Regional Profile 2017 Latin America and Caribbean (LAC) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 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 LATIN AMERICA AND CARIBBEAN (LAC) 3 CONTENTS Introduction .................................................................................................................................. 4 The business environment .......................................................................................................... 5 Starting a business ..................................................................................................................... 14 Dealing with construction permits ........................................................................................... 41 Getting electricity ....................................................................................................................... 72 Registering property .................................................................................................................. 99 Getting credit ............................................................................................................................ 133 Protecting minority investors ................................................................................................. 161 Paying taxes .............................................................................................................................. 191 Trading across borders ............................................................................................................ 224 Enforcing contracts .................................................................................................................. 262 Resolving insolvency ................................................................................................................ 290 Distance to frontier and ease of doing business ranking .................................................... 316 Resources on the Doing Business website ............................................................................ 319 Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 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 LATIN AMERICA AND CARIBBEAN (LAC) 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 acco rding 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 LATIN AMERICA AND CARIBBEAN (LAC) 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 LATIN AMERICA AND CARIBBEAN (LAC) 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 Latin America and Caribbean (LAC) 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 LATIN AMERICA AND CARIBBEAN (LAC) 8 THE BUSINESS ENVIRONMENT Figure 1.3 Rankings on Doing Business topics - Latin America and Caribbean (LAC) (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 - Latin America and Caribbean (LAC) (Scale: Score 0 center, Score 100 outer edge) Note: The rankings are benchmarked to June 2015 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respec t to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population-weighted average for the 2 cities. Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 9 Figure 1.5 How far has Latin America and Caribbean (LAC) 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 LATIN AMERICA AND CARIBBEAN (LAC) 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 Latin America and Caribbean (LAC) Lowest regional Best regional Best global Indicator Regional average performance performance performance Starting a Business 189 (Venezuela, RB) 12 (Jamaica) 113.06 1 (New Zealand) (rank) Starting a Business 32.94 (Venezuela, RB) 95.61 (Jamaica) 78.54 99.96 (New Zealand) (DTF Score) Procedure – Men 20.0 (Venezuela, RB) 2.0 (Jamaica) 8.3 1.0 (New Zealand) (number) Time – Men (days) 230.0 (Venezuela, RB) 5.5 (Puerto Rico (U.S.)) 31.6 0.5 (New Zealand) Cost – Men (% of 0.6 (Trinidad and 219.3 (Haiti) 31.5 0.0 (Slovenia) income per capita) Tobago) Procedure – Women 20.0 (Venezuela, RB) 2.0 (Jamaica) 8.3 1.0 (New Zealand) (number) Time – Women (days) 230.0 (Venezuela, RB) 5.5 (Puerto Rico (U.S.)) 31.6 0.5 (New Zealand) Cost – Women (% of 0.6 (Trinidad and 219.3 (Haiti) 31.5 0.0 (Slovenia) income per capita) Tobago) Paid-in min. capital (% 36.5 (Dominican 0.0 (Guyana) 2.3 0.0 (127 Economies*) of income per capita) Republic) Dealing with Construction Permits 173 (Argentina) 34 (Colombia) 105.28 1 (New Zealand) (rank) Dealing with Construction Permits 51.17 (Argentina) 76.54 (Colombia) 65.68 87.40 (New Zealand) (DTF Score) Procedures (number) 24.0 (El Salvador) 9.0 (Venezuela, RB) 14.4 7.0 (4 Economies*) Time (days) 434.0 (Venezuela, RB) 73.0 (Colombia) 181.3 28.0 (Korea, Rep.) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 11 Lowest regional Best regional Best global Indicator Regional average performance performance performance Cost (% of warehouse 0.1 (Trinidad and 0.1 (Trinidad and 14.9 (Haiti) 2.5 value) Tobago) Tobago) Building quality control 13.0 (Dominican 3.5 (Nicaragua) 8.4 15.0 (Luxembourg*) index (0-15) Republic) Getting Electricity 186 (Venezuela, RB) 19 (Guatemala) 84.25 1 (Korea, Rep.) (rank) Getting Electricity 16.85 (Venezuela, RB) 88.95 (Guatemala) 70.35 99.88 (Korea, Rep.) (DTF Score) 3.0 (St. Vincent and the Procedures (number) 8.0 (El Salvador) 5.5 3.0 (15 Economies*) Grenadines) Time (days) 208.0 (Venezuela, RB) 18.0 (St. Kitts and Nevis) 66.0 18.0 (Korea, Rep.*) Cost (% of income per 18,867.2 (Venezuela, RB) 8.9 (Panama) 999.0 0.0 (Japan) capita) Reliability of supply 0.0 (St. Vincent and the and transparency of 7.0 (Costa Rica) 4.2 8.0 (26 Economies*) Grenadines) tariff index (0-8) Registering Property 184 (St. Kitts and Nevis) 37 (Peru) 118.13 1 (New Zealand) (rank) Registering Property 28.79 (St. Kitts and 76.69 (Peru) 54.91 94.46 (New Zealand) (DTF Score) Nevis) Procedures (number) 9.0 (Uruguay) 4.0 (Peru) 7.1 1.0 (4 Economies*) 224.0 (St. Kitts and Time (days) 6.5 (Peru) 68.6 1.0 (3 Economies*) Nevis) Cost (% of property 13.7 (Suriname) 1.2 (Puerto Rico (U.S.)) 5.8 0.0 (Saudi Arabia) value) Quality of the land administration index 2.5 (Haiti) 23.0 (Uruguay) 11.9 29.0 (Singapore) (0-30) Getting Credit (rank) 175 (Suriname) 2 (Colombia) 89.41 1 (New Zealand) Getting Credit (DTF 10.00 (Suriname) 95.00 (Colombia) 50.31 100.00 (New Zealand) Score) Strength of legal rights 0.0 (Bolivia) 12.0 (Colombia) 5.3 12.0 (3 Economies*) index (0-12) Depth of credit 0.0 (Suriname) 8.0 (Uruguay) 4.8 8.0 (30 Economies*) information index (0-8) Credit registry 0.0 (Puerto Rico (U.S.)) 100.0 (Uruguay) 13.0 100.0 (3 Economies*) coverage (% of adults) Credit bureau coverage 0.0 (St. Lucia) 100.0 (Puerto Rico 41.2 100.0 (23 Economies*) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 12 Lowest regional Best regional Best global Indicator Regional average performance performance performance (% of adults) (U.S.)) Protecting Minority 188 (Haiti) 13 (Colombia) 106.94 1 (New Zealand*) Investors (rank) Protecting Minority 20.00 (Haiti) 73.33 (Colombia) 48.39 83.33 (New Zealand*) Investors (DTF Score) Strength of minority investor protection 2.0 (Haiti) 7.3 (Colombia) 4.8 8.3 (New Zealand*) index (0-10) Extent of conflict of interest regulation 2.3 (Suriname) 8.0 (Colombia) 5.3 9.3 (New Zealand*) index (0-10) Extent of shareholder governance index (0- 1.0 (Haiti) 7.3 (Argentina) 4.4 8.3 (Norway) 10) Paying Taxes (rank) 189 (Bolivia) 43 (Guatemala) 130.19 1 (United Arab Emirates) Paying Taxes (DTF 99.44 (United Arab 12.18 (Bolivia) 82.31 (Guatemala) 58.63 Score) Emirates) Payments (number per 3.0 (Hong Kong SAR, 70.0 (Venezuela, RB) 6.0 (Mexico) 28.9 year) China*) 108.0 (St. Vincent and Time (hours per year) 2,038.0 (Brazil) 342.6 55.0 (Luxembourg) the Grenadines) Total tax rate (% of 106.0 (Argentina) 27.9 (Suriname) 46.3 26.1 (32 Economies*) profit) Postfiling index (0-100) 42.8 98.5 (Estonia) Trading across 187 (Venezuela, RB) 44 (El Salvador) 99.91 1 (10 Economies*) Borders (rank) Trading across 7.93 (Venezuela, RB) 88.49 (El Salvador) 68.26 100.00 (10 Economies*) Borders (DTF Score) Time to export: Border 288 (Venezuela, RB) 16 (Dominican Republic) 63 0 (18 Economies*) compliance (hours) Cost to export: Border 1,095 (Uruguay) 65 (Bolivia) 527 0 (18 Economies*) compliance (USD) Time to export: Documentary 192 (Bolivia) 2 (Puerto Rico (U.S.)) 56 1 (25 Economies*) compliance (hours) Cost to export: Documentary 550 (Bahamas, The) 15 (Dominican Republic) 111 0 (19 Economies*) compliance (USD) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 13 Lowest regional Best regional Best global Indicator Regional average performance performance performance Time to import: Border 240 (Venezuela, RB) 13 (Uruguay) 65 0 (25 Economies*) compliance (hours) Cost to import: Border 1,745 (Grenada) 128 (El Salvador) 685 0 (28 Economies*) compliance (USD) Time to import: Documentary 1,090 (Venezuela, RB) 2 (Puerto Rico (U.S.)) 83 1 (29 Economies*) compliance (hours) Cost to import: Documentary 550 (Bahamas, The) 30 (Bolivia) 120 0 (30 Economies*) compliance (USD) Enforcing Contracts 35 (Antigua and 187 (Suriname) 104.41 1 (Korea, Rep.) (rank) Barbuda) Enforcing Contracts 68.11 (Antigua and 25.94 (Suriname) 53.65 84.15 (Korea, Rep.) (DTF Score) Barbuda) Time (days) 1,340.0 (Barbados) 340.6 (Mexico) 749.1 164.0 (Singapore) Cost (% of claim) 45.8 (Colombia) 19.2 (El Salvador) 31.3 9.0 (Iceland) Quality of judicial 3.5 (Suriname) 13.6 (Brazil) 8.4 15.5 (Australia) processes index (0-18) Resolving Insolvency 165 (Venezuela, RB) 9 (Puerto Rico (U.S.)) 105.53 1 (Finland) (rank) Resolving Insolvency 84.84 (Puerto Rico 18.80 (Venezuela, RB) 38.81 93.89 (Finland) (DTF Score) (U.S.)) Recovery rate (cents on 5.9 (Venezuela, RB) 70.5 (Puerto Rico (U.S.)) 31.0 92.9 (Norway) the dollar) Time (years) 5.3 (Ecuador) 1.1 (Jamaica) 2.9 0.4 (22 Economies*) Cost (% of estate) 38.0 (Venezuela, RB) 7.0 (Peru) 16.7 1.0 (22 Economies*) Strength of insolvency 4.0 (Guatemala) 15.0 (Puerto Rico (U.S.)) 7.1 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 LATIN AMERICA AND CARIBBEAN (LAC) 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 LATIN AMERICA AND CARIBBEAN (LAC) 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 LATIN AMERICA AND CARIBBEAN (LAC) 16 STARTING A BUSINESS Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in Latin starting a business suggest an answer (figure 2.1). The America and Caribbean (LAC) to start a business? The average ranking of the region and comparator regions global rankings of these economies on the ease of provide a useful benchmark. Figure 2.1 How economies in Latin America and Caribbean (LAC) rank on the ease of starting a business Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 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 Latin America and Caribbean (LAC) Procedures (number) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 18 STARTING A BUSINESS Time (days) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 19 STARTING A BUSINESS Cost (% of income per capita) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 20 STARTING A BUSINESS Paid-in minimum capital (% of income per capita) Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 21 STARTING A BUSINESS What are the changes over time? Economies around the world have taken steps making it and savings and more registered businesses, financial easier to start a business—streamlining procedures by resources and job opportunities. setting up a one-stop shop, making procedures simpler What business registration reforms has Doing Business or faster by introducing technology, and reducing or recorded in Latin America and Caribbean (LAC) (table eliminating minimum capital requirements. Many have 2.1)? undertaken business registration reforms in stages—and often as part of a larger regulatory reform program. Among the benefits have been greater firm satisfaction Table 2.1 How have economies in Latin America and Caribbean (LAC) made starting a business easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Antigua and Barbuda made trading across borders easier by DB2017 Antigua and Barbuda eliminating the tax compliance certificate required for import customs clearance. Bolivia made dealing with construction permits lengthier by DB2017 Bolivia implementing a new requirement to pay for the land registry certificate at the Judiciary Council. Bolivia made enforcing contracts easier by adopting a new DB2017 Bolivia code of civil procedure that introduces pre-trial conferences. Bolivia made starting a business easier by decreasing the time DB2017 Bolivia needed to register a company. The Bahamas made registering property easier by reducing DB2017 Bahamas, The the cost of transferring a property. The Bahamas made starting a business easier by allowing local limited liability companies to register online. On the DB2017 Bahamas, The other hand, The Bahamas made starting a business more costly by increasing the fees for registering a company name and incorporation. The Bahamas made paying taxes more complicated by DB2017 Bahamas, The introducing a value added tax. Ecuador adopted a new code of civil procedure that made enforcing contracts easier by introducing a pre-trial DB2017 Ecuador conference. The new code also made enforcing contracts more difficult by eliminating a dedicated procedure for the resolution of small claims. El Salvador made access to credit information more difficult DB2017 El Salvador by reducing the coverage of the credit bureau. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 22 DB year Economy Reform The Dominican Republic made getting an electricity DB2017 Dominican Republic connection faster by reducing the time required to approve electrical connection plans. Colombia made starting a business easier by streamlining DB2017 Colombia registration procedures. Ecuador made starting a business easier by eliminating the DB2017 Ecuador publication of company charters in local newspapers. El Salvador made paying taxes easier by encouraging the use DB2017 El Salvador of the electronic system for filing taxes. The Dominican Republic made paying taxes less costly by DB2017 Dominican Republic decreasing the corporate income tax rate. Guyana improved access to credit information by expanding DB2017 Guyana the coverage of the credit bureau. Guyana made registering property easier by increasing the DB2017 Guyana transparency of the Lands & Survey Commission. Jamaica made starting a business more difficult by removing DB2017 Jamaica the ability to complete next day company incorporation. Jamaica reduced the time of documentary compliance for DB2017 Jamaica exporting by implementing an automated customs data management system, ASYCUDA World. Grenada made trading across borders easier by streamlining DB2017 Grenada import document submission procedures, reducing the time required for documentary compliance. Honduras made trading across borders more difficult by DB2017 Honduras increasing the number of intrusive inspections for importing, which increased the border compliance time. Guatemala made paying taxes less costly by reducing the rate DB2017 Guatemala of corporate income tax. Jamaica made paying taxes less costly by increasing tax depreciation rates and the initial capital allowance for assets acquired on or after January 1, 2014. Furthermore, companies DB2017 Jamaica incorporated for less than 24 months are exempted from paying the minimum business tax. Jamaica also made paying taxes easier by implementing an electronic system for filing of corporate income tax, VAT and social contributions. Brazil made enforcing contracts easier through a new mediation law—that includes financial incentives for parties DB2017 Brazil to attempt mediation—and a new code of civil procedure. These reforms apply to both Rio de Janeiro and São Paulo. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 23 DB year Economy Reform Brazil expanded eligibility for unemployment benefits to DB2017 Brazil employees with one year of continuous work experience. This reform applies to both Rio de Janeiro and São Paulo. Paraguay reduced access to credit information by limiting the DB2017 Paraguay distribution of historical data on borrowers. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Saint Kitts and Nevis made it more difficult to transfer property due to work overload at the Supreme Court Registry DB2017 St. Kitts and Nevis while also reducing the stamp duty for transferring real estate. Brazil reduced the time needed to start a business by implementing an online portal for business licenses in Rio de DB2017 Brazil Janeiro. However, Brazil also made starting a business more difficult by shortening the opening hours of the business registry in Rio de Janeiro. Barbados made starting a business easier by reducing the DB2017 Barbados time to register a company. The República Bolivariana de Venezuela made starting a business more expensive by raising the value of the tributary DB2017 Venezuela, RB unit and lawyers’ fees. It also made the process more time consuming by limiting the work schedule of the public sector. Uruguay made starting a business more costly by increasing DB2017 Uruguay the value of the official fiscal unit used for the payment of government fees. Brazil made trading across borders easier by implementing an electronic system for importing, which reduced the time DB2017 Brazil required for documentary compliance. This reform applies to both Rio de Janeiro and São Paulo. Nicaragua made trading across borders more expensive by DB2017 Nicaragua introducing a new security fee, increasing the cost of border compliance for exporting and importing. Paraguay made trading across borders easier by introducing DB2017 Paraguay a single window for exporting, which reduced the time required of border and documentary compliance. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. Uruguay made paying taxes easier by introducing an DB2017 Uruguay electronic system for paying social security contributions. Online filing was already in place. Argentina made dealing with construction permits more DB2017 Argentina difficult by increasing municipal fees. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 24 DB year Economy Reform Argentina made trading across borders easier by introducing DB2017 Argentina a new licensing system for importing, which reduced the time required for documentary compliance. Argentina made paying taxes less costly by increasing the threshold for the 5% turnover tax. Argentina also made DB2017 Argentina paying taxes easier by introducing improvements to the online portal for filing taxes. Dominica made paying taxes less costly by reducing the DB2017 Dominica corporate income tax rate. Haiti made trading across borders easier by improving port infrastructure and improving the SYDONIA electronic data DB2017 Haiti interchange system by allowing the submission of supporting documents online. The utility made getting electricity more difficult by DB2017 St. Lucia introducing a requirement to obtain a current land registry extract to get a new connection. Puerto Rico made registering property easier by digitizing its DB2017 Puerto Rico (U.S.) land records, improving the quality of infrastructure and transparency of its land administration system. St. Lucia made exporting and importing easier by upgrading an electronic data interchange system and linking the DB2017 St. Lucia customs and port authorities through a common online platform. Puerto Rico (territory of the United States) made paying taxes DB2017 Puerto Rico (U.S.) less costly by abolishing gross receipts tax. However, the capital gains tax rate was increased. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Peru improved its credit information system by implementing DB2016 Peru a new law on personal data protection. Jamaica made dealing with construction permits easier by DB2016 Jamaica implementing a new workflow for processing building permit applications. Jamaica made resolving insolvency easier by introducing a reorganization procedure; introducing provisions to facilitate the continuation of the debtor’s business during insolvency DB2016 Jamaica proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency proceedings. Jamaica made paying taxes easier and less costly for companies by encouraging taxpayers to pay their taxes DB2016 Jamaica online, introducing an employment tax credit and increasing the depreciation rate for industrial buildings. At the same Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 25 DB year Economy Reform time, Jamaica introduced a minimum business tax, raised the contribution rate for the national insurance scheme paid by employers and increased the rates for stamp duty, the property tax, the property transfer tax and the education tax. Guatemala made paying taxes less costly for companies by DB2016 Guatemala reducing the corporate income tax rate. Honduras made paying taxes more costly for companies by DB2016 Honduras introducing an alternative minimum income tax. Honduras strengthened minority investor protections by introducing provisions requiring greater disclosure of related- party transactions, prohibiting interested parties from voting DB2016 Honduras on a related-party transaction, allowing shareholders representing at least 5% of a company’s share capital to bring a direct action for damages against its directors and giving any shareholder the right to inspect company documents. Jamaica made starting a business easier by streamlining DB2016 Jamaica internal procedures. Guatemala reduced the documentary and border compliance time for importing by making electronic submission of documents compulsory and eliminating the need for many DB2016 Guatemala hard-copy documents. Guyana improved access to credit information by establishing DB2016 Guyana a new credit bureau. Trinidad and Tobago made getting electricity more costly by DB2016 Trinidad and Tobago introducing a capital contribution toward connection costs. St. Vincent and the Grenadines made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s DB2016 St. Vincent and the Grenadines business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Barbados made paying taxes more costly for companies by DB2016 Barbados raising the ceiling for social security contributions and introducing a new municipal solid waste tax. Uruguay made paying taxes easier for companies by DB2016 Uruguay continually upgrading and improving the electronic system for filing and paying the major taxes. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be deductible. DB2016 Mexico These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 26 DB year Economy Reform Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Uruguay made registering property more difficult by requiring by law a certificate of connection of the property to DB2016 Uruguay the public sewage system to complete the process of transferring and registering property. Brazil made transferring property in São Paulo more DB2016 Brazil expensive by increasing the property transfer tax. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs. It also made starting a business more difficult by making the registration at the Venezuelan Social Security Institute (IVSS), the National DB2016 Venezuela, RB Bank for Housing and Habitat (BANAVIH) and the National Institute of Socialist Cooperation & Education (INCES) prerequisites for the Ministry of Labor (Minpptrass) registration. Uruguay made starting a business more difficult by increasing DB2016 Uruguay incorporation costs. Suriname reduced the time for documentary and border compliance for exporting and importing by implementing an DB2016 Suriname automated customs data management system, ASYCUDA (Automated System for Customs Data) World. Brazil reduced the time for documentary and border compliance for exporting by implementing the electronic SISCOMEX Portal system. This reform applies to both Rio de DB2016 Brazil Janeiro and São Paulo. El Salvador improved access to credit by adopting the Law on Movable Property, which established a modern, centralized, DB2016 El Salvador notice-based collateral registry and allows a general description of a single category of assets granted as collateral. Costa Rica improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a modern, centralized, notice-based DB2016 Costa Rica collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and allows out-of-court enforcement of collateral. The Bahamas made paying taxes less costly for companies by DB2016 Bahamas, The reducing the business license tax—though it also raised the wage ceiling used in calculating social security contributions. The Bahamas made starting a business more difficult by DB2016 Bahamas, The adding a requirement for value added tax (VAT) registration. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 27 DB year Economy Reform The Bahamas made trading across borders easier by fully implementing an electronic data interchange system, which DB2016 Bahamas, The reduced the time for preparation and submission of trade documents for both exporting and importing. The utility in Costa Rica made getting electricity easier by reducing the time required for preparing the design of the DB2016 Costa Rica external connection works and for installing the meter and initiating the electricity supply. Colombia made paying taxes less costly for companies by DB2016 Colombia reducing the payroll tax rate and introducing exemptions for health care contributions paid by employers. Costa Rica made paying taxes easier for companies by DB2016 Costa Rica promoting the use of its electronic filing and payment system for corporate income tax and general sales tax. Ecuador made starting a business easier by simplifying the DB2016 Ecuador registration process and by eliminating the need to deposit 50% of the minimum capital in a special account. DB2016 Ecuador Ecuador eliminated fixed-term contracts for permanent tasks. El Salvador increased the border compliance time for DB2016 El Salvador exporting and importing by adding an extra, nonintrusive inspection at the Anguiatú border crossing with Guatemala. Colombia improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a centralized, notice-based collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets DB2015 Colombia granted as collateral, establishes clear priority rules inside bankruptcy for secured creditors, sets out grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures and allows out-of-court enforcement of collateral. The Dominican Republic improved its credit information system by enacting a new law regulating the protection of DB2015 Dominican Republic personal data and the operation of credit reporting institutions. Costa Rica reduced the time required for getting electricity by DB2015 Costa Rica improving the coordination between different departments at the utility. The Dominican Republic made dealing with construction DB2015 Dominican Republic permits more costly by increasing the building permit fees. Costa Rica made paying taxes easier for companies by DB2015 Costa Rica implementing an electronic system for filing corporate income tax and VAT. Colombia made paying taxes more complicated for DB2015 Colombia companies by introducing a new profit tax (CREE), though it Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 28 DB year Economy Reform also reduced the corporate income tax rate and payroll taxes. The Dominican Republic strengthened minority investor DB2015 Dominican Republic protections by introducing greater shareholder rights and requirements for greater corporate transparency. Ecuador strengthened minority investor protections by introducing greater requirements for disclosure of related- DB2015 Ecuador party transactions as well as a requirement that a potential acquirer make a tender offer to all shareholders upon acquiring voting shares. Colombia made transferring property easier by eliminating DB2015 Colombia the need for a provisional registration. The Dominican Republic made trading across borders easier DB2015 Dominican Republic by reducing the number of documents required for exports and imports. Ecuador made trading across borders easier by introducing a DB2015 Ecuador new electronic data interchange system called ECUAPASS. Bolivia made trading across borders more difficult by DB2015 Bolivia increasing customs clearance time. The Bahamas made dealing with construction permits more DB2015 Bahamas, The costly by increasing the building permit fees. The Bahamas made enforcing contracts easier by introducing new rules of civil procedure focused on streamlining and DB2015 Bahamas, The simplifying court proceedings and ensuring less costly resolution of disputes. Nicaragua improved access to credit information by starting DB2015 Nicaragua to provide credit scores to banks and financial institutions. Panama improved access to credit through a new law broadening the range of assets that can be used as collateral, DB2015 Panama allowing a general description of assets granted as collateral and allowing out-of-court enforcement of collateral. Trinidad and Tobago improved access to credit by adopting the Bankruptcy and Insolvency Act, which establishes clear DB2015 Trinidad and Tobago grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures as well as a time limit for the stay. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made dealing with construction permits DB2015 St. Kitts and Nevis more costly by increasing the building permit fees. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 29 DB year Economy Reform Uruguay made enforcing contracts easier by simplifying and DB2015 Uruguay speeding up the proceedings for commercial disputes. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s business during DB2015 St. Kitts and Nevis insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Trinidad and Tobago made resolving insolvency easier by introducing a formal mechanism for rehabilitation, DB2015 Trinidad and Tobago establishing a public office responsible for the general administration of insolvency proceedings and clarifying the rules on appointment of trustees. St. Kitts and Nevis made paying taxes less costly for DB2015 St. Kitts and Nevis companies by reducing the corporate income tax rate. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs and by DB2015 Venezuela, RB requiring companies to register within the Superintendence for Socioeconomic Rights (SUNDEE). Trinidad and Tobago made starting a business easier by DB2015 Trinidad and Tobago introducing online systems for employer registration and tax registration. Suriname made starting a business easier by introducing an DB2015 Suriname online system for obtaining trade licenses. Nicaragua made starting a business easier by combining DB2015 Nicaragua multiple registration procedures. Uruguay made trading across borders easier by implementing DB2015 Uruguay a risk-based inspection system that reduced customs clearance time for both exports and imports. Jamaica improved access to credit by establishing credit bureaus and by adopting a new secured transactions law that implements a functional secured transactions system, DB2015 Jamaica broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and establishes a modern, notice-based collateral registry. Jamaica made getting electricity less expensive by reducing DB2015 Jamaica the cost of external connection works. DB2015 Honduras Honduras made dealing with construction permits more Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 30 DB year Economy Reform costly by increasing the building permit fees. Jamaica made paying taxes more costly for companies by DB2015 Jamaica introducing a new minimum business tax. Guatemala made paying taxes easier and less costly for companies by enhancing the electronic system for filing and paying corporate income tax and VAT and by reducing the DB2015 Guatemala capital gains and corporate income tax rates. On the other hand, it also made paying taxes more complicated by introducing a new form for capital gains tax. Guatemala made starting a business easier by eliminating DB2015 Guatemala certain registration fees and reducing the time to publish a notice of incorporation. Honduras made starting a business easier by eliminating the DB2015 Honduras paid-in minimum capital requirement. Jamaica made starting a business easier by consolidating forms, but also made it more time-consuming as a result of DB2015 Jamaica delays in the implementation of the electronic interface with different agencies. Argentina made dealing with construction permits more DB2015 Argentina costly by increasing several fees. Puerto Rico (territory of the United States) made dealing with construction permits easier by introducing the option of DB2015 Puerto Rico (U.S.) hiring authorized private professionals to carry out the fire safety recommendations and issue the fire safety and environmental health certificates. St. Lucia made trading across borders easier by implementing the ASYCUDA World electronic system for the submission of DB2015 St. Lucia export and import documents and by reducing the number of export documents required. St. Lucia made trading across borders more difficult by DB2014 St. Lucia introducing a new export document. Argentina reduced the number of documents necessary for DB2014 Argentina importing by eliminating nonautomatic license requirements. Argentina made starting a business more difficult by DB2014 Argentina increasing the incorporation costs. Jamaica improved its credit information system by creating a DB2014 Jamaica legal and regulatory framework for private credit bureaus. Nicaragua reduced the time required for getting electricity by increasing efficiency in granting approval of the connection DB2014 Nicaragua design and by informing the customer in advance what the amount of the security deposit will be. Mexico made getting electricity easier by increasing the DB2014 Mexico efficiency of the utility’s internal processes and by enforcing a “silence is consent” rule for the approval of the feasibility Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 31 DB year Economy Reform study for a new connection. