Regional Profile 2017 OECD High Income Doing Business 2017 OECD HIGH INCOME 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 OECD HIGH INCOME 3 CONTENTS Introduction .................................................................................................................................. 4 The business environment .......................................................................................................... 5 Starting a business ..................................................................................................................... 14 Dealing with construction permits ........................................................................................... 44 Getting electricity ....................................................................................................................... 79 Registering property ................................................................................................................ 109 Getting credit ............................................................................................................................ 147 Protecting minority investors ................................................................................................. 179 Paying taxes .............................................................................................................................. 213 Trading across borders ............................................................................................................ 250 Enforcing contracts .................................................................................................................. 292 Resolving insolvency ................................................................................................................ 323 Distance to frontier and ease of doing business ranking .................................................... 352 Resources on the Doing Business website ............................................................................ 355 Doing Business 2017 OECD HIGH INCOME 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 OECD HIGH INCOME 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 OECD HIGH INCOME 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 OECD HIGH INCOME 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 OECD High Income 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 OECD HIGH INCOME 8 THE BUSINESS ENVIRONMENT Figure 1.3 Rankings on Doing Business topics - OECD High Income (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 - OECD High Income (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 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 OECD HIGH INCOME 9 Figure 1.5 How far has OECD High Income 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 OECD HIGH INCOME 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 OECD High Income Lowest regional Best regional Best global Indicator Regional average performance performance performance Starting a Business 114 (Germany) 1 (New Zealand) 45.88 1 (New Zealand) (rank) Starting a Business 83.42 (Germany) 99.96 (New Zealand) 91.51 99.96 (New Zealand) (DTF Score) Procedure – Men 9.0 (Germany) 1.0 (New Zealand) 4.8 1.0 (New Zealand) (number) Time – Men (days) 37.0 (Poland) 0.5 (New Zealand) 8.3 0.5 (New Zealand) Cost – Men (% of 14.6 (Korea, Rep.) 0.0 (Slovenia) 3.1 0.0 (Slovenia) income per capita) Procedure – Women 9.0 (Germany) 1.0 (New Zealand) 4.8 1.0 (New Zealand) (number) Time – Women (days) 37.0 (Poland) 0.5 (New Zealand) 8.3 0.5 (New Zealand) Cost – Women (% of 14.6 (Korea, Rep.) 0.0 (Slovenia) 3.1 0.0 (Slovenia) income per capita) Paid-in min. capital (% 45.5 (Hungary) 0.0 (Korea, Rep.) 9.2 0.0 (127 Economies*) of income per capita) Dealing with Construction Permits 130 (Czech Republic) 1 (New Zealand) 48.19 1 (New Zealand) (rank) Dealing with Construction Permits 62.76 (Czech Republic) 87.40 (New Zealand) 75.60 87.40 (New Zealand) (DTF Score) Procedures (number) 21.0 (Czech Republic) 7.0 (Sweden) 12.1 7.0 (4 Economies*) Time (days) 286.0 (Slovak Republic) 28.0 (Korea, Rep.) 152.1 28.0 (Korea, Rep.) Doing Business 2017 OECD HIGH INCOME 11 Lowest regional Best regional Best global Indicator Regional average performance performance performance Cost (% of warehouse 0.1 (Trinidad and 5.4 (Ireland) 0.1 (Slovak Republic) 1.6 value) Tobago) Building quality control 8.0 (Norway) 15.0 (Luxembourg) 11.3 15.0 (Luxembourg*) index (0-15) Getting Electricity 121 (Hungary) 1 (Korea, Rep.) 37.22 1 (Korea, Rep.) (rank) Getting Electricity 60.13 (Hungary) 99.88 (Korea, Rep.) 84.37 99.88 (Korea, Rep.) (DTF Score) Procedures (number) 7.0 (Portugal) 3.0 (Korea, Rep.) 4.8 3.0 (15 Economies*) Time (days) 257.0 (Hungary) 18.0 (Korea, Rep.) 76.2 18.0 (Korea, Rep.*) Cost (% of income per 216.1 (Spain) 0.0 (Japan) 62.5 0.0 (Japan) capita) Reliability of supply and transparency of 6.0 (Hungary) 8.0 (Portugal) 7.5 8.0 (26 Economies*) tariff index (0-8) Registering Property 141 (Greece) 1 (New Zealand) 44.22 1 (New Zealand) (rank) Registering Property 49.67 (Greece) 94.46 (New Zealand) 76.60 94.46 (New Zealand) (DTF Score) Procedures (number) 10.0 (Greece) 1.0 (Sweden) 4.7 1.0 (4 Economies*) Time (days) 81.0 (Israel) 1.0 (Portugal) 22.4 1.0 (3 Economies*) Cost (% of property 12.7 (Belgium) 0.0 (Slovak Republic) 4.2 0.0 (Saudi Arabia) value) Quality of the land administration index 4.5 (Greece) 28.5 (Netherlands) 22.7 29.0 (Singapore) (0-30) Getting Credit (rank) 170 (Luxembourg) 1 (New Zealand) 57.03 1 (New Zealand) Getting Credit (DTF 15.00 (Luxembourg) 100.00 (New Zealand) 62.19 100.00 (New Zealand) Score) Strength of legal rights 2.0 (Italy) 12.0 (New Zealand) 6.0 12.0 (3 Economies*) index (0-12) Depth of credit 0.0 (Luxembourg) 8.0 (Germany) 6.5 8.0 (30 Economies*) information index (0-8) Credit registry 0.0 (Australia) 100.0 (Portugal) 12.1 100.0 (3 Economies*) coverage (% of adults) Credit bureau coverage 0.0 (Luxembourg) 100.0 (Sweden) 67.1 100.0 (23 Economies*) (% of adults) Doing Business 2017 OECD HIGH INCOME 12 Lowest regional Best regional Best global Indicator Regional average performance performance performance Protecting Minority 123 (Luxembourg) 1 (New Zealand) 42.72 1 (New Zealand*) Investors (rank) Protecting Minority 45.00 (Luxembourg) 83.33 (New Zealand) 64.62 83.33 (New Zealand*) Investors (DTF Score) Strength of minority investor protection 4.5 (Luxembourg) 8.3 (New Zealand) 6.5 8.3 (New Zealand*) index (0-10) Extent of conflict of interest regulation 3.3 (Switzerland) 9.3 (New Zealand) 6.3 9.3 (New Zealand*) index (0-10) Extent of shareholder governance index (0- 4.6 (United States) 8.3 (Norway) 6.6 8.3 (Norway) 10) Paying Taxes (rank) 129 (Italy) 6 (Ireland) 41.63 1 (United Arab Emirates) Paying Taxes (DTF 99.44 (United Arab 66.06 (Italy) 94.97 (Ireland) 83.07 Score) Emirates) Payments (number per 3.0 (Hong Kong SAR, 33.0 (Israel) 4.0 (Norway) 10.9 year) China*) Time (hours per year) 291.0 (Chile) 55.0 (Luxembourg) 163.4 55.0 (Luxembourg) Total tax rate (% of 62.8 (France) 21.0 (Canada) 40.9 26.1 (32 Economies*) profit) Postfiling index (0-100) 85.1 98.5 (Estonia) Trading across 91 (Australia) 1 (Spain) 24.41 1 (10 Economies*) Borders (rank) Trading across 70.65 (Australia) 100.00 (Spain) 93.87 100.00 (10 Economies*) Borders (DTF Score) Time to export: Border 60 (Chile) 0 (Austria) 12 0 (18 Economies*) compliance (hours) Cost to export: Border 749 (Australia) 0 (Italy) 150 0 (18 Economies*) compliance (USD) Time to export: Documentary 24 (Chile) 1 (Austria) 3 1 (25 Economies*) compliance (hours) Cost to export: Documentary 264 (Australia) 0 (Czech Republic) 36 0 (19 Economies*) compliance (USD) Time to import: Border 64 (Israel) 0 (Hungary) 9 0 (25 Economies*) compliance (hours) Doing Business 2017 OECD HIGH INCOME 13 Lowest regional Best regional Best global Indicator Regional average performance performance performance Cost to import: Border 655 (Iceland) 0 (Sweden) 115 0 (28 Economies*) compliance (USD) Time to import: Documentary 44 (Israel) 1 (Canada) 4 1 (29 Economies*) compliance (hours) Cost to import: Documentary 163 (Canada) 0 (Italy) 26 0 (30 Economies*) compliance (USD) Enforcing Contracts 133 (Greece) 1 (Korea, Rep.) 44.66 1 (Korea, Rep.) (rank) Enforcing Contracts 50.19 (Greece) 84.15 (Korea, Rep.) 67.48 84.15 (Korea, Rep.) (DTF Score) Time (days) 1,580.0 (Greece) 216.0 (New Zealand) 553.0 164.0 (Singapore) Cost (% of claim) 43.9 (United Kingdom) 9.0 (Iceland) 21.3 9.0 (Iceland) Quality of judicial 7.0 (Netherlands) 15.5 (Australia) 11.0 15.5 (Australia) processes index (0-18) Resolving Insolvency 82 (Luxembourg) 1 (Finland) 23.34 1 (Finland) (rank) Resolving Insolvency 45.40 (Luxembourg) 93.89 (Finland) 77.15 93.89 (Finland) (DTF Score) Recovery rate (cents on 33.5 (Chile) 92.9 (Norway) 73.0 92.9 (Norway) the dollar) Time (years) 4.0 (Slovak Republic) 0.4 (Ireland) 1.7 0.4 (22 Economies*) Cost (% of estate) 23.0 (Israel) 1.0 (Norway) 9.1 1.0 (22 Economies*) Strength of insolvency 7.0 (Luxembourg) 15.0 (United States) 12.1 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 OECD HIGH INCOME 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 OECD HIGH INCOME 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 OECD HIGH INCOME 16 STARTING A BUSINESS Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in OECD suggest an answer (figure 2.1). The average ranking of High Income to start a business? The global rankings of the region and comparator regions provide a useful these economies on the ease of starting a business benchmark. Figure 2.1 How economies in OECD High Income rank on the ease of starting a business Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 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 OECD High Income Procedures (number) Doing Business 2017 OECD HIGH INCOME 18 STARTING A BUSINESS Time (days) Doing Business 2017 OECD HIGH INCOME 19 STARTING A BUSINESS Cost (% of income per capita) Doing Business 2017 OECD HIGH INCOME 20 STARTING A BUSINESS Paid-in minimum capital (% of income per capita) Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 21 STARTING A BUSINESS What are the changes over time? Economies around the world have taken steps making it often as part of a larger regulatory reform program. easier to start a business—streamlining procedures by Among the benefits have been greater firm satisfaction setting up a one-stop shop, making procedures simpler and savings and more registered businesses, financial or faster by introducing technology, and reducing or resources and job opportunities. eliminating minimum capital requirements. Many have What business registration reforms has Doing Business undertaken business registration reforms in stages—and recorded in OECD High Income (table 2.1)? Table 2.1 How have economies in OECD High Income made starting a business easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Israel made starting a business easier by merging tax and DB2017 Israel social security registration. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. Hungary made paying taxes less costly for small and DB2017 Hungary medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) DB2017 Italy purposes, as well as updating coefficients used for calculation of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying Doing Business 2017 OECD HIGH INCOME 22 DB year Economy Reform labor taxes was improved. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Norway made enforcing contracts easier by introducing an DB2017 Norway electronic filing system for court users. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. Norway allowed the use of fixed-term contracts for DB2017 Norway permanent tasks for 12 months. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater DB2017 Poland participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance DB2017 Netherlands contributions, special unemployment insurance, unemployment insurance and real estate taxes. The Netherlands also made paying taxes easier by improving the Doing Business 2017 OECD HIGH INCOME 23 DB year Economy Reform online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. 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. 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. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, and DB2017 Spain abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Doing Business 2017 OECD HIGH INCOME 24 DB year Economy Reform Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring that major sales of company assets be subject to shareholder DB2016 Spain approval. 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. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. Norway made paying taxes less costly for companies by DB2016 Norway reducing the corporate income tax rate. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Doing Business 2017 OECD HIGH INCOME 25 DB year Economy Reform Switzerland made transferring property easier by introducing DB2016 Switzerland a national database to check for encumbrances. Norway made starting a business easier by offering online DB2016 Norway government registration and online bank account registration. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. 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. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. 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. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. Israel made paying taxes more costly for companies by increasing the corporate income tax rate, the rate for social DB2016 Israel security contributions paid by employers for the upper wage bracket and municipal taxes. Doing Business 2017 OECD HIGH INCOME 26 DB year Economy Reform France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Ireland strengthened minority investor protections by DB2016 Ireland introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time DB2016 Italy and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Israel made paying taxes more costly for companies by DB2015 Israel increasing the profit tax rate. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. 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. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Iceland made transferring property more costly by increasing DB2015 Iceland the stamp duty rate. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Doing Business 2017 OECD HIGH INCOME 27 DB year Economy Reform Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Iceland made starting a business easier by offering faster DB2015 Iceland online procedures. Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Switzerland made resolving insolvency easier by introducing a moratorium period while the debtor is preparing a composition (reorganization) agreement, allowing creditors DB2015 Switzerland greater participation in the composition (reorganization) procedure and clarifying claw-back provisions applicable to voidable transactions. Doing Business 2017 OECD HIGH INCOME 28 DB year Economy Reform Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Switzerland strengthened minority investor protections by DB2015 Switzerland increasing the level of transparency required from publicly traded companies. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. In the United States starting a business became easier in New DB2015 United States York City thanks to faster online procedures. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Switzerland made starting a business easier by introducing DB2015 Switzerland online procedures. Norway made starting a business easier by eliminating the requirement for limited liability companies to have their DB2015 Norway balance sheet examined by an external auditor if the capital is paid in cash. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. Doing Business 2017 OECD HIGH INCOME 29 DB year Economy Reform New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Doing Business 2017 OECD HIGH INCOME 30 DB year Economy Reform Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. 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. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. Doing Business 2017 OECD HIGH INCOME 31 DB year Economy Reform The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the 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. Denmark made dealing with construction permits more costly DB2014 Denmark by increasing the fee for building permits. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Doing Business 2017 OECD HIGH INCOME 32 DB year Economy Reform Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. Israel made resolving insolvency easier through an amendment to its company law allowing the assumption or rejection of executory contracts, granting maximum DB2014 Israel priority to postcommencement credit, extending the maximum period of moratorium during restructuring proceedings and allowing the sale of secured assets when necessary to ensure a successful restructuring. Iceland made paying taxes easier for companies by reducing employers’ social security contribution rate and abolishing DB2014 Iceland the weight distance tax—though it also introduced a new rehabilitation fund contribution. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Israel made starting a business easier by reducing the time DB2014 Israel required for registration at the Income Tax Department and the National Insurance Institute. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. 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. Hungary made starting a business more complex by increasing the registration fees for limited liability companies DB2013 Hungary and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Doing Business 2017 OECD HIGH INCOME 33 DB year Economy Reform Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Israel made transferring property easier by tightening time DB2013 Israel limits for tax authorities to process capital gains self- assessments on property transfers. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. DB2013 Iceland Iceland increased the corporate income tax rate. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. Doing Business 2017 OECD HIGH INCOME 34 DB year Economy Reform Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ committee in a bankruptcy proceeding; prohibiting DB2013 Slovenia insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for DB2013 Slovenia companies by implementing electronic filing and payment of social security contributions and by reducing the corporate Doing Business 2017 OECD HIGH INCOME 35 DB year Economy Reform income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Norway made starting a business easier by reducing the DB2013 Norway minimum capital requirement for private joint stock companies. The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Norway reduced the time required to obtain a building DB2013 Norway permit by implementing strict time limits for construction project approvals. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. Doing Business 2017 OECD HIGH INCOME 36 DB year Economy Reform In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. 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. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems —though it DB2013 Poland also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Switzerland introduced a unified civil procedure code and DB2012 Switzerland made a number of changes to its federal bankruptcy law. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. Doing Business 2017 OECD HIGH INCOME 37 DB year Economy Reform The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Sweden increased the cost of transferring property between DB2012 Sweden companies. Israel made trading across borders easier by changing the DB2012 Israel method used to calculate port fees. Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. Israel amended its courts law to establish specialized courts DB2012 Israel for dealing with economic matters. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Switzerland made getting electricity less costly by revising the DB2012 Switzerland conditions for connections. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency Doing Business 2017 OECD HIGH INCOME 38 DB year Economy Reform administrators. DB2012 Greece Greece reduced its corporate income tax rate. