dealing with construction permits easier DB2012 Taiwan, China by creating a one-stop center. Indonesia made starting a business easier by introducing a simplified application process allowing an applicant to DB2012 Indonesia simultaneously obtain both a general trading license and a business registration certificate. Taiwan (China) made starting a business easier by DB2012 Taiwan, China implementing an online one-stop shop for business registration. Thailand made starting a business easier by introducing a DB2012 Thailand one-stop shop. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Hong Kong SAR (China) made getting electricity easier by DB2012 Hong Kong SAR, China increasing the efficiency of public agencies and streamlining the utility’s procedures with other government agencies. Malaysia continued to improve the computerization of its DB2012 Malaysia courts by introducing a system making it possible to file complaints electronically. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 299 DB year Economy Reform Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Korea made it easier to deal with insolvency by introducing DB2011 Korea, Rep. postfiling financing, granting superpriority to the repayment of loans given to companies undergoing reorganization. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Taiwan (China) eased business start-up by reducing the time DB2011 Taiwan, China required to check company names, register retirement plans and apply for health, pension and labor insurance. Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business DB2011 Vietnam license and tax license and by eliminating the need for a seal for company licensing. Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Indonesia eased business start-up by reducing the cost for company name clearance and reservation and the time DB2011 Indonesia required to reserve the name and approve the deed of incorporation. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Vietnam made dealing with construction permits easier by reducing the cost to register newly completed buildings by DB2011 Vietnam 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Thailand made registering property more costly by repealing DB2011 Thailand a 2-year temporary tax reduction for property transfers. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Vietnam improved its credit information system by allowing DB2011 Vietnam borrowers to examine their own credit report and correct errors. Singapore improved its credit information system by DB2011 Singapore collecting and distributing information on firms. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 300 DB year Economy Reform Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. In the United States the introduction of a new tax on payroll DB2011 United States increased taxes on companies operating within the New York City metropolitan commuter transportation district. DB2011 Indonesia Indonesia reduced its corporate income tax rate. China’s new corporate income tax law unified the tax regimes for domestic and foreign enterprises and clarified the DB2011 China calculation of taxable income for corporate income tax purposes. The government of Vietnam eased paying taxes by reducing DB2011 Vietnam corporate income tax rate. Taiwan (China) reduced the corporate income tax rate and DB2011 Taiwan, China simplified tax return forms, rules for assessing corporate income tax and the calculation of interim tax payments. Thailand temporarily lowered taxes on business by reducing DB2011 Thailand its specific business tax for 12 months. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. An amendment to Chile’s securities law strengthened investor protections by requiring greater corporate disclosure and DB2011 Chile regulating the approval of transactions between interested parties. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Australia introduced the severance payment obligation and reemployment consideration applicable in cases of redundancy dismissals. Annual leave was increased and DB2011 Australia averaging of hours is now allowed in shorter periods of time. In addition, notice period applicable in case of redundancy dismissals was decreased. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 301 DB year Economy Reform Malaysia eliminated the requirements to notify third parties in DB2011 Malaysia cases of redundancy dismissals. Malaysia eased business start-up by introducing more online DB2011 Malaysia services. Malaysia’s introduction of online stamping reduced the time DB2011 Malaysia and cost to transfer property. DB2011 Hong Kong SAR, China Hong Kong SAR (China) abolished the fuel tax on diesel. Reforms implemented in the civil justice system of Hong DB2011 Hong Kong SAR, China Kong SAR (China) will help increase the efficiency and cost- effectiveness of commercial dispute resolution. Japan made it easier to deal with insolvency by establishing a new entity, the Enterprise Turnaround Initiative Corporation, DB2011 Japan to support the revitalization of companies suffering from excessive debt but professionally managed. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. Indonesia reduced the time to export by launching a single- DB2011 Indonesia window service. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. The introduction of an electronic customs system in Brunei DB2011 Brunei Darussalam Darussalam made trading easier. Brunei Darussalam instituted mandatory minimum annual DB2011 Brunei Darussalam leave and reduced notice periods applicable in case of redundancy dismissals. Brunei Darussalam reduced the corporate income tax rate DB2011 Brunei Darussalam from 23.5% to 22% while also introducing a lower tax rate for small businesses, ranging from 5.5% to 11%. Brunei Darussalam made starting a business easier by DB2011 Brunei Darussalam improving efficiency at the company registrar and implementing an electronic system for name searches. The Philippines eased business startup by setting up a one- DB2011 Philippines stop shop at the municipal level. The Philippines made construction permitting more DB2011 Philippines cumbersome through updated electricity connection costs. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 302 DB year Economy Reform Operation of a new private credit bureau improved the credit DB2011 Papua New Guinea information system in Papua New Guinea. The Philippines reduced the time and cost to trade by improving its electronic customs systems, adding such DB2011 Philippines functions as electronic payments and online submission of declarations. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 303 DISTANCE TO FRONTIER AND EASE OF DOING BUSINESS RANKING Doing Business presents results for two aggregate even though it is no longer at the frontier in a measures: the distance to frontier score and the ease of subsequent year. doing business ranking, which is based on the distance For scores such as those on the strength of legal rights to frontier score. The ease of doing business ranking index or the quality of land administration index, the compares economies with one another; the distance to frontier is set at the highest possible value. For the total frontier score benchmarks economies with respect to tax rate, consistent with the use of a threshold in regulatory best practice, showing the absolute distance calculating the rankings on this indicator, the frontier is to the best performance on each Doing Business defined as the total tax rate at the 15th percentile of the indicator. When compared across years, the distance to overall distribution for all years included in the analysis frontier score shows how much the regulatory up to and including Doing Business 2015. For the time to environment for local entrepreneurs in an economy has pay taxes the frontier is defined as the lowest time changed over time in absolute terms, while the ease of recorded among all economies that levy the three major doing business ranking can show only how much the taxes: profit tax, labor taxes and mandatory regulatory environment has changed relative to that in contributions, and value added tax (VAT) or sales tax. For other economies. the different times to trade across borders, the frontier is defined as 1 hour even though in many economies the Distance to Frontier time is less than that. The distance to frontier score captures the gap between In the same formulation, to mitigate the effects of an economy’s performance and a measure of best extreme outliers in the distributions of the rescaled data practice across the entire sample of 36 indicators for 10 for most component indicators (very few economies Doing Business topics (the labor market regulation need 700 days to complete the procedures to start a indicators are excluded). For starting a business, for business, but many need 9 days), the worst performance example, the former Yugoslav Republic of Macedonia is calculated after the removal of outliers. The definition and New Zealand have the smallest number of of outliers is based on the distribution for each procedures required (1), and New Zealand the shortest component indicator. To simplify the process two rules time to fulfill them (0.5 days). Slovenia has the lowest were defined: the 95th percentile is used for the cost (0.0), and Australia, Colombia and 103 other indicators with the most dispersed distributions economies have no paid-in minimum capital (including minimum capital, number of payments to pay requirement (table 14.1 in the Doing Business 2017 taxes, and the time and cost indicators), and the 99th report). percentile is used for number of procedures. No outlier is Calculation of the distance to frontier score removed for component indicators bound by definition Calculating the distance to frontier score for each or construction, including legal index scores (such as the depth of credit information index, extent of conflict of economy involves two main steps. In the first step interest regulation index and strength of insolvency individual component indicators are normalized to a common unit where each of the 36 component framework index) and the recovery rate (figure 14.1). indicators y (except for the total tax rate) is rescaled In the second step for calculating the distance to frontier using the linear transformation (worst − y)/(worst − score, the scores obtained for individual indicators for frontier). In this formulation the frontier represents the each economy are aggregated through simple averaging best performance on the indicator across all economies into one distance to frontier score, first for each topic since 2005 or the third year in which data for the and then across all 10 topics: starting a business, dealing indicator were collected. Both the best performance and with construction permits, getting electricity, registering the worst performance are established every five years property, getting credit, protecting minority investors, based on the Doing Business data for the year in which paying taxes, trading across borders, enforcing contracts they are established, and remain at that level for the five and resolving insolvency. More complex aggregation years regardless of any changes in data in interim years. methods—such as principal components and Thus an economy may set the frontier for an indicator unobserved components—yield a ranking nearly Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 304 identical to the simple average used by Doing Business3. than it would have had before (line D is bigger than line Thus Doing Business uses the simplest method: C in figure 14.2 of the Doing Business 2017 report). weighting all topics equally and, within each topic, giving The nonlinear transformation is not based on any equal weight to each of the topic components 4. economic theory of an “optimal tax rate” that minimizes An economy’s distance to frontier score is indicated on a distortions or maximizes efficiency in an economy’s scale from 0 to 100, where 0 represents the worst overall tax system. Instead, it is mainly empirical in performance and 100 the frontier. All distance to frontier nature. The nonlinear transformation along with the calculations are based on a maximum of five decimals. threshold reduces the bias in the indicator toward However, indicator ranking calculations and the ease of economies that do not need to levy significant taxes on doing business ranking calculations are based on two companies like the Doing Business standardized case decimals. study company because they raise public revenue in other ways—for example, through taxes on foreign The difference between an economy’s distance to companies, through taxes on sectors other than frontier score in any previous year and its score in 2015 manufacturing or from natural resources (all of which are illustrates the extent to which the economy has closed outside the scope of the methodology). In addition, it the gap to the regulatory frontier over time. And in any acknowledges the need of economies to collect taxes given year the score measures how far an economy is from firms. from the best performance at that time. Calculation of scores for