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. Panama made paying taxes easier for companies by changing the payment frequency for corporate income taxes from DB2014 Panama monthly to quarterly and by implementing a new online platform for filing the social security payroll. Paraguay made paying taxes easier for companies by making DB2014 Paraguay electronic filing and payment mandatory for corporate income and value added taxes. Panama strengthened investor protections by increasing the DB2014 Panama disclosure requirements for publicly held companies. Panama made transferring property easier by connecting the DB2014 Panama land registry with the cadastre. Suriname made transferring property easier by increasing DB2014 Suriname administrative efficiency at the land registry. República Bolivariana de Venezuela made starting a business DB2014 Venezuela, RB more costly by increasing the company registration fees. Suriname made starting a business easier by reducing the DB2014 Suriname time required to obtain the president’s approval for the registration of a new company. Trinidad and Tobago made starting a business easier by DB2014 Trinidad and Tobago merging the statutory declaration of compliance into the standard articles of incorporation form. Nicaragua made starting a business easier by merging the procedures for registering with the revenue authority and DB2014 Nicaragua with the municipality and by reducing the time required for incorporation. Panama made starting a business easier by eliminating the DB2014 Panama need to visit the municipality to obtain the municipal taxpayer number. Uruguay made trading across borders easier by implementing DB2014 Uruguay an electronic customs declaration system. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. República Bolivariana de Venezuela improved access to credit DB2014 Venezuela, RB information by starting to collect data on firms from financial institutions. Guatemala made dealing with construction permits easier by streamlining procedures through the creation of a one-stop DB2014 Guatemala shop, backed by agreements between institutions and agencies involved in the permitting process. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 32 DB year Economy Reform Jamaica made paying taxes less costly for companies by DB2014 Jamaica reducing the corporate income tax rate—though it also increased vehicle and asset taxes. Guatemala made paying taxes easier for companies by DB2014 Guatemala introducing a new electronic filing and payment system. Guyana made paying taxes easier for companies by reducing DB2014 Guyana the corporate income tax rate. Jamaica made transferring property more difficult by DB2014 Jamaica increasing the transfer tax and the stamp duty. Jamaica made starting a business easier by enabling the DB2014 Jamaica Companies Office of Jamaica to stamp the new company’s articles of incorporation at registration. Guatemala made starting a business easier by creating an DB2014 Guatemala online platform that allows simultaneous registration of a new company with different government agencies.. The Bahamas enhanced its insolvency process by implementing rules for the remuneration of liquidators, DB2014 Bahamas, The allowing voluntary liquidations and outlining clawback provisions for suspect transactions. The Bahamas made transferring property easier by reducing DB2014 Bahamas, The the stamp duty. Colombia made getting electricity easier by opening a one- DB2014 Colombia stop shop for electricity connections and improving the efficiency of the utility’s internal processes. Ecuador made getting electricity easier by dividing the city of Quito into zones for the purpose of DB2014 Ecuador handling applications for new connections—a changethat improved the utility’s customer service—and by reducing the fees to obtain a connection. Costa Rica made dealing with construction permits easier by eliminating procedures, improving efficiency DB2014 Costa Rica and launching an online platform that streamlined the building permit process by integrating different agencies’ approval processes. Colombia made enforcing contracts easier by simplifying and DB2014 Colombia speeding up the proceedings for commercial disputes. El Salvador made paying taxes more costly for companies by DB2014 El Salvador increasing the corporate income tax rate. Costa Rica made starting a business easier by creating an online platform for business registration, eliminating the DB2014 Costa Rica requirement to have accounting books legalized and simplifying the legalization of company books. DB2014 El Salvador El Salvador made trading across borders easier by developing Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 33 DB year Economy Reform a one-stop shop for exporting and by implementing electronic data interchange systems. Antigua and Barbuda made trading across borders more DB2013 Antigua and Barbuda difficult by increasing the number of documents required to import. In Ecuador property transfers became more time consuming DB2013 Ecuador as a result of implementation problems in transferring authority over property records to the municipality of Quito. El Salvador improved access to credit information through a DB2013 El Salvador new law regulating the management of personal credit information. Costa Rica improved access to credit information by DB2013 Costa Rica guaranteeing borrowers’ right to inspect their personal data. The Dominican Republic increased the corporate income tax DB2013 Dominican Republic rate. DB2013 El Salvador El Salvador introduced an alternative minimum tax. Costa Rica made paying taxes easier for companies by DB2013 Costa Rica implementing electronic payment for municipal taxes — though it also introduced a registration flat tax. Colombia made starting a business easier by eliminating the DB2013 Colombia requirement to purchase and register accounting books at the time of incorporation. Costa Rica made starting a business easier by streamlining DB2013 Costa Rica the process of obtaining a sanitary permit from the authorities for low-risk activities. Costa Rica streamlined the process for obtaining construction DB2013 Costa Rica permits by implementing online approval systems. Grenada reduced the time to export and import by DB2013 Grenada implementing the ASYCUDA World electronic data interchange system. Jamaica reduced the time to import by allowing customs DB2013 Jamaica entries to be lodged at night. Guatemala made dealing with construction permits easier by DB2013 Guatemala introducing a risk-based approval system Jamaica made paying taxes easier for companies by allowing DB2013 Jamaica joint filing and payment of all social security contributions. Belize reduced the time to export and import by DB2013 Belize implementing the ASYCUDA World electronic data interchange system. Argentina increased the time, cost and number of documents needed to import by expanding the list of products requiring DB2013 Argentina nonautomatic licenses and introducing new preapproval procedures for all imports. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 34 DB year Economy Reform Brazil made enforcing contracts easier by implementing an DB2013 Brazil electronic system for filing initial complaints at the São Paulo civil district court. In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training DB2013 Mexico opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials. Uruguay made paying taxes easier for small and medium-size companies by fully implementing an online filing and DB2013 Uruguay payment system for capital, value added and corporate income taxes and by improving the online facilities for social security contributions. República Bolivariana de Venezuela made paying taxes more DB2013 Venezuela, RB costly and difficult for companies by introducing a sports, physical activities and physical education tax. Panama made paying taxes easier for companies by enhancing the electronic filing system for value added tax DB2013 Panama and simplifying tax return forms for corporate income tax— though it also began requiring companies to pay corporate income tax monthly rather than quarterly. Uruguay reduced the time to import by improving port DB2013 Uruguay efficiency and introducing electronic payment and predeclaration systems for customs. St. Kitts and Nevis made it more expensive to export by DB2013 St. Kitts and Nevis increasing the cost of operations at the port of Basseterre. Suriname increased the time to export by involving more DB2013 Suriname customs departments in clearing exports. Trinidad and Tobago reduced the time to export and import by launching the ASYCUDA World electronic data interchange DB2013 Trinidad and Tobago system and simplifying the process for obtaining a certificate of origin. República Bolivariana de Venezuela made starting a business DB2013 Venezuela, RB more difficult by increasing the cost of company incorporation. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Panama made dealing with construction permits easier by reducing the fees for a permit from the fire department’s DB2013 Panama safety office and by accelerating the process at the building registry for obtaining a certificate of good standing and for registering the new building. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 35 DB year Economy Reform República Bolivariana de Venezuela introduced a new Labor DB2013 Venezuela, RB Code that prohibits redundancy dismissals. Brazil increased the notice period applicable in cases of DB2013 Brazil redundancy dismissal of employees. Brazil made transferring property more difficult by DB2013 Brazil introducing a new certificate on good standing on labor debts, adding to the number of due diligence procedures. In Trinidad and Tobago property transfers became faster DB2013 Trinidad and Tobago thanks to speedier issuance of clearance certificates by the Water and Sewerage Authority. Panama made property transfers faster by increasing working DB2013 Panama hours at the registry and reorganizing the caseload of its staff. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Dominica reduced the time to import by implementing the DB2013 Dominica ASYCUDA World electronic data interchange system. Puerto Rico (territory of the United States) made paying taxes easier and less costly for companies by introducing a new DB2013 Puerto Rico (U.S.) Internal Revenue Code and tax codification and by reducing the effective corporate income tax rate. Haiti made dealing with construction permits costlier by DB2012 Haiti increasing the fees to obtain a building permit. Puerto Rico (territory of the United States) made starting a DB2012 Puerto Rico (U.S.) business easier by merging the name search and company registration procedures. Puerto Rico (territory of the United States) made dealing with DB2012 Puerto Rico (U.S.) construction permits easier by creating the Office of Permits Management to streamline procedures. St. Kitts and Nevis made paying taxes easier by introducing a DB2012 St. Kitts and Nevis value added tax. Nicaragua made paying taxes easier for companies by DB2012 Nicaragua promoting electronic filing and payment of the major taxes, an option now used by the majority of taxpayers. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Paraguay made paying taxes more burdensome for DB2012 Paraguay companies by introducing new tax declarations that must be filed monthly. República Bolivariana de Venezuela made paying taxes DB2012 Venezuela, RB costlier for firms by doubling the municipal economic Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 36 DB year Economy Reform activities tax (sales tax). Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Paraguay improved its credit information system by DB2012 Paraguay establishing an online platform for financial institutions to exchange information with the public credit registry. Uruguay improved its credit information system by DB2012 Uruguay introducing a new online platform allowing access to credit reports for financial institutions, public utilities and borrowers. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Brazil improved its credit information system by allowing DB2012 Brazil private credit bureaus to collect and share positive information. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Guyana eased the process of starting a business by reducing DB2012 Guyana the time needed for registering a new company and for obtaining a tax identification number. Honduras made trading across borders faster by DB2012 Honduras implementing a web-based electronic data interchange system and X-ray machines at the port of Puerto Cortes. Uruguay made starting a business easier by establishing a DB2012 Uruguay one-stop shop for general commercial companies. Panama extended the operating hours of the public registry, DB2012 Panama reducing the time required to register a new company. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Nicaragua raised the monetary threshold for commercial claims that can be brought to the Managua local civil court, DB2012 Nicaragua leaving lower-value claims in the local courts, where proceedings are simpler and faster. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Trinidad and Tobago made dealing with construction permits DB2012 Trinidad and Tobago costlier by increasing the fees for building permit approvals. Paraguay made dealing with construction permits easier by DB2012 Paraguay implementing a risk-based approval system and a single Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 37 DB year Economy Reform window for obtaining construction permits. Nicaragua made transferring property more efficient by DB2012 Nicaragua introducing a fast-track procedure for registration. Argentina made transferring property more difficult by DB2012 Argentina adding a requirement that the notary obtain the tax agency’s reference value for property before notarizing the sale deed. Honduras strengthened its secured transactions system through a new decree establishing a centralized and DB2012 Honduras computerized collateral registry and providing for out-of- court enforcement of collateral upon default. Honduras made paying taxes costlier for firms by raising the DB2012 Honduras solidarity tax rate. In Guyana transferring property became slower because of a DB2012 Guyana lack of personnel at the deed registry. Honduras adopted a new civil procedure code that modified DB2012 Honduras litigation procedures for enforcing a contract. Guyana made getting electricity more expensive by tripling DB2012 Guyana the security deposit required for a new connection. Costa Rica made transferring property easier and quicker by DB2012 Costa Rica making property certificates available online through a single website. The Dominican Republic made starting a business easier by DB2012 Dominican Republic eliminating the requirement for a proof of deposit of capital when establishing a new company. Colombia reduced the costs associated with starting a DB2012 Colombia business, by no longer requiring upfront payment of the commercial license fee. Belize introduced the requirements to notify third parties in DB2012 Belize cases of redundancy dismissals. Belize made paying taxes easier for firms by improving DB2012 Belize electronic filing and payment for social security contributions, an option now used by the majority of taxpayers. DB2012 Bolivia Bolivia raised social security contribution rates for employers. Colombia amended regulations governing insolvency DB2012 Colombia proceedings to simplify the proceedings and reduce their time and cost El Salvador strengthened investor protections by allowing DB2012 El Salvador greater access to corporate information during the trial. Colombia eased the administrative burden of paying taxes for DB2012 Colombia firms by establishing mandatory electronic filing and payment for some of the major taxes. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 38 DB year Economy Reform In Costa Rica online payment of social security contributions DB2012 Costa Rica is now widespread and used by the majority of taxpayers. The Bahamas made transferring property more costly by DB2012 Bahamas, The increasing the applicable stamp duty fees. In Antigua and Barbuda, to transfer property now requires DB2011 Antigua and Barbuda clearance by the chief surveyor to avoid mischievous declarations. Colombia eased the process of Starting a Business by DB2011 Colombia reducing the number of days to register with the Social Security System. The Dominican Republic made it more difficult to start a business by setting a minimum capital requirement of DB2011 Dominican Republic 100,000 Dominican pesos ($2,855) for its new type of company, sociedad de responsabilidad limitada (limited liability company). Ecuador made starting a business easier by introducing an DB2011 Ecuador online registration system for social security. Colombia eased construction permitting by improving the DB2011 Colombia electronic verification of prebuilding certificates. Guyana enhanced access to credit by establishing a regulatory framework that allows the licensing of private DB2011 Guyana credit bureaus and gives borrowers the right to inspect their data. Jamaica eased the transfer of property by lowering transfer taxes and fees, offering expedited registration procedures DB2011 Jamaica and making information from the company registrar available online. The appointment of a registrar focusing only on property cut DB2011 Grenada the time needed to transfer property in Grenada by almost half. Grenada’s customs administration made trading faster by DB2011 Grenada simplifying procedures, reducing inspections, improving staff training and enhancing communication with users. Guyana improved its risk profiling system for customs DB2011 Guyana inspection, reducing physical inspections of shipments and the time to trade. Guyana eased business start-up by digitizing company DB2011 Guyana records, which speeded up the process of company name search and reservation. Grenada eased business start-up by transferring responsibility DB2011 Grenada for the commercial registry from the courts to the civil administration. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 39 DB year Economy Reform and payment deferrals. Nicaragua expedited trade by migrating to a new electronic data interchange system for customs, setting up a physical DB2011 Nicaragua one-stop shop for exports and investing in new equipment at the port of Corinto. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Panama eased business start-up by increasing efficiency at DB2011 Panama the registrar. República Bolivariana de Venezuela made starting a business DB2011 Venezuela, RB more difficult by introducing a new procedure for registering a company. Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Brazil eased business start-up by further enhancing the DB2011 Brazil electronic synchronization between federal and state tax authorities. In Uruguay the Municipality of Montevideo made registering DB2011 Uruguay property easier by eliminating the need to obtain a mandatory waiver for preemption rights. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Panama made it more expensive to transfer property by DB2011 Panama requiring that an amount equal to 3% of the property value be paid upon registration. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Paraguay made dealing with construction permits easier by DB2011 Paraguay creating a new administrative structure and a better tracking system in the municipality of Asunción. República Bolivariana de Venezuela improved access to credit DB2011 Venezuela, RB information by creating a private credit bureau. Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. República Bolivariana de Venezuela abolished the tax on DB2011 Venezuela, RB financial transactions. Panama reduced the corporate income tax rate, modified DB2011 Panama various taxes and created a new tax court of appeals. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 40 DB year Economy Reform Nicaragua increased taxes on firms by raising social security contribution rates and introducing a 10% withholding tax on DB2011 Nicaragua the gross interest accrued from deposits. It also improved electronic payment of taxes through bank transfer. Puerto Rico made paying taxes more costly for business by DB2011 Puerto Rico (U.S.) introducing a special surtax of 5% on the tax liability in addition to the normal corporate income tax. Haiti eased business start-up by eliminating the review by the DB2011 Haiti president’s or the prime minister’s office of the incorporation act submitted for publication. 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 LATIN AMERICA AND CARIBBEAN (LAC) 41 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 LATIN AMERICA AND CARIBBEAN (LAC) 42 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 LATIN AMERICA AND CARIBBEAN (LAC) 43 DEALING WITH CONSTRUCTION PERMITS Where do the region’s economies stand today? How easy it is for entrepreneurs in economies in Latin the ease of dealing with construction permits suggest an America and Caribbean (LAC) to legally build a answer (figure 3.1). The average ranking of the region warehouse? The global rankings of these economies on and comparator regions provide a useful benchmark. Figure 3.1 How economies in Latin America and Caribbean (LAC) rank on the ease of dealing with construction permits Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 44 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 Latin America and Caribbean (LAC) Procedures (number) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 45 DEALING WITH CONSTRUCTION PERMITS Time (days) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 46 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 LATIN AMERICA AND CARIBBEAN (LAC) 47 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 LATIN AMERICA AND CARIBBEAN (LAC) 48 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 Latin America and Caribbean where safety is at stake. Construction is one of them. In (LAC) (table 3.1)? an effort to ensure building safety while keeping Table 3.1 How have economies in Latin America and Caribbean (LAC) made dealing with construction permits easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Antigua and Barbuda made trading across borders easier by DB2017 Antigua and Barbuda eliminating the tax compliance certificate required for import customs clearance. Bolivia made dealing with construction permits lengthier by DB2017 Bolivia implementing a new requirement to pay for the land registry certificate at the Judiciary Council. Bolivia made enforcing contracts easier by adopting a new DB2017 Bolivia code of civil procedure that introduces pre-trial conferences. Bolivia made starting a business easier by decreasing the DB2017 Bolivia time needed to register a company. The Bahamas made registering property easier by reducing DB2017 Bahamas, The the cost of transferring a property. The Bahamas made starting a business easier by allowing local limited liability companies to register online. On the DB2017 Bahamas, The other hand, The Bahamas made starting a business more costly by increasing the fees for registering a company name and incorporation. The Bahamas made paying taxes more complicated by DB2017 Bahamas, The introducing a value added tax. Ecuador adopted a new code of civil procedure that made enforcing contracts easier by introducing a pre-trial DB2017 Ecuador conference. The new code also made enforcing contracts more difficult by eliminating a dedicated procedure for the resolution of small claims. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 49 DB year Economy Reform El Salvador made access to credit information more difficult DB2017 El Salvador by reducing the coverage of the credit bureau. The Dominican Republic made getting an electricity DB2017 Dominican Republic connection faster by reducing the time required to approve electrical connection plans. Colombia made starting a business easier by streamlining DB2017 Colombia registration procedures. Ecuador made starting a business easier by eliminating the DB2017 Ecuador publication of company charters in local newspapers. El Salvador made paying taxes easier by encouraging the use DB2017 El Salvador of the electronic system for filing taxes. The Dominican Republic made paying taxes less costly by DB2017 Dominican Republic decreasing the corporate income tax rate. Guyana improved access to credit information by expanding DB2017 Guyana the coverage of the credit bureau. Guyana made registering property easier by increasing the DB2017 Guyana transparency of the Lands & Survey Commission. Jamaica made starting a business more difficult by removing DB2017 Jamaica the ability to complete next day company incorporation. Jamaica reduced the time of documentary compliance for DB2017 Jamaica exporting by implementing an automated customs data management system, ASYCUDA World. Grenada made trading across borders easier by streamlining DB2017 Grenada import document submission procedures, reducing the time required for documentary compliance. Honduras made trading across borders more difficult by DB2017 Honduras increasing the number of intrusive inspections for importing, which increased the border compliance time. Guatemala made paying taxes less costly by reducing the DB2017 Guatemala rate of corporate income tax. Jamaica made paying taxes less costly by increasing tax DB2017 Jamaica depreciation rates and the initial capital allowance for assets acquired on or after January 1, 2014. Furthermore, companies incorporated for less than 24 months are Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 50 DB year Economy Reform exempted from paying the minimum business tax. Jamaica also made paying taxes easier by implementing an electronic system for filing of corporate income tax, VAT and social contributions. Brazil made enforcing contracts easier through a new mediation law—that includes financial incentives for parties DB2017 Brazil to attempt mediation—and a new code of civil procedure. These reforms apply to both Rio de Janeiro and São Paulo. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. Brazil expanded eligibility for unemployment benefits to DB2017 Brazil employees with one year of continuous work experience. This reform applies to both Rio de Janeiro and São Paulo. Paraguay reduced access to credit information by limiting DB2017 Paraguay the distribution of historical data on borrowers. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Saint Kitts and Nevis made it more difficult to transfer property due to work overload at the Supreme Court DB2017 St. Kitts and Nevis Registry while also reducing the stamp duty for transferring real estate. Brazil reduced the time needed to start a business by implementing an online portal for business licenses in Rio de DB2017 Brazil Janeiro. However, Brazil also made starting a business more difficult by shortening the opening hours of the business registry in Rio de Janeiro. Barbados made starting a business easier by reducing the DB2017 Barbados time to register a company. The República Bolivariana de Venezuela made starting a business more expensive by raising the value of the tributary DB2017 Venezuela, RB unit and lawyers’ fees. It also made the process more time consuming by limiting the work schedule of the public sector. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 51 DB year Economy Reform Uruguay made starting a business more costly by increasing DB2017 Uruguay the value of the official fiscal unit used for the payment of government fees. Brazil made trading across borders easier by implementing an electronic system for importing, which reduced the time DB2017 Brazil required for documentary compliance. This reform applies to both Rio de Janeiro and São Paulo. Nicaragua made trading across borders more expensive by DB2017 Nicaragua introducing a new security fee, increasing the cost of border compliance for exporting and importing. Paraguay made trading across borders easier by introducing DB2017 Paraguay a single window for exporting, which reduced the time required of border and documentary compliance. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. Uruguay made paying taxes easier by introducing an DB2017 Uruguay electronic system for paying social security contributions. Online filing was already in place. Argentina made dealing with construction permits more DB2017 Argentina difficult by increasing municipal fees. Argentina made trading across borders easier by introducing DB2017 Argentina a new licensing system for importing, which reduced the time required for documentary compliance. Argentina made paying taxes less costly by increasing the threshold for the 5% turnover tax. Argentina also made DB2017 Argentina paying taxes easier by introducing improvements to the online portal for filing taxes. Dominica made paying taxes less costly by reducing the DB2017 Dominica corporate income tax rate. Haiti made trading across borders easier by improving port infrastructure and improving the SYDONIA electronic data DB2017 Haiti interchange system by allowing the submission of supporting documents online. The utility made getting electricity more difficult by DB2017 St. Lucia introducing a requirement to obtain a current land registry extract to get a new connection. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 52 DB year Economy Reform Puerto Rico made registering property easier by digitizing its DB2017 Puerto Rico (U.S.) land records, improving the quality of infrastructure and transparency of its land administration system. St. Lucia made exporting and importing easier by upgrading an electronic data interchange system and linking the DB2017 St. Lucia customs and port authorities through a common online platform. Puerto Rico (territory of the United States) made paying DB2017 Puerto Rico (U.S.) taxes less costly by abolishing gross receipts tax. However, the capital gains tax rate was increased. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Peru improved its credit information system by DB2016 Peru implementing a new law on personal data protection. Jamaica made dealing with construction permits easier by DB2016 Jamaica implementing a new workflow for processing building permit applications. Jamaica made resolving insolvency easier by introducing a reorganization procedure; introducing provisions to facilitate the continuation of the debtor’s business during insolvency DB2016 Jamaica proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency proceedings. Jamaica made paying taxes easier and less costly for companies by encouraging taxpayers to pay their taxes online, introducing an employment tax credit and increasing the depreciation rate for industrial buildings. At the same DB2016 Jamaica time, Jamaica introduced a minimum business tax, raised the contribution rate for the national insurance scheme paid by employers and increased the rates for stamp duty, the property tax, the property transfer tax and the education tax. Guatemala made paying taxes less costly for companies by DB2016 Guatemala reducing the corporate income tax rate. Honduras made paying taxes more costly for companies by DB2016 Honduras introducing an alternative minimum income tax. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 53 DB year Economy Reform Honduras strengthened minority investor protections by introducing provisions requiring greater disclosure of related-party transactions, prohibiting interested parties from voting on a related-party transaction, allowing DB2016 Honduras shareholders representing at least 5% of a company’s share capital to bring a direct action for damages against its directors and giving any shareholder the right to inspect company documents. Jamaica made starting a business easier by streamlining DB2016 Jamaica internal procedures. Guatemala reduced the documentary and border compliance time for importing by making electronic submission of documents compulsory and eliminating the need for many DB2016 Guatemala hard-copy documents. Guyana improved access to credit information by DB2016 Guyana establishing a new credit bureau. Trinidad and Tobago made getting electricity more costly by DB2016 Trinidad and Tobago introducing a capital contribution toward connection costs. St. Vincent and the Grenadines made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s DB2016 St. Vincent and the Grenadines business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Barbados made paying taxes more costly for companies by DB2016 Barbados raising the ceiling for social security contributions and introducing a new municipal solid waste tax. Uruguay made paying taxes easier for companies by DB2016 Uruguay continually upgrading and improving the electronic system for filing and paying the major taxes. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be DB2016 Mexico deductible. These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 54 DB year Economy Reform Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Uruguay made registering property more difficult by requiring by law a certificate of connection of the property DB2016 Uruguay to the public sewage system to complete the process of transferring and registering property. Brazil made transferring property in São Paulo more DB2016 Brazil expensive by increasing the property transfer tax. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs. It also made starting a business more difficult by making the registration at the Venezuelan Social Security Institute (IVSS), the DB2016 Venezuela, RB National Bank for Housing and Habitat (BANAVIH) and the National Institute of Socialist Cooperation & Education (INCES) prerequisites for the Ministry of Labor (Minpptrass) registration. Uruguay made starting a business more difficult by DB2016 Uruguay increasing incorporation costs. Suriname reduced the time for documentary and border compliance for exporting and importing by implementing an DB2016 Suriname automated customs data management system, ASYCUDA (Automated System for Customs Data) World. Brazil reduced the time for documentary and border compliance for exporting by implementing the electronic SISCOMEX Portal system. This reform applies to both Rio de DB2016 Brazil Janeiro and São Paulo. El Salvador improved access to credit by adopting the Law on Movable Property, which established a modern, DB2016 El Salvador centralized, notice-based collateral registry and allows a general description of a single category of assets granted as collateral. Costa Rica improved access to credit by adopting a new DB2016 Costa Rica secured transactions law that establishes a functional secured transactions system and a modern, centralized, notice-based collateral registry. The law broadens the range Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 55 DB year Economy Reform of assets that can be used as collateral, allows a general description of assets granted as collateral and allows out-of- court enforcement of collateral. The Bahamas made paying taxes less costly for companies by reducing the business license tax—though it also raised DB2016 Bahamas, The the wage ceiling used in calculating social security contributions. The Bahamas made starting a business more difficult by DB2016 Bahamas, The adding a requirement for value added tax (VAT) registration. The Bahamas made trading across borders easier by fully implementing an electronic data interchange system, which DB2016 Bahamas, The reduced the time for preparation and submission of trade documents for both exporting and importing. The utility in Costa Rica made getting electricity easier by reducing the time required for preparing the design of the DB2016 Costa Rica external connection works and for installing the meter and initiating the electricity supply. Colombia made paying taxes less costly for companies by DB2016 Colombia reducing the payroll tax rate and introducing exemptions for health care contributions paid by employers. Costa Rica made paying taxes easier for companies by DB2016 Costa Rica promoting the use of its electronic filing and payment system for corporate income tax and general sales tax. Ecuador made starting a business easier by simplifying the DB2016 Ecuador registration process and by eliminating the need to deposit 50% of the minimum capital in a special account. Ecuador eliminated fixed-term contracts for permanent DB2016 Ecuador tasks. El Salvador increased the border compliance time for DB2016 El Salvador exporting and importing by adding an extra, nonintrusive inspection at the Anguiatú border crossing with Guatemala. Colombia improved access to credit by adopting a new secured transactions law that establishes a functional DB2015 Colombia secured transactions system and a centralized, notice-based collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral, establishes clear priority rules Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 56 DB year Economy Reform inside bankruptcy for secured creditors, sets out grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures and allows out- of-court enforcement of collateral. The Dominican Republic improved its credit information system by enacting a new law regulating the protection of DB2015 Dominican Republic personal data and the operation of credit reporting institutions. Costa Rica reduced the time required for getting electricity DB2015 Costa Rica by improving the coordination between different departments at the utility. The Dominican Republic made dealing with construction DB2015 Dominican Republic permits more costly by increasing the building permit fees. Costa Rica made paying taxes easier for companies by DB2015 Costa Rica implementing an electronic system for filing corporate income tax and VAT. Colombia made paying taxes more complicated for DB2015 Colombia companies by introducing a new profit tax (CREE), though it also reduced the corporate income tax rate and payroll taxes. The Dominican Republic strengthened minority investor DB2015 Dominican Republic protections by introducing greater shareholder rights and requirements for greater corporate transparency. Ecuador strengthened minority investor protections by introducing greater requirements for disclosure of related- DB2015 Ecuador party transactions as well as a requirement that a potential acquirer make a tender offer to all shareholders upon acquiring voting shares. Colombia made transferring property easier by eliminating DB2015 Colombia the need for a provisional registration. The Dominican Republic made trading across borders easier DB2015 Dominican Republic by reducing the number of documents required for exports and imports. Ecuador made trading across borders easier by introducing a DB2015 Ecuador new electronic data interchange system called ECUAPASS. Bolivia made trading across borders more difficult by DB2015 Bolivia increasing customs clearance time. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 57 DB year Economy Reform The Bahamas made dealing with construction permits more DB2015 Bahamas, The costly by increasing the building permit fees. The Bahamas made enforcing contracts easier by introducing new rules of civil procedure focused on streamlining and DB2015 Bahamas, The simplifying court proceedings and ensuring less costly resolution of disputes. Nicaragua improved access to credit information by starting DB2015 Nicaragua to provide credit scores to banks and financial institutions. Panama improved access to credit through a new law broadening the range of assets that can be used as DB2015 Panama collateral, allowing a general description of assets granted as collateral and allowing out-of-court enforcement of collateral. Trinidad and Tobago improved access to credit by adopting the Bankruptcy and Insolvency Act, which establishes clear DB2015 Trinidad and Tobago grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures as well as a time limit for the stay. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief DB2015 Mexico from a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made dealing with construction permits DB2015 St. Kitts and Nevis more costly by increasing the building permit fees. Uruguay made enforcing contracts easier by simplifying and DB2015 Uruguay speeding up the proceedings for commercial disputes. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made resolving insolvency easier by DB2015 St. Kitts and Nevis introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s business during insolvency proceedings and allow creditors Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 58 DB year Economy Reform greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Trinidad and Tobago made resolving insolvency easier by introducing a formal mechanism for rehabilitation, DB2015 Trinidad and Tobago establishing a public office responsible for the general administration of insolvency proceedings and clarifying the rules on appointment of trustees. St. Kitts and Nevis made paying taxes less costly for DB2015 St. Kitts and Nevis companies by reducing the corporate income tax rate. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs and by DB2015 Venezuela, RB requiring companies to register within the Superintendence for Socioeconomic Rights (SUNDEE). Trinidad and Tobago made starting a business easier by DB2015 Trinidad and Tobago introducing online systems for employer registration and tax registration. Suriname made starting a business easier by introducing an DB2015 Suriname online system for obtaining trade licenses. Nicaragua made starting a business easier by combining DB2015 Nicaragua multiple registration procedures. Uruguay made trading across borders easier by DB2015 Uruguay implementing a risk-based inspection system that reduced customs clearance time for both exports and imports. Jamaica improved access to credit by establishing credit bureaus and by adopting a new secured transactions law that implements a functional secured transactions system, DB2015 Jamaica broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and establishes a modern, notice-based collateral registry. Jamaica made getting electricity less expensive by reducing DB2015 Jamaica the cost of external connection works. Honduras made dealing with construction permits more DB2015 Honduras costly by increasing the building permit fees. Jamaica made paying taxes more costly for companies by DB2015 Jamaica introducing a new minimum business tax. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 59 DB year Economy Reform Guatemala made paying taxes easier and less costly for companies by enhancing the electronic system for filing and paying corporate income tax and VAT and by reducing the DB2015 Guatemala capital gains and corporate income tax rates. On the other hand, it also made paying taxes more complicated by introducing a new form for capital gains tax. Guatemala made starting a business easier by eliminating DB2015 Guatemala certain registration fees and reducing the time to publish a notice of incorporation. Honduras made starting a business easier by eliminating the DB2015 Honduras paid-in minimum capital requirement. Jamaica made starting a business easier by consolidating forms, but also made it more time-consuming as a result of DB2015 Jamaica delays in the implementation of the electronic interface with different agencies. Argentina made dealing with construction permits more DB2015 Argentina costly by increasing several fees. Puerto Rico (territory of the United States) made dealing with construction permits easier by introducing the option of DB2015 Puerto Rico (U.S.) hiring authorized private professionals to carry out the fire safety recommendations and issue the fire safety and environmental health certificates. St. Lucia made trading across borders easier by implementing the ASYCUDA World electronic system for the DB2015 St. Lucia submission of export and import documents and by reducing the number of export documents required. St. Lucia made trading across borders more difficult by DB2014 St. Lucia introducing a new export document. Argentina reduced the number of documents necessary for DB2014 Argentina importing by eliminating nonautomatic license requirements. Argentina made starting a business more difficult by DB2014 Argentina increasing the incorporation costs. Jamaica improved its credit information system by creating a DB2014 Jamaica legal and regulatory framework for private credit bureaus. DB2014 Nicaragua Nicaragua reduced the time required for getting electricity by increasing efficiency in granting approval of the Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 60 DB year Economy Reform connection design and by informing the customer in advance what the amount of the security deposit will be. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing DB2014 Mexico a “silence is consent” rule for the approval of the feasibility study for a new connection. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. Panama made paying taxes easier for companies by changing the payment frequency for corporate income taxes DB2014 Panama from monthly to quarterly and by implementing a new online platform for filing the social security payroll. Paraguay made paying taxes easier for companies by making DB2014 Paraguay electronic filing and payment mandatory for corporate income and value added taxes. Panama strengthened investor protections by increasing the DB2014 Panama disclosure requirements for publicly held companies. Panama made transferring property easier by connecting the DB2014 Panama land registry with the cadastre. Suriname made transferring property easier by increasing DB2014 Suriname administrative efficiency at the land registry. República Bolivariana de Venezuela made starting a business DB2014 Venezuela, RB more costly by increasing the company registration fees. Suriname made starting a business easier by reducing the DB2014 Suriname time required to obtain the president’s approval for the registration of a new company. Trinidad and Tobago made starting a business easier by DB2014 Trinidad and Tobago merging the statutory declaration of compliance into the standard articles of incorporation form. Nicaragua made starting a business easier by merging the procedures for registering with the revenue authority and DB2014 Nicaragua with the municipality and by reducing the time required for incorporation. DB2014 Panama Panama made starting a business easier by eliminating the Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 61 DB year Economy Reform need to visit the municipality to obtain the municipal taxpayer number. Uruguay made trading across borders easier by DB2014 Uruguay implementing an electronic customs declaration system. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. República Bolivariana de Venezuela improved access to DB2014 Venezuela, RB credit information by starting to collect data on firms from financial institutions. Guatemala made dealing with construction permits easier by streamlining procedures through the creation of a one-stop DB2014 Guatemala shop, backed by agreements between institutions and agencies involved in the permitting process. Jamaica made paying taxes less costly for companies by DB2014 Jamaica reducing the corporate income tax rate—though it also increased vehicle and asset taxes. Guatemala made paying taxes easier for companies by DB2014 Guatemala introducing a new electronic filing and payment system. Guyana made paying taxes easier for companies by reducing DB2014 Guyana the corporate income tax rate. Jamaica made transferring property more difficult by DB2014 Jamaica increasing the transfer tax and the stamp duty. Jamaica made starting a business easier by enabling the DB2014 Jamaica Companies Office of Jamaica to stamp the new company’s articles of incorporation at registration. Guatemala made starting a business easier by creating an DB2014 Guatemala online platform that allows simultaneous registration of a new company with different government agencies.. The Bahamas enhanced its insolvency process by implementing rules for the remuneration of liquidators, DB2014 Bahamas, The allowing voluntary liquidations and outlining clawback provisions for suspect transactions. The Bahamas made transferring property easier by reducing DB2014 Bahamas, The the stamp duty. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 62 DB year Economy Reform Colombia made getting electricity easier by opening a one- DB2014 Colombia stop shop for electricity connections and improving the efficiency of the utility’s internal processes. Ecuador made getting electricity easier by dividing the city of Quito into zones for the purpose of DB2014 Ecuador handling applications for new connections—a changethat improved the utility’s customer service—and by reducing the fees to obtain a connection. Costa Rica made dealing with construction permits easier by eliminating procedures, improving efficiency DB2014 Costa Rica and launching an online platform that streamlined the building permit process by integrating different agencies’ approval processes. Colombia made enforcing contracts easier by simplifying DB2014 Colombia and speeding up the proceedings for commercial disputes. El Salvador made paying taxes more costly for companies by DB2014 El Salvador increasing the corporate income tax rate. Costa Rica made starting a business easier by creating an online platform for business registration, eliminating the DB2014 Costa Rica requirement to have accounting books legalized and simplifying the legalization of company books. El Salvador made trading across borders easier by DB2014 El Salvador developing a one-stop shop for exporting and by implementing electronic data interchange systems. Antigua and Barbuda made trading across borders more DB2013 Antigua and Barbuda difficult by increasing the number of documents required to import. In Ecuador property transfers became more time consuming DB2013 Ecuador as a result of implementation problems in transferring authority over property records to the municipality of Quito. El Salvador improved access to credit information through a DB2013 El Salvador new law regulating the management of personal credit information. Costa Rica improved access to credit information by DB2013 Costa Rica guaranteeing borrowers’ right to inspect their personal data. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 63 DB year Economy Reform The Dominican Republic increased the corporate income tax DB2013 Dominican Republic rate. DB2013 El Salvador El Salvador introduced an alternative minimum tax. Costa Rica made paying taxes easier for companies by DB2013 Costa Rica implementing electronic payment for municipal taxes — though it also introduced a registration flat tax. Colombia made starting a business easier by eliminating the DB2013 Colombia requirement to purchase and register accounting books at the time of incorporation. Costa Rica made starting a business easier by streamlining DB2013 Costa Rica the process of obtaining a sanitary permit from the authorities for low-risk activities. Costa Rica streamlined the process for obtaining DB2013 Costa Rica construction permits by implementing online approval systems. Grenada reduced the time to export and import by DB2013 Grenada implementing the ASYCUDA World electronic data interchange system. Jamaica reduced the time to import by allowing customs DB2013 Jamaica entries to be lodged at night. Guatemala made dealing with construction permits easier by DB2013 Guatemala introducing a risk-based approval system Jamaica made paying taxes easier for companies by allowing DB2013 Jamaica joint filing and payment of all social security contributions. Belize reduced the time to export and import by DB2013 Belize implementing the ASYCUDA World electronic data interchange system. Argentina increased the time, cost and number of documents needed to import by expanding the list of DB2013 Argentina products requiring nonautomatic licenses and introducing new preapproval procedures for all imports. Brazil made enforcing contracts easier by implementing an DB2013 Brazil electronic system for filing initial complaints at the São Paulo civil district court. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 64 DB year Economy Reform In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training DB2013 Mexico opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials. Uruguay made paying taxes easier for small and medium- size companies by fully implementing an online filing and DB2013 Uruguay payment system for capital, value added and corporate income taxes and by improving the online facilities for social security contributions. República Bolivariana de Venezuela made paying taxes more DB2013 Venezuela, RB costly and difficult for companies by introducing a sports, physical activities and physical education tax. Panama made paying taxes easier for companies by enhancing the electronic filing system for value added tax DB2013 Panama and simplifying tax return forms for corporate income tax— though it also began requiring companies to pay corporate income tax monthly rather than quarterly. Uruguay reduced the time to import by improving port DB2013 Uruguay efficiency and introducing electronic payment and predeclaration systems for customs. St. Kitts and Nevis made it more expensive to export by DB2013 St. Kitts and Nevis increasing the cost of operations at the port of Basseterre. Suriname increased the time to export by involving more DB2013 Suriname customs departments in clearing exports. Trinidad and Tobago reduced the time to export and import by launching the ASYCUDA World electronic data DB2013 Trinidad and Tobago interchange system and simplifying the process for obtaining a certificate of origin. República Bolivariana de Venezuela made starting a business DB2013 Venezuela, RB more difficult by increasing the cost of company incorporation. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Panama made dealing with construction permits easier by DB2013 Panama reducing the fees for a permit from the fire department’s safety office and by accelerating the process at the building Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 65 DB year Economy Reform registry for obtaining a certificate of good standing and for registering the new building. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. República Bolivariana de Venezuela introduced a new Labor DB2013 Venezuela, RB Code that prohibits redundancy dismissals. Brazil increased the notice period applicable in cases of DB2013 Brazil redundancy dismissal of employees. Brazil made transferring property more difficult by DB2013 Brazil introducing a new certificate on good standing on labor debts, adding to the number of due diligence procedures. In Trinidad and Tobago property transfers became faster DB2013 Trinidad and Tobago thanks to speedier issuance of clearance certificates by the Water and Sewerage Authority. Panama made property transfers faster by increasing DB2013 Panama working hours at the registry and reorganizing the caseload of its staff. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Dominica reduced the time to import by implementing the DB2013 Dominica ASYCUDA World electronic data interchange system. Puerto Rico (territory of the United States) made paying taxes easier and less costly for companies by introducing a DB2013 Puerto Rico (U.S.) new Internal Revenue Code and tax codification and by reducing the effective corporate income tax rate. Haiti made dealing with construction permits costlier by DB2012 Haiti increasing the fees to obtain a building permit. Puerto Rico (territory of the United States) made starting a DB2012 Puerto Rico (U.S.) business easier by merging the name search and company registration procedures. DB2012 Puerto Rico (U.S.) Puerto Rico (territory of the United States) made dealing with construction permits easier by creating the Office of Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 66 DB year Economy Reform Permits Management to streamline procedures. St. Kitts and Nevis made paying taxes easier by introducing a DB2012 St. Kitts and Nevis value added tax. Nicaragua made paying taxes easier for companies by DB2012 Nicaragua promoting electronic filing and payment of the major taxes, an option now used by the majority of taxpayers. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Paraguay made paying taxes more burdensome for DB2012 Paraguay companies by introducing new tax declarations that must be filed monthly. República Bolivariana de Venezuela made paying taxes DB2012 Venezuela, RB costlier for firms by doubling the municipal economic activities tax (sales tax). Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Paraguay improved its credit information system by DB2012 Paraguay establishing an online platform for financial institutions to exchange information with the public credit registry. Uruguay improved its credit information system by introducing a new online platform allowing access to credit DB2012 Uruguay reports for financial institutions, public utilities and borrowers. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Brazil improved its credit information system by allowing DB2012 Brazil private credit bureaus to collect and share positive information. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 67 DB year Economy Reform Guyana eased the process of starting a business by reducing DB2012 Guyana the time needed for registering a new company and for obtaining a tax identification number. Honduras made trading across borders faster by DB2012 Honduras implementing a web-based electronic data interchange system and X-ray machines at the port of Puerto Cortes. Uruguay made starting a business easier by establishing a DB2012 Uruguay one-stop shop for general commercial companies. Panama extended the operating hours of the public registry, DB2012 Panama reducing the time required to register a new company. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Nicaragua raised the monetary threshold for commercial claims that can be brought to the Managua local civil court, DB2012 Nicaragua leaving lower-value claims in the local courts, where proceedings are simpler and faster. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Trinidad and Tobago made dealing with construction DB2012 Trinidad and Tobago permits costlier by increasing the fees for building permit approvals. Paraguay made dealing with construction permits easier by DB2012 Paraguay implementing a risk-based approval system and a single window for obtaining construction permits. Nicaragua made transferring property more efficient by DB2012 Nicaragua introducing a fast-track procedure for registration. Argentina made transferring property more difficult by DB2012 Argentina adding a requirement that the notary obtain the tax agency’s reference value for property before notarizing the sale deed. Honduras strengthened its secured transactions system through a new decree establishing a centralized and DB2012 Honduras computerized collateral registry and providing for out-of- court enforcement of collateral upon default. DB2012 Honduras Honduras made paying taxes costlier for firms by raising the Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 68 DB year Economy Reform solidarity tax rate. In Guyana transferring property became slower because of a DB2012 Guyana lack of personnel at the deed registry. Honduras adopted a new civil procedure code that modified DB2012 Honduras litigation procedures for enforcing a contract. Guyana made getting electricity more expensive by tripling DB2012 Guyana the security deposit required for a new connection. Costa Rica made transferring property easier and quicker by DB2012 Costa Rica making property certificates available online through a single website. The Dominican Republic made starting a business easier by DB2012 Dominican Republic eliminating the requirement for a proof of deposit of capital when establishing a new company. Colombia reduced the costs associated with starting a DB2012 Colombia business, by no longer requiring upfront payment of the commercial license fee. Belize introduced the requirements to notify third parties in DB2012 Belize cases of redundancy dismissals. Belize made paying taxes easier for firms by improving electronic filing and payment for social security DB2012 Belize contributions, an option now used by the majority of taxpayers. DB2012 Bolivia Bolivia raised social security contribution rates for employers. Colombia amended regulations governing insolvency DB2012 Colombia proceedings to simplify the proceedings and reduce their time and cost El Salvador strengthened investor protections by allowing DB2012 El Salvador greater access to corporate information during the trial. Colombia eased the administrative burden of paying taxes DB2012 Colombia for firms by establishing mandatory electronic filing and payment for some of the major taxes. In Costa Rica online payment of social security contributions DB2012 Costa Rica is now widespread and used by the majority of taxpayers. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 69 DB year Economy Reform The Bahamas made transferring property more costly by DB2012 Bahamas, The increasing the applicable stamp duty fees. In Antigua and Barbuda, to transfer property now requires DB2011 Antigua and Barbuda clearance by the chief surveyor to avoid mischievous declarations. Colombia eased the process of Starting a Business by DB2011 Colombia reducing the number of days to register with the Social Security System. The Dominican Republic made it more difficult to start a business by setting a minimum capital requirement of DB2011 Dominican Republic 100,000 Dominican pesos ($2,855) for its new type of company, sociedad de responsabilidad limitada (limited liability company). Ecuador made starting a business easier by introducing an DB2011 Ecuador online registration system for social security. Colombia eased construction permitting by improving the DB2011 Colombia electronic verification of prebuilding certificates. Guyana enhanced access to credit by establishing a regulatory framework that allows the licensing of private DB2011 Guyana credit bureaus and gives borrowers the right to inspect their data. Jamaica eased the transfer of property by lowering transfer taxes and fees, offering expedited registration procedures DB2011 Jamaica and making information from the company registrar available online. The appointment of a registrar focusing only on property cut DB2011 Grenada the time needed to transfer property in Grenada by almost half. Grenada’s customs administration made trading faster by DB2011 Grenada simplifying procedures, reducing inspections, improving staff training and enhancing communication with users. Guyana improved its risk profiling system for customs DB2011 Guyana inspection, reducing physical inspections of shipments and the time to trade. DB2011 Guyana Guyana eased business start-up by digitizing company records, which speeded up the process of company name Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 70 DB year Economy Reform search and reservation. Grenada eased business start-up by transferring DB2011 Grenada responsibility for the commercial registry from the courts to the civil administration. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. Nicaragua expedited trade by migrating to a new electronic data interchange system for customs, setting up a physical DB2011 Nicaragua one-stop shop for exports and investing in new equipment at the port of Corinto. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Panama eased business start-up by increasing efficiency at DB2011 Panama the registrar. República Bolivariana de Venezuela made starting a business DB2011 Venezuela, RB more difficult by introducing a new procedure for registering a company. Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Brazil eased business start-up by further enhancing the DB2011 Brazil electronic synchronization between federal and state tax authorities. In Uruguay the Municipality of Montevideo made registering DB2011 Uruguay property easier by eliminating the need to obtain a mandatory waiver for preemption rights. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Panama made it more expensive to transfer property by DB2011 Panama requiring that an amount equal to 3% of the property value be paid upon registration. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 71 DB year Economy Reform Paraguay made dealing with construction permits easier by DB2011 Paraguay creating a new administrative structure and a better tracking system in the municipality of Asunción. República Bolivariana de Venezuela improved access to DB2011 Venezuela, RB credit information by creating a private credit bureau. Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. República Bolivariana de Venezuela abolished the tax on DB2011 Venezuela, RB financial transactions. Panama reduced the corporate income tax rate, modified DB2011 Panama various taxes and created a new tax court of appeals. Nicaragua increased taxes on firms by raising social security contribution rates and introducing a 10% withholding tax on DB2011 Nicaragua the gross interest accrued from deposits. It also improved electronic payment of taxes through bank transfer. Puerto Rico made paying taxes more costly for business by DB2011 Puerto Rico (U.S.) introducing a special surtax of 5% on the tax liability in addition to the normal corporate income tax. Haiti eased business start-up by eliminating the review by DB2011 Haiti the president’s or the prime minister’s office of the incorporation act submitted for publication. 