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Iceland strengthened investor protections by introducing new DB2012 Iceland requirements relating to the approval of transactions between interested parties. 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. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Iceland made paying taxes easier and less costly for firms by DB2012 Iceland abolishing a tax. Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. Australia clarified the priority of claims of unsecured creditors DB2012 Australia over all shareholders’ claims and introduced further Doing Business 2017 OECD HIGH INCOME 39 DB year Economy Reform regulation of the profession of insolvency practitioners. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. 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. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Amendments to Estonia’s recent insolvency law increased the chances that viable businesses will survive insolvency by DB2011 Estonia improving procedures and changing the qualification requirements for insolvency administrators. 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. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Doing Business 2017 OECD HIGH INCOME 40 DB year Economy Reform Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). 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. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Iceland made dealing with construction permits more costly DB2011 Iceland by increasing the fees to obtain the design approval and receive inspections. Doing Business 2017 OECD HIGH INCOME 41 DB year Economy Reform Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Iceland increased the corporate income tax rate from 15% to DB2011 Iceland 18% and raised social security and pension contribution rates. DB2011 Hungary Hungary simplified taxes and tax bases. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. 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. Israel is expanding its electronic data interchange system and developing a single-window framework, allowing easier DB2011 Israel assembly of documents required by different authorities and reducing the time to trade. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. In the United States the introduction of a new tax on payroll DB2011 United States increased taxes on companies operating within the New York Doing Business 2017 OECD HIGH INCOME 42 DB year Economy Reform City metropolitan commuter transportation district. Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. 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. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. 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. Doing Business 2017 OECD HIGH INCOME 43 Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 44 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 OECD HIGH INCOME 45 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 OECD HIGH INCOME 46 DEALING WITH CONSTRUCTION PERMITS Where do the region’s economies stand today? How easy it is for entrepreneurs in economies in OECD construction permits suggest an answer (figure 3.1). The High Income to legally build a warehouse? The global average ranking of the region and comparator regions rankings of these economies on the ease of dealing with provide a useful benchmark. Figure 3.1 How economies in OECD High Income rank on the ease of dealing with construction permits Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 47 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 OECD High Income Procedures (number) Doing Business 2017 OECD HIGH INCOME 48 DEALING WITH CONSTRUCTION PERMITS Time (days) Doing Business 2017 OECD HIGH INCOME 49 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 economy at the bottom of the ranking on the relevant indicator. Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 50 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 the 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 OECD HIGH INCOME 51 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 OECD High Income (table where safety is at stake. Construction is one of them. In 3.1)? an effort to ensure building safety while keeping Table 3.1 How have economies in OECD High Income made dealing with construction permits easier —or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform France made dealing with construction permits less DB2017 France expensive by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Israel made starting a business easier by merging tax and DB2017 Israel social security registration. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. Hungary made paying taxes less costly for small and DB2017 Hungary medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings. Doing Business 2017 OECD HIGH INCOME 52 DB year Economy Reform Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) purposes, as well as updating coefficients used for DB2017 Italy calculation of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying labor taxes was improved. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Norway made enforcing contracts easier by introducing an DB2017 Norway electronic filing system for court users. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. Norway allowed the use of fixed-term contracts for DB2017 Norway permanent tasks for 12 months. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater DB2017 Poland participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. DB2017 Sweden Sweden made it easier to transfer a property by increasing Doing Business 2017 OECD HIGH INCOME 53 DB year Economy Reform administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using better accounting software and enhancing the online filing DB2017 Portugal system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, unemployment insurance and real estate taxes. The DB2017 Netherlands Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. 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. 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. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the DB2017 Spain property tax rate, vehicle tax rate, tax on property transfer, and abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing Doing Business 2017 OECD HIGH INCOME 54 DB year Economy Reform social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on DB2017 Greece adjournments, impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring that major sales of company assets be subject to DB2016 Spain shareholder approval. 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. Doing Business 2017 OECD HIGH INCOME 55 DB year Economy Reform The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. Norway made paying taxes less costly for companies by DB2016 Norway reducing the corporate income tax rate. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Switzerland made transferring property easier by introducing DB2016 Switzerland a national database to check for encumbrances. Norway made starting a business easier by offering online DB2016 Norway government registration and online bank account registration. Doing Business 2017 OECD HIGH INCOME 56 DB year Economy Reform Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. 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. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, DB2016 Italy simplifying the rules for electronic service of process and automating the enforcement process. 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. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. Doing Business 2017 OECD HIGH INCOME 57 DB year Economy Reform Israel made paying taxes more costly for companies by increasing the corporate income tax rate, the rate for social DB2016 Israel security contributions paid by employers for the upper wage bracket and municipal taxes. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Ireland strengthened minority investor protections by DB2016 Ireland introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the DB2016 Italy time and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Israel made paying taxes more costly for companies by DB2015 Israel increasing the profit tax rate. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. DB2015 Korea, Rep. The Republic of Korea strengthened minority investor Doing Business 2017 OECD HIGH INCOME 58 DB year Economy Reform 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. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Iceland made transferring property more costly by increasing DB2015 Iceland the stamp duty rate. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time DB2015 France it takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Iceland made starting a business easier by offering faster DB2015 Iceland online procedures. Hungary made starting a business more difficult by DB2015 Hungary increasing the paid-in minimum capital requirement. Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts DB2015 Italy but reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. DB2015 Austria Austria made starting a business easier by reducing the Doing Business 2017 OECD HIGH INCOME 59 DB year Economy Reform minimum capital requirement, which in turn reduced the paid-in minimum capital requirement, and by lowering notary fees. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Switzerland made resolving insolvency easier by introducing a moratorium period while the debtor is preparing a composition (reorganization) agreement, allowing creditors DB2015 Switzerland greater participation in the composition (reorganization) procedure and clarifying claw-back provisions applicable to voidable transactions. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Switzerland strengthened minority investor protections by DB2015 Switzerland increasing the level of transparency required from publicly traded companies. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. Doing Business 2017 OECD HIGH INCOME 60 DB year Economy Reform The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. In the United States starting a business became easier in DB2015 United States New York City thanks to faster online procedures. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Switzerland made starting a business easier by introducing DB2015 Switzerland online procedures. Norway made starting a business easier by eliminating the requirement for limited liability companies to have their DB2015 Norway balance sheet examined by an external auditor if the capital is paid in cash. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Doing Business 2017 OECD HIGH INCOME 61 DB year Economy Reform Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Doing Business 2017 OECD HIGH INCOME 62 DB year Economy Reform Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Doing Business 2017 OECD HIGH INCOME 63 DB year Economy Reform Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. 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. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative DB2014 Slovak Republic duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an employee, reintroduced mandatory severance pay for Doing Business 2017 OECD HIGH INCOME 64 DB year Economy Reform workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the 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. Denmark made dealing with construction permits more DB2014 Denmark costly by increasing the fee for building permits. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Chile made starting a business easier by creating a new DB2014 Chile online system for business registration. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Italy made enforcing contracts easier by regulating DB2014 Italy attorneys’ fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. Israel made resolving insolvency easier through an amendment to its company law allowing the assumption or rejection of executory contracts, granting maximum DB2014 Israel priority to postcommencement credit, extending the maximum period of moratorium during restructuring proceedings and allowing the sale of secured assets when necessary to ensure a successful restructuring. DB2014 Iceland Iceland made paying taxes easier for companies by reducing employers’ social security contribution rate and abolishing Doing Business 2017 OECD HIGH INCOME 65 DB year Economy Reform the weight distance tax—though it also introduced a new rehabilitation fund contribution. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Israel made starting a business easier by reducing the time DB2014 Israel required for registration at the Income Tax Department and the National Insurance Institute. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. 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. Hungary made starting a business more complex by increasing the registration fees for limited liability companies and adding a new tax registration at the time of DB2013 Hungary incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Doing Business 2017 OECD HIGH INCOME 66 DB year Economy Reform Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Israel made transferring property easier by tightening time DB2013 Israel limits for tax authorities to process capital gains self- assessments on property transfers. Hungary improved access to credit information by passing DB2013 Hungary its first credit bureau law mandating the creation of a database with positive credit information on individuals. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. DB2013 Iceland Iceland increased the corporate income tax rate. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. The Czech Republic made registering property easier by DB2013 Czech Republic allowing the cadastral office online access to the commercial registry’s database and thus eliminating the need to obtain a Doing Business 2017 OECD HIGH INCOME 67 DB year Economy Reform paper certificate from the registry before applying for registration at the cadastre. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import DB2013 Czech Republic by allowing electronic submission of customs declarations and other documents. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ committee in a bankruptcy proceeding; prohibiting DB2013 Slovenia insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to DB2013 Poland be included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. DB2013 Slovak Republic The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, Doing Business 2017 OECD HIGH INCOME 68 DB year Economy Reform strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. Germany strengthened its insolvency process by adopting a new insolvency law that facilitates in-court restructurings of DB2013 Germany distressed companies and increases participation by creditors. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Norway made starting a business easier by reducing the DB2013 Norway minimum capital requirement for private joint stock companies. The Slovak Republic made starting a business easier by DB2013 Slovak Republic speeding up the processing of applications at the one-stop shop for trading licenses, income tax registration and health Doing Business 2017 OECD HIGH INCOME 69 DB year Economy Reform insurance registration. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Norway reduced the time required to obtain a building DB2013 Norway permit by implementing strict time limits for construction project approvals. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. The Netherlands strengthened investor protections through DB2013 Netherlands a new law regulating the approval of related-party transactions. 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. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Doing Business 2017 OECD HIGH INCOME 70 DB year Economy Reform Poland made paying taxes easier for companies by promoting the use of electronic filing and payment DB2013 Poland systems—though it also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by DB2013 Portugal implementing an electronic single window for port procedures. The Netherlands made importing easier by introducing a DB2013 Netherlands new web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the DB2013 Poland civil procedure code and appointing more judges to commercial courts. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Switzerland introduced a unified civil procedure code and DB2012 Switzerland made a number of changes to its federal bankruptcy law. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Doing Business 2017 OECD HIGH INCOME 71 DB year Economy Reform Sweden increased the cost of transferring property between DB2012 Sweden companies. Israel made trading across borders easier by changing the DB2012 Israel method used to calculate port fees. Portugal made starting a business easier by allowing company founders to choose the amount of minimum DB2012 Portugal capital and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. Israel amended its courts law to establish specialized courts DB2012 Israel for dealing with economic matters. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Switzerland made getting electricity less costly by revising DB2012 Switzerland the conditions for connections. Doing Business 2017 OECD HIGH INCOME 72 DB year Economy Reform Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. DB2012 Greece Greece reduced its corporate income tax rate. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Korea made filing a commercial case easier by introducing DB2012 Korea, Rep. an electronic case filing system. Iceland strengthened investor protections by introducing DB2012 Iceland new requirements relating to the approval of transactions between interested parties. 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. Hungary made paying taxes costlier for firms by introducing DB2012 Hungary a sector-specific surtax Iceland made paying taxes easier and less costly for firms by DB2012 Iceland abolishing a tax. Finland simplified reporting and payment for the value DB2012 Finland added tax and labor tax. DB2012 Hungary Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for Doing Business 2017 OECD HIGH INCOME 73 DB year Economy Reform retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. 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. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for DB2012 Belgium entrepreneurs by setting time limits and implementing its “e- notariat” system. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. 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. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Doing Business 2017 OECD HIGH INCOME 74 DB year Economy Reform Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Amendments to Estonia’s recent insolvency law increased the chances that viable businesses will survive insolvency by DB2011 Estonia improving procedures and changing the qualification requirements for insolvency administrators. 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. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also DB2011 Estonia removed restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Belgium introduced a new law that will promote and DB2011 Belgium facilitate the survival of viable businesses experiencing financial difficulties. DB2011 Belgium Belgium’s capital city, Brussels, made it more difficult to Doing Business 2017 OECD HIGH INCOME 75 DB year Economy Reform transfer property by requiring a clean-soil certificate. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). 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. Austria made it easier to transfer property by requiring DB2011 Austria online submission of all applications to register property transfers. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Iceland made dealing with construction permits more costly DB2011 Iceland by increasing the fees to obtain the design approval and receive inspections. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Iceland increased the corporate income tax rate from 15% to DB2011 Iceland 18% and raised social security and pension contribution rates. Doing Business 2017 OECD HIGH INCOME 76 DB year Economy Reform DB2011 Hungary Hungary simplified taxes and tax bases. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. 