economies with 2 cities Treatment of the total tax rate covered The total tax rate component of the paying taxes For each of the 11 economies in which Doing Business indicator set enters the distance to frontier calculation in collects data for the second largest business city as well a different way than any other indicator. The distance to as the largest one, the distance to frontier score is frontier score obtained for the total tax rate is calculated as the population-weighted average of the transformed in a nonlinear fashion before it enters the distance to frontier scores for these two cities (table distance to frontier score for paying taxes. As a result of 13.1). This is done for the aggregate score, the scores for the nonlinear transformation, an increase in the total tax each topic and the scores for all the component rate has a smaller impact on the distance to frontier indicators for each topic. score for the total tax rate—and therefore on the distance to frontier score for paying taxes—for economies with a below-average total tax rate than it would have had before this approach was adopted in Doing Business 2015 (line B is smaller than line A in figure 14.2 of the Doing Business 2017 report). And for economies with an extreme total tax rate (a rate that is very high relative to the average), an increase has a greater impact on both these distance to frontier scores 3 See Djankov, Manraj and others (2005). Principal components and unobserved components methods yield a ranking nearly identical to that from the simple average method because both these methods assign roughly equal weights to the topics, since the pairwise correlations among indicators do not differ much. An alternative to the simple average method is to give different weights to the topics, depending on which are considered of more or less importance in the context of a specific economy. 4 For getting credit, indicators are weighted proportionally, according to their contribution to the total score, with a weight of 60% assigned to the strength of legal rights index and 40% to the depth of credit information index. Indicators for all other topics are assigned equal weights Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 305 Table 13.1 Weights used in calculating the distance to implemented regulatory reforms making it easier to do frontier scores for economies with 2 cities covered business in 3 or more of the 10 topics included in this year’s aggregate distance to frontier score. Changes Economy City Weight (%) making it more difficult to do business are subtracted Dhaka 78 Bangladesh from the total number of those making it easier to do Chittagong 22 São Paulo 61 business. Twenty-four economies meet this criterion: Brazil Armenia; Azerbaijan; Benin; Costa Rica; Côte d’Ivoire; Rio de Janeiro 39 Shanghai 55 Cyprus; Hong Kong SAR, China; Indonesia; Jamaica; China Beijing 45 Kazakhstan; Kenya; Lithuania; Madagascar; Mauritania; Mumbai 47 Morocco; Romania; the Russian Federation; Rwanda; India Delhi 53 Senegal; Togo; Uganda; the United Arab Emirates; Jakarta 78 Uzbekistan; and Vietnam. Second, Doing Business sorts Indonesia Surabaya 22 these economies on the increase in their distance to Tokyo 65 Japan frontier score from the previous year using comparable Osaka 35 data. Mexico City 83 Mexico Monterrey 17 Selecting the economies that implemented regulatory Lagos 77 reforms in at least three topics and had the biggest Nigeria Kano 23 improvements in their distance to frontier scores is Karachi 65 intended to highlight economies with ongoing, broad- Pakistan Lahore 35 based reform programs. The improvement in the Moscow 70 Russian Federation distance to frontier score is used to identify the top St. Petersburg 30 New York 60 improvers because this allows a focus on the absolute United States improvement—in contrast with the relative improvement Los Angeles 40 Source: United Nations, Department of Economic and Social shown by a change in rankings—that economies have Affairs, Population Division, World Urbanization Prospects, made in their regulatory environment for business. 2014 Revision. http://esa.un.org/unpd/wup/CD- ROM/Default.aspx. Ease of Doing Business ranking Economies that improved the most across 3 or more The ease of doing business ranking ranges from 1 to 190. Doing Business topics in 2014/15 The ranking of economies is determined by sorting the Doing Business 2017 uses a simple method to calculate aggregate distance to frontier scores, rounded to 2 decimals. which economies improved the ease of doing business the most. First, it selects the economies that in 2014/15 Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 306 RESOURCES ON THE DOING BUSINESS WEBSITE Current features Law library News on the Doing Business project Online collection of business laws and regulations http://www.doingbusiness.org relating to business http://www.doingbusiness.org/law-library Rankings How economies rank—from 1 to 190 Contributors http://www.doingbusiness.org/rankings More than 12,500 specialists in 190 economies who participate in Doing Business Data http://www.doingbusiness.org/contributors/doing- All the data for 190 economies—topic rankings, business indicator values, lists of regulatory procedures and details underlying indicators Entrepreneurship data http://www.doingbusiness.org/data Data on business density (number of newly registered companies per 1,000 working-age Reports people) for 136 economies Access to Doing Business reports as well as http://www.doingbusiness.org/data/exploretopics/ent subnational and regional reports, case studies and repreneurship customized economy and regional profiles http://www.doingbusiness.org/reports Distance to frontier Data benchmarking 190 economies to the frontier Methodology in regulatory practice and a distance to frontier The methodologies and research papers underlying calculator Doing Business http://www.doingbusiness.org/data/distance-to- http://www.doingbusiness.org/methodology frontier Research Information on good practices Abstracts of papers on Doing Business topics and Showing where the many good practices identified related policy issues by Doing Business have been adopted http://www.doingbusiness.org/research http://www.doingbusiness.org/data/good-practice Doing Business reforms Short summaries of DB2017 business regulation reforms and lists of reforms since DB2008 http://www.doingbusiness.org/reforms Historical data Customized data sets since DB2004 http://www.doingbusiness.org/custom-query Doing Business 2017 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 307