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. Israel is expanding its electronic data interchange system and developing a single-window framework, allowing easier DB2011 Israel assembly of documents required by different authorities and reducing the time to trade. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Doing Business 2017 OECD HIGH INCOME 77 DB year Economy Reform Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. 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. Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed- DB2011 Slovak Republic term contracts. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Doing Business 2017 OECD HIGH INCOME 78 DB year Economy Reform Amendments to the United Kingdom’s insolv ency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. 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. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. 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 OECD HIGH INCOME 79 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 OECD HIGH INCOME 80 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 OECD HIGH INCOME 81 GETTING ELECTRICITY Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in OECD average ranking of the region and comparator regions High Income to connect a warehouse to electricity? The provide a useful benchmark. global rankings of these economies on the ease of getting electricity suggest an answer (figure 4.1). The Figure 4.1 How economies in OECD High Income rank on the ease of getting electricity Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 82 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 OECD High Income Procedures (number) Doing Business 2017 OECD HIGH INCOME 83 GETTING ELECTRICITY Time (days) Doing Business 2017 OECD HIGH INCOME 84 GETTING ELECTRICITY Cost (% of income per capita) Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 85 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 OECD HIGH INCOME 86 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 OECD practices and internal wiring installations. In an effort to High Income (table 4.1)? Table 4.1 How have economies in OECD High Income made getting electricity easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Israel made starting a business easier by merging tax and DB2017 Israel social security registration. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. Hungary made paying taxes less costly for small and DB2017 Hungary medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) purposes, as well as updating coefficients used for calculation DB2017 Italy of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying labor taxes was improved. Doing Business 2017 OECD HIGH INCOME 87 DB year Economy Reform Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Norway made enforcing contracts easier by introducing an DB2017 Norway electronic filing system for court users. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. Norway allowed the use of fixed-term contracts for DB2017 Norway permanent tasks for 12 months. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater DB2017 Poland participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, DB2017 Netherlands unemployment insurance and real estate taxes. The Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Doing Business 2017 OECD HIGH INCOME 88 DB year Economy Reform Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. 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. 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. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, and DB2017 Spain abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Doing Business 2017 OECD HIGH INCOME 89 DB year Economy Reform Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring that major sales of company assets be subject to shareholder DB2016 Spain approval. 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. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. Norway made paying taxes less costly for companies by DB2016 Norway reducing the corporate income tax rate. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by DB2016 Portugal reducing the corporate income tax rate and increasing the Doing Business 2017 OECD HIGH INCOME 90 DB year Economy Reform allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Switzerland made transferring property easier by introducing DB2016 Switzerland a national database to check for encumbrances. Norway made starting a business easier by offering online DB2016 Norway government registration and online bank account registration. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. 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. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. 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. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. Doing Business 2017 OECD HIGH INCOME 91 DB year Economy Reform Israel made paying taxes more costly for companies by increasing the corporate income tax rate, the rate for social DB2016 Israel security contributions paid by employers for the upper wage bracket and municipal taxes. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Ireland strengthened minority investor protections by DB2016 Ireland introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time DB2016 Italy and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Israel made paying taxes more costly for companies by DB2015 Israel increasing the profit tax rate. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. 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. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Doing Business 2017 OECD HIGH INCOME 92 DB year Economy Reform Iceland made transferring property more costly by increasing DB2015 Iceland the stamp duty rate. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Iceland made starting a business easier by offering faster DB2015 Iceland online procedures. Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Doing Business 2017 OECD HIGH INCOME 93 DB year Economy Reform Switzerland made resolving insolvency easier by introducing a moratorium period while the debtor is preparing a composition (reorganization) agreement, allowing creditors DB2015 Switzerland greater participation in the composition (reorganization) procedure and clarifying claw-back provisions applicable to voidable transactions. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Switzerland strengthened minority investor protections by DB2015 Switzerland increasing the level of transparency required from publicly traded companies. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. In the United States starting a business became easier in New DB2015 United States York City thanks to faster online procedures. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Switzerland made starting a business easier by introducing DB2015 Switzerland online procedures. Norway made starting a business easier by eliminating the requirement for limited liability companies to have their DB2015 Norway balance sheet examined by an external auditor if the capital is paid in cash. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and Doing Business 2017 OECD HIGH INCOME 94 DB year Economy Reform establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Doing Business 2017 OECD HIGH INCOME 95 DB year Economy Reform Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the Doing Business 2017 OECD HIGH INCOME 96 DB year Economy Reform geotechnical documentation of the land. 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. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the 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. Doing Business 2017 OECD HIGH INCOME 97 DB year Economy Reform Denmark made dealing with construction permits more costly DB2014 Denmark by increasing the fee for building permits. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. Israel made resolving insolvency easier through an amendment to its company law allowing the assumption or rejection of executory contracts, granting maximum DB2014 Israel priority to postcommencement credit, extending the maximum period of moratorium during restructuring proceedings and allowing the sale of secured assets when necessary to ensure a successful restructuring. Iceland made paying taxes easier for companies by reducing employers’ social security contribution rate and abolishing DB2014 Iceland the weight distance tax—though it also introduced a new rehabilitation fund contribution. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Israel made starting a business easier by reducing the time DB2014 Israel required for registration at the Income Tax Department and the National Insurance Institute. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Doing Business 2017 OECD HIGH INCOME 98 DB year Economy Reform Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. 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. Hungary made starting a business more complex by increasing the registration fees for limited liability companies DB2013 Hungary and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Israel made transferring property easier by tightening time DB2013 Israel limits for tax authorities to process capital gains self- assessments on property transfers. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. DB2013 Iceland Iceland increased the corporate income tax rate. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Doing Business 2017 OECD HIGH INCOME 99 DB year Economy Reform Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ committee in a bankruptcy proceeding; prohibiting DB2013 Slovenia insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with Doing Business 2017 OECD HIGH INCOME 100 DB year Economy Reform financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Norway made starting a business easier by reducing the DB2013 Norway minimum capital requirement for private joint stock companies. The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. Doing Business 2017 OECD HIGH INCOME 101 DB year Economy Reform The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Norway reduced the time required to obtain a building DB2013 Norway permit by implementing strict time limits for construction project approvals. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. 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. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems —though it DB2013 Poland also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Doing Business 2017 OECD HIGH INCOME 102 DB year Economy Reform Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Switzerland introduced a unified civil procedure code and DB2012 Switzerland made a number of changes to its federal bankruptcy law. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Sweden increased the cost of transferring property between DB2012 Sweden companies. Israel made trading across borders easier by changing the DB2012 Israel method used to calculate port fees. Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. Italy introduced debt restructuring and reorganization DB2012 Italy procedures as alternatives to bankruptcy proceedings and Doing Business 2017 OECD HIGH INCOME 103 DB year Economy Reform extended further rights to secured creditors during insolvency proceedings. Israel amended its courts law to establish specialized courts DB2012 Israel for dealing with economic matters. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Switzerland made getting electricity less costly by revising the DB2012 Switzerland conditions for connections. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. DB2012 Greece Greece reduced its corporate income tax rate. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Iceland strengthened investor protections by introducing new DB2012 Iceland requirements relating to the approval of transactions between interested parties. Korea eased the administrative burden of paying taxes for DB2012 Korea, Rep. firms by merging several taxes, allowing 4 labor taxes and contributions to be paid jointly and continuing to increase the Doing Business 2017 OECD HIGH INCOME 104 DB year Economy Reform use of the online tax payment system. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Iceland made paying taxes easier and less costly for firms by DB2012 Iceland abolishing a tax. Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. 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. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. 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. Doing Business 2017 OECD HIGH INCOME 105 DB year Economy Reform In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Amendments to Estonia’s recent insolvency law increased the chances that viable businesses will survive insolvency by DB2011 Estonia improving procedures and changing the qualification requirements for insolvency administrators. 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. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. Doing Business 2017 OECD HIGH INCOME 106 DB year Economy Reform Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). 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. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Iceland made dealing with construction permits more costly DB2011 Iceland by increasing the fees to obtain the design approval and receive inspections. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Iceland increased the corporate income tax rate from 15% to DB2011 Iceland 18% and raised social security and pension contribution rates. DB2011 Hungary Hungary simplified taxes and tax bases. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. 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. Israel is expanding its electronic data interchange system and developing a single-window framework, allowing easier DB2011 Israel assembly of documents required by different authorities and reducing the time to trade. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. Doing Business 2017 OECD HIGH INCOME 107 DB year Economy Reform The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. 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. Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Doing Business 2017 OECD HIGH INCOME 108 DB year Economy Reform Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. 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. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 109 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 OECD HIGH INCOME 110 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 OECD HIGH INCOME 111 REGISTERING PROPERTY Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in OECD suggest an answer (figure 5.1). The average ranking of High Income to transfer property? The global rankings of the region and comparator regions provide a useful these economies on the ease of registering property benchmark. Figure 5.1 How economies in OECD High Income rank on the ease of registering property Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 112 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 OECD High Income Procedures (number) Doing Business 2017 OECD HIGH INCOME 113 REGISTERING PROPERTY Time (days) Doing Business 2017 OECD HIGH INCOME 114 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 indicator. Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 115 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 OECD HIGH INCOME 116 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 OECD High Income (table 5.1)? for procedures and setting low fixed fees. Many have cut the time required substantially—enabling Table 5.1 How have economies in OECD High Income made registering property easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Israel made starting a business easier by merging tax and DB2017 Israel social security registration. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. DB2017 Hungary Hungary made paying taxes less costly for small and medium-sized businesses by allowing additional deduction Doing Business 2017 OECD HIGH INCOME 117 DB year Economy Reform for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) purposes, as well as updating coefficients used for calculation DB2017 Italy of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying labor taxes was improved. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Norway made enforcing contracts easier by introducing an DB2017 Norway electronic filing system for court users. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. Norway allowed the use of fixed-term contracts for DB2017 Norway permanent tasks for 12 months. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. DB2017 Poland Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for Doing Business 2017 OECD HIGH INCOME 118 DB year Economy Reform restructuring plans and allowing creditors greater participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, unemployment insurance and real estate taxes. The DB2017 Netherlands Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. 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. 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 OECD HIGH INCOME 119 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. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, and DB2017 Spain abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by DB2016 Spain reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the online Cl@ve system for filing VAT returns. At the same time, Doing Business 2017 OECD HIGH INCOME 120 DB year Economy Reform Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring that major sales of company assets be subject to shareholder DB2016 Spain approval. 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. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. DB2016 Norway Norway made paying taxes less costly for companies by Doing Business 2017 OECD HIGH INCOME 121 DB year Economy Reform reducing the corporate income tax rate. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Switzerland made transferring property easier by introducing DB2016 Switzerland a national database to check for encumbrances. Norway made starting a business easier by offering online DB2016 Norway government registration and online bank account registration. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. 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. Doing Business 2017 OECD HIGH INCOME 122 DB year Economy Reform Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. 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. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. Israel made paying taxes more costly for companies by increasing the corporate income tax rate, the rate for social DB2016 Israel security contributions paid by employers for the upper wage bracket and municipal taxes. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. DB2016 Ireland Ireland strengthened minority investor protections by introducing provisions stipulating that directors can be held Doing Business 2017 OECD HIGH INCOME 123 DB year Economy Reform liable for breach of their fiduciary duties. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time DB2016 Italy and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Israel made paying taxes more costly for companies by DB2015 Israel increasing the profit tax rate. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. 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. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Iceland made transferring property more costly by increasing DB2015 Iceland the stamp duty rate. Doing Business 2017 OECD HIGH INCOME 124 DB year Economy Reform Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Iceland made starting a business easier by offering faster DB2015 Iceland online procedures. Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Doing Business 2017 OECD HIGH INCOME 125 DB year Economy Reform Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Switzerland made resolving insolvency easier by introducing a moratorium period while the debtor is preparing a composition (reorganization) agreement, allowing creditors DB2015 Switzerland greater participation in the composition (reorganization) procedure and clarifying claw-back provisions applicable to voidable transactions. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Switzerland strengthened minority investor protections by DB2015 Switzerland increasing the level of transparency required from publicly traded companies. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. DB2015 United States In the United States starting a business became easier in New Doing Business 2017 OECD HIGH INCOME 126 DB year Economy Reform York City thanks to faster online procedures. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Switzerland made starting a business easier by introducing DB2015 Switzerland online procedures. Norway made starting a business easier by eliminating the requirement for limited liability companies to have their DB2015 Norway balance sheet examined by an external auditor if the capital is paid in cash. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Doing Business 2017 OECD HIGH INCOME 127 DB year Economy Reform Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. DB2015 Spain Spain made transferring property easier by reducing the Doing Business 2017 OECD HIGH INCOME 128 DB year Economy Reform property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. DB2014 Greece Greece made starting a business easier by introducing a Doing Business 2017 OECD HIGH INCOME 129 DB year Economy Reform simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. 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. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. Doing Business 2017 OECD HIGH INCOME 130 DB year Economy Reform The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the 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. Denmark made dealing with construction permits more costly DB2014 Denmark by increasing the fee for building permits. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. 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 OECD HIGH INCOME 131 DB year Economy Reform Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. Israel made resolving insolvency easier through an amendment to its company law allowing the assumption or rejection of executory contracts, granting maximum DB2014 Israel priority to postcommencement credit, extending the maximum period of moratorium during restructuring proceedings and allowing the sale of secured assets when necessary to ensure a successful restructuring. Iceland made paying taxes easier for companies by reducing employers’ social security contribution rate and abolishing DB2014 Iceland the weight distance tax—though it also introduced a new rehabilitation fund contribution. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Israel made starting a business easier by reducing the time DB2014 Israel required for registration at the Income Tax Department and the National Insurance Institute. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. DB2014 Ireland Ireland ended a 60% rebate for employers on severance payments and eliminated the requirement for third-party Doing Business 2017 OECD HIGH INCOME 132 DB year Economy Reform notification when terminating a redundant worker. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. 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. Hungary made starting a business more complex by increasing the registration fees for limited liability companies DB2013 Hungary and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Israel made transferring property easier by tightening time DB2013 Israel limits for tax authorities to process capital gains self- assessments on property transfers. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. DB2013 Korea, Rep. Korea strengthened investor protections by making it easier to sue directors in cases of prejudicial related-party Doing Business 2017 OECD HIGH INCOME 133 DB year Economy Reform transactions. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. DB2013 Iceland Iceland increased the corporate income tax rate. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. Doing Business 2017 OECD HIGH INCOME 134 DB year Economy Reform The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ committee in a bankruptcy proceeding; prohibiting DB2013 Slovenia insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Doing Business 2017 OECD HIGH INCOME 135 DB year Economy Reform Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Norway made starting a business easier by reducing the DB2013 Norway minimum capital requirement for private joint stock companies. The Slovak Republic made starting a business easier by DB2013 Slovak Republic speeding up the processing of applications at the one-stop shop for trading licenses, income tax registration and health Doing Business 2017 OECD HIGH INCOME 136 DB year Economy Reform insurance registration. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Norway reduced the time required to obtain a building DB2013 Norway permit by implementing strict time limits for construction project approvals. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. 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. Doing Business 2017 OECD HIGH INCOME 137 DB year Economy Reform The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems —though it DB2013 Poland also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Switzerland introduced a unified civil procedure code and DB2012 Switzerland made a number of changes to its federal bankruptcy law. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. Doing Business 2017 OECD HIGH INCOME 138 DB year Economy Reform The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Sweden increased the cost of transferring property between DB2012 Sweden companies. Israel made trading across borders easier by changing the DB2012 Israel method used to calculate port fees. Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. Israel amended its courts law to establish specialized courts DB2012 Israel for dealing with economic matters. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. DB2012 New Zealand New Zealand reduced its corporate income tax rate and Doing Business 2017 OECD HIGH INCOME 139 DB year Economy Reform fringe benefit tax rate. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Switzerland made getting electricity less costly by revising the DB2012 Switzerland conditions for connections. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. DB2012 Greece Greece reduced its corporate income tax rate. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Iceland strengthened investor protections by introducing new DB2012 Iceland requirements relating to the approval of transactions between interested parties. Doing Business 2017 OECD HIGH INCOME 140 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. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Iceland made paying taxes easier and less costly for firms by DB2012 Iceland abolishing a tax. Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. 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. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. Doing Business 2017 OECD HIGH INCOME 141 DB year Economy Reform 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. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Amendments to Estonia’s recent insolvency law increased the chances that viable businesses will survive insolvency by DB2011 Estonia improving procedures and changing the qualification requirements for insolvency administrators. 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. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. DB2011 Canada Canada harmonized the Ontario and federal tax returns and Doing Business 2017 OECD HIGH INCOME 142 DB year Economy Reform reduced the corporate and employee tax rates. Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). Australia introduced the severance payment obligation and reemployment consideration applicable in cases of DB2011 Australia redundancy dismissals. Annual leave was increased and averaging of hours is now allowed in shorter periods of time. In addition, notice period applicable in case of redundancy Doing Business 2017 OECD HIGH INCOME 143 DB year Economy Reform dismissals was decreased. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Iceland made dealing with construction permits more costly DB2011 Iceland by increasing the fees to obtain the design approval and receive inspections. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Iceland increased the corporate income tax rate from 15% to DB2011 Iceland 18% and raised social security and pension contribution rates. DB2011 Hungary Hungary simplified taxes and tax bases. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. 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. Israel is expanding its electronic data interchange system and DB2011 Israel developing a single-window framework, allowing easier assembly of documents required by different authorities and Doing Business 2017 OECD HIGH INCOME 144 DB year Economy Reform reducing the time to trade. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. 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. Doing Business 2017 OECD HIGH INCOME 145 DB year Economy Reform Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Amendments to the United Kingdom’s insolvency rules DB2011 United Kingdom streamline bankruptcy procedures, favor the sale of the firm as a whole and improve the calculation of administrators’ Doing Business 2017 OECD HIGH INCOME 146 DB year Economy Reform fees. 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. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. 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 OECD HIGH INCOME 147 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 OECD HIGH INCOME 148 GETTING CREDIT Where do the region’s economies stand today? How well do the credit information systems and credit suggest an answer (figure 6.1). The average collateral and bankruptcy laws in economies in OECD ranking of the region and comparator regions provide a High Income facilitate access to credit? The global useful benchmark. rankings of these economies on the ease of getting Figure 6.1 How economies in OECD High Income rank on the ease of getting credit Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 149 GETTING CREDIT Another way to assess how well regulations and the strength of legal rights index for OECD High Income institutions support lending and borrowing in the region and comparators on the strength of legal rights index. is to see where the region stands in the distribution of Figure 6.3 shows the same thing for the depth of credit scores across regions. Figure 6.2 highlights the score on 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 OECD HIGH INCOME 150 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 OECD HIGH INCOME 151 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 OECD High Income (table 6.1)? Table 6.1 How have economies in OECD High Income made getting credit easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Israel made starting a business easier by merging tax and DB2017 Israel social security registration. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. Hungary made paying taxes less costly for small and DB2017 Hungary medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to DB2017 Italy be deductible for regional tax on productive activities (IRAP) purposes, as well as updating coefficients used for calculation Doing Business 2017 OECD HIGH INCOME 152 DB year Economy Reform of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying labor taxes was improved. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Norway made enforcing contracts easier by introducing an DB2017 Norway electronic filing system for court users. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. Norway allowed the use of fixed-term contracts for DB2017 Norway permanent tasks for 12 months. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater DB2017 Poland participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. Doing Business 2017 OECD HIGH INCOME 153 DB year Economy Reform The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, unemployment insurance and real estate taxes. The DB2017 Netherlands Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. 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. 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. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, and DB2017 Spain abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social security contributions. DB2017 Greece Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, Doing Business 2017 OECD HIGH INCOME 154 DB year Economy Reform impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring that major sales of company assets be subject to shareholder DB2016 Spain approval. 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. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. Doing Business 2017 OECD HIGH INCOME 155 DB year Economy Reform The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. Norway made paying taxes less costly for companies by DB2016 Norway reducing the corporate income tax rate. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Switzerland made transferring property easier by introducing DB2016 Switzerland a national database to check for encumbrances. Norway made starting a business easier by offering online DB2016 Norway government registration and online bank account registration. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. DB2016 Slovak Republic The Slovak Republic simplified the process of starting a business by introducing court registration at the one-stop Doing Business 2017 OECD HIGH INCOME 156 DB year Economy Reform shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. 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. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. 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. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. Israel made paying taxes more costly for companies by increasing the corporate income tax rate, the rate for social DB2016 Israel security contributions paid by employers for the upper wage bracket and municipal taxes. Doing Business 2017 OECD HIGH INCOME 157 DB year Economy Reform France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Ireland strengthened minority investor protections by DB2016 Ireland introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time DB2016 Italy and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Israel made paying taxes more costly for companies by DB2015 Israel increasing the profit tax rate. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. 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 OECD HIGH INCOME 158 DB year Economy Reform Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Iceland made transferring property more costly by increasing DB2015 Iceland the stamp duty rate. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Iceland made starting a business easier by offering faster DB2015 Iceland online procedures. Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Belgium made resolving insolvency more difficult by DB2015 Belgium establishing additional requirements for commencing reorganization proceedings, including the submission of Doing Business 2017 OECD HIGH INCOME 159 DB year Economy Reform documents verified by external parties. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Switzerland made resolving insolvency easier by introducing a moratorium period while the debtor is preparing a composition (reorganization) agreement, allowing creditors DB2015 Switzerland greater participation in the composition (reorganization) procedure and clarifying claw-back provisions applicable to voidable transactions. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Switzerland strengthened minority investor protections by DB2015 Switzerland increasing the level of transparency required from publicly traded companies. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. In the United States starting a business became easier in New DB2015 United States York City thanks to faster online procedures. Doing Business 2017 OECD HIGH INCOME 160 DB year Economy Reform The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Switzerland made starting a business easier by introducing DB2015 Switzerland online procedures. Norway made starting a business easier by eliminating the requirement for limited liability companies to have their DB2015 Norway balance sheet examined by an external auditor if the capital is paid in cash. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Doing Business 2017 OECD HIGH INCOME 161 DB year Economy Reform Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Doing Business 2017 OECD HIGH INCOME 162 DB year Economy Reform Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. Doing Business 2017 OECD HIGH INCOME 163 DB year Economy Reform 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. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. Doing Business 2017 OECD HIGH INCOME 164 DB year Economy Reform United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the 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. Denmark made dealing with construction permits more costly DB2014 Denmark by increasing the fee for building permits. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. Israel made resolving insolvency easier through an amendment to its company law allowing the assumption or rejection of executory contracts, granting maximum DB2014 Israel priority to postcommencement credit, extending the maximum period of moratorium during restructuring proceedings and allowing the sale of secured assets when necessary to ensure a successful restructuring. Iceland made paying taxes easier for companies by reducing employers’ social security contribution rate and abolishing DB2014 Iceland the weight distance tax—though it also introduced a new rehabilitation fund contribution. Doing Business 2017 OECD HIGH INCOME 165 DB year Economy Reform France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Israel made starting a business easier by reducing the time DB2014 Israel required for registration at the Income Tax Department and the National Insurance Institute. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. 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. Hungary made starting a business more complex by increasing the registration fees for limited liability companies DB2013 Hungary and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Doing Business 2017 OECD HIGH INCOME 166 DB year Economy Reform Israel made transferring property easier by tightening time DB2013 Israel limits for tax authorities to process capital gains self- assessments on property transfers. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. DB2013 Iceland Iceland increased the corporate income tax rate. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. DB2013 Greece Greece enhanced its insolvency process by abolishing the conciliation procedure and introducing a new rehabilitation Doing Business 2017 OECD HIGH INCOME 167 DB year Economy Reform proceeding. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ committee in a bankruptcy proceeding; prohibiting DB2013 Slovenia insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Doing Business 2017 OECD HIGH INCOME 168 DB year Economy Reform Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Norway made starting a business easier by reducing the DB2013 Norway minimum capital requirement for private joint stock companies. The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Doing Business 2017 OECD HIGH INCOME 169 DB year Economy Reform Norway reduced the time required to obtain a building DB2013 Norway permit by implementing strict time limits for construction project approvals. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. 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. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems —though it DB2013 Poland also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Doing Business 2017 OECD HIGH INCOME 170 DB year Economy Reform Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Switzerland introduced a unified civil procedure code and DB2012 Switzerland made a number of changes to its federal bankruptcy law. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Sweden increased the cost of transferring property between DB2012 Sweden companies. Israel made trading across borders easier by changing the DB2012 Israel method used to calculate port fees. Portugal made starting a business easier by allowing DB2012 Portugal company founders to choose the amount of minimum capital and make their paid-in capital contribution up to 1 year after Doing Business 2017 OECD HIGH INCOME 171 DB year Economy Reform the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. Israel amended its courts law to establish specialized courts DB2012 Israel for dealing with economic matters. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Switzerland made getting electricity less costly by revising the DB2012 Switzerland conditions for connections. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. DB2012 Greece Greece reduced its corporate income tax rate. Doing Business 2017 OECD HIGH INCOME 172 DB year Economy Reform The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Iceland strengthened investor protections by introducing new DB2012 Iceland requirements relating to the approval of transactions between interested parties. 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. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Iceland made paying taxes easier and less costly for firms by DB2012 Iceland abolishing a tax. Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. Doing Business 2017 OECD HIGH INCOME 173 DB year Economy Reform Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. 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. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. 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. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Amendments to Estonia’s recent insolvency law increased the DB2011 Estonia chances that viable businesses will survive insolvency by improving procedures and changing the qualification Doing Business 2017 OECD HIGH INCOME 174 DB year Economy Reform requirements for insolvency administrators. 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. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). Doing Business 2017 OECD HIGH INCOME 175 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. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Iceland made dealing with construction permits more costly DB2011 Iceland by increasing the fees to obtain the design approval and receive inspections. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Iceland increased the corporate income tax rate from 15% to DB2011 Iceland 18% and raised social security and pension contribution rates. DB2011 Hungary Hungary simplified taxes and tax bases. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. 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. Israel is expanding its electronic data interchange system and DB2011 Israel developing a single-window framework, allowing easier assembly of documents required by different authorities and Doing Business 2017 OECD HIGH INCOME 176 DB year Economy Reform reducing the time to trade. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. 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. Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. DB2011 Netherlands The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed Doing Business 2017 OECD HIGH INCOME 177 DB year Economy Reform small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. 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. DB2011 Slovenia Slovenia made starting a business easier through improvements to its one-stop shop that allowed more online Doing Business 2017 OECD HIGH INCOME 178 DB year Economy Reform services. 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 OECD HIGH INCOME 179 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 OECD HIGH INCOME 180 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 OECD HIGH INCOME 181 PROTECTING MINORITY INVESTORS Where do the region’s economies stand today? How strong are investor protections against self-dealing protection of minority investors, a higher ranking does in economies in OECD High Income? The global rankings indicate that an economy’s regulations offer stronger of these economies on the strength of investor investor protections against self-dealing in the areas protection index suggest an answer (figure 7.1). While measured. the indicator does not measure all aspects related to the Figure 7.1 How economies in OECD High Income rank on the strength of investor protection index Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 182 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 OECD High Income. Comparing index and the extent of shareholder governance index. the scores across the region and with averages both for The index ranges from 0 to 10, rounded to the nearest the region and for comparator regions can provide decimal place, with higher values indicating stronger 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 OECD HIGH INCOME 183 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 OECD HIGH INCOME 184 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 OECD and obtain a judgment within a reasonable time. So High Income (table 7.1)? Table 7.1 How have economies in OECD High Income strengthened minority investor protections—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Israel made starting a business easier by merging tax and DB2017 Israel social security registration. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. DB2017 Hungary Hungary made paying taxes less costly for small and medium-sized businesses by allowing additional deduction Doing Business 2017 OECD HIGH INCOME 185 DB year Economy Reform for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) purposes, as well as updating coefficients used for calculation DB2017 Italy of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying labor taxes was improved. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Norway made enforcing contracts easier by introducing an DB2017 Norway electronic filing system for court users. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. Norway allowed the use of fixed-term contracts for DB2017 Norway permanent tasks for 12 months. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new DB2017 Poland restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater participation in insolvency proceedings. It also established a Doing Business 2017 OECD HIGH INCOME 186 DB year Economy Reform central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, unemployment insurance and real estate taxes. The DB2017 Netherlands Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. 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. 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 Spain Spain made enforcing contracts easier by introducing a Doing Business 2017 OECD HIGH INCOME 187 DB year Economy Reform mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, and DB2017 Spain abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring DB2016 Spain that major sales of company assets be subject to shareholder approval. Doing Business 2017 OECD HIGH INCOME 188 DB year Economy Reform 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. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. Norway made paying taxes less costly for companies by DB2016 Norway reducing the corporate income tax rate. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. DB2016 Portugal Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the Doing Business 2017 OECD HIGH INCOME 189 DB year Economy Reform allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Switzerland made transferring property easier by introducing DB2016 Switzerland a national database to check for encumbrances. Norway made starting a business easier by offering online DB2016 Norway government registration and online bank account registration. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. 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. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. Italy made enforcing contracts easier by introducing a DB2016 Italy mandatory electronic filing system for court users, simplifying the rules for electronic service of process and automating the Doing Business 2017 OECD HIGH INCOME 190 DB year Economy Reform enforcement process. 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. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. Israel made paying taxes more costly for companies by increasing the corporate income tax rate, the rate for social DB2016 Israel security contributions paid by employers for the upper wage bracket and municipal taxes. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Ireland strengthened minority investor protections by DB2016 Ireland introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time DB2016 Italy and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. DB2016 Germany Germany introduced a minimum wage of €8.50 an hour in Doing Business 2017 OECD HIGH INCOME 191 DB year Economy Reform accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Israel made paying taxes more costly for companies by DB2015 Israel increasing the profit tax rate. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. 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. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Iceland made transferring property more costly by increasing DB2015 Iceland the stamp duty rate. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Iceland made starting a business easier by offering faster DB2015 Iceland online procedures. Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Doing Business 2017 OECD HIGH INCOME 192 DB year Economy Reform Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Switzerland made resolving insolvency easier by introducing a moratorium period while the debtor is preparing a composition (reorganization) agreement, allowing creditors DB2015 Switzerland greater participation in the composition (reorganization) procedure and clarifying claw-back provisions applicable to voidable transactions. Doing Business 2017 OECD HIGH INCOME 193 DB year Economy Reform Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Switzerland strengthened minority investor protections by DB2015 Switzerland increasing the level of transparency required from publicly traded companies. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. In the United States starting a business became easier in New DB2015 United States York City thanks to faster online procedures. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Switzerland made starting a business easier by introducing DB2015 Switzerland online procedures. Norway made starting a business easier by eliminating the requirement for limited liability companies to have their DB2015 Norway balance sheet examined by an external auditor if the capital is paid in cash. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. Doing Business 2017 OECD HIGH INCOME 194 DB year Economy Reform Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a DB2015 Czech Republic new legal regime on secured transactions that allows the registration of receivables at the collateral registry and Doing Business 2017 OECD HIGH INCOME 195 DB year Economy Reform permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. Doing Business 2017 OECD HIGH INCOME 196 DB year Economy Reform The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. 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. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. DB2014 Netherlands The Netherlands made transferring property easier by Doing Business 2017 OECD HIGH INCOME 197 DB year Economy Reform increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the 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. DB2014 Denmark Denmark made dealing with construction permits more costly Doing Business 2017 OECD HIGH INCOME 198 DB year Economy Reform by increasing the fee for building permits. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. Israel made resolving insolvency easier through an amendment to its company law allowing the assumption or rejection of executory contracts, granting maximum DB2014 Israel priority to postcommencement credit, extending the maximum period of moratorium during restructuring proceedings and allowing the sale of secured assets when necessary to ensure a successful restructuring. Iceland made paying taxes easier for companies by reducing employers’ social security contribution rate and abolishing DB2014 Iceland the weight distance tax—though it also introduced a new rehabilitation fund contribution. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Doing Business 2017 OECD HIGH INCOME 199 DB year Economy Reform Israel made starting a business easier by reducing the time DB2014 Israel required for registration at the Income Tax Department and the National Insurance Institute. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. 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. Hungary made starting a business more complex by increasing the registration fees for limited liability companies DB2013 Hungary and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Israel made transferring property easier by tightening time DB2013 Israel limits for tax authorities to process capital gains self- assessments on property transfers. Doing Business 2017 OECD HIGH INCOME 200 DB year Economy Reform Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. DB2013 Iceland Iceland increased the corporate income tax rate. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. Doing Business 2017 OECD HIGH INCOME 201 DB year Economy Reform The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the cr editors’ committee in a bankruptcy proceeding; prohibiting DB2013 Slovenia insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Doing Business 2017 OECD HIGH INCOME 202 DB year Economy Reform Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Norway made starting a business easier by reducing the DB2013 Norway minimum capital requirement for private joint stock companies. The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. Doing Business 2017 OECD HIGH INCOME 203 DB year Economy Reform The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Norway reduced the time required to obtain a building DB2013 Norway permit by implementing strict time limits for construction project approvals. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. 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. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. DB2013 Poland Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems—though it Doing Business 2017 OECD HIGH INCOME 204 DB year Economy Reform also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Switzerland introduced a unified civil procedure code and DB2012 Switzerland made a number of changes to its federal bankruptcy law. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Doing Business 2017 OECD HIGH INCOME 205 DB year Economy Reform Sweden increased the cost of transferring property between DB2012 Sweden companies. Israel made trading across borders easier by changing the DB2012 Israel method used to calculate port fees. Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. Israel amended its courts law to establish specialized courts DB2012 Israel for dealing with economic matters. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Doing Business 2017 OECD HIGH INCOME 206 DB year Economy Reform Switzerland made getting electricity less costly by revising the DB2012 Switzerland conditions for connections. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. DB2012 Greece Greece reduced its corporate income tax rate. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Iceland strengthened investor protections by introducing new DB2012 Iceland requirements relating to the approval of transactions between interested parties. 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. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Iceland made paying taxes easier and less costly for firms by DB2012 Iceland abolishing a tax. Doing Business 2017 OECD HIGH INCOME 207 DB year Economy Reform Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. 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. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. 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. DB2012 Canada Canada made paying taxes easier and less costly for companies by reducing profit tax rates, eliminating the Doing Business 2017 OECD HIGH INCOME 208 DB year Economy Reform Ontario capital tax and harmonizing sales taxes. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Amendments to Estonia’s recent insolvency law increased the chances that viable businesses will survive insolvency by DB2011 Estonia improving procedures and changing the qualification requirements for insolvency administrators. 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. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Doing Business 2017 OECD HIGH INCOME 209 DB year Economy Reform Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). 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. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Doing Business 2017 OECD HIGH INCOME 210 DB year Economy Reform Iceland made dealing with construction permits more costly DB2011 Iceland by increasing the fees to obtain the design approval and receive inspections. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Iceland increased the corporate income tax rate from 15% to DB2011 Iceland 18% and raised social security and pension contribution rates. DB2011 Hungary Hungary simplified taxes and tax bases. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. 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. Israel is expanding its electronic data interchange system and developing a single-window framework, allowing easier DB2011 Israel assembly of documents required by different authorities and reducing the time to trade. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Doing Business 2017 OECD HIGH INCOME 211 DB year Economy Reform Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. 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. Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Doing Business 2017 OECD HIGH INCOME 212 DB year Economy Reform Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. 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. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. 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 OECD HIGH INCOME 213 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 OECD HIGH INCOME 214  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 OECD HIGH INCOME 215 PAYING TAXES Where do the region’s economies stand today? What is the administrative burden of complying with information for assessing the tax compliance burden for taxes in economies in OECD High Income—and how businesses (figure 8.1). The average ranking of the region much do firms pay in taxes? The global rankings of these provides a useful benchmark. economies on the ease of paying taxes offer useful Figure 8.1 How economies in OECD High Income 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 OECD HIGH INCOME 216 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 OECD High Income—and what are the total tax rates? Payments (number per year) Doing Business 2017 OECD HIGH INCOME 217 PAYING TAXES Time (hours per year) Doing Business 2017 OECD HIGH INCOME 218 PAYING TAXES Total tax rate (% of profit) Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 219 PAYING TAXES Postfiling Index (DTF) Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 220 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 OECD High Income (table 8.1)? Many have lowered tax rates. Changes have brought Table 8.1 How have economies in OECD High Income made paying taxes easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Israel made starting a business easier by merging tax and DB2017 Israel social security registration. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. DB2017 Hungary Hungary made paying taxes less costly for small and medium-sized businesses by allowing additional deduction Doing Business 2017 OECD HIGH INCOME 221 DB year Economy Reform for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) purposes, as well as updating coefficients used for calculation DB2017 Italy of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying labor taxes was improved. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Norway made enforcing contracts easier by introducing an DB2017 Norway electronic filing system for court users. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. Norway allowed the use of fixed-term contracts for DB2017 Norway permanent tasks for 12 months. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new DB2017 Poland restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater Doing Business 2017 OECD HIGH INCOME 222 DB year Economy Reform participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, unemployment insurance and real estate taxes. The DB2017 Netherlands Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. 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. 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 DB2017 Japan local corporation tax was introduced and the rates of special 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 Doing Business 2017 OECD HIGH INCOME 223 DB year Economy Reform paid by employers was reduced only in Osaka. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, and DB2017 Spain abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Doing Business 2017 OECD HIGH INCOME 224 DB year Economy Reform Spain strengthened minority investor protections by requiring that major sales of company assets be subject to shareholder DB2016 Spain approval. 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. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. Norway made paying taxes less costly for companies by DB2016 Norway reducing the corporate income tax rate. Poland made paying taxes easier for companies by DB2016 Poland introducing an electronic system for filing and paying VAT and transport tax—though it also made paying taxes more Doing Business 2017 OECD HIGH INCOME 225 DB year Economy Reform costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Switzerland made transferring property easier by introducing DB2016 Switzerland a national database to check for encumbrances. Norway made starting a business easier by offering online DB2016 Norway government registration and online bank account registration. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. 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. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. DB2016 Estonia Estonia made starting a business simpler by allowing minimum capital to be deposited at the time of company Doing Business 2017 OECD HIGH INCOME 226 DB year Economy Reform registration. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. 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. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. Israel made paying taxes more costly for companies by increasing the corporate income tax rate, the rate for social DB2016 Israel security contributions paid by employers for the upper wage bracket and municipal taxes. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Ireland strengthened minority investor protections by DB2016 Ireland introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Doing Business 2017 OECD HIGH INCOME 227 DB year Economy Reform Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time DB2016 Italy and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Israel made paying taxes more costly for companies by DB2015 Israel increasing the profit tax rate. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. 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. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Iceland made transferring property more costly by increasing DB2015 Iceland the stamp duty rate. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. DB2015 France France made starting a business easier by reducing the time it takes to register a company at the one-stop shop (Centre de Doing Business 2017 OECD HIGH INCOME 228 DB year Economy Reform Formalités des Entreprises). Iceland made starting a business easier by offering faster DB2015 Iceland online procedures. Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new DB2015 Portugal code of civil procedure designed to reduce case backlogs, streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial Doing Business 2017 OECD HIGH INCOME 229 DB year Economy Reform disputes. Switzerland made resolving insolvency easier by introducing a moratorium period while the debtor is preparing a composition (reorganization) agreement, allowing creditors DB2015 Switzerland greater participation in the composition (reorganization) procedure and clarifying claw-back provisions applicable to voidable transactions. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Switzerland strengthened minority investor protections by DB2015 Switzerland increasing the level of transparency required from publicly traded companies. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. In the United States starting a business became easier in New DB2015 United States York City thanks to faster online procedures. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Switzerland made starting a business easier by introducing DB2015 Switzerland online procedures. DB2015 Norway Norway made starting a business easier by eliminating the requirement for limited liability companies to have their Doing Business 2017 OECD HIGH INCOME 230 DB year Economy Reform balance sheet examined by an external auditor if the capital is paid in cash. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. Doing Business 2017 OECD HIGH INCOME 231 DB year Economy Reform The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Doing Business 2017 OECD HIGH INCOME 232 DB year Economy Reform Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. Doing Business 2017 OECD HIGH INCOME 233 DB year Economy Reform 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. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the DB2014 Slovak Republic requirement for third-party notification when terminating an employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and Doing Business 2017 OECD HIGH INCOME 234 DB year Economy Reform increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the 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. Denmark made dealing with construction permits more costly DB2014 Denmark by increasing the fee for building permits. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. Israel made resolving insolvency easier through an amendment to its company law allowing the assumption or rejection of executory contracts, granting maximum DB2014 Israel priority to postcommencement credit, extending the maximum period of moratorium during restructuring proceedings and allowing the sale of secured assets when necessary to ensure a successful restructuring. Doing Business 2017 OECD HIGH INCOME 235 DB year Economy Reform Iceland made paying taxes easier for companies by reducing employers’ social security contribution rate and abolishing DB2014 Iceland the weight distance tax—though it also introduced a new rehabilitation fund contribution. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Israel made starting a business easier by reducing the time DB2014 Israel required for registration at the Income Tax Department and the National Insurance Institute. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. 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. Hungary made starting a business more complex by increasing the registration fees for limited liability companies DB2013 Hungary and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Doing Business 2017 OECD HIGH INCOME 236 DB year Economy Reform Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Israel made transferring property easier by tightening time DB2013 Israel limits for tax authorities to process capital gains self- assessments on property transfers. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. DB2013 Iceland Iceland increased the corporate income tax rate. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. Doing Business 2017 OECD HIGH INCOME 237 DB year Economy Reform The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ committee in a bankruptcy proceeding; prohibiting DB2013 Slovenia insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Doing Business 2017 OECD HIGH INCOME 238 DB year Economy Reform Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Doing Business 2017 OECD HIGH INCOME 239 DB year Economy Reform Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Norway made starting a business easier by reducing the DB2013 Norway minimum capital requirement for private joint stock companies. The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Norway reduced the time required to obtain a building DB2013 Norway permit by implementing strict time limits for construction project approvals. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. DB2013 Sweden In Sweden property transfers became more time consuming during implementation of a new information technology Doing Business 2017 OECD HIGH INCOME 240 DB year Economy Reform system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. 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. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems —though it DB2013 Poland also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. DB2013 New Zealand New Zealand improved access to credit information by allowing credit bureaus to collect positive information on Doing Business 2017 OECD HIGH INCOME 241 DB year Economy Reform individuals. Switzerland introduced a unified civil procedure code and DB2012 Switzerland made a number of changes to its federal bankruptcy law. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Sweden increased the cost of transferring property between DB2012 Sweden companies. Israel made trading across borders easier by changing the DB2012 Israel method used to calculate port fees. Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. DB2012 Italy Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and Doing Business 2017 OECD HIGH INCOME 242 DB year Economy Reform extended further rights to secured creditors during insolvency proceedings. Israel amended its courts law to establish specialized courts DB2012 Israel for dealing with economic matters. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Switzerland made getting electricity less costly by revising the DB2012 Switzerland conditions for connections. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. DB2012 Greece Greece reduced its corporate income tax rate. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Doing Business 2017 OECD HIGH INCOME 243 DB year Economy Reform Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Iceland strengthened investor protections by introducing new DB2012 Iceland requirements relating to the approval of transactions between interested parties. 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. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Iceland made paying taxes easier and less costly for firms by DB2012 Iceland abolishing a tax. Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. DB2012 Australia Australia clarified the priority of claims of unsecured creditors over all shareholders’ claims and introduced further Doing Business 2017 OECD HIGH INCOME 244 DB year Economy Reform regulation of the profession of insolvency practitioners. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. 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. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Amendments to Estonia’s recent insolvency law increased the chances that viable businesses will survive insolvency by DB2011 Estonia improving procedures and changing the qualification requirements for insolvency administrators. Doing Business 2017 OECD HIGH INCOME 245 DB year Economy Reform 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. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. Denmark eased business start-up by reducing the minimum DB2011 Denmark capital requirement for limited liability companies from 125,000 Danish kroner ($22,850) to 80,000 Danish kroner Doing Business 2017 OECD HIGH INCOME 246 DB year Economy Reform ($14,620). 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. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Iceland made dealing with construction permits more costly DB2011 Iceland by increasing the fees to obtain the design approval and receive inspections. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Iceland increased the corporate income tax rate from 15% to DB2011 Iceland 18% and raised social security and pension contribution rates. DB2011 Hungary Hungary simplified taxes and tax bases. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. DB2011 Korea, Rep. Korea made it easier to deal with insolvency by introducing postfiling financing, granting superpriority to the repayment Doing Business 2017 OECD HIGH INCOME 247 DB year Economy Reform of loans given to companies undergoing reorganization. Israel is expanding its electronic data interchange system and developing a single-window framework, allowing easier DB2011 Israel assembly of documents required by different authorities and reducing the time to trade. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. Doing Business 2017 OECD HIGH INCOME 248 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. Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Doing Business 2017 OECD HIGH INCOME 249 DB year Economy Reform Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. 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. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. 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 OECD HIGH INCOME 250 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 OECD HIGH INCOME 251 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 OECD HIGH INCOME 252 TRADING ACROSS BORDERS Where do the region’s economies stand today? How easy it is for businesses in economies in OECD High borders suggest an answer (figure 9.1). The average Income to export and import goods? The global rankings ranking of the region and comparator regions provide a of these economies on the ease of trading across useful benchmark. Figure 9.1 How economies in OECD High Income rank on the ease of trading across borders Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 253 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 OECD High Income Time to export: Border compliance (hours) Doing Business 2017 OECD HIGH INCOME 254 TRADING ACROSS BORDERS Cost to export: Border compliance (USD) Doing Business 2017 OECD HIGH INCOME 255 TRADING ACROSS BORDERS Time to export: Documentary compliance (hours) Doing Business 2017 OECD HIGH INCOME 256 TRADING ACROSS BORDERS Cost to export: Documentary compliance (USD) Doing Business 2017 OECD HIGH INCOME 257 TRADING ACROSS BORDERS Time to import: Border compliance (hours) Doing Business 2017 OECD HIGH INCOME 258 TRADING ACROSS BORDERS Cost to import: Border compliance (USD) Doing Business 2017 OECD HIGH INCOME 259 TRADING ACROSS BORDERS Time to import: Documentary compliance (hours) Doing Business 2017 OECD HIGH INCOME 260 TRADING ACROSS BORDERS Cost to import: Documentary compliance (USD) Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 261 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 OECD High Income (table 9.1)? based inspections and electronic data interchange Table 9.1 How have economies in OECD High Income made trading across borders easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Israel made starting a business easier by merging tax and DB2017 Israel social security registration. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. DB2017 Hungary Hungary made paying taxes less costly for small and medium-sized businesses by allowing additional deduction Doing Business 2017 OECD HIGH INCOME 262 DB year Economy Reform for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) purposes, as well as updating coefficients used for calculation DB2017 Italy of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying labor taxes was improved. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Norway made enforcing contracts easier by introducing an DB2017 Norway electronic filing system for court users. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. Norway allowed the use of fixed-term contracts for DB2017 Norway permanent tasks for 12 months. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. DB2017 Poland Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for Doing Business 2017 OECD HIGH INCOME 263 DB year Economy Reform restructuring plans and allowing creditors greater participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, unemployment insurance and real estate taxes. The DB2017 Netherlands Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. 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. 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 OECD HIGH INCOME 264 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. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, and DB2017 Spain abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by DB2016 Spain reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the online Cl@ve system for filing VAT returns. At the same time, Doing Business 2017 OECD HIGH INCOME 265 DB year Economy Reform Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring that major sales of company assets be subject to shareholder DB2016 Spain approval. 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. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. DB2016 Norway Norway made paying taxes less costly for companies by Doing Business 2017 OECD HIGH INCOME 266 DB year Economy Reform reducing the corporate income tax rate. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Switzerland made transferring property easier by introducing DB2016 Switzerland a national database to check for encumbrances. Norway made starting a business easier by offering online DB2016 Norway government registration and online bank account registration. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. 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. Doing Business 2017 OECD HIGH INCOME 267 DB year Economy Reform Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. 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. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. Israel made paying taxes more costly for companies by increasing the corporate income tax rate, the rate for social DB2016 Israel security contributions paid by employers for the upper wage bracket and municipal taxes. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. DB2016 Ireland Ireland strengthened minority investor protections by introducing provisions stipulating that directors can be held Doing Business 2017 OECD HIGH INCOME 268 DB year Economy Reform liable for breach of their fiduciary duties. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time DB2016 Italy and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Israel made paying taxes more costly for companies by DB2015 Israel increasing the profit tax rate. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. 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. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Iceland made transferring property more costly by increasing DB2015 Iceland the stamp duty rate. Doing Business 2017 OECD HIGH INCOME 269 DB year Economy Reform Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Iceland made starting a business easier by offering faster DB2015 Iceland online procedures. Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Doing Business 2017 OECD HIGH INCOME 270 DB year Economy Reform Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Switzerland made resolving insolvency easier by introducing a moratorium period while the debtor is preparing a composition (reorganization) agreement, allowing creditors DB2015 Switzerland greater participation in the composition (reorganization) procedure and clarifying claw-back provisions applicable to voidable transactions. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Switzerland strengthened minority investor protections by DB2015 Switzerland increasing the level of transparency required from publicly traded companies. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. DB2015 United States In the United States starting a business became easier in New Doing Business 2017 OECD HIGH INCOME 271 DB year Economy Reform York City thanks to faster online procedures. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Switzerland made starting a business easier by introducing DB2015 Switzerland online procedures. Norway made starting a business easier by eliminating the requirement for limited liability companies to have their DB2015 Norway balance sheet examined by an external auditor if the capital is paid in cash. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Doing Business 2017 OECD HIGH INCOME 272 DB year Economy Reform Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. DB2015 Spain Spain made transferring property easier by reducing the Doing Business 2017 OECD HIGH INCOME 273 DB year Economy Reform property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. DB2014 Greece Greece made starting a business easier by introducing a Doing Business 2017 OECD HIGH INCOME 274 DB year Economy Reform simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. 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. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. Doing Business 2017 OECD HIGH INCOME 275 DB year Economy Reform The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the 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. Denmark made dealing with construction permits more costly DB2014 Denmark by increasing the fee for building permits. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. 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 OECD HIGH INCOME 276 DB year Economy Reform Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. Israel made resolving insolvency easier through an amendment to its company law allowing the assumption or rejection of executory contracts, granting maximum DB2014 Israel priority to postcommencement credit, extending the maximum period of moratorium during restructuring proceedings and allowing the sale of secured assets when necessary to ensure a successful restructuring. Iceland made paying taxes easier for companies by reducing employers’ social security contribution rate and abolishing DB2014 Iceland the weight distance tax—though it also introduced a new rehabilitation fund contribution. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Israel made starting a business easier by reducing the time DB2014 Israel required for registration at the Income Tax Department and the National Insurance Institute. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. DB2014 Ireland Ireland ended a 60% rebate for employers on severance payments and eliminated the requirement for third-party Doing Business 2017 OECD HIGH INCOME 277 DB year Economy Reform notification when terminating a redundant worker. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. 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. Hungary made starting a business more complex by increasing the registration fees for limited liability companies DB2013 Hungary and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Israel made transferring property easier by tightening time DB2013 Israel limits for tax authorities to process capital gains self- assessments on property transfers. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. DB2013 Korea, Rep. Korea strengthened investor protections by making it easier to sue directors in cases of prejudicial related-party Doing Business 2017 OECD HIGH INCOME 278 DB year Economy Reform transactions. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. DB2013 Iceland Iceland increased the corporate income tax rate. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. Doing Business 2017 OECD HIGH INCOME 279 DB year Economy Reform The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ committee in a bankruptcy proceeding; prohibiting DB2013 Slovenia insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Doing Business 2017 OECD HIGH INCOME 280 DB year Economy Reform Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Norway made starting a business easier by reducing the DB2013 Norway minimum capital requirement for private joint stock companies. The Slovak Republic made starting a business easier by DB2013 Slovak Republic speeding up the processing of applications at the one-stop shop for trading licenses, income tax registration and health Doing Business 2017 OECD HIGH INCOME 281 DB year Economy Reform insurance registration. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Norway reduced the time required to obtain a building DB2013 Norway permit by implementing strict time limits for construction project approvals. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. 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. Doing Business 2017 OECD HIGH INCOME 282 DB year Economy Reform The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems —though it DB2013 Poland also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Switzerland introduced a unified civil procedure code and DB2012 Switzerland made a number of changes to its federal bankruptcy law. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. Doing Business 2017 OECD HIGH INCOME 283 DB year Economy Reform The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Sweden increased the cost of transferring property between DB2012 Sweden companies. Israel made trading across borders easier by changing the DB2012 Israel method used to calculate port fees. Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. Israel amended its courts law to establish specialized courts DB2012 Israel for dealing with economic matters. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. DB2012 New Zealand New Zealand reduced its corporate income tax rate and Doing Business 2017 OECD HIGH INCOME 284 DB year Economy Reform fringe benefit tax rate. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Switzerland made getting electricity less costly by revising the DB2012 Switzerland conditions for connections. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. DB2012 Greece Greece reduced its corporate income tax rate. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Iceland strengthened investor protections by introducing new DB2012 Iceland requirements relating to the approval of transactions between interested parties. Doing Business 2017 OECD HIGH INCOME 285 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. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Iceland made paying taxes easier and less costly for firms by DB2012 Iceland abolishing a tax. Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. 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. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. Doing Business 2017 OECD HIGH INCOME 286 DB year Economy Reform 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. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Amendments to Estonia’s recent insolvency law increased the chances that viable businesses will survive insolvency by DB2011 Estonia improving procedures and changing the qualification requirements for insolvency administrators. 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. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. DB2011 Canada Canada harmonized the Ontario and federal tax returns and Doing Business 2017 OECD HIGH INCOME 287 DB year Economy Reform reduced the corporate and employee tax rates. Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). Australia introduced the severance payment obligation and reemployment consideration applicable in cases of DB2011 Australia redundancy dismissals. Annual leave was increased and averaging of hours is now allowed in shorter periods of time. In addition, notice period applicable in case of redundancy Doing Business 2017 OECD HIGH INCOME 288 DB year Economy Reform dismissals was decreased. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Iceland made dealing with construction permits more costly DB2011 Iceland by increasing the fees to obtain the design approval and receive inspections. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Iceland increased the corporate income tax rate from 15% to DB2011 Iceland 18% and raised social security and pension contribution rates. DB2011 Hungary Hungary simplified taxes and tax bases. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. 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. Israel is expanding its electronic data interchange system and DB2011 Israel developing a single-window framework, allowing easier assembly of documents required by different authorities and Doing Business 2017 OECD HIGH INCOME 289 DB year Economy Reform reducing the time to trade. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. 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. Doing Business 2017 OECD HIGH INCOME 290 DB year Economy Reform Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Amendments to the United Kingdom’s insolvency rules DB2011 United Kingdom streamline bankruptcy procedures, favor the sale of the firm as a whole and improve the calculation of administrators’ Doing Business 2017 OECD HIGH INCOME 291 DB year Economy Reform fees. 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. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. 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 OECD HIGH INCOME 292 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 OECD HIGH INCOME 293 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 OECD HIGH INCOME 294 ENFORCING CONTRACTS Where do the region’s economies stand today? How efficient is the process of resolving a commercial ease of enforcing contracts suggest an answer (figure dispute through the courts in economies in OECD High 10.1). The average ranking of the region and comparator Income? The global rankings of these economies on the regions provide a useful benchmark. Figure 10.1 How economies in OECD High Income rank on the ease of enforcing contracts Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 295 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 OECD High Income Time (days) Doing Business 2017 OECD HIGH INCOME 296 ENFORCING CONTRACTS Cost (% of claim) Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 297 ENFORCING CONTRACTS Quality of Judicial Processes Index (0-18) Source: Doing Business database. Note: Higher values indicate more efficient judicial processes. Doing Business 2017 OECD HIGH INCOME 298 ENFORCING CONTRACTS What are the changes over time? Economies in all regions have improved contract reducing backlogs by introducing periodic reviews to enforcement in recent years. A judiciary can be improved clear inactive cases from the docket and by making in different ways. Higher-income economies tend to look procedures faster. What reforms making it easier (or for ways to enhance efficiency by introducing new more difficult) to enforce contracts has Doing Business technology. Lower-income economies often work on recorded in OECD High Income (table 10.1)? Table 10.1 How have economies in OECD High Income made enforcing contracts easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Israel made starting a business easier by merging tax and DB2017 Israel social security registration. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. Hungary made paying taxes less costly for small and DB2017 Hungary medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) DB2017 Italy purposes, as well as updating coefficients used for calculation of tax on real estate (IMU) and municipal service tax (TASI). Doing Business 2017 OECD HIGH INCOME 299 DB year Economy Reform Furthermore, electronic system for preparing and paying labor taxes was improved. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Norway made enforcing contracts easier by introducing an DB2017 Norway electronic filing system for court users. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. Norway allowed the use of fixed-term contracts for DB2017 Norway permanent tasks for 12 months. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater DB2017 Poland participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. Doing Business 2017 OECD HIGH INCOME 300 DB year Economy Reform The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, unemployment insurance and real estate taxes. The DB2017 Netherlands Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. 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. 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. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, and DB2017 Spain abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. Doing Business 2017 OECD HIGH INCOME 301 DB year Economy Reform The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring that major sales of company assets be subject to shareholder DB2016 Spain approval. 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. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for DB2016 Slovak Republic VAT—and made paying taxes less costly by reducing the corporate income tax rate and making medical health Doing Business 2017 OECD HIGH INCOME 302 DB year Economy Reform insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. Norway made paying taxes less costly for companies by DB2016 Norway reducing the corporate income tax rate. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Switzerland made transferring property easier by introducing DB2016 Switzerland a national database to check for encumbrances. Norway made starting a business easier by offering online DB2016 Norway government registration and online bank account registration. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. 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. DB2016 Denmark Denmark made starting a business easier by introducing an Doing Business 2017 OECD HIGH INCOME 303 DB year Economy Reform online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. 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. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. Israel made paying taxes more costly for companies by increasing the corporate income tax rate, the rate for social DB2016 Israel security contributions paid by employers for the upper wage bracket and municipal taxes. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Ireland strengthened minority investor protections by DB2016 Ireland introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules DB2016 Italy and encourages out-of-court reconciliation, reducing the time and cost for resolving labor disputes. The new legislation also Doing Business 2017 OECD HIGH INCOME 304 DB year Economy Reform broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Israel made paying taxes more costly for companies by DB2015 Israel increasing the profit tax rate. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. 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. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Iceland made transferring property more costly by increasing DB2015 Iceland the stamp duty rate. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Iceland made starting a business easier by offering faster DB2015 Iceland online procedures. Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Doing Business 2017 OECD HIGH INCOME 305 DB year Economy Reform Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Switzerland made resolving insolvency easier by introducing a moratorium period while the debtor is preparing a composition (reorganization) agreement, allowing creditors DB2015 Switzerland greater participation in the composition (reorganization) procedure and clarifying claw-back provisions applicable to voidable transactions. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Switzerland strengthened minority investor protections by DB2015 Switzerland increasing the level of transparency required from publicly Doing Business 2017 OECD HIGH INCOME 306 DB year Economy Reform traded companies. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. In the United States starting a business became easier in New DB2015 United States York City thanks to faster online procedures. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Switzerland made starting a business easier by introducing DB2015 Switzerland online procedures. Norway made starting a business easier by eliminating the requirement for limited liability companies to have their DB2015 Norway balance sheet examined by an external auditor if the capital is paid in cash. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. Doing Business 2017 OECD HIGH INCOME 307 DB year Economy Reform The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Doing Business 2017 OECD HIGH INCOME 308 DB year Economy Reform Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. Doing Business 2017 OECD HIGH INCOME 309 DB year Economy Reform 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. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the minimum wage. Australia improved its credit information system through the DB2014 Australia Privacy Amendment (Enhancing Privacy Protection) Doing Business 2017 OECD HIGH INCOME 310 DB year Economy Reform Act 2012, which permits credit bureaus to collect account payment history with improved privacy protection. Denmark made dealing with construction permits more costly DB2014 Denmark by increasing the fee for building permits. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. Israel made resolving insolvency easier through an amendment to its company law allowing the assumption or rejection of executory contracts, granting maximum DB2014 Israel priority to postcommencement credit, extending the maximum period of moratorium during restructuring proceedings and allowing the sale of secured assets when necessary to ensure a successful restructuring. Iceland made paying taxes easier for companies by reducing employers’ social security contribution rate and abolishing DB2014 Iceland the weight distance tax—though it also introduced a new rehabilitation fund contribution. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Israel made starting a business easier by reducing the time DB2014 Israel required for registration at the Income Tax Department and the National Insurance Institute. Doing Business 2017 OECD HIGH INCOME 311 DB year Economy Reform Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. 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. Hungary made starting a business more complex by increasing the registration fees for limited liability companies DB2013 Hungary and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Israel made transferring property easier by tightening time DB2013 Israel limits for tax authorities to process capital gains self- assessments on property transfers. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. Doing Business 2017 OECD HIGH INCOME 312 DB year Economy Reform DB2013 Iceland Iceland increased the corporate income tax rate. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ DB2013 Slovenia committee in a bankruptcy proceeding; prohibiting insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate Doing Business 2017 OECD HIGH INCOME 313 DB year Economy Reform certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment Doing Business 2017 OECD HIGH INCOME 314 DB year Economy Reform system. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Norway made starting a business easier by reducing the DB2013 Norway minimum capital requirement for private joint stock companies. The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Norway reduced the time required to obtain a building DB2013 Norway permit by implementing strict time limits for construction project approvals. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. Doing Business 2017 OECD HIGH INCOME 315 DB year Economy Reform The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. 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. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems —though it DB2013 Poland also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Switzerland introduced a unified civil procedure code and DB2012 Switzerland made a number of changes to its federal bankruptcy law. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their Doing Business 2017 OECD HIGH INCOME 316 DB year Economy Reform own data. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Sweden increased the cost of transferring property between DB2012 Sweden companies. Israel made trading across borders easier by changing the DB2012 Israel method used to calculate port fees. Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. Israel amended its courts law to establish specialized courts DB2012 Israel for dealing with economic matters. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Switzerland made getting electricity less costly by revising the DB2012 Switzerland conditions for connections. Doing Business 2017 OECD HIGH INCOME 317 DB year Economy Reform Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. DB2012 Greece Greece reduced its corporate income tax rate. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Iceland strengthened investor protections by introducing new DB2012 Iceland requirements relating to the approval of transactions between interested parties. 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. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Iceland made paying taxes easier and less costly for firms by DB2012 Iceland abolishing a tax. Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Doing Business 2017 OECD HIGH INCOME 318 DB year Economy Reform Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. 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. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. 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. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Amendments to Estonia’s recent insolvency law increased the DB2011 Estonia chances that viable businesses will survive insolvency by improving procedures and changing the qualification Doing Business 2017 OECD HIGH INCOME 319 DB year Economy Reform requirements for insolvency administrators. 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. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). Australia introduced the severance payment obligation and reemployment consideration applicable in cases of DB2011 Australia redundancy dismissals. Annual leave was increased and averaging of hours is now allowed in shorter periods of time. Doing Business 2017 OECD HIGH INCOME 320 DB year Economy Reform In addition, notice period applicable in case of redundancy dismissals was decreased. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Iceland made dealing with construction permits more costly DB2011 Iceland by increasing the fees to obtain the design approval and receive inspections. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Iceland increased the corporate income tax rate from 15% to DB2011 Iceland 18% and raised social security and pension contribution rates. DB2011 Hungary Hungary simplified taxes and tax bases. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. 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. Israel is expanding its electronic data interchange system and developing a single-window framework, allowing easier DB2011 Israel assembly of documents required by different authorities and reducing the time to trade. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. The Czech Republic made it easier to deal with insolvency by DB2011 Czech Republic introducing further legal amendments to restrict setoffs in Doing Business 2017 OECD HIGH INCOME 321 DB year Economy Reform insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. 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. Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Doing Business 2017 OECD HIGH INCOME 322 DB year Economy Reform Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. 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. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. 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 OECD HIGH INCOME 323 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 OECD HIGH INCOME 324 . 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 OECD HIGH INCOME 325 RESOLVING INSOLVENCY Where do the region’s economies stand today? How efficient are insolvency proceedings in economies in region and comparator regions provide a useful OECD High Income? The global rankings of these benchmark for assessing the efficiency of insolvency economies on the ease of resolving insolvency suggest proceedings. Speed, low costs and continuation of viable an answer (figure 11.1). The average ranking of the businesses characterize the top-performing economies. Figure 11.1 How economies in OECD High Income rank on the ease of resolving insolvency Source: Doing Business database. Doing Business 2017 OECD HIGH INCOME 326 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 OECD High Income 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 OECD HIGH INCOME 327 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 OECD High Income (table 11.1)? even viable businesses are liquidated. This is starting to Table 11.1 How have economies in OECD High Income made resolving insolvency easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Israel made starting a business easier by merging tax and DB2017 Israel social security registration. The Republic of Korea made starting a business faster by DB2017 Korea, Rep. eliminating post-registration procedures. Hungary made paying taxes less costly for small and DB2017 Hungary medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) purposes, as well as updating coefficients used for calculation DB2017 Italy of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying labor taxes was improved. Doing Business 2017 OECD HIGH INCOME 328 DB year Economy Reform Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Norway made enforcing contracts easier by introducing an DB2017 Norway electronic filing system for court users. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. Norway allowed the use of fixed-term contracts for DB2017 Norway permanent tasks for 12 months. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater DB2017 Poland participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering DB2017 Netherlands the rates paid by employers for health insurance Doing Business 2017 OECD HIGH INCOME 329 DB year Economy Reform contributions, special unemployment insurance, unemployment insurance and real estate taxes. The Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. 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. 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. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, and DB2017 Spain abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by DB2017 Czech Republic reducing the cost and the time required to register a company in commercial courts by allowing notaries to Doing Business 2017 OECD HIGH INCOME 330 DB year Economy Reform directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring that major sales of company assets be subject to shareholder DB2016 Spain approval. 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. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. Doing Business 2017 OECD HIGH INCOME 331 DB year Economy Reform The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. Norway made paying taxes less costly for companies by DB2016 Norway reducing the corporate income tax rate. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Switzerland made transferring property easier by introducing DB2016 Switzerland a national database to check for encumbrances. Norway made starting a business easier by offering online DB2016 Norway government registration and online bank account registration. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. 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. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Doing Business 2017 OECD HIGH INCOME 332 DB year Economy Reform Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. 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. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. Israel made paying taxes more costly for companies by increasing the corporate income tax rate, the rate for social DB2016 Israel security contributions paid by employers for the upper wage bracket and municipal taxes. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Ireland strengthened minority investor protections by DB2016 Ireland introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time DB2016 Italy and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. DB2016 Germany Germany introduced a minimum wage of €8.50 an hour in Doing Business 2017 OECD HIGH INCOME 333 DB year Economy Reform accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Israel made paying taxes more costly for companies by DB2015 Israel increasing the profit tax rate. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. 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. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Iceland made transferring property more costly by increasing DB2015 Iceland the stamp duty rate. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Iceland made starting a business easier by offering faster DB2015 Iceland online procedures. Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. Doing Business 2017 OECD HIGH INCOME 334 DB year Economy Reform France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Switzerland made resolving insolvency easier by introducing a moratorium period while the debtor is preparing a composition (reorganization) agreement, allowing creditors DB2015 Switzerland greater participation in the composition (reorganization) procedure and clarifying claw-back provisions applicable to voidable transactions. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Switzerland strengthened minority investor protections by DB2015 Switzerland increasing the level of transparency required from publicly traded companies. DB2015 Poland Poland made transferring property easier by introducing Doing Business 2017 OECD HIGH INCOME 335 DB year Economy Reform online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. In the United States starting a business became easier in New DB2015 United States York City thanks to faster online procedures. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Switzerland made starting a business easier by introducing DB2015 Switzerland online procedures. Norway made starting a business easier by eliminating the requirement for limited liability companies to have their DB2015 Norway balance sheet examined by an external auditor if the capital is paid in cash. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. New Zealand improved access to credit information by DB2015 New Zealand beginning to distribute both positive and negative credit information. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Doing Business 2017 OECD HIGH INCOME 336 DB year Economy Reform Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Doing Business 2017 OECD HIGH INCOME 337 DB year Economy Reform Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. 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. Doing Business 2017 OECD HIGH INCOME 338 DB year Economy Reform Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the 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. DB2014 Denmark Denmark made dealing with construction permits more costly Doing Business 2017 OECD HIGH INCOME 339 DB year Economy Reform by increasing the fee for building permits. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Chile made starting a business easier by creating a new online DB2014 Chile system for business registration. Korea revised its secured transactions framework by creating DB2014 Korea, Rep. new types of security rights that can be publicized through registration. Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. Israel made resolving insolvency easier through an amendment to its company law allowing the assumption or rejection of executory contracts, granting maximum DB2014 Israel priority to postcommencement credit, extending the maximum period of moratorium during restructuring proceedings and allowing the sale of secured assets when necessary to ensure a successful restructuring. Iceland made paying taxes easier for companies by reducing employers’ social security contribution rate and abolishing DB2014 Iceland the weight distance tax—though it also introduced a new rehabilitation fund contribution. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Israel made starting a business easier by reducing the time DB2014 Israel required for registration at the Income Tax Department and the National Insurance Institute. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Doing Business 2017 OECD HIGH INCOME 340 DB year Economy Reform Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. 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. Hungary made starting a business more complex by increasing the registration fees for limited liability companies DB2013 Hungary and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Israel made transferring property easier by tightening time DB2013 Israel limits for tax authorities to process capital gains self- assessments on property transfers. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. Korea strengthened investor protections by making it easier DB2013 Korea, Rep. to sue directors in cases of prejudicial related-party transactions. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. DB2013 Iceland Iceland increased the corporate income tax rate. Doing Business 2017 OECD HIGH INCOME 341 DB year Economy Reform Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Korea made paying taxes less costly for companies by DB2013 Korea, Rep. reducing the profit tax rate. Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ committee in a bankruptcy proceeding; prohibiting DB2013 Slovenia insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Doing Business 2017 OECD HIGH INCOME 342 DB year Economy Reform Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Korea expedited the insolvency process by implementing a DB2013 Korea, Rep. fast track for company rehabilitation. Korea made getting electricity less costly by introducing a DB2013 Korea, Rep. new connection fee schedule and an installment payment system. Doing Business 2017 OECD HIGH INCOME 343 DB year Economy Reform Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Norway made starting a business easier by reducing the DB2013 Norway minimum capital requirement for private joint stock companies. The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Norway reduced the time required to obtain a building DB2013 Norway permit by implementing strict time limits for construction project approvals. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. Doing Business 2017 OECD HIGH INCOME 344 DB year Economy Reform 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. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems —though it DB2013 Poland also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. New Zealand improved access to credit information by DB2013 New Zealand allowing credit bureaus to collect positive information on individuals. Switzerland introduced a unified civil procedure code and DB2012 Switzerland made a number of changes to its federal bankruptcy law. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. DB2012 United Kingdom United Kingdom increased the severance payment obligation Doing Business 2017 OECD HIGH INCOME 345 DB year Economy Reform applicable in cases of redundancy dismissals. Sweden increased the cost of transferring property between DB2012 Sweden companies. Israel made trading across borders easier by changing the DB2012 Israel method used to calculate port fees. Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Japan made dealing with construction permits costlier by DB2012 Japan increasing inspection fees. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. Israel amended its courts law to establish specialized courts DB2012 Israel for dealing with economic matters. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. New Zealand reduced its corporate income tax rate and DB2012 New Zealand fringe benefit tax rate. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Switzerland made getting electricity less costly by revising the DB2012 Switzerland conditions for connections. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Doing Business 2017 OECD HIGH INCOME 346 DB year Economy Reform Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. DB2012 Greece Greece reduced its corporate income tax rate. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Korea made filing a commercial case easier by introducing an DB2012 Korea, Rep. electronic case filing system. Iceland strengthened investor protections by introducing new DB2012 Iceland requirements relating to the approval of transactions between interested parties. 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. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Iceland made paying taxes easier and less costly for firms by DB2012 Iceland abolishing a tax. Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Korea made starting a business easier by introducing a new DB2012 Korea, Rep. online one-stop shop, Start-Biz. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments Doing Business 2017 OECD HIGH INCOME 347 DB year Economy Reform regime. Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. 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. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. 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. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Chile made trading across borders faster by implementing an DB2012 Chile online electronic data interchange system for customs operations. Canada increased the efficiency of the courts by expanding DB2011 Canada electronic document submission and streamlining procedures. Amendments to Estonia’s recent insolvency law increased the chances that viable businesses will survive insolvency by DB2011 Estonia improving procedures and changing the qualification requirements for insolvency administrators. Doing Business 2017 OECD HIGH INCOME 348 DB year Economy Reform 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. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Canada harmonized the Ontario and federal tax returns and DB2011 Canada reduced the corporate and employee tax rates. Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Chile made business start-up easier by introducing an online DB2011 Chile system for registration and for filing the request for publication. Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). 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 OECD HIGH INCOME 349 DB year Economy Reform Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Iceland made dealing with construction permits more costly DB2011 Iceland by increasing the fees to obtain the design approval and receive inspections. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Iceland increased the corporate income tax rate from 15% to DB2011 Iceland 18% and raised social security and pension contribution rates. DB2011 Hungary Hungary simplified taxes and tax bases. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. 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. Israel is expanding its electronic data interchange system and developing a single-window framework, allowing easier DB2011 Israel assembly of documents required by different authorities and reducing the time to trade. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. Doing Business 2017 OECD HIGH INCOME 350 DB year Economy Reform Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. 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. Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. Doing Business 2017 OECD HIGH INCOME 351 DB year Economy Reform DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. New Zealand enacted new district court rules that make the DB2011 New Zealand process for enforcing contracts user friendly. The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. 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. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. 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 OECD HIGH INCOME 352 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 OECD HIGH INCOME 353 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 components4. 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 OECD HIGH INCOME 354 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 OECD HIGH INCOME 355 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 OECD HIGH INCOME 356