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 LATIN AMERICA AND CARIBBEAN (LAC) 72 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 LATIN AMERICA AND CARIBBEAN (LAC) 73 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 LATIN AMERICA AND CARIBBEAN (LAC) 74 GETTING ELECTRICITY Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in Latin 4.1). The average ranking of the region and comparator America and Caribbean (LAC) to connect a warehouse to regions provide a useful benchmark. electricity? The global rankings of these economies on the ease of getting electricity suggest an answer (figure Figure 4.1 How economies in Latin America and Caribbean (LAC) rank on the ease of getting electricity Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 75 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 Latin America and Caribbean (LAC) Procedures (number) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 76 GETTING ELECTRICITY Time (days) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 77 GETTING ELECTRICITY Cost (% of income per capita) Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 78 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 LATIN AMERICA AND CARIBBEAN (LAC) 79 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 Latin practices and internal wiring installations. In an effort to America and Caribbean (LAC) (table 4.1)? Table 4.1 How have economies in Latin America and Caribbean (LAC) made getting electricity easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Antigua and Barbuda made trading across borders easier by DB2017 Antigua and Barbuda eliminating the tax compliance certificate required for import customs clearance. Bolivia made dealing with construction permits lengthier by DB2017 Bolivia implementing a new requirement to pay for the land registry certificate at the Judiciary Council. Bolivia made enforcing contracts easier by adopting a new DB2017 Bolivia code of civil procedure that introduces pre-trial conferences. Bolivia made starting a business easier by decreasing the time DB2017 Bolivia needed to register a company. The Bahamas made registering property easier by reducing DB2017 Bahamas, The the cost of transferring a property. The Bahamas made starting a business easier by allowing local limited liability companies to register online. On the DB2017 Bahamas, The other hand, The Bahamas made starting a business more costly by increasing the fees for registering a company name and incorporation. The Bahamas made paying taxes more complicated by DB2017 Bahamas, The introducing a value added tax. Ecuador adopted a new code of civil procedure that made enforcing contracts easier by introducing a pre-trial DB2017 Ecuador conference. The new code also made enforcing contracts more difficult by eliminating a dedicated procedure for the resolution of small claims. El Salvador made access to credit information more difficult DB2017 El Salvador by reducing the coverage of the credit bureau. The Dominican Republic made getting an electricity DB2017 Dominican Republic connection faster by reducing the time required to approve electrical connection plans. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 80 DB year Economy Reform Colombia made starting a business easier by streamlining DB2017 Colombia registration procedures. Ecuador made starting a business easier by eliminating the DB2017 Ecuador publication of company charters in local newspapers. El Salvador made paying taxes easier by encouraging the use DB2017 El Salvador of the electronic system for filing taxes. The Dominican Republic made paying taxes less costly by DB2017 Dominican Republic decreasing the corporate income tax rate. Guyana improved access to credit information by expanding DB2017 Guyana the coverage of the credit bureau. Guyana made registering property easier by increasing the DB2017 Guyana transparency of the Lands & Survey Commission. Jamaica made starting a business more difficult by removing DB2017 Jamaica the ability to complete next day company incorporation. Jamaica reduced the time of documentary compliance for DB2017 Jamaica exporting by implementing an automated customs data management system, ASYCUDA World. Grenada made trading across borders easier by streamlining DB2017 Grenada import document submission procedures, reducing the time required for documentary compliance. Honduras made trading across borders more difficult by DB2017 Honduras increasing the number of intrusive inspections for importing, which increased the border compliance time. Guatemala made paying taxes less costly by reducing the rate DB2017 Guatemala of corporate income tax. Jamaica made paying taxes less costly by increasing tax depreciation rates and the initial capital allowance for assets acquired on or after January 1, 2014. Furthermore, companies DB2017 Jamaica incorporated for less than 24 months are exempted from paying the minimum business tax. Jamaica also made paying taxes easier by implementing an electronic system for filing of corporate income tax, VAT and social contributions. Brazil made enforcing contracts easier through a new mediation law—that includes financial incentives for parties DB2017 Brazil to attempt mediation—and a new code of civil procedure. These reforms apply to both Rio de Janeiro and São Paulo. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. Brazil expanded eligibility for unemployment benefits to DB2017 Brazil employees with one year of continuous work experience. This Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 81 DB year Economy Reform reform applies to both Rio de Janeiro and São Paulo. Paraguay reduced access to credit information by limiting the DB2017 Paraguay distribution of historical data on borrowers. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Saint Kitts and Nevis made it more difficult to transfer property due to work overload at the Supreme Court Registry DB2017 St. Kitts and Nevis while also reducing the stamp duty for transferring real estate. Brazil reduced the time needed to start a business by implementing an online portal for business licenses in Rio de DB2017 Brazil Janeiro. However, Brazil also made starting a business more difficult by shortening the opening hours of the business registry in Rio de Janeiro. Barbados made starting a business easier by reducing the DB2017 Barbados time to register a company. The República Bolivariana de Venezuela made starting a business more expensive by raising the value of the tributary DB2017 Venezuela, RB unit and lawyers’ fees. It also made the process more time consuming by limiting the work schedule of the public sector. Uruguay made starting a business more costly by increasing DB2017 Uruguay the value of the official fiscal unit used for the payment of government fees. Brazil made trading across borders easier by implementing an electronic system for importing, which reduced the time DB2017 Brazil required for documentary compliance. This reform applies to both Rio de Janeiro and São Paulo. Nicaragua made trading across borders more expensive by DB2017 Nicaragua introducing a new security fee, increasing the cost of border compliance for exporting and importing. Paraguay made trading across borders easier by introducing DB2017 Paraguay a single window for exporting, which reduced the time required of border and documentary compliance. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. Uruguay made paying taxes easier by introducing an DB2017 Uruguay electronic system for paying social security contributions. Online filing was already in place. Argentina made dealing with construction permits more DB2017 Argentina difficult by increasing municipal fees. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 82 DB year Economy Reform Argentina made trading across borders easier by introducing DB2017 Argentina a new licensing system for importing, which reduced the time required for documentary compliance. Argentina made paying taxes less costly by increasing the threshold for the 5% turnover tax. Argentina also made DB2017 Argentina paying taxes easier by introducing improvements to the online portal for filing taxes. Dominica made paying taxes less costly by reducing the DB2017 Dominica corporate income tax rate. Haiti made trading across borders easier by improving port infrastructure and improving the SYDONIA electronic data DB2017 Haiti interchange system by allowing the submission of supporting documents online. The utility made getting electricity more difficult by DB2017 St. Lucia introducing a requirement to obtain a current land registry extract to get a new connection. Puerto Rico made registering property easier by digitizing its DB2017 Puerto Rico (U.S.) land records, improving the quality of infrastructure and transparency of its land administration system. St. Lucia made exporting and importing easier by upgrading an electronic data interchange system and linking the DB2017 St. Lucia customs and port authorities through a common online platform. Puerto Rico (territory of the United States) made paying taxes DB2017 Puerto Rico (U.S.) less costly by abolishing gross receipts tax. However, the capital gains tax rate was increased. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Peru improved its credit information system by implementing DB2016 Peru a new law on personal data protection. Jamaica made dealing with construction permits easier by DB2016 Jamaica implementing a new workflow for processing building permit applications. Jamaica made resolving insolvency easier by introducing a reorganization procedure; introducing provisions to facilitate the continuation of the debtor’s business during insolvency DB2016 Jamaica proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency proceedings. Jamaica made paying taxes easier and less costly for DB2016 Jamaica companies by encouraging taxpayers to pay their taxes online, introducing an employment tax credit and increasing Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 83 DB year Economy Reform the depreciation rate for industrial buildings. At the same time, Jamaica introduced a minimum business tax, raised the contribution rate for the national insurance scheme paid by employers and increased the rates for stamp duty, the property tax, the property transfer tax and the education tax. Guatemala made paying taxes less costly for companies by DB2016 Guatemala reducing the corporate income tax rate. Honduras made paying taxes more costly for companies by DB2016 Honduras introducing an alternative minimum income tax. Honduras strengthened minority investor protections by introducing provisions requiring greater disclosure of related- party transactions, prohibiting interested parties from voting DB2016 Honduras on a related-party transaction, allowing shareholders representing at least 5% of a company’s share capital to bring a direct action for damages against its directors and giving any shareholder the right to inspect company documents. Jamaica made starting a business easier by streamlining DB2016 Jamaica internal procedures. Guatemala reduced the documentary and border compliance time for importing by making electronic submission of documents compulsory and eliminating the need for many DB2016 Guatemala hard-copy documents. Guyana improved access to credit information by establishing DB2016 Guyana a new credit bureau. Trinidad and Tobago made getting electricity more costly by DB2016 Trinidad and Tobago introducing a capital contribution toward connection costs. St. Vincent and the Grenadines made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s DB2016 St. Vincent and the Grenadines business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Barbados made paying taxes more costly for companies by DB2016 Barbados raising the ceiling for social security contributions and introducing a new municipal solid waste tax. Uruguay made paying taxes easier for companies by DB2016 Uruguay continually upgrading and improving the electronic system for filing and paying the major taxes. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more DB2016 Mexico costly by allowing only a portion of salaries to be deductible. These changes apply to both Mexico City and Monterrey. In Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 84 DB year Economy Reform addition, the payroll tax rate paid by employers was increased for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Uruguay made registering property more difficult by requiring by law a certificate of connection of the property to DB2016 Uruguay the public sewage system to complete the process of transferring and registering property. Brazil made transferring property in São Paulo more DB2016 Brazil expensive by increasing the property transfer tax. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs. It also made starting a business more difficult by making the registration at the Venezuelan Social Security Institute (IVSS), the National DB2016 Venezuela, RB Bank for Housing and Habitat (BANAVIH) and the National Institute of Socialist Cooperation & Education (INCES) prerequisites for the Ministry of Labor (Minpptrass) registration. Uruguay made starting a business more difficult by increasing DB2016 Uruguay incorporation costs. Suriname reduced the time for documentary and border compliance for exporting and importing by implementing an DB2016 Suriname automated customs data management system, ASYCUDA (Automated System for Customs Data) World. Brazil reduced the time for documentary and border compliance for exporting by implementing the electronic SISCOMEX Portal system. This reform applies to both Rio de DB2016 Brazil Janeiro and São Paulo. El Salvador improved access to credit by adopting the Law on Movable Property, which established a modern, centralized, DB2016 El Salvador notice-based collateral registry and allows a general description of a single category of assets granted as collateral. Costa Rica improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a modern, centralized, notice-based DB2016 Costa Rica collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and allows out-of-court enforcement of collateral. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 85 DB year Economy Reform The Bahamas made paying taxes less costly for companies by DB2016 Bahamas, The reducing the business license tax—though it also raised the wage ceiling used in calculating social security contributions. The Bahamas made starting a business more difficult by DB2016 Bahamas, The adding a requirement for value added tax (VAT) registration. The Bahamas made trading across borders easier by fully implementing an electronic data interchange system, which DB2016 Bahamas, The reduced the time for preparation and submission of trade documents for both exporting and importing. The utility in Costa Rica made getting electricity easier by reducing the time required for preparing the design of the DB2016 Costa Rica external connection works and for installing the meter and initiating the electricity supply. Colombia made paying taxes less costly for companies by DB2016 Colombia reducing the payroll tax rate and introducing exemptions for health care contributions paid by employers. Costa Rica made paying taxes easier for companies by DB2016 Costa Rica promoting the use of its electronic filing and payment system for corporate income tax and general sales tax. Ecuador made starting a business easier by simplifying the DB2016 Ecuador registration process and by eliminating the need to deposit 50% of the minimum capital in a special account. DB2016 Ecuador Ecuador eliminated fixed-term contracts for permanent tasks. El Salvador increased the border compliance time for DB2016 El Salvador exporting and importing by adding an extra, nonintrusive inspection at the Anguiatú border crossing with Guatemala. Colombia improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a centralized, notice-based collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets DB2015 Colombia granted as collateral, establishes clear priority rules inside bankruptcy for secured creditors, sets out grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures and allows out-of-court enforcement of collateral. The Dominican Republic improved its credit information system by enacting a new law regulating the protection of DB2015 Dominican Republic personal data and the operation of credit reporting institutions. Costa Rica reduced the time required for getting electricity by DB2015 Costa Rica improving the coordination between different departments at the utility. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 86 DB year Economy Reform The Dominican Republic made dealing with construction DB2015 Dominican Republic permits more costly by increasing the building permit fees. Costa Rica made paying taxes easier for companies by DB2015 Costa Rica implementing an electronic system for filing corporate income tax and VAT. Colombia made paying taxes more complicated for DB2015 Colombia companies by introducing a new profit tax (CREE), though it also reduced the corporate income tax rate and payroll taxes. The Dominican Republic strengthened minority investor DB2015 Dominican Republic protections by introducing greater shareholder rights and requirements for greater corporate transparency. Ecuador strengthened minority investor protections by introducing greater requirements for disclosure of related- DB2015 Ecuador party transactions as well as a requirement that a potential acquirer make a tender offer to all shareholders upon acquiring voting shares. Colombia made transferring property easier by eliminating DB2015 Colombia the need for a provisional registration. The Dominican Republic made trading across borders easier DB2015 Dominican Republic by reducing the number of documents required for exports and imports. Ecuador made trading across borders easier by introducing a DB2015 Ecuador new electronic data interchange system called ECUAPASS. Bolivia made trading across borders more difficult by DB2015 Bolivia increasing customs clearance time. The Bahamas made dealing with construction permits more DB2015 Bahamas, The costly by increasing the building permit fees. The Bahamas made enforcing contracts easier by introducing new rules of civil procedure focused on streamlining and DB2015 Bahamas, The simplifying court proceedings and ensuring less costly resolution of disputes. Nicaragua improved access to credit information by starting DB2015 Nicaragua to provide credit scores to banks and financial institutions. Panama improved access to credit through a new law broadening the range of assets that can be used as collateral, DB2015 Panama allowing a general description of assets granted as collateral and allowing out-of-court enforcement of collateral. Trinidad and Tobago improved access to credit by adopting the Bankruptcy and Insolvency Act, which establishes clear DB2015 Trinidad and Tobago grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures as well as a time limit for the stay. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 87 DB year Economy Reform Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made dealing with construction permits DB2015 St. Kitts and Nevis more costly by increasing the building permit fees. Uruguay made enforcing contracts easier by simplifying and DB2015 Uruguay speeding up the proceedings for commercial disputes. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s business during DB2015 St. Kitts and Nevis insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Trinidad and Tobago made resolving insolvency easier by introducing a formal mechanism for rehabilitation, DB2015 Trinidad and Tobago establishing a public office responsible for the general administration of insolvency proceedings and clarifying the rules on appointment of trustees. St. Kitts and Nevis made paying taxes less costly for DB2015 St. Kitts and Nevis companies by reducing the corporate income tax rate. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs and by DB2015 Venezuela, RB requiring companies to register within the Superintendence for Socioeconomic Rights (SUNDEE). Trinidad and Tobago made starting a business easier by DB2015 Trinidad and Tobago introducing online systems for employer registration and tax registration. Suriname made starting a business easier by introducing an DB2015 Suriname online system for obtaining trade licenses. Nicaragua made starting a business easier by combining DB2015 Nicaragua multiple registration procedures. Uruguay made trading across borders easier by implementing DB2015 Uruguay a risk-based inspection system that reduced customs clearance time for both exports and imports. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 88 DB year Economy Reform Jamaica improved access to credit by establishing credit bureaus and by adopting a new secured transactions law that implements a functional secured transactions system, DB2015 Jamaica broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and establishes a modern, notice-based collateral registry. Jamaica made getting electricity less expensive by reducing DB2015 Jamaica the cost of external connection works. Honduras made dealing with construction permits more DB2015 Honduras costly by increasing the building permit fees. Jamaica made paying taxes more costly for companies by DB2015 Jamaica introducing a new minimum business tax. Guatemala made paying taxes easier and less costly for companies by enhancing the electronic system for filing and paying corporate income tax and VAT and by reducing the DB2015 Guatemala capital gains and corporate income tax rates. On the other hand, it also made paying taxes more complicated by introducing a new form for capital gains tax. Guatemala made starting a business easier by eliminating DB2015 Guatemala certain registration fees and reducing the time to publish a notice of incorporation. Honduras made starting a business easier by eliminating the DB2015 Honduras paid-in minimum capital requirement. Jamaica made starting a business easier by consolidating forms, but also made it more time-consuming as a result of DB2015 Jamaica delays in the implementation of the electronic interface with different agencies. Argentina made dealing with construction permits more DB2015 Argentina costly by increasing several fees. Puerto Rico (territory of the United States) made dealing with construction permits easier by introducing the option of DB2015 Puerto Rico (U.S.) hiring authorized private professionals to carry out the fire safety recommendations and issue the fire safety and environmental health certificates. St. Lucia made trading across borders easier by implementing the ASYCUDA World electronic system for the submission of DB2015 St. Lucia export and import documents and by reducing the number of export documents required. St. Lucia made trading across borders more difficult by DB2014 St. Lucia introducing a new export document. Argentina reduced the number of documents necessary for DB2014 Argentina importing by eliminating nonautomatic license requirements. DB2014 Argentina Argentina made starting a business more difficult by Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 89 DB year Economy Reform increasing the incorporation costs. Jamaica improved its credit information system by creating a DB2014 Jamaica legal and regulatory framework for private credit bureaus. Nicaragua reduced the time required for getting electricity by increasing efficiency in granting approval of the connection DB2014 Nicaragua design and by informing the customer in advance what the amount of the security deposit will be. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a DB2014 Mexico “silence is consent” rule for the approval of the feasibility study for a new connection. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. Panama made paying taxes easier for companies by changing the payment frequency for corporate income taxes from DB2014 Panama monthly to quarterly and by implementing a new online platform for filing the social security payroll. Paraguay made paying taxes easier for companies by making DB2014 Paraguay electronic filing and payment mandatory for corporate income and value added taxes. Panama strengthened investor protections by increasing the DB2014 Panama disclosure requirements for publicly held companies. Panama made transferring property easier by connecting the DB2014 Panama land registry with the cadastre. Suriname made transferring property easier by increasing DB2014 Suriname administrative efficiency at the land registry. República Bolivariana de Venezuela made starting a business DB2014 Venezuela, RB more costly by increasing the company registration fees. Suriname made starting a business easier by reducing the DB2014 Suriname time required to obtain the president’s approval for the registration of a new company. Trinidad and Tobago made starting a business easier by DB2014 Trinidad and Tobago merging the statutory declaration of compliance into the standard articles of incorporation form. Nicaragua made starting a business easier by merging the procedures for registering with the revenue authority and DB2014 Nicaragua with the municipality and by reducing the time required for incorporation. Panama made starting a business easier by eliminating the DB2014 Panama need to visit the municipality to obtain the municipal taxpayer number. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 90 DB year Economy Reform Uruguay made trading across borders easier by implementing DB2014 Uruguay an electronic customs declaration system. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. República Bolivariana de Venezuela improved access to credit DB2014 Venezuela, RB information by starting to collect data on firms from financial institutions. Guatemala made dealing with construction permits easier by streamlining procedures through the creation of a one-stop DB2014 Guatemala shop, backed by agreements between institutions and agencies involved in the permitting process. Jamaica made paying taxes less costly for companies by DB2014 Jamaica reducing the corporate income tax rate—though it also increased vehicle and asset taxes. Guatemala made paying taxes easier for companies by DB2014 Guatemala introducing a new electronic filing and payment system. Guyana made paying taxes easier for companies by reducing DB2014 Guyana the corporate income tax rate. Jamaica made transferring property more difficult by DB2014 Jamaica increasing the transfer tax and the stamp duty. Jamaica made starting a business easier by enabling the DB2014 Jamaica Companies Office of Jamaica to stamp the new company’s articles of incorporation at registration. Guatemala made starting a business easier by creating an DB2014 Guatemala online platform that allows simultaneous registration of a new company with different government agencies.. The Bahamas enhanced its insolvency process by implementing rules for the remuneration of liquidators, DB2014 Bahamas, The allowing voluntary liquidations and outlining clawback provisions for suspect transactions. The Bahamas made transferring property easier by reducing DB2014 Bahamas, The the stamp duty. Colombia made getting electricity easier by opening a one- DB2014 Colombia stop shop for electricity connections and improving the efficiency of the utility’s internal processes. Ecuador made getting electricity easier by dividing the city of Quito into zones for the purpose of DB2014 Ecuador handling applications for new connections—a changethat improved the utility’s customer service—and by reducing the fees to obtain a connection. Costa Rica made dealing with construction DB2014 Costa Rica permits easier by eliminating procedures, improving efficiency Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 91 DB year Economy Reform and launching an online platform that streamlined the building permit process by integrating different agencies’ approval processes. Colombia made enforcing contracts easier by simplifying and DB2014 Colombia speeding up the proceedings for commercial disputes. El Salvador made paying taxes more costly for companies by DB2014 El Salvador increasing the corporate income tax rate. Costa Rica made starting a business easier by creating an online platform for business registration, eliminating the DB2014 Costa Rica requirement to have accounting books legalized and simplifying the legalization of company books. El Salvador made trading across borders easier by developing DB2014 El Salvador a one-stop shop for exporting and by implementing electronic data interchange systems. Antigua and Barbuda made trading across borders more DB2013 Antigua and Barbuda difficult by increasing the number of documents required to import. In Ecuador property transfers became more time consuming DB2013 Ecuador as a result of implementation problems in transferring authority over property records to the municipality of Quito. El Salvador improved access to credit information through a DB2013 El Salvador new law regulating the management of personal credit information. Costa Rica improved access to credit information by DB2013 Costa Rica guaranteeing borrowers’ right to inspect their personal data. The Dominican Republic increased the corporate income tax DB2013 Dominican Republic rate. DB2013 El Salvador El Salvador introduced an alternative minimum tax. Costa Rica made paying taxes easier for companies by DB2013 Costa Rica implementing electronic payment for municipal taxes— though it also introduced a registration flat tax. Colombia made starting a business easier by eliminating the DB2013 Colombia requirement to purchase and register accounting books at the time of incorporation. Costa Rica made starting a business easier by streamlining DB2013 Costa Rica the process of obtaining a sanitary permit from the authorities for low-risk activities. Costa Rica streamlined the process for obtaining construction DB2013 Costa Rica permits by implementing online approval systems. Grenada reduced the time to export and import by DB2013 Grenada implementing the ASYCUDA World electronic data interchange system. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 92 DB year Economy Reform Jamaica reduced the time to import by allowing customs DB2013 Jamaica entries to be lodged at night. Guatemala made dealing with construction permits easier by DB2013 Guatemala introducing a risk-based approval system Jamaica made paying taxes easier for companies by allowing DB2013 Jamaica joint filing and payment of all social security contributions. Belize reduced the time to export and import by DB2013 Belize implementing the ASYCUDA World electronic data interchange system. Argentina increased the time, cost and number of documents needed to import by expanding the list of products requiring DB2013 Argentina nonautomatic licenses and introducing new preapproval procedures for all imports. Brazil made enforcing contracts easier by implementing an DB2013 Brazil electronic system for filing initial complaints at the São Paulo civil district court. In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training DB2013 Mexico opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials. Uruguay made paying taxes easier for small and medium-size companies by fully implementing an online filing and DB2013 Uruguay payment system for capital, value added and corporate income taxes and by improving the online facilities for social security contributions. República Bolivariana de Venezuela made paying taxes more DB2013 Venezuela, RB costly and difficult for companies by introducing a sports, physical activities and physical education tax. Panama made paying taxes easier for companies by enhancing the electronic filing system for value added tax DB2013 Panama and simplifying tax return forms for corporate income tax— though it also began requiring companies to pay corporate income tax monthly rather than quarterly. Uruguay reduced the time to import by improving port DB2013 Uruguay efficiency and introducing electronic payment and predeclaration systems for customs. St. Kitts and Nevis made it more expensive to export by DB2013 St. Kitts and Nevis increasing the cost of operations at the port of Basseterre. Suriname increased the time to export by involving more DB2013 Suriname customs departments in clearing exports. Trinidad and Tobago reduced the time to export and import DB2013 Trinidad and Tobago by launching the ASYCUDA World electronic data interchange Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 93 DB year Economy Reform system and simplifying the process for obtaining a certificate of origin. República Bolivariana de Venezuela made starting a business DB2013 Venezuela, RB more difficult by increasing the cost of company incorporation. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Panama made dealing with construction permits easier by reducing the fees for a permit from the fire department’s DB2013 Panama safety office and by accelerating the process at the building registry for obtaining a certificate of good standing and for registering the new building. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. República Bolivariana de Venezuela introduced a new Labor DB2013 Venezuela, RB Code that prohibits redundancy dismissals. Brazil increased the notice period applicable in cases of DB2013 Brazil redundancy dismissal of employees. Brazil made transferring property more difficult by DB2013 Brazil introducing a new certificate on good standing on labor debts, adding to the number of due diligence procedures. In Trinidad and Tobago property transfers became faster DB2013 Trinidad and Tobago thanks to speedier issuance of clearance certificates by the Water and Sewerage Authority. Panama made property transfers faster by increasing working DB2013 Panama hours at the registry and reorganizing the caseload of its staff. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Dominica reduced the time to import by implementing the DB2013 Dominica ASYCUDA World electronic data interchange system. Puerto Rico (territory of the United States) made paying taxes easier and less costly for companies by introducing a new DB2013 Puerto Rico (U.S.) Internal Revenue Code and tax codification and by reducing the effective corporate income tax rate. Haiti made dealing with construction permits costlier by DB2012 Haiti increasing the fees to obtain a building permit. Puerto Rico (territory of the United States) made starting a DB2012 Puerto Rico (U.S.) business easier by merging the name search and company registration procedures. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 94 DB year Economy Reform Puerto Rico (territory of the United States) made dealing with DB2012 Puerto Rico (U.S.) construction permits easier by creating the Office of Permits Management to streamline procedures. St. Kitts and Nevis made paying taxes easier by introducing a DB2012 St. Kitts and Nevis value added tax. Nicaragua made paying taxes easier for companies by DB2012 Nicaragua promoting electronic filing and payment of the major taxes, an option now used by the majority of taxpayers. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Paraguay made paying taxes more burdensome for DB2012 Paraguay companies by introducing new tax declarations that must be filed monthly. República Bolivariana de Venezuela made paying taxes DB2012 Venezuela, RB costlier for firms by doubling the municipal economic activities tax (sales tax). Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Paraguay improved its credit information system by DB2012 Paraguay establishing an online platform for financial institutions to exchange information with the public credit registry. Uruguay improved its credit information system by DB2012 Uruguay introducing a new online platform allowing access to credit reports for financial institutions, public utilities and borrowers. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Brazil improved its credit information system by allowing DB2012 Brazil private credit bureaus to collect and share positive information. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Guyana eased the process of starting a business by reducing DB2012 Guyana the time needed for registering a new company and for obtaining a tax identification number. Honduras made trading across borders faster by DB2012 Honduras implementing a web-based electronic data interchange system and X-ray machines at the port of Puerto Cortes. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 95 DB year Economy Reform Uruguay made starting a business easier by establishing a DB2012 Uruguay one-stop shop for general commercial companies. Panama extended the operating hours of the public registry, DB2012 Panama reducing the time required to register a new company. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Nicaragua raised the monetary threshold for commercial claims that can be brought to the Managua local civil court, DB2012 Nicaragua leaving lower-value claims in the local courts, where proceedings are simpler and faster. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Trinidad and Tobago made dealing with construction permits DB2012 Trinidad and Tobago costlier by increasing the fees for building permit approvals. Paraguay made dealing with construction permits easier by DB2012 Paraguay implementing a risk-based approval system and a single window for obtaining construction permits. Nicaragua made transferring property more efficient by DB2012 Nicaragua introducing a fast-track procedure for registration. Argentina made transferring property more difficult by DB2012 Argentina adding a requirement that the notary obtain the tax agency’s reference value for property before notarizing the sale deed. Honduras strengthened its secured transactions system through a new decree establishing a centralized and DB2012 Honduras computerized collateral registry and providing for out-of- court enforcement of collateral upon default. Honduras made paying taxes costlier for firms by raising the DB2012 Honduras solidarity tax rate. In Guyana transferring property became slower because of a DB2012 Guyana lack of personnel at the deed registry. Honduras adopted a new civil procedure code that modified DB2012 Honduras litigation procedures for enforcing a contract. Guyana made getting electricity more expensive by tripling DB2012 Guyana the security deposit required for a new connection. Costa Rica made transferring property easier and quicker by DB2012 Costa Rica making property certificates available online through a single website. The Dominican Republic made starting a business easier by DB2012 Dominican Republic eliminating the requirement for a proof of deposit of capital when establishing a new company. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 96 DB year Economy Reform Colombia reduced the costs associated with starting a DB2012 Colombia business, by no longer requiring upfront payment of the commercial license fee. Belize introduced the requirements to notify third parties in DB2012 Belize cases of redundancy dismissals. Belize made paying taxes easier for firms by improving DB2012 Belize electronic filing and payment for social security contributions, an option now used by the majority of taxpayers. DB2012 Bolivia Bolivia raised social security contribution rates for employers. Colombia amended regulations governing insolvency DB2012 Colombia proceedings to simplify the proceedings and reduce their time and cost El Salvador strengthened investor protections by allowing DB2012 El Salvador greater access to corporate information during the trial. Colombia eased the administrative burden of paying taxes for DB2012 Colombia firms by establishing mandatory electronic filing and payment for some of the major taxes. In Costa Rica online payment of social security contributions DB2012 Costa Rica is now widespread and used by the majority of taxpayers. The Bahamas made transferring property more costly by DB2012 Bahamas, The increasing the applicable stamp duty fees. In Antigua and Barbuda, to transfer property now requires DB2011 Antigua and Barbuda clearance by the chief surveyor to avoid mischievous declarations. Colombia eased the process of Starting a Business by DB2011 Colombia reducing the number of days to register with the Social Security System. The Dominican Republic made it more difficult to start a business by setting a minimum capital requirement of DB2011 Dominican Republic 100,000 Dominican pesos ($2,855) for its new type of company, sociedad de responsabilidad limitada (limited liability company). Ecuador made starting a business easier by introducing an DB2011 Ecuador online registration system for social security. Colombia eased construction permitting by improving the DB2011 Colombia electronic verification of prebuilding certificates. Guyana enhanced access to credit by establishing a regulatory framework that allows the licensing of private DB2011 Guyana credit bureaus and gives borrowers the right to inspect their data. Jamaica eased the transfer of property by lowering transfer DB2011 Jamaica taxes and fees, offering expedited registration procedures Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 97 DB year Economy Reform and making information from the company registrar available online. The appointment of a registrar focusing only on property cut DB2011 Grenada the time needed to transfer property in Grenada by almost half. Grenada’s customs administration made trading faster by DB2011 Grenada simplifying procedures, reducing inspections, improving staff training and enhancing communication with users. Guyana improved its risk profiling system for customs DB2011 Guyana inspection, reducing physical inspections of shipments and the time to trade. Guyana eased business start-up by digitizing company DB2011 Guyana records, which speeded up the process of company name search and reservation. Grenada eased business start-up by transferring responsibility DB2011 Grenada for the commercial registry from the courts to the civil administration. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. Nicaragua expedited trade by migrating to a new electronic data interchange system for customs, setting up a physical DB2011 Nicaragua one-stop shop for exports and investing in new equipment at the port of Corinto. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Panama eased business start-up by increasing efficiency at DB2011 Panama the registrar. República Bolivariana de Venezuela made starting a business DB2011 Venezuela, RB more difficult by introducing a new procedure for registering a company. Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Brazil eased business start-up by further enhancing the DB2011 Brazil electronic synchronization between federal and state tax authorities. In Uruguay the Municipality of Montevideo made registering DB2011 Uruguay property easier by eliminating the need to obtain a mandatory waiver for preemption rights. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 98 DB year Economy Reform Panama made it more expensive to transfer property by DB2011 Panama requiring that an amount equal to 3% of the property value be paid upon registration. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Paraguay made dealing with construction permits easier by DB2011 Paraguay creating a new administrative structure and a better tracking system in the municipality of Asunción. República Bolivariana de Venezuela improved access to credit DB2011 Venezuela, RB information by creating a private credit bureau. Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. República Bolivariana de Venezuela abolished the tax on DB2011 Venezuela, RB financial transactions. Panama reduced the corporate income tax rate, modified DB2011 Panama various taxes and created a new tax court of appeals. Nicaragua increased taxes on firms by raising social security contribution rates and introducing a 10% withholding tax on DB2011 Nicaragua the gross interest accrued from deposits. It also improved electronic payment of taxes through bank transfer. Puerto Rico made paying taxes more costly for business by DB2011 Puerto Rico (U.S.) introducing a special surtax of 5% on the tax liability in addition to the normal corporate income tax. Haiti eased business start-up by eliminating the review by the DB2011 Haiti president’s or the prime minister’s office of the incorporation act submitted for publication. Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 99 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 LATIN AMERICA AND CARIBBEAN (LAC) 100 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 LATIN AMERICA AND CARIBBEAN (LAC) 101 REGISTERING PROPERTY Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in Latin registering property suggest an answer (figure 5.1). The America and Caribbean (LAC) to transfer property? The average ranking of the region and comparator regions global rankings of these economies on the ease of provide a useful benchmark. Figure 5.1 How economies in Latin America and Caribbean (LAC) rank on the ease of registering property Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 102 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 Latin America and Caribbean (LAC) Procedures (number) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 103 REGISTERING PROPERTY Time (days) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 104 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 LATIN AMERICA AND CARIBBEAN (LAC) 105 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 indicato r. 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 LATIN AMERICA AND CARIBBEAN (LAC) 106 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 Latin America and Caribbean (LAC) (table for procedures and setting low fixed fees. Many have cut 5.1)? the time required substantially—enabling Table 5.1 How have economies in Latin America and Caribbean (LAC) made registering property easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Antigua and Barbuda made trading across borders easier by DB2017 Antigua and Barbuda eliminating the tax compliance certificate required for import customs clearance. Bolivia made dealing with construction permits lengthier by DB2017 Bolivia implementing a new requirement to pay for the land registry certificate at the Judiciary Council. Bolivia made enforcing contracts easier by adopting a new DB2017 Bolivia code of civil procedure that introduces pre-trial conferences. Bolivia made starting a business easier by decreasing the time DB2017 Bolivia needed to register a company. The Bahamas made registering property easier by reducing DB2017 Bahamas, The the cost of transferring a property. The Bahamas made starting a business easier by allowing local limited liability companies to register online. On the DB2017 Bahamas, The other hand, The Bahamas made starting a business more costly by increasing the fees for registering a company name and incorporation. The Bahamas made paying taxes more complicated by DB2017 Bahamas, The introducing a value added tax. Ecuador adopted a new code of civil procedure that made DB2017 Ecuador enforcing contracts easier by introducing a pre-trial conference. The new code also made enforcing contracts more difficult by eliminating a dedicated procedure for the Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 107 DB year Economy Reform resolution of small claims. El Salvador made access to credit information more difficult DB2017 El Salvador by reducing the coverage of the credit bureau. The Dominican Republic made getting an electricity DB2017 Dominican Republic connection faster by reducing the time required to approve electrical connection plans. Colombia made starting a business easier by streamlining DB2017 Colombia registration procedures. Ecuador made starting a business easier by eliminating the DB2017 Ecuador publication of company charters in local newspapers. El Salvador made paying taxes easier by encouraging the use DB2017 El Salvador of the electronic system for filing taxes. The Dominican Republic made paying taxes less costly by DB2017 Dominican Republic decreasing the corporate income tax rate. Guyana improved access to credit information by expanding DB2017 Guyana the coverage of the credit bureau. Guyana made registering property easier by increasing the DB2017 Guyana transparency of the Lands & Survey Commission. Jamaica made starting a business more difficult by removing DB2017 Jamaica the ability to complete next day company incorporation. Jamaica reduced the time of documentary compliance for DB2017 Jamaica exporting by implementing an automated customs data management system, ASYCUDA World. Grenada made trading across borders easier by streamlining DB2017 Grenada import document submission procedures, reducing the time required for documentary compliance. Honduras made trading across borders more difficult by DB2017 Honduras increasing the number of intrusive inspections for importing, which increased the border compliance time. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 108 DB year Economy Reform Guatemala made paying taxes less costly by reducing the rate DB2017 Guatemala of corporate income tax. Jamaica made paying taxes less costly by increasing tax depreciation rates and the initial capital allowance for assets acquired on or after January 1, 2014. Furthermore, companies DB2017 Jamaica incorporated for less than 24 months are exempted from paying the minimum business tax. Jamaica also made paying taxes easier by implementing an electronic system for filing of corporate income tax, VAT and social contributions. Brazil made enforcing contracts easier through a new mediation law—that includes financial incentives for parties DB2017 Brazil to attempt mediation—and a new code of civil procedure. These reforms apply to both Rio de Janeiro and São Paulo. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. Brazil expanded eligibility for unemployment benefits to DB2017 Brazil employees with one year of continuous work experience. This reform applies to both Rio de Janeiro and São Paulo. Paraguay reduced access to credit information by limiting the DB2017 Paraguay distribution of historical data on borrowers. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Saint Kitts and Nevis made it more difficult to transfer property due to work overload at the Supreme Court Registry DB2017 St. Kitts and Nevis while also reducing the stamp duty for transferring real estate. Brazil reduced the time needed to start a business by DB2017 Brazil implementing an online portal for business licenses in Rio de Janeiro. However, Brazil also made starting a business more Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 109 DB year Economy Reform difficult by shortening the opening hours of the business registry in Rio de Janeiro. Barbados made starting a business easier by reducing the DB2017 Barbados time to register a company. The República Bolivariana de Venezuela made starting a business more expensive by raising the value of the tributary DB2017 Venezuela, RB unit and lawyers’ fees. It also made the process more time consuming by limiting the work schedule of the public sector. Uruguay made starting a business more costly by increasing DB2017 Uruguay the value of the official fiscal unit used for the payment of government fees. Brazil made trading across borders easier by implementing an electronic system for importing, which reduced the time DB2017 Brazil required for documentary compliance. This reform applies to both Rio de Janeiro and São Paulo. Nicaragua made trading across borders more expensive by DB2017 Nicaragua introducing a new security fee, increasing the cost of border compliance for exporting and importing. Paraguay made trading across borders easier by introducing DB2017 Paraguay a single window for exporting, which reduced the time required of border and documentary compliance. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. Uruguay made paying taxes easier by introducing an DB2017 Uruguay electronic system for paying social security contributions. Online filing was already in place. Argentina made dealing with construction permits more DB2017 Argentina difficult by increasing municipal fees. Argentina made trading across borders easier by introducing DB2017 Argentina a new licensing system for importing, which reduced the time required for documentary compliance. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 110 DB year Economy Reform Argentina made paying taxes less costly by increasing the threshold for the 5% turnover tax. Argentina also made DB2017 Argentina paying taxes easier by introducing improvements to the online portal for filing taxes. Dominica made paying taxes less costly by reducing the DB2017 Dominica corporate income tax rate. Haiti made trading across borders easier by improving port infrastructure and improving the SYDONIA electronic data DB2017 Haiti interchange system by allowing the submission of supporting documents online. The utility made getting electricity more difficult by DB2017 St. Lucia introducing a requirement to obtain a current land registry extract to get a new connection. Puerto Rico made registering property easier by digitizing its DB2017 Puerto Rico (U.S.) land records, improving the quality of infrastructure and transparency of its land administration system. St. Lucia made exporting and importing easier by upgrading an electronic data interchange system and linking the DB2017 St. Lucia customs and port authorities through a common online platform. Puerto Rico (territory of the United States) made paying taxes DB2017 Puerto Rico (U.S.) less costly by abolishing gross receipts tax. However, the capital gains tax rate was increased. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Peru improved its credit information system by implementing DB2016 Peru a new law on personal data protection. Jamaica made dealing with construction permits easier by DB2016 Jamaica implementing a new workflow for processing building permit applications. DB2016 Jamaica Jamaica made resolving insolvency easier by introducing a Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 111 DB year Economy Reform reorganization procedure; introducing provisions to facilitate the continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency proceedings. Jamaica made paying taxes easier and less costly for companies by encouraging taxpayers to pay their taxes online, introducing an employment tax credit and increasing the depreciation rate for industrial buildings. At the same DB2016 Jamaica time, Jamaica introduced a minimum business tax, raised the contribution rate for the national insurance scheme paid by employers and increased the rates for stamp duty, the property tax, the property transfer tax and the education tax. Guatemala made paying taxes less costly for companies by DB2016 Guatemala reducing the corporate income tax rate. Honduras made paying taxes more costly for companies by DB2016 Honduras introducing an alternative minimum income tax. Honduras strengthened minority investor protections by introducing provisions requiring greater disclosure of related- party transactions, prohibiting interested parties from voting DB2016 Honduras on a related-party transaction, allowing shareholders representing at least 5% of a company’s share capital to bring a direct action for damages against its directors and giving any shareholder the right to inspect company documents. Jamaica made starting a business easier by streamlining DB2016 Jamaica internal procedures. Guatemala reduced the documentary and border compliance time for importing by making electronic submission of documents compulsory and eliminating the need for many DB2016 Guatemala hard-copy documents. DB2016 Guyana Guyana improved access to credit information by establishing Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 112 DB year Economy Reform a new credit bureau. Trinidad and Tobago made getting electricity more costly by DB2016 Trinidad and Tobago introducing a capital contribution toward connection costs. St. Vincent and the Grenadines made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s DB2016 St. Vincent and the Grenadines business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Barbados made paying taxes more costly for companies by DB2016 Barbados raising the ceiling for social security contributions and introducing a new municipal solid waste tax. Uruguay made paying taxes easier for companies by DB2016 Uruguay continually upgrading and improving the electronic system for filing and paying the major taxes. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be deductible. DB2016 Mexico These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Uruguay made registering property more difficult by requiring by law a certificate of connection of the property to DB2016 Uruguay the public sewage system to complete the process of transferring and registering property. Brazil made transferring property in São Paulo more DB2016 Brazil expensive by increasing the property transfer tax. DB2016 Venezuela, RB República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs. It also made Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 113 DB year Economy Reform starting a business more difficult by making the registration at the Venezuelan Social Security Institute (IVSS), the National Bank for Housing and Habitat (BANAVIH) and the National Institute of Socialist Cooperation & Education (INCES) prerequisites for the Ministry of Labor (Minpptrass) registration. Uruguay made starting a business more difficult by increasing DB2016 Uruguay incorporation costs. Suriname reduced the time for documentary and border compliance for exporting and importing by implementing an DB2016 Suriname automated customs data management system, ASYCUDA (Automated System for Customs Data) World. Brazil reduced the time for documentary and border compliance for exporting by implementing the electronic SISCOMEX Portal system. This reform applies to both Rio de DB2016 Brazil Janeiro and São Paulo. El Salvador improved access to credit by adopting the Law on Movable Property, which established a modern, centralized, DB2016 El Salvador notice-based collateral registry and allows a general description of a single category of assets granted as collateral. Costa Rica improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a modern, centralized, notice-based DB2016 Costa Rica collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and allows out-of-court enforcement of collateral. The Bahamas made paying taxes less costly for companies by DB2016 Bahamas, The reducing the business license tax—though it also raised the wage ceiling used in calculating social security contributions. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 114 DB year Economy Reform The Bahamas made starting a business more difficult by DB2016 Bahamas, The adding a requirement for value added tax (VAT) registration. The Bahamas made trading across borders easier by fully implementing an electronic data interchange system, which DB2016 Bahamas, The reduced the time for preparation and submission of trade documents for both exporting and importing. The utility in Costa Rica made getting electricity easier by reducing the time required for preparing the design of the DB2016 Costa Rica external connection works and for installing the meter and initiating the electricity supply. Colombia made paying taxes less costly for companies by DB2016 Colombia reducing the payroll tax rate and introducing exemptions for health care contributions paid by employers. Costa Rica made paying taxes easier for companies by DB2016 Costa Rica promoting the use of its electronic filing and payment system for corporate income tax and general sales tax. Ecuador made starting a business easier by simplifying the DB2016 Ecuador registration process and by eliminating the need to deposit 50% of the minimum capital in a special account. DB2016 Ecuador Ecuador eliminated fixed-term contracts for permanent tasks. El Salvador increased the border compliance time for DB2016 El Salvador exporting and importing by adding an extra, nonintrusive inspection at the Anguiatú border crossing with Guatemala. Colombia improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a centralized, notice-based collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets DB2015 Colombia granted as collateral, establishes clear priority rules inside bankruptcy for secured creditors, sets out grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures and allows out-of-court enforcement of collateral. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 115 DB year Economy Reform The Dominican Republic improved its credit information system by enacting a new law regulating the protection of DB2015 Dominican Republic personal data and the operation of credit reporting institutions. Costa Rica reduced the time required for getting electricity by DB2015 Costa Rica improving the coordination between different departments at the utility. The Dominican Republic made dealing with construction DB2015 Dominican Republic permits more costly by increasing the building permit fees. Costa Rica made paying taxes easier for companies by DB2015 Costa Rica implementing an electronic system for filing corporate income tax and VAT. Colombia made paying taxes more complicated for DB2015 Colombia companies by introducing a new profit tax (CREE), though it also reduced the corporate income tax rate and payroll taxes. The Dominican Republic strengthened minority investor DB2015 Dominican Republic protections by introducing greater shareholder rights and requirements for greater corporate transparency. Ecuador strengthened minority investor protections by introducing greater requirements for disclosure of related- DB2015 Ecuador party transactions as well as a requirement that a potential acquirer make a tender offer to all shareholders upon acquiring voting shares. Colombia made transferring property easier by eliminating DB2015 Colombia the need for a provisional registration. The Dominican Republic made trading across borders easier DB2015 Dominican Republic by reducing the number of documents required for exports and imports. Ecuador made trading across borders easier by introducing a DB2015 Ecuador new electronic data interchange system called ECUAPASS. Bolivia made trading across borders more difficult by DB2015 Bolivia increasing customs clearance time. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 116 DB year Economy Reform The Bahamas made dealing with construction permits more DB2015 Bahamas, The costly by increasing the building permit fees. The Bahamas made enforcing contracts easier by introducing new rules of civil procedure focused on streamlining and DB2015 Bahamas, The simplifying court proceedings and ensuring less costly resolution of disputes. Nicaragua improved access to credit information by starting DB2015 Nicaragua to provide credit scores to banks and financial institutions. Panama improved access to credit through a new law broadening the range of assets that can be used as collateral, DB2015 Panama allowing a general description of assets granted as collateral and allowing out-of-court enforcement of collateral. Trinidad and Tobago improved access to credit by adopting the Bankruptcy and Insolvency Act, which establishes clear DB2015 Trinidad and Tobago grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures as well as a time limit for the stay. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made dealing with construction permits DB2015 St. Kitts and Nevis more costly by increasing the building permit fees. Uruguay made enforcing contracts easier by simplifying and DB2015 Uruguay speeding up the proceedings for commercial disputes. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 117 DB year Economy Reform St. Kitts and Nevis made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s business during DB2015 St. Kitts and Nevis insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Trinidad and Tobago made resolving insolvency easier by introducing a formal mechanism for rehabilitation, DB2015 Trinidad and Tobago establishing a public office responsible for the general administration of insolvency proceedings and clarifying the rules on appointment of trustees. St. Kitts and Nevis made paying taxes less costly for DB2015 St. Kitts and Nevis companies by reducing the corporate income tax rate. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs and by DB2015 Venezuela, RB requiring companies to register within the Superintendence for Socioeconomic Rights (SUNDEE). Trinidad and Tobago made starting a business easier by DB2015 Trinidad and Tobago introducing online systems for employer registration and tax registration. Suriname made starting a business easier by introducing an DB2015 Suriname online system for obtaining trade licenses. Nicaragua made starting a business easier by combining DB2015 Nicaragua multiple registration procedures. Uruguay made trading across borders easier by implementing DB2015 Uruguay a risk-based inspection system that reduced customs clearance time for both exports and imports. Jamaica improved access to credit by establishing credit bureaus and by adopting a new secured transactions law that DB2015 Jamaica implements a functional secured transactions system, broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 118 DB year Economy Reform and establishes a modern, notice-based collateral registry. Jamaica made getting electricity less expensive by reducing DB2015 Jamaica the cost of external connection works. Honduras made dealing with construction permits more DB2015 Honduras costly by increasing the building permit fees. Jamaica made paying taxes more costly for companies by DB2015 Jamaica introducing a new minimum business tax. Guatemala made paying taxes easier and less costly for companies by enhancing the electronic system for filing and paying corporate income tax and VAT and by reducing the DB2015 Guatemala capital gains and corporate income tax rates. On the other hand, it also made paying taxes more complicated by introducing a new form for capital gains tax. Guatemala made starting a business easier by eliminating DB2015 Guatemala certain registration fees and reducing the time to publish a notice of incorporation. Honduras made starting a business easier by eliminating the DB2015 Honduras paid-in minimum capital requirement. Jamaica made starting a business easier by consolidating forms, but also made it more time-consuming as a result of DB2015 Jamaica delays in the implementation of the electronic interface with different agencies. Argentina made dealing with construction permits more DB2015 Argentina costly by increasing several fees. Puerto Rico (territory of the United States) made dealing with construction permits easier by introducing the option of DB2015 Puerto Rico (U.S.) hiring authorized private professionals to carry out the fire safety recommendations and issue the fire safety and environmental health certificates. St. Lucia made trading across borders easier by implementing DB2015 St. Lucia the ASYCUDA World electronic system for the submission of export and import documents and by reducing the number of Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 119 DB year Economy Reform export documents required. St. Lucia made trading across borders more difficult by DB2014 St. Lucia introducing a new export document. Argentina reduced the number of documents necessary for DB2014 Argentina importing by eliminating nonautomatic license requirements. Argentina made starting a business more difficult by DB2014 Argentina increasing the incorporation costs. Jamaica improved its credit information system by creating a DB2014 Jamaica legal and regulatory framework for private credit bureaus. Nicaragua reduced the time required for getting electricity by increasing efficiency in granting approval of the connection DB2014 Nicaragua design and by informing the customer in advance what the amount of the security deposit will be. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a DB2014 Mexico “silence is consent” rule for the approval of the feasibility study for a new connection. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. Panama made paying taxes easier for companies by changing the payment frequency for corporate income taxes from DB2014 Panama monthly to quarterly and by implementing a new online platform for filing the social security payroll. Paraguay made paying taxes easier for companies by making DB2014 Paraguay electronic filing and payment mandatory for corporate income and value added taxes. Panama strengthened investor protections by increasing the DB2014 Panama disclosure requirements for publicly held companies. Panama made transferring property easier by connecting the DB2014 Panama land registry with the cadastre. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 120 DB year Economy Reform Suriname made transferring property easier by increasing DB2014 Suriname administrative efficiency at the land registry. República Bolivariana de Venezuela made starting a business DB2014 Venezuela, RB more costly by increasing the company registration fees. Suriname made starting a business easier by reducing the DB2014 Suriname time required to obtain the president’s approval for the registration of a new company. Trinidad and Tobago made starting a business easier by DB2014 Trinidad and Tobago merging the statutory declaration of compliance into the standard articles of incorporation form. Nicaragua made starting a business easier by merging the procedures for registering with the revenue authority and DB2014 Nicaragua with the municipality and by reducing the time required for incorporation. Panama made starting a business easier by eliminating the DB2014 Panama need to visit the municipality to obtain the municipal taxpayer number. Uruguay made trading across borders easier by implementing DB2014 Uruguay an electronic customs declaration system. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. República Bolivariana de Venezuela improved access to credit DB2014 Venezuela, RB information by starting to collect data on firms from financial institutions. Guatemala made dealing with construction permits easier by streamlining procedures through the creation of a one-stop DB2014 Guatemala shop, backed by agreements between institutions and agencies involved in the permitting process. Jamaica made paying taxes less costly for companies by DB2014 Jamaica reducing the corporate income tax rate—though it also increased vehicle and asset taxes. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 121 DB year Economy Reform Guatemala made paying taxes easier for companies by DB2014 Guatemala introducing a new electronic filing and payment system. Guyana made paying taxes easier for companies by reducing DB2014 Guyana the corporate income tax rate. Jamaica made transferring property more difficult by DB2014 Jamaica increasing the transfer tax and the stamp duty. Jamaica made starting a business easier by enabling the DB2014 Jamaica Companies Office of Jamaica to stamp the new company’s articles of incorporation at registration. Guatemala made starting a business easier by creating an DB2014 Guatemala online platform that allows simultaneous registration of a new company with different government agencies.. The Bahamas enhanced its insolvency process by implementing rules for the remuneration of liquidators, DB2014 Bahamas, The allowing voluntary liquidations and outlining clawback provisions for suspect transactions. The Bahamas made transferring property easier by reducing DB2014 Bahamas, The the stamp duty. Colombia made getting electricity easier by opening a one- DB2014 Colombia stop shop for electricity connections and improving the efficiency of the utility’s internal processes. Ecuador made getting electricity easier by dividing the city of Quito into zones for the purpose of DB2014 Ecuador handling applications for new connections—a changethat improved the utility’s customer service—and by reducing the fees to obtain a connection. Costa Rica made dealing with construction permits easier by eliminating procedures, improving efficiency DB2014 Costa Rica and launching an online platform that streamlined the building permit process by integrating different agencies’ approval processes. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 122 DB year Economy Reform Colombia made enforcing contracts easier by simplifying and DB2014 Colombia speeding up the proceedings for commercial disputes. El Salvador made paying taxes more costly for companies by DB2014 El Salvador increasing the corporate income tax rate. Costa Rica made starting a business easier by creating an online platform for business registration, eliminating the DB2014 Costa Rica requirement to have accounting books legalized and simplifying the legalization of company books. El Salvador made trading across borders easier by developing DB2014 El Salvador a one-stop shop for exporting and by implementing electronic data interchange systems. Antigua and Barbuda made trading across borders more DB2013 Antigua and Barbuda difficult by increasing the number of documents required to import. In Ecuador property transfers became more time consuming DB2013 Ecuador as a result of implementation problems in transferring authority over property records to the municipality of Quito. El Salvador improved access to credit information through a DB2013 El Salvador new law regulating the management of personal credit information. Costa Rica improved access to credit information by DB2013 Costa Rica guaranteeing borrowers’ right to inspect their personal data. The Dominican Republic increased the corporate income tax DB2013 Dominican Republic rate. DB2013 El Salvador El Salvador introduced an alternative minimum tax. Costa Rica made paying taxes easier for companies by DB2013 Costa Rica implementing electronic payment for municipal taxes — though it also introduced a registration flat tax. Colombia made starting a business easier by eliminating the DB2013 Colombia requirement to purchase and register accounting books at the time of incorporation. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 123 DB year Economy Reform Costa Rica made starting a business easier by streamlining DB2013 Costa Rica the process of obtaining a sanitary permit from the authorities for low-risk activities. Costa Rica streamlined the process for obtaining construction DB2013 Costa Rica permits by implementing online approval systems. Grenada reduced the time to export and import by DB2013 Grenada implementing the ASYCUDA World electronic data interchange system. Jamaica reduced the time to import by allowing customs DB2013 Jamaica entries to be lodged at night. Guatemala made dealing with construction permits easier by DB2013 Guatemala introducing a risk-based approval system Jamaica made paying taxes easier for companies by allowing DB2013 Jamaica joint filing and payment of all social security contributions. Belize reduced the time to export and import by DB2013 Belize implementing the ASYCUDA World electronic data interchange system. Argentina increased the time, cost and number of documents needed to import by expanding the list of products requiring DB2013 Argentina nonautomatic licenses and introducing new preapproval procedures for all imports. Brazil made enforcing contracts easier by implementing an DB2013 Brazil electronic system for filing initial complaints at the São Paulo civil district court. In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training DB2013 Mexico opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials. Uruguay made paying taxes easier for small and medium-size DB2013 Uruguay companies by fully implementing an online filing and payment system for capital, value added and corporate Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 124 DB year Economy Reform income taxes and by improving the online facilities for social security contributions. República Bolivariana de Venezuela made paying taxes more DB2013 Venezuela, RB costly and difficult for companies by introducing a sports, physical activities and physical education tax. Panama made paying taxes easier for companies by enhancing the electronic filing system for value added tax DB2013 Panama and simplifying tax return forms for corporate income tax— though it also began requiring companies to pay corporate income tax monthly rather than quarterly. Uruguay reduced the time to import by improving port DB2013 Uruguay efficiency and introducing electronic payment and predeclaration systems for customs. St. Kitts and Nevis made it more expensive to export by DB2013 St. Kitts and Nevis increasing the cost of operations at the port of Basseterre. Suriname increased the time to export by involving more DB2013 Suriname customs departments in clearing exports. Trinidad and Tobago reduced the time to export and import by launching the ASYCUDA World electronic data interchange DB2013 Trinidad and Tobago system and simplifying the process for obtaining a certificate of origin. República Bolivariana de Venezuela made starting a business DB2013 Venezuela, RB more difficult by increasing the cost of company incorporation. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Panama made dealing with construction permits easier by reducing the fees for a permit from the fire department’s DB2013 Panama safety office and by accelerating the process at the building registry for obtaining a certificate of good standing and for registering the new building. DB2013 Peru Peru made obtaining a construction permit easier by Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 125 DB year Economy Reform eliminating requirements for several preconstruction approvals. República Bolivariana de Venezuela introduced a new Labor DB2013 Venezuela, RB Code that prohibits redundancy dismissals. Brazil increased the notice period applicable in cases of DB2013 Brazil redundancy dismissal of employees. Brazil made transferring property more difficult by DB2013 Brazil introducing a new certificate on good standing on labor debts, adding to the number of due diligence procedures. In Trinidad and Tobago property transfers became faster DB2013 Trinidad and Tobago thanks to speedier issuance of clearance certificates by the Water and Sewerage Authority. Panama made property transfers faster by increasing working DB2013 Panama hours at the registry and reorganizing the caseload of its staff. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Dominica reduced the time to import by implementing the DB2013 Dominica ASYCUDA World electronic data interchange system. Puerto Rico (territory of the United States) made paying taxes easier and less costly for companies by introducing a new DB2013 Puerto Rico (U.S.) Internal Revenue Code and tax codification and by reducing the effective corporate income tax rate. Haiti made dealing with construction permits costlier by DB2012 Haiti increasing the fees to obtain a building permit. Puerto Rico (territory of the United States) made starting a DB2012 Puerto Rico (U.S.) business easier by merging the name search and company registration procedures. DB2012 Puerto Rico (U.S.) Puerto Rico (territory of the United States) made dealing with construction permits easier by creating the Office of Permits Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 126 DB year Economy Reform Management to streamline procedures. St. Kitts and Nevis made paying taxes easier by introducing a DB2012 St. Kitts and Nevis value added tax. Nicaragua made paying taxes easier for companies by DB2012 Nicaragua promoting electronic filing and payment of the major taxes, an option now used by the majority of taxpayers. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Paraguay made paying taxes more burdensome for DB2012 Paraguay companies by introducing new tax declarations that must be filed monthly. República Bolivariana de Venezuela made paying taxes DB2012 Venezuela, RB costlier for firms by doubling the municipal economic activities tax (sales tax). Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Paraguay improved its credit information system by DB2012 Paraguay establishing an online platform for financial institutions to exchange information with the public credit registry. Uruguay improved its credit information system by DB2012 Uruguay introducing a new online platform allowing access to credit reports for financial institutions, public utilities and borrowers. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Brazil improved its credit information system by allowing DB2012 Brazil private credit bureaus to collect and share positive information. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 127 DB year Economy Reform Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Guyana eased the process of starting a business by reducing DB2012 Guyana the time needed for registering a new company and for obtaining a tax identification number. Honduras made trading across borders faster by DB2012 Honduras implementing a web-based electronic data interchange system and X-ray machines at the port of Puerto Cortes. Uruguay made starting a business easier by establishing a DB2012 Uruguay one-stop shop for general commercial companies. Panama extended the operating hours of the public registry, DB2012 Panama reducing the time required to register a new company. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Nicaragua raised the monetary threshold for commercial claims that can be brought to the Managua local civil court, DB2012 Nicaragua leaving lower-value claims in the local courts, where proceedings are simpler and faster. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Trinidad and Tobago made dealing with construction permits DB2012 Trinidad and Tobago costlier by increasing the fees for building permit approvals. Paraguay made dealing with construction permits easier by DB2012 Paraguay implementing a risk-based approval system and a single window for obtaining construction permits. Nicaragua made transferring property more efficient by DB2012 Nicaragua introducing a fast-track procedure for registration. DB2012 Argentina Argentina made transferring property more difficult by adding a requirement that the notary obtain the tax agency’s Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 128 DB year Economy Reform reference value for property before notarizing the sale deed. Honduras strengthened its secured transactions system through a new decree establishing a centralized and DB2012 Honduras computerized collateral registry and providing for out-of- court enforcement of collateral upon default. Honduras made paying taxes costlier for firms by raising the DB2012 Honduras solidarity tax rate. In Guyana transferring property became slower because of a DB2012 Guyana lack of personnel at the deed registry. Honduras adopted a new civil procedure code that modified DB2012 Honduras litigation procedures for enforcing a contract. Guyana made getting electricity more expensive by tripling DB2012 Guyana the security deposit required for a new connection. Costa Rica made transferring property easier and quicker by DB2012 Costa Rica making property certificates available online through a single website. The Dominican Republic made starting a business easier by DB2012 Dominican Republic eliminating the requirement for a proof of deposit of capital when establishing a new company. Colombia reduced the costs associated with starting a DB2012 Colombia business, by no longer requiring upfront payment of the commercial license fee. Belize introduced the requirements to notify third parties in DB2012 Belize cases of redundancy dismissals. Belize made paying taxes easier for firms by improving DB2012 Belize electronic filing and payment for social security contributions, an option now used by the majority of taxpayers. DB2012 Bolivia Bolivia raised social security contribution rates for employers. DB2012 Colombia Colombia amended regulations governing insolvency proceedings to simplify the proceedings and reduce their Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 129 DB year Economy Reform time and cost El Salvador strengthened investor protections by allowing DB2012 El Salvador greater access to corporate information during the trial. Colombia eased the administrative burden of paying taxes for DB2012 Colombia firms by establishing mandatory electronic filing and payment for some of the major taxes. In Costa Rica online payment of social security contributions DB2012 Costa Rica is now widespread and used by the majority of taxpayers. The Bahamas made transferring property more costly by DB2012 Bahamas, The increasing the applicable stamp duty fees. In Antigua and Barbuda, to transfer property now requires DB2011 Antigua and Barbuda clearance by the chief surveyor to avoid mischievous declarations. Colombia eased the process of Starting a Business by DB2011 Colombia reducing the number of days to register with the Social Security System. The Dominican Republic made it more difficult to start a business by setting a minimum capital requirement of DB2011 Dominican Republic 100,000 Dominican pesos ($2,855) for its new type of company, sociedad de responsabilidad limitada (limited liability company). Ecuador made starting a business easier by introducing an DB2011 Ecuador online registration system for social security. Colombia eased construction permitting by improving the DB2011 Colombia electronic verification of prebuilding certificates. Guyana enhanced access to credit by establishing a regulatory framework that allows the licensing of private DB2011 Guyana credit bureaus and gives borrowers the right to inspect their data. DB2011 Jamaica Jamaica eased the transfer of property by lowering transfer taxes and fees, offering expedited registration procedures Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 130 DB year Economy Reform and making information from the company registrar available online. The appointment of a registrar focusing only on property cut DB2011 Grenada the time needed to transfer property in Grenada by almost half. Grenada’s customs administration made trading faster by DB2011 Grenada simplifying procedures, reducing inspections, improving staff training and enhancing communication with users. Guyana improved its risk profiling system for customs DB2011 Guyana inspection, reducing physical inspections of shipments and the time to trade. Guyana eased business start-up by digitizing company DB2011 Guyana records, which speeded up the process of company name search and reservation. Grenada eased business start-up by transferring responsibility DB2011 Grenada for the commercial registry from the courts to the civil administration. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. Nicaragua expedited trade by migrating to a new electronic data interchange system for customs, setting up a physical DB2011 Nicaragua one-stop shop for exports and investing in new equipment at the port of Corinto. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Panama eased business start-up by increasing efficiency at DB2011 Panama the registrar. República Bolivariana de Venezuela made starting a business DB2011 Venezuela, RB more difficult by introducing a new procedure for registering a company. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 131 DB year Economy Reform Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Brazil eased business start-up by further enhancing the DB2011 Brazil electronic synchronization between federal and state tax authorities. In Uruguay the Municipality of Montevideo made registering DB2011 Uruguay property easier by eliminating the need to obtain a mandatory waiver for preemption rights. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Panama made it more expensive to transfer property by DB2011 Panama requiring that an amount equal to 3% of the property value be paid upon registration. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Paraguay made dealing with construction permits easier by DB2011 Paraguay creating a new administrative structure and a better tracking system in the municipality of Asunción. República Bolivariana de Venezuela improved access to credit DB2011 Venezuela, RB information by creating a private credit bureau. Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. República Bolivariana de Venezuela abolished the tax on DB2011 Venezuela, RB financial transactions. Panama reduced the corporate income tax rate, modified DB2011 Panama various taxes and created a new tax court of appeals. DB2011 Nicaragua Nicaragua increased taxes on firms by raising social security contribution rates and introducing a 10% withholding tax on Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 132 DB year Economy Reform the gross interest accrued from deposits. It also improved electronic payment of taxes through bank transfer. Puerto Rico made paying taxes more costly for business by DB2011 Puerto Rico (U.S.) introducing a special surtax of 5% on the tax liability in addition to the normal corporate income tax. Haiti eased business start-up by eliminating the review by the DB2011 Haiti president’s or the prime minister’s office of the incorporation act submitted for publication. 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 LATIN AMERICA AND CARIBBEAN (LAC) 133 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 LATIN AMERICA AND CARIBBEAN (LAC) 134 GETTING CREDIT Where do the region’s economies stand today? How well do the credit information systems and getting credit suggest an answer (figure 6.1). The collateral and bankruptcy laws in economies in Latin average ranking of the region and comparator regions America and Caribbean (LAC) facilitate access to credit? provide a useful benchmark. The global rankings of these economies on the ease of Figure 6.1 How economies in Latin America and Caribbean (LAC) rank on the ease of getting credit Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 135 GETTING CREDIT Another way to assess how well regulations and the strength of legal rights index for Latin America and institutions support lending and borrowing in the region Caribbean (LAC) and comparators on the strength of is to see where the region stands in the distribution of legal rights index. Figure 6.3 shows the same thing for scores across regions. Figure 6.2 highlights the score on the depth of credit information index. Figure 6.2 How strong are legal rights for borrowers and lenders? Region scores on strength of legal rights index Note: Higher scores indicate that collateral and bankruptcy laws are better designed to facilitate access to credit. Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 136 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 LATIN AMERICA AND CARIBBEAN (LAC) 137 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 Latin America and Caribbean (LAC) (table 6.1)? Table 6.1 How have economies in Latin America and Caribbean (LAC) made getting credit easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Antigua and Barbuda made trading across borders easier by DB2017 Antigua and Barbuda eliminating the tax compliance certificate required for import customs clearance. Bolivia made dealing with construction permits lengthier by DB2017 Bolivia implementing a new requirement to pay for the land registry certificate at the Judiciary Council. Bolivia made enforcing contracts easier by adopting a new DB2017 Bolivia code of civil procedure that introduces pre-trial conferences. Bolivia made starting a business easier by decreasing the time DB2017 Bolivia needed to register a company. The Bahamas made registering property easier by reducing DB2017 Bahamas, The the cost of transferring a property. The Bahamas made starting a business easier by allowing local limited liability companies to register online. On the DB2017 Bahamas, The other hand, The Bahamas made starting a business more costly by increasing the fees for registering a company name and incorporation. The Bahamas made paying taxes more complicated by DB2017 Bahamas, The introducing a value added tax. Ecuador adopted a new code of civil procedure that made enforcing contracts easier by introducing a pre-trial DB2017 Ecuador conference. The new code also made enforcing contracts more difficult by eliminating a dedicated procedure for the resolution of small claims. El Salvador made access to credit information more difficult DB2017 El Salvador by reducing the coverage of the credit bureau. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 138 DB year Economy Reform The Dominican Republic made getting an electricity DB2017 Dominican Republic connection faster by reducing the time required to approve electrical connection plans. Colombia made starting a business easier by streamlining DB2017 Colombia registration procedures. Ecuador made starting a business easier by eliminating the DB2017 Ecuador publication of company charters in local newspapers. El Salvador made paying taxes easier by encouraging the use DB2017 El Salvador of the electronic system for filing taxes. The Dominican Republic made paying taxes less costly by DB2017 Dominican Republic decreasing the corporate income tax rate. Guyana improved access to credit information by expanding DB2017 Guyana the coverage of the credit bureau. Guyana made registering property easier by increasing the DB2017 Guyana transparency of the Lands & Survey Commission. Jamaica made starting a business more difficult by removing DB2017 Jamaica the ability to complete next day company incorporation. Jamaica reduced the time of documentary compliance for DB2017 Jamaica exporting by implementing an automated customs data management system, ASYCUDA World. Grenada made trading across borders easier by streamlining DB2017 Grenada import document submission procedures, reducing the time required for documentary compliance. Honduras made trading across borders more difficult by DB2017 Honduras increasing the number of intrusive inspections for importing, which increased the border compliance time. Guatemala made paying taxes less costly by reducing the rate DB2017 Guatemala of corporate income tax. Jamaica made paying taxes less costly by increasing tax depreciation rates and the initial capital allowance for assets acquired on or after January 1, 2014. Furthermore, companies DB2017 Jamaica incorporated for less than 24 months are exempted from paying the minimum business tax. Jamaica also made paying taxes easier by implementing an electronic system for filing of corporate income tax, VAT and social contributions. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 139 DB year Economy Reform Brazil made enforcing contracts easier through a new mediation law—that includes financial incentives for parties DB2017 Brazil to attempt mediation—and a new code of civil procedure. These reforms apply to both Rio de Janeiro and São Paulo. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. Brazil expanded eligibility for unemployment benefits to DB2017 Brazil employees with one year of continuous work experience. This reform applies to both Rio de Janeiro and São Paulo. Paraguay reduced access to credit information by limiting the DB2017 Paraguay distribution of historical data on borrowers. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Saint Kitts and Nevis made it more difficult to transfer property due to work overload at the Supreme Court Registry DB2017 St. Kitts and Nevis while also reducing the stamp duty for transferring real estate. Brazil reduced the time needed to start a business by implementing an online portal for business licenses in Rio de DB2017 Brazil Janeiro. However, Brazil also made starting a business more difficult by shortening the opening hours of the business registry in Rio de Janeiro. Barbados made starting a business easier by reducing the DB2017 Barbados time to register a company. The República Bolivariana de Venezuela made starting a business more expensive by raising the value of the tributary DB2017 Venezuela, RB unit and lawyers’ fees. It also made the process more time consuming by limiting the work schedule of the public sector. Uruguay made starting a business more costly by increasing DB2017 Uruguay the value of the official fiscal unit used for the payment of government fees. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 140 DB year Economy Reform Brazil made trading across borders easier by implementing an electronic system for importing, which reduced the time DB2017 Brazil required for documentary compliance. This reform applies to both Rio de Janeiro and São Paulo. Nicaragua made trading across borders more expensive by DB2017 Nicaragua introducing a new security fee, increasing the cost of border compliance for exporting and importing. Paraguay made trading across borders easier by introducing DB2017 Paraguay a single window for exporting, which reduced the time required of border and documentary compliance. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. Uruguay made paying taxes easier by introducing an DB2017 Uruguay electronic system for paying social security contributions. Online filing was already in place. Argentina made dealing with construction permits more DB2017 Argentina difficult by increasing municipal fees. Argentina made trading across borders easier by introducing DB2017 Argentina a new licensing system for importing, which reduced the time required for documentary compliance. Argentina made paying taxes less costly by increasing the threshold for the 5% turnover tax. Argentina also made DB2017 Argentina paying taxes easier by introducing improvements to the online portal for filing taxes. Dominica made paying taxes less costly by reducing the DB2017 Dominica corporate income tax rate. Haiti made trading across borders easier by improving port infrastructure and improving the SYDONIA electronic data DB2017 Haiti interchange system by allowing the submission of supporting documents online. The utility made getting electricity more difficult by DB2017 St. Lucia introducing a requirement to obtain a current land registry extract to get a new connection. Puerto Rico made registering property easier by digitizing its DB2017 Puerto Rico (U.S.) land records, improving the quality of infrastructure and transparency of its land administration system. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 141 DB year Economy Reform St. Lucia made exporting and importing easier by upgrading an electronic data interchange system and linking the DB2017 St. Lucia customs and port authorities through a common online platform. Puerto Rico (territory of the United States) made paying taxes DB2017 Puerto Rico (U.S.) less costly by abolishing gross receipts tax. However, the capital gains tax rate was increased. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Peru improved its credit information system by implementing DB2016 Peru a new law on personal data protection. Jamaica made dealing with construction permits easier by DB2016 Jamaica implementing a new workflow for processing building permit applications. Jamaica made resolving insolvency easier by introducing a reorganization procedure; introducing provisions to facilitate the continuation of the debtor’s business during insolvency DB2016 Jamaica proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency proceedings. Jamaica made paying taxes easier and less costly for companies by encouraging taxpayers to pay their taxes online, introducing an employment tax credit and increasing the depreciation rate for industrial buildings. At the same DB2016 Jamaica time, Jamaica introduced a minimum business tax, raised the contribution rate for the national insurance scheme paid by employers and increased the rates for stamp duty, the property tax, the property transfer tax and the education tax. Guatemala made paying taxes less costly for companies by DB2016 Guatemala reducing the corporate income tax rate. Honduras made paying taxes more costly for companies by DB2016 Honduras introducing an alternative minimum income tax. Honduras strengthened minority investor protections by DB2016 Honduras introducing provisions requiring greater disclosure of related- party transactions, prohibiting interested parties from voting on a related-party transaction, allowing shareholders Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 142 DB year Economy Reform representing at least 5% of a company’s share capital to bring a direct action for damages against its directors and giving any shareholder the right to inspect company documents. Jamaica made starting a business easier by streamlining DB2016 Jamaica internal procedures. Guatemala reduced the documentary and border compliance time for importing by making electronic submission of documents compulsory and eliminating the need for many DB2016 Guatemala hard-copy documents. Guyana improved access to credit information by establishing DB2016 Guyana a new credit bureau. Trinidad and Tobago made getting electricity more costly by DB2016 Trinidad and Tobago introducing a capital contribution toward connection costs. St. Vincent and the Grenadines made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s DB2016 St. Vincent and the Grenadines business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Barbados made paying taxes more costly for companies by DB2016 Barbados raising the ceiling for social security contributions and introducing a new municipal solid waste tax. Uruguay made paying taxes easier for companies by DB2016 Uruguay continually upgrading and improving the electronic system for filing and paying the major taxes. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be deductible. DB2016 Mexico These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 143 DB year Economy Reform Uruguay made registering property more difficult by requiring by law a certificate of connection of the property to DB2016 Uruguay the public sewage system to complete the process of transferring and registering property. Brazil made transferring property in São Paulo more DB2016 Brazil expensive by increasing the property transfer tax. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs. It also made starting a business more difficult by making the registration at the Venezuelan Social Security Institute (IVSS), the National DB2016 Venezuela, RB Bank for Housing and Habitat (BANAVIH) and the National Institute of Socialist Cooperation & Education (INCES) prerequisites for the Ministry of Labor (Minpptrass) registration. Uruguay made starting a business more difficult by increasing DB2016 Uruguay incorporation costs. Suriname reduced the time for documentary and border compliance for exporting and importing by implementing an DB2016 Suriname automated customs data management system, ASYCUDA (Automated System for Customs Data) World. Brazil reduced the time for documentary and border compliance for exporting by implementing the electronic SISCOMEX Portal system. This reform applies to both Rio de DB2016 Brazil Janeiro and São Paulo. El Salvador improved access to credit by adopting the Law on Movable Property, which established a modern, centralized, DB2016 El Salvador notice-based collateral registry and allows a general description of a single category of assets granted as collateral. Costa Rica improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a modern, centralized, notice-based DB2016 Costa Rica collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and allows out-of-court enforcement of collateral. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 144 DB year Economy Reform The Bahamas made paying taxes less costly for companies by DB2016 Bahamas, The reducing the business license tax—though it also raised the wage ceiling used in calculating social security contributions. The Bahamas made starting a business more difficult by DB2016 Bahamas, The adding a requirement for value added tax (VAT) registration. The Bahamas made trading across borders easier by fully implementing an electronic data interchange system, which DB2016 Bahamas, The reduced the time for preparation and submission of trade documents for both exporting and importing. The utility in Costa Rica made getting electricity easier by reducing the time required for preparing the design of the DB2016 Costa Rica external connection works and for installing the meter and initiating the electricity supply. Colombia made paying taxes less costly for companies by DB2016 Colombia reducing the payroll tax rate and introducing exemptions for health care contributions paid by employers. Costa Rica made paying taxes easier for companies by DB2016 Costa Rica promoting the use of its electronic filing and payment system for corporate income tax and general sales tax. Ecuador made starting a business easier by simplifying the DB2016 Ecuador registration process and by eliminating the need to deposit 50% of the minimum capital in a special account. DB2016 Ecuador Ecuador eliminated fixed-term contracts for permanent tasks. El Salvador increased the border compliance time for DB2016 El Salvador exporting and importing by adding an extra, nonintrusive inspection at the Anguiatú border crossing with Guatemala. Colombia improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a centralized, notice-based collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets DB2015 Colombia granted as collateral, establishes clear priority rules inside bankruptcy for secured creditors, sets out grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures and allows out-of-court enforcement of collateral. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 145 DB year Economy Reform The Dominican Republic improved its credit information system by enacting a new law regulating the protection of DB2015 Dominican Republic personal data and the operation of credit reporting institutions. Costa Rica reduced the time required for getting electricity by DB2015 Costa Rica improving the coordination between different departments at the utility. The Dominican Republic made dealing with construction DB2015 Dominican Republic permits more costly by increasing the building permit fees. Costa Rica made paying taxes easier for companies by DB2015 Costa Rica implementing an electronic system for filing corporate income tax and VAT. Colombia made paying taxes more complicated for DB2015 Colombia companies by introducing a new profit tax (CREE), though it also reduced the corporate income tax rate and payroll taxes. The Dominican Republic strengthened minority investor DB2015 Dominican Republic protections by introducing greater shareholder rights and requirements for greater corporate transparency. Ecuador strengthened minority investor protections by introducing greater requirements for disclosure of related- DB2015 Ecuador party transactions as well as a requirement that a potential acquirer make a tender offer to all shareholders upon acquiring voting shares. Colombia made transferring property easier by eliminating DB2015 Colombia the need for a provisional registration. The Dominican Republic made trading across borders easier DB2015 Dominican Republic by reducing the number of documents required for exports and imports. Ecuador made trading across borders easier by introducing a DB2015 Ecuador new electronic data interchange system called ECUAPASS. Bolivia made trading across borders more difficult by DB2015 Bolivia increasing customs clearance time. The Bahamas made dealing with construction permits more DB2015 Bahamas, The costly by increasing the building permit fees. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 146 DB year Economy Reform The Bahamas made enforcing contracts easier by introducing new rules of civil procedure focused on streamlining and DB2015 Bahamas, The simplifying court proceedings and ensuring less costly resolution of disputes. Nicaragua improved access to credit information by starting DB2015 Nicaragua to provide credit scores to banks and financial institutions. Panama improved access to credit through a new law broadening the range of assets that can be used as collateral, DB2015 Panama allowing a general description of assets granted as collateral and allowing out-of-court enforcement of collateral. Trinidad and Tobago improved access to credit by adopting the Bankruptcy and Insolvency Act, which establishes clear DB2015 Trinidad and Tobago grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures as well as a time limit for the stay. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made dealing with construction permits DB2015 St. Kitts and Nevis more costly by increasing the building permit fees. Uruguay made enforcing contracts easier by simplifying and DB2015 Uruguay speeding up the proceedings for commercial disputes. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s business during DB2015 St. Kitts and Nevis insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 147 DB year Economy Reform Trinidad and Tobago made resolving insolvency easier by introducing a formal mechanism for rehabilitation, DB2015 Trinidad and Tobago establishing a public office responsible for the general administration of insolvency proceedings and clarifying the rules on appointment of trustees. St. Kitts and Nevis made paying taxes less costly for DB2015 St. Kitts and Nevis companies by reducing the corporate income tax rate. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs and by DB2015 Venezuela, RB requiring companies to register within the Superintendence for Socioeconomic Rights (SUNDEE). Trinidad and Tobago made starting a business easier by DB2015 Trinidad and Tobago introducing online systems for employer registration and tax registration. Suriname made starting a business easier by introducing an DB2015 Suriname online system for obtaining trade licenses. Nicaragua made starting a business easier by combining DB2015 Nicaragua multiple registration procedures. Uruguay made trading across borders easier by implementing DB2015 Uruguay a risk-based inspection system that reduced customs clearance time for both exports and imports. Jamaica improved access to credit by establishing credit bureaus and by adopting a new secured transactions law that implements a functional secured transactions system, DB2015 Jamaica broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and establishes a modern, notice-based collateral registry. Jamaica made getting electricity less expensive by reducing DB2015 Jamaica the cost of external connection works. Honduras made dealing with construction permits more DB2015 Honduras costly by increasing the building permit fees. Jamaica made paying taxes more costly for companies by DB2015 Jamaica introducing a new minimum business tax. Guatemala made paying taxes easier and less costly for DB2015 Guatemala companies by enhancing the electronic system for filing and paying corporate income tax and VAT and by reducing the Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 148 DB year Economy Reform capital gains and corporate income tax rates. On the other hand, it also made paying taxes more complicated by introducing a new form for capital gains tax. Guatemala made starting a business easier by eliminating DB2015 Guatemala certain registration fees and reducing the time to publish a notice of incorporation. Honduras made starting a business easier by eliminating the DB2015 Honduras paid-in minimum capital requirement. Jamaica made starting a business easier by consolidating forms, but also made it more time-consuming as a result of DB2015 Jamaica delays in the implementation of the electronic interface with different agencies. Argentina made dealing with construction permits more DB2015 Argentina costly by increasing several fees. Puerto Rico (territory of the United States) made dealing with construction permits easier by introducing the option of DB2015 Puerto Rico (U.S.) hiring authorized private professionals to carry out the fire safety recommendations and issue the fire safety and environmental health certificates. St. Lucia made trading across borders easier by implementing the ASYCUDA World electronic system for the submission of DB2015 St. Lucia export and import documents and by reducing the number of export documents required. St. Lucia made trading across borders more difficult by DB2014 St. Lucia introducing a new export document. Argentina reduced the number of documents necessary for DB2014 Argentina importing by eliminating nonautomatic license requirements. Argentina made starting a business more difficult by DB2014 Argentina increasing the incorporation costs. Jamaica improved its credit information system by creating a DB2014 Jamaica legal and regulatory framework for private credit bureaus. Nicaragua reduced the time required for getting electricity by increasing efficiency in granting approval of the connection DB2014 Nicaragua design and by informing the customer in advance what the amount of the security deposit will be. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 149 DB year Economy Reform Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a DB2014 Mexico “silence is consent” rule for the approval of the feasibility study for a new connection. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. Panama made paying taxes easier for companies by changing the payment frequency for corporate income taxes from DB2014 Panama monthly to quarterly and by implementing a new online platform for filing the social security payroll. Paraguay made paying taxes easier for companies by making DB2014 Paraguay electronic filing and payment mandatory for corporate income and value added taxes. Panama strengthened investor protections by increasing the DB2014 Panama disclosure requirements for publicly held companies. Panama made transferring property easier by connecting the DB2014 Panama land registry with the cadastre. Suriname made transferring property easier by increasing DB2014 Suriname administrative efficiency at the land registry. República Bolivariana de Venezuela made starting a business DB2014 Venezuela, RB more costly by increasing the company registration fees. Suriname made starting a business easier by reducing the DB2014 Suriname time required to obtain the president’s approval for the registration of a new company. Trinidad and Tobago made starting a business easier by DB2014 Trinidad and Tobago merging the statutory declaration of compliance into the standard articles of incorporation form. Nicaragua made starting a business easier by merging the procedures for registering with the revenue authority and DB2014 Nicaragua with the municipality and by reducing the time required for incorporation. Panama made starting a business easier by eliminating the DB2014 Panama need to visit the municipality to obtain the municipal taxpayer number. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 150 DB year Economy Reform Uruguay made trading across borders easier by implementing DB2014 Uruguay an electronic customs declaration system. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. República Bolivariana de Venezuela improved access to credit DB2014 Venezuela, RB information by starting to collect data on firms from financial institutions. Guatemala made dealing with construction permits easier by streamlining procedures through the creation of a one-stop DB2014 Guatemala shop, backed by agreements between institutions and agencies involved in the permitting process. Jamaica made paying taxes less costly for companies by DB2014 Jamaica reducing the corporate income tax rate—though it also increased vehicle and asset taxes. Guatemala made paying taxes easier for companies by DB2014 Guatemala introducing a new electronic filing and payment system. Guyana made paying taxes easier for companies by reducing DB2014 Guyana the corporate income tax rate. Jamaica made transferring property more difficult by DB2014 Jamaica increasing the transfer tax and the stamp duty. Jamaica made starting a business easier by enabling the DB2014 Jamaica Companies Office of Jamaica to stamp the new company’s articles of incorporation at registration. Guatemala made starting a business easier by creating an DB2014 Guatemala online platform that allows simultaneous registration of a new company with different government agencies.. The Bahamas enhanced its insolvency process by implementing rules for the remuneration of liquidators, DB2014 Bahamas, The allowing voluntary liquidations and outlining clawback provisions for suspect transactions. The Bahamas made transferring property easier by reducing DB2014 Bahamas, The the stamp duty. Colombia made getting electricity easier by opening a one- DB2014 Colombia stop shop for electricity connections and improving the efficiency of the utility’s internal processes. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 151 DB year Economy Reform Ecuador made getting electricity easier by dividing the city of Quito into zones for the purpose of DB2014 Ecuador handling applications for new connections—a changethat improved the utility’s customer service—and by reducing the fees to obtain a connection. Costa Rica made dealing with construction permits easier by eliminating procedures, improving efficiency DB2014 Costa Rica and launching an online platform that streamlined the building permit process by integrating different agencies’ approval processes. Colombia made enforcing contracts easier by simplifying and DB2014 Colombia speeding up the proceedings for commercial disputes. El Salvador made paying taxes more costly for companies by DB2014 El Salvador increasing the corporate income tax rate. Costa Rica made starting a business easier by creating an online platform for business registration, eliminating the DB2014 Costa Rica requirement to have accounting books legalized and simplifying the legalization of company books. El Salvador made trading across borders easier by developing DB2014 El Salvador a one-stop shop for exporting and by implementing electronic data interchange systems. Antigua and Barbuda made trading across borders more DB2013 Antigua and Barbuda difficult by increasing the number of documents required to import. In Ecuador property transfers became more time consuming DB2013 Ecuador as a result of implementation problems in transferring authority over property records to the municipality of Quito. El Salvador improved access to credit information through a DB2013 El Salvador new law regulating the management of personal credit information. Costa Rica improved access to credit information by DB2013 Costa Rica guaranteeing borrowers’ right to inspect their personal data. The Dominican Republic increased the corporate income tax DB2013 Dominican Republic rate. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 152 DB year Economy Reform DB2013 El Salvador El Salvador introduced an alternative minimum tax. Costa Rica made paying taxes easier for companies by DB2013 Costa Rica implementing electronic payment for municipal taxes — though it also introduced a registration flat tax. Colombia made starting a business easier by eliminating the DB2013 Colombia requirement to purchase and register accounting books at the time of incorporation. Costa Rica made starting a business easier by streamlining DB2013 Costa Rica the process of obtaining a sanitary permit from the authorities for low-risk activities. Costa Rica streamlined the process for obtaining construction DB2013 Costa Rica permits by implementing online approval systems. Grenada reduced the time to export and import by DB2013 Grenada implementing the ASYCUDA World electronic data interchange system. Jamaica reduced the time to import by allowing customs DB2013 Jamaica entries to be lodged at night. Guatemala made dealing with construction permits easier by DB2013 Guatemala introducing a risk-based approval system Jamaica made paying taxes easier for companies by allowing DB2013 Jamaica joint filing and payment of all social security contributions. Belize reduced the time to export and import by DB2013 Belize implementing the ASYCUDA World electronic data interchange system. Argentina increased the time, cost and number of documents needed to import by expanding the list of products requiring DB2013 Argentina nonautomatic licenses and introducing new preapproval procedures for all imports. Brazil made enforcing contracts easier by implementing an DB2013 Brazil electronic system for filing initial complaints at the São Paulo civil district court. In Mexico the distribution utility made getting electricity DB2013 Mexico easier by streamlining procedures, offering training opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 153 DB year Economy Reform network and increasing the stock of materials. Uruguay made paying taxes easier for small and medium-size companies by fully implementing an online filing and DB2013 Uruguay payment system for capital, value added and corporate income taxes and by improving the online facilities for social security contributions. República Bolivariana de Venezuela made paying taxes more DB2013 Venezuela, RB costly and difficult for companies by introducing a sports, physical activities and physical education tax. Panama made paying taxes easier for companies by enhancing the electronic filing system for value added tax DB2013 Panama and simplifying tax return forms for corporate income tax— though it also began requiring companies to pay corporate income tax monthly rather than quarterly. Uruguay reduced the time to import by improving port DB2013 Uruguay efficiency and introducing electronic payment and predeclaration systems for customs. St. Kitts and Nevis made it more expensive to export by DB2013 St. Kitts and Nevis increasing the cost of operations at the port of Basseterre. Suriname increased the time to export by involving more DB2013 Suriname customs departments in clearing exports. Trinidad and Tobago reduced the time to export and import by launching the ASYCUDA World electronic data interchange DB2013 Trinidad and Tobago system and simplifying the process for obtaining a certificate of origin. República Bolivariana de Venezuela made starting a business DB2013 Venezuela, RB more difficult by increasing the cost of company incorporation. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Panama made dealing with construction permits easier by reducing the fees for a permit from the fire department’s DB2013 Panama safety office and by accelerating the process at the building registry for obtaining a certificate of good standing and for registering the new building. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 154 DB year Economy Reform Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. República Bolivariana de Venezuela introduced a new Labor DB2013 Venezuela, RB Code that prohibits redundancy dismissals. Brazil increased the notice period applicable in cases of DB2013 Brazil redundancy dismissal of employees. Brazil made transferring property more difficult by DB2013 Brazil introducing a new certificate on good standing on labor debts, adding to the number of due diligence procedures. In Trinidad and Tobago property transfers became faster DB2013 Trinidad and Tobago thanks to speedier issuance of clearance certificates by the Water and Sewerage Authority. Panama made property transfers faster by increasing working DB2013 Panama hours at the registry and reorganizing the caseload of its staff. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Dominica reduced the time to import by implementing the DB2013 Dominica ASYCUDA World electronic data interchange system. Puerto Rico (territory of the United States) made paying taxes easier and less costly for companies by introducing a new DB2013 Puerto Rico (U.S.) Internal Revenue Code and tax codification and by reducing the effective corporate income tax rate. Haiti made dealing with construction permits costlier by DB2012 Haiti increasing the fees to obtain a building permit. Puerto Rico (territory of the United States) made starting a DB2012 Puerto Rico (U.S.) business easier by merging the name search and company registration procedures. Puerto Rico (territory of the United States) made dealing with DB2012 Puerto Rico (U.S.) construction permits easier by creating the Office of Permits Management to streamline procedures. St. Kitts and Nevis made paying taxes easier by introducing a DB2012 St. Kitts and Nevis value added tax. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 155 DB year Economy Reform Nicaragua made paying taxes easier for companies by DB2012 Nicaragua promoting electronic filing and payment of the major taxes, an option now used by the majority of taxpayers. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Paraguay made paying taxes more burdensome for DB2012 Paraguay companies by introducing new tax declarations that must be filed monthly. República Bolivariana de Venezuela made paying taxes DB2012 Venezuela, RB costlier for firms by doubling the municipal economic activities tax (sales tax). Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Paraguay improved its credit information system by DB2012 Paraguay establishing an online platform for financial institutions to exchange information with the public credit registry. Uruguay improved its credit information system by DB2012 Uruguay introducing a new online platform allowing access to credit reports for financial institutions, public utilities and borrowers. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Brazil improved its credit information system by allowing DB2012 Brazil private credit bureaus to collect and share positive information. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Guyana eased the process of starting a business by reducing DB2012 Guyana the time needed for registering a new company and for obtaining a tax identification number. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 156 DB year Economy Reform Honduras made trading across borders faster by DB2012 Honduras implementing a web-based electronic data interchange system and X-ray machines at the port of Puerto Cortes. Uruguay made starting a business easier by establishing a DB2012 Uruguay one-stop shop for general commercial companies. Panama extended the operating hours of the public registry, DB2012 Panama reducing the time required to register a new company. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Nicaragua raised the monetary threshold for commercial claims that can be brought to the Managua local civil court, DB2012 Nicaragua leaving lower-value claims in the local courts, where proceedings are simpler and faster. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Trinidad and Tobago made dealing with construction permits DB2012 Trinidad and Tobago costlier by increasing the fees for building permit approvals. Paraguay made dealing with construction permits easier by DB2012 Paraguay implementing a risk-based approval system and a single window for obtaining construction permits. Nicaragua made transferring property more efficient by DB2012 Nicaragua introducing a fast-track procedure for registration. Argentina made transferring property more difficult by DB2012 Argentina adding a requirement that the notary obtain the tax agency’s reference value for property before notarizing the sale deed. Honduras strengthened its secured transactions system through a new decree establishing a centralized and DB2012 Honduras computerized collateral registry and providing for out-of- court enforcement of collateral upon default. Honduras made paying taxes costlier for firms by raising the DB2012 Honduras solidarity tax rate. In Guyana transferring property became slower because of a DB2012 Guyana lack of personnel at the deed registry. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 157 DB year Economy Reform Honduras adopted a new civil procedure code that modified DB2012 Honduras litigation procedures for enforcing a contract. Guyana made getting electricity more expensive by tripling DB2012 Guyana the security deposit required for a new connection. Costa Rica made transferring property easier and quicker by DB2012 Costa Rica making property certificates available online through a single website. The Dominican Republic made starting a business easier by DB2012 Dominican Republic eliminating the requirement for a proof of deposit of capital when establishing a new company. Colombia reduced the costs associated with starting a DB2012 Colombia business, by no longer requiring upfront payment of the commercial license fee. Belize introduced the requirements to notify third parties in DB2012 Belize cases of redundancy dismissals. Belize made paying taxes easier for firms by improving DB2012 Belize electronic filing and payment for social security contributions, an option now used by the majority of taxpayers. DB2012 Bolivia Bolivia raised social security contribution rates for employers. Colombia amended regulations governing insolvency DB2012 Colombia proceedings to simplify the proceedings and reduce their time and cost El Salvador strengthened investor protections by allowing DB2012 El Salvador greater access to corporate information during the trial. Colombia eased the administrative burden of paying taxes for DB2012 Colombia firms by establishing mandatory electronic filing and payment for some of the major taxes. In Costa Rica online payment of social security contributions DB2012 Costa Rica is now widespread and used by the majority of taxpayers. The Bahamas made transferring property more costly by DB2012 Bahamas, The increasing the applicable stamp duty fees. DB2011 Antigua and Barbuda In Antigua and Barbuda, to transfer property now requires clearance by the chief surveyor to avoid mischievous Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 158 DB year Economy Reform declarations. Colombia eased the process of Starting a Business by DB2011 Colombia reducing the number of days to register with the Social Security System. The Dominican Republic made it more difficult to start a business by setting a minimum capital requirement of DB2011 Dominican Republic 100,000 Dominican pesos ($2,855) for its new type of company, sociedad de responsabilidad limitada (limited liability company). Ecuador made starting a business easier by introducing an DB2011 Ecuador online registration system for social security. Colombia eased construction permitting by improving the DB2011 Colombia electronic verification of prebuilding certificates. Guyana enhanced access to credit by establishing a regulatory framework that allows the licensing of private DB2011 Guyana credit bureaus and gives borrowers the right to inspect their data. Jamaica eased the transfer of property by lowering transfer taxes and fees, offering expedited registration procedures DB2011 Jamaica and making information from the company registrar available online. The appointment of a registrar focusing only on property cut DB2011 Grenada the time needed to transfer property in Grenada by almost half. Grenada’s customs administration made trading faster by DB2011 Grenada simplifying procedures, reducing inspections, improving staff training and enhancing communication with users. Guyana improved its risk profiling system for customs DB2011 Guyana inspection, reducing physical inspections of shipments and the time to trade. Guyana eased business start-up by digitizing company DB2011 Guyana records, which speeded up the process of company name search and reservation. DB2011 Grenada Grenada eased business start-up by transferring responsibility for the commercial registry from the courts to the civil Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 159 DB year Economy Reform administration. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. Nicaragua expedited trade by migrating to a new electronic data interchange system for customs, setting up a physical DB2011 Nicaragua one-stop shop for exports and investing in new equipment at the port of Corinto. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Panama eased business start-up by increasing efficiency at DB2011 Panama the registrar. República Bolivariana de Venezuela made starting a business DB2011 Venezuela, RB more difficult by introducing a new procedure for registering a company. Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Brazil eased business start-up by further enhancing the DB2011 Brazil electronic synchronization between federal and state tax authorities. In Uruguay the Municipality of Montevideo made registering DB2011 Uruguay property easier by eliminating the need to obtain a mandatory waiver for preemption rights. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Panama made it more expensive to transfer property by DB2011 Panama requiring that an amount equal to 3% of the property value be paid upon registration. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Paraguay made dealing with construction permits easier by DB2011 Paraguay creating a new administrative structure and a better tracking system in the municipality of Asunción. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 160 DB year Economy Reform República Bolivariana de Venezuela improved access to credit DB2011 Venezuela, RB information by creating a private credit bureau. Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. República Bolivariana de Venezuela abolished the tax on DB2011 Venezuela, RB financial transactions. Panama reduced the corporate income tax rate, modified DB2011 Panama various taxes and created a new tax court of appeals. Nicaragua increased taxes on firms by raising social security contribution rates and introducing a 10% withholding tax on DB2011 Nicaragua the gross interest accrued from deposits. It also improved electronic payment of taxes through bank transfer. Puerto Rico made paying taxes more costly for business by DB2011 Puerto Rico (U.S.) introducing a special surtax of 5% on the tax liability in addition to the normal corporate income tax. Haiti eased business start-up by eliminating the review by the DB2011 Haiti president’s or the prime minister’s office of the incorporation act submitted for publication. 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 LATIN AMERICA AND CARIBBEAN (LAC) 161 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 LATIN AMERICA AND CARIBBEAN (LAC) 162 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 LATIN AMERICA AND CARIBBEAN (LAC) 163 PROTECTING MINORITY INVESTORS Where do the region’s economies stand today? How strong are investor protections against self-dealing to the protection of minority investors, a higher ranking in economies in Latin America and Caribbean (LAC)? The does indicate that an economy’s regulations offer global rankings of these economies on the strength of stronger investor protections against self-dealing in the investor protection index suggest an answer (figure 7.1). areas measured. While the indicator does not measure all aspects related Figure 7.1 How economies in Latin America and Caribbean (LAC) rank on the strength of investor protection index Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 164 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 Latin America and Caribbean (LAC). index and the extent of shareholder governance index. Comparing the scores across the region and with The index ranges from 0 to 10, rounded to the nearest averages both for the region and for comparator regions decimal place, with higher values indicating stronger can provide useful insights. minority investor protections. Figures 7.2 and 7.3 Figure 7.2 How extensive are conflict of interest regulations? Extent of conflict of interest regulation index (0-10) Note: Higher values indicate stronger regulation of conflicts of interest. Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 165 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 LATIN AMERICA AND CARIBBEAN (LAC) 166 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 Latin and obtain a judgment within a reasonable time. So America and Caribbean (LAC) (table 7.1)? Table 7.1 How have economies in Latin America and Caribbean (LAC) strengthened minority investor protections—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Antigua and Barbuda made trading across borders easier by DB2017 Antigua and Barbuda eliminating the tax compliance certificate required for import customs clearance. Bolivia made dealing with construction permits lengthier by DB2017 Bolivia implementing a new requirement to pay for the land registry certificate at the Judiciary Council. Bolivia made enforcing contracts easier by adopting a new DB2017 Bolivia code of civil procedure that introduces pre-trial conferences. Bolivia made starting a business easier by decreasing the time DB2017 Bolivia needed to register a company. The Bahamas made registering property easier by reducing DB2017 Bahamas, The the cost of transferring a property. The Bahamas made starting a business easier by allowing local limited liability companies to register online. On the DB2017 Bahamas, The other hand, The Bahamas made starting a business more costly by increasing the fees for registering a company name and incorporation. The Bahamas made paying taxes more complicated by DB2017 Bahamas, The introducing a value added tax. Ecuador adopted a new code of civil procedure that made DB2017 Ecuador enforcing contracts easier by introducing a pre-trial conference. The new code also made enforcing contracts Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 167 DB year Economy Reform more difficult by eliminating a dedicated procedure for the resolution of small claims. El Salvador made access to credit information more difficult DB2017 El Salvador by reducing the coverage of the credit bureau. The Dominican Republic made getting an electricity DB2017 Dominican Republic connection faster by reducing the time required to approve electrical connection plans. Colombia made starting a business easier by streamlining DB2017 Colombia registration procedures. Ecuador made starting a business easier by eliminating the DB2017 Ecuador publication of company charters in local newspapers. El Salvador made paying taxes easier by encouraging the use DB2017 El Salvador of the electronic system for filing taxes. The Dominican Republic made paying taxes less costly by DB2017 Dominican Republic decreasing the corporate income tax rate. Guyana improved access to credit information by expanding DB2017 Guyana the coverage of the credit bureau. Guyana made registering property easier by increasing the DB2017 Guyana transparency of the Lands & Survey Commission. Jamaica made starting a business more difficult by removing DB2017 Jamaica the ability to complete next day company incorporation. Jamaica reduced the time of documentary compliance for DB2017 Jamaica exporting by implementing an automated customs data management system, ASYCUDA World. Grenada made trading across borders easier by streamlining DB2017 Grenada import document submission procedures, reducing the time required for documentary compliance. Honduras made trading across borders more difficult by DB2017 Honduras increasing the number of intrusive inspections for importing, which increased the border compliance time. Guatemala made paying taxes less costly by reducing the rate DB2017 Guatemala of corporate income tax. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 168 DB year Economy Reform Jamaica made paying taxes less costly by increasing tax depreciation rates and the initial capital allowance for assets acquired on or after January 1, 2014. Furthermore, companies DB2017 Jamaica incorporated for less than 24 months are exempted from paying the minimum business tax. Jamaica also made paying taxes easier by implementing an electronic system for filing of corporate income tax, VAT and social contributions. Brazil made enforcing contracts easier through a new mediation law—that includes financial incentives for parties DB2017 Brazil to attempt mediation—and a new code of civil procedure. These reforms apply to both Rio de Janeiro and São Paulo. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. Brazil expanded eligibility for unemployment benefits to DB2017 Brazil employees with one year of continuous work experience. This reform applies to both Rio de Janeiro and São Paulo. Paraguay reduced access to credit information by limiting the DB2017 Paraguay distribution of historical data on borrowers. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Saint Kitts and Nevis made it more difficult to transfer property due to work overload at the Supreme Court Registry DB2017 St. Kitts and Nevis while also reducing the stamp duty for transferring real estate. Brazil reduced the time needed to start a business by implementing an online portal for business licenses in Rio de DB2017 Brazil Janeiro. However, Brazil also made starting a business more difficult by shortening the opening hours of the business registry in Rio de Janeiro. Barbados made starting a business easier by reducing the DB2017 Barbados time to register a company. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 169 DB year Economy Reform The República Bolivariana de Venezuela made starting a business more expensive by raising the value of the tributary DB2017 Venezuela, RB unit and lawyers’ fees. It also made the process more time consuming by limiting the work schedule of the public sector. Uruguay made starting a business more costly by increasing DB2017 Uruguay the value of the official fiscal unit used for the payment of government fees. Brazil made trading across borders easier by implementing an electronic system for importing, which reduced the time DB2017 Brazil required for documentary compliance. This reform applies to both Rio de Janeiro and São Paulo. Nicaragua made trading across borders more expensive by DB2017 Nicaragua introducing a new security fee, increasing the cost of border compliance for exporting and importing. Paraguay made trading across borders easier by introducing DB2017 Paraguay a single window for exporting, which reduced the time required of border and documentary compliance. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. Uruguay made paying taxes easier by introducing an DB2017 Uruguay electronic system for paying social security contributions. Online filing was already in place. Argentina made dealing with construction permits more DB2017 Argentina difficult by increasing municipal fees. Argentina made trading across borders easier by introducing DB2017 Argentina a new licensing system for importing, which reduced the time required for documentary compliance. Argentina made paying taxes less costly by increasing the threshold for the 5% turnover tax. Argentina also made DB2017 Argentina paying taxes easier by introducing improvements to the online portal for filing taxes. Dominica made paying taxes less costly by reducing the DB2017 Dominica corporate income tax rate. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 170 DB year Economy Reform Haiti made trading across borders easier by improving port infrastructure and improving the SYDONIA electronic data DB2017 Haiti interchange system by allowing the submission of supporting documents online. The utility made getting electricity more difficult by DB2017 St. Lucia introducing a requirement to obtain a current land registry extract to get a new connection. Puerto Rico made registering property easier by digitizing its DB2017 Puerto Rico (U.S.) land records, improving the quality of infrastructure and transparency of its land administration system. St. Lucia made exporting and importing easier by upgrading an electronic data interchange system and linking the DB2017 St. Lucia customs and port authorities through a common online platform. Puerto Rico (territory of the United States) made paying taxes DB2017 Puerto Rico (U.S.) less costly by abolishing gross receipts tax. However, the capital gains tax rate was increased. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Peru improved its credit information system by implementing DB2016 Peru a new law on personal data protection. Jamaica made dealing with construction permits easier by DB2016 Jamaica implementing a new workflow for processing building permit applications. Jamaica made resolving insolvency easier by introducing a reorganization procedure; introducing provisions to facilitate the continuation of the debtor’s business during insolvency DB2016 Jamaica proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency proceedings. Jamaica made paying taxes easier and less costly for DB2016 Jamaica companies by encouraging taxpayers to pay their taxes online, introducing an employment tax credit and increasing Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 171 DB year Economy Reform the depreciation rate for industrial buildings. At the same time, Jamaica introduced a minimum business tax, raised the contribution rate for the national insurance scheme paid by employers and increased the rates for stamp duty, the property tax, the property transfer tax and the education tax. Guatemala made paying taxes less costly for companies by DB2016 Guatemala reducing the corporate income tax rate. Honduras made paying taxes more costly for companies by DB2016 Honduras introducing an alternative minimum income tax. Honduras strengthened minority investor protections by introducing provisions requiring greater disclosure of related- party transactions, prohibiting interested parties from voting DB2016 Honduras on a related-party transaction, allowing shareholders representing at least 5% of a company’s share capital to bring a direct action for damages against its directors and giving any shareholder the right to inspect company documents. Jamaica made starting a business easier by streamlining DB2016 Jamaica internal procedures. Guatemala reduced the documentary and border compliance time for importing by making electronic submission of documents compulsory and eliminating the need for many DB2016 Guatemala hard-copy documents. Guyana improved access to credit information by establishing DB2016 Guyana a new credit bureau. Trinidad and Tobago made getting electricity more costly by DB2016 Trinidad and Tobago introducing a capital contribution toward connection costs. St. Vincent and the Grenadines made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s DB2016 St. Vincent and the Grenadines business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 172 DB year Economy Reform Barbados made paying taxes more costly for companies by DB2016 Barbados raising the ceiling for social security contributions and introducing a new municipal solid waste tax. Uruguay made paying taxes easier for companies by DB2016 Uruguay continually upgrading and improving the electronic system for filing and paying the major taxes. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be deductible. DB2016 Mexico These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Uruguay made registering property more difficult by requiring by law a certificate of connection of the property to DB2016 Uruguay the public sewage system to complete the process of transferring and registering property. Brazil made transferring property in São Paulo more DB2016 Brazil expensive by increasing the property transfer tax. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs. It also made starting a business more difficult by making the registration at the Venezuelan Social Security Institute (IVSS), the National DB2016 Venezuela, RB Bank for Housing and Habitat (BANAVIH) and the National Institute of Socialist Cooperation & Education (INCES) prerequisites for the Ministry of Labor (Minpptrass) registration. Uruguay made starting a business more difficult by increasing DB2016 Uruguay incorporation costs. Suriname reduced the time for documentary and border compliance for exporting and importing by implementing an DB2016 Suriname automated customs data management system, ASYCUDA (Automated System for Customs Data) World. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 173 DB year Economy Reform Brazil reduced the time for documentary and border compliance for exporting by implementing the electronic SISCOMEX Portal system. This reform applies to both Rio de DB2016 Brazil Janeiro and São Paulo. El Salvador improved access to credit by adopting the Law on Movable Property, which established a modern, centralized, DB2016 El Salvador notice-based collateral registry and allows a general description of a single category of assets granted as collateral. Costa Rica improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a modern, centralized, notice-based DB2016 Costa Rica collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and allows out-of-court enforcement of collateral. The Bahamas made paying taxes less costly for companies by DB2016 Bahamas, The reducing the business license tax—though it also raised the wage ceiling used in calculating social security contributions. The Bahamas made starting a business more difficult by DB2016 Bahamas, The adding a requirement for value added tax (VAT) registration. The Bahamas made trading across borders easier by fully implementing an electronic data interchange system, which DB2016 Bahamas, The reduced the time for preparation and submission of trade documents for both exporting and importing. The utility in Costa Rica made getting electricity easier by reducing the time required for preparing the design of the DB2016 Costa Rica external connection works and for installing the meter and initiating the electricity supply. Colombia made paying taxes less costly for companies by DB2016 Colombia reducing the payroll tax rate and introducing exemptions for health care contributions paid by employers. DB2016 Costa Rica Costa Rica made paying taxes easier for companies by promoting the use of its electronic filing and payment system Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 174 DB year Economy Reform for corporate income tax and general sales tax. Ecuador made starting a business easier by simplifying the DB2016 Ecuador registration process and by eliminating the need to deposit 50% of the minimum capital in a special account. DB2016 Ecuador Ecuador eliminated fixed-term contracts for permanent tasks. El Salvador increased the border compliance time for DB2016 El Salvador exporting and importing by adding an extra, nonintrusive inspection at the Anguiatú border crossing with Guatemala. Colombia improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a centralized, notice-based collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets DB2015 Colombia granted as collateral, establishes clear priority rules inside bankruptcy for secured creditors, sets out grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures and allows out-of-court enforcement of collateral. The Dominican Republic improved its credit information system by enacting a new law regulating the protection of DB2015 Dominican Republic personal data and the operation of credit reporting institutions. Costa Rica reduced the time required for getting electricity by DB2015 Costa Rica improving the coordination between different departments at the utility. The Dominican Republic made dealing with construction DB2015 Dominican Republic permits more costly by increasing the building permit fees. Costa Rica made paying taxes easier for companies by DB2015 Costa Rica implementing an electronic system for filing corporate income tax and VAT. Colombia made paying taxes more complicated for DB2015 Colombia companies by introducing a new profit tax (CREE), though it also reduced the corporate income tax rate and payroll taxes. DB2015 Dominican Republic The Dominican Republic strengthened minority investor Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 175 DB year Economy Reform protections by introducing greater shareholder rights and requirements for greater corporate transparency. Ecuador strengthened minority investor protections by introducing greater requirements for disclosure of related- DB2015 Ecuador party transactions as well as a requirement that a potential acquirer make a tender offer to all shareholders upon acquiring voting shares. Colombia made transferring property easier by eliminating DB2015 Colombia the need for a provisional registration. The Dominican Republic made trading across borders easier DB2015 Dominican Republic by reducing the number of documents required for exports and imports. Ecuador made trading across borders easier by introducing a DB2015 Ecuador new electronic data interchange system called ECUAPASS. Bolivia made trading across borders more difficult by DB2015 Bolivia increasing customs clearance time. The Bahamas made dealing with construction permits more DB2015 Bahamas, The costly by increasing the building permit fees. The Bahamas made enforcing contracts easier by introducing new rules of civil procedure focused on streamlining and DB2015 Bahamas, The simplifying court proceedings and ensuring less costly resolution of disputes. Nicaragua improved access to credit information by starting DB2015 Nicaragua to provide credit scores to banks and financial institutions. Panama improved access to credit through a new law broadening the range of assets that can be used as collateral, DB2015 Panama allowing a general description of assets granted as collateral and allowing out-of-court enforcement of collateral. Trinidad and Tobago improved access to credit by adopting the Bankruptcy and Insolvency Act, which establishes clear DB2015 Trinidad and Tobago grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures as well as a time limit for the stay. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 176 DB year Economy Reform Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made dealing with construction permits DB2015 St. Kitts and Nevis more costly by increasing the building permit fees. Uruguay made enforcing contracts easier by simplifying and DB2015 Uruguay speeding up the proceedings for commercial disputes. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s business during DB2015 St. Kitts and Nevis insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Trinidad and Tobago made resolving insolvency easier by introducing a formal mechanism for rehabilitation, DB2015 Trinidad and Tobago establishing a public office responsible for the general administration of insolvency proceedings and clarifying the rules on appointment of trustees. St. Kitts and Nevis made paying taxes less costly for DB2015 St. Kitts and Nevis companies by reducing the corporate income tax rate. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs and by DB2015 Venezuela, RB requiring companies to register within the Superintendence for Socioeconomic Rights (SUNDEE). Trinidad and Tobago made starting a business easier by DB2015 Trinidad and Tobago introducing online systems for employer registration and tax registration. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 177 DB year Economy Reform Suriname made starting a business easier by introducing an DB2015 Suriname online system for obtaining trade licenses. Nicaragua made starting a business easier by combining DB2015 Nicaragua multiple registration procedures. Uruguay made trading across borders easier by implementing DB2015 Uruguay a risk-based inspection system that reduced customs clearance time for both exports and imports. Jamaica improved access to credit by establishing credit bureaus and by adopting a new secured transactions law that implements a functional secured transactions system, DB2015 Jamaica broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and establishes a modern, notice-based collateral registry. Jamaica made getting electricity less expensive by reducing DB2015 Jamaica the cost of external connection works. Honduras made dealing with construction permits more DB2015 Honduras costly by increasing the building permit fees. Jamaica made paying taxes more costly for companies by DB2015 Jamaica introducing a new minimum business tax. Guatemala made paying taxes easier and less costly for companies by enhancing the electronic system for filing and paying corporate income tax and VAT and by reducing the DB2015 Guatemala capital gains and corporate income tax rates. On the other hand, it also made paying taxes more complicated by introducing a new form for capital gains tax. Guatemala made starting a business easier by eliminating DB2015 Guatemala certain registration fees and reducing the time to publish a notice of incorporation. Honduras made starting a business easier by eliminating the DB2015 Honduras paid-in minimum capital requirement. Jamaica made starting a business easier by consolidating forms, but also made it more time-consuming as a result of DB2015 Jamaica delays in the implementation of the electronic interface with different agencies. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 178 DB year Economy Reform Argentina made dealing with construction permits more DB2015 Argentina costly by increasing several fees. Puerto Rico (territory of the United States) made dealing with construction permits easier by introducing the option of DB2015 Puerto Rico (U.S.) hiring authorized private professionals to carry out the fire safety recommendations and issue the fire safety and environmental health certificates. St. Lucia made trading across borders easier by implementing the ASYCUDA World electronic system for the submission of DB2015 St. Lucia export and import documents and by reducing the number of export documents required. St. Lucia made trading across borders more difficult by DB2014 St. Lucia introducing a new export document. Argentina reduced the number of documents necessary for DB2014 Argentina importing by eliminating nonautomatic license requirements. Argentina made starting a business more difficult by DB2014 Argentina increasing the incorporation costs. Jamaica improved its credit information system by creating a DB2014 Jamaica legal and regulatory framework for private credit bureaus. Nicaragua reduced the time required for getting electricity by increasing efficiency in granting approval of the connection DB2014 Nicaragua design and by informing the customer in advance what the amount of the security deposit will be. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a DB2014 Mexico “silence is consent” rule for the approval of the feasibility study for a new connection. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. Panama made paying taxes easier for companies by changing the payment frequency for corporate income taxes from DB2014 Panama monthly to quarterly and by implementing a new online platform for filing the social security payroll. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 179 DB year Economy Reform Paraguay made paying taxes easier for companies by making DB2014 Paraguay electronic filing and payment mandatory for corporate income and value added taxes. Panama strengthened investor protections by increasing the DB2014 Panama disclosure requirements for publicly held companies. Panama made transferring property easier by connecting the DB2014 Panama land registry with the cadastre. Suriname made transferring property easier by increasing DB2014 Suriname administrative efficiency at the land registry. República Bolivariana de Venezuela made starting a business DB2014 Venezuela, RB more costly by increasing the company registration fees. Suriname made starting a business easier by reducing the DB2014 Suriname time required to obtain the president’s approval for the registration of a new company. Trinidad and Tobago made starting a business easier by DB2014 Trinidad and Tobago merging the statutory declaration of compliance into the standard articles of incorporation form. Nicaragua made starting a business easier by merging the procedures for registering with the revenue authority and DB2014 Nicaragua with the municipality and by reducing the time required for incorporation. Panama made starting a business easier by eliminating the DB2014 Panama need to visit the municipality to obtain the municipal taxpayer number. Uruguay made trading across borders easier by implementing DB2014 Uruguay an electronic customs declaration system. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. República Bolivariana de Venezuela improved access to credit DB2014 Venezuela, RB information by starting to collect data on firms from financial institutions. DB2014 Guatemala Guatemala made dealing with construction permits easier by streamlining procedures through the creation of a one-stop Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 180 DB year Economy Reform shop, backed by agreements between institutions and agencies involved in the permitting process. Jamaica made paying taxes less costly for companies by DB2014 Jamaica reducing the corporate income tax rate—though it also increased vehicle and asset taxes. Guatemala made paying taxes easier for companies by DB2014 Guatemala introducing a new electronic filing and payment system. Guyana made paying taxes easier for companies by reducing DB2014 Guyana the corporate income tax rate. Jamaica made transferring property more difficult by DB2014 Jamaica increasing the transfer tax and the stamp duty. Jamaica made starting a business easier by enabling the DB2014 Jamaica Companies Office of Jamaica to stamp the new company’s articles of incorporation at registration. Guatemala made starting a business easier by creating an DB2014 Guatemala online platform that allows simultaneous registration of a new company with different government agencies.. The Bahamas enhanced its insolvency process by implementing rules for the remuneration of liquidators, DB2014 Bahamas, The allowing voluntary liquidations and outlining clawback provisions for suspect transactions. The Bahamas made transferring property easier by reducing DB2014 Bahamas, The the stamp duty. Colombia made getting electricity easier by opening a one- DB2014 Colombia stop shop for electricity connections and improving the efficiency of the utility’s internal processes. Ecuador made getting electricity easier by dividing the city of Quito into zones for the purpose of DB2014 Ecuador handling applications for new connections—a changethat improved the utility’s customer service—and by reducing the fees to obtain a connection. Costa Rica made dealing with construction DB2014 Costa Rica permits easier by eliminating procedures, improving efficiency Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 181 DB year Economy Reform and launching an online platform that streamlined the building permit process by integrating different agencies’ approval processes. Colombia made enforcing contracts easier by simplifying and DB2014 Colombia speeding up the proceedings for commercial disputes. El Salvador made paying taxes more costly for companies by DB2014 El Salvador increasing the corporate income tax rate. Costa Rica made starting a business easier by creating an online platform for business registration, eliminating the DB2014 Costa Rica requirement to have accounting books legalized and simplifying the legalization of company books. El Salvador made trading across borders easier by developing DB2014 El Salvador a one-stop shop for exporting and by implementing electronic data interchange systems. Antigua and Barbuda made trading across borders more DB2013 Antigua and Barbuda difficult by increasing the number of documents required to import. In Ecuador property transfers became more time consuming DB2013 Ecuador as a result of implementation problems in transferring authority over property records to the municipality of Quito. El Salvador improved access to credit information through a DB2013 El Salvador new law regulating the management of personal credit information. Costa Rica improved access to credit information by DB2013 Costa Rica guaranteeing borrowers’ right to inspect their personal data. The Dominican Republic increased the corporate income tax DB2013 Dominican Republic rate. DB2013 El Salvador El Salvador introduced an alternative minimum tax. Costa Rica made paying taxes easier for companies by DB2013 Costa Rica implementing electronic payment for municipal taxes — though it also introduced a registration flat tax. DB2013 Colombia Colombia made starting a business easier by eliminating the requirement to purchase and register accounting books at Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 182 DB year Economy Reform the time of incorporation. Costa Rica made starting a business easier by streamlining DB2013 Costa Rica the process of obtaining a sanitary permit from the authorities for low-risk activities. Costa Rica streamlined the process for obtaining construction DB2013 Costa Rica permits by implementing online approval systems. Grenada reduced the time to export and import by DB2013 Grenada implementing the ASYCUDA World electronic data interchange system. Jamaica reduced the time to import by allowing customs DB2013 Jamaica entries to be lodged at night. Guatemala made dealing with construction permits easier by DB2013 Guatemala introducing a risk-based approval system Jamaica made paying taxes easier for companies by allowing DB2013 Jamaica joint filing and payment of all social security contributions. Belize reduced the time to export and import by DB2013 Belize implementing the ASYCUDA World electronic data interchange system. Argentina increased the time, cost and number of documents needed to import by expanding the list of products requiring DB2013 Argentina nonautomatic licenses and introducing new preapproval procedures for all imports. Brazil made enforcing contracts easier by implementing an DB2013 Brazil electronic system for filing initial complaints at the São Paulo civil district court. In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training DB2013 Mexico opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials. Uruguay made paying taxes easier for small and medium-size DB2013 Uruguay companies by fully implementing an online filing and payment system for capital, value added and corporate income taxes and by improving the online facilities for social Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 183 DB year Economy Reform security contributions. República Bolivariana de Venezuela made paying taxes more DB2013 Venezuela, RB costly and difficult for companies by introducing a sports, physical activities and physical education tax. Panama made paying taxes easier for companies by enhancing the electronic filing system for value added tax DB2013 Panama and simplifying tax return forms for corporate income tax— though it also began requiring companies to pay corporate income tax monthly rather than quarterly. Uruguay reduced the time to import by improving port DB2013 Uruguay efficiency and introducing electronic payment and predeclaration systems for customs. St. Kitts and Nevis made it more expensive to export by DB2013 St. Kitts and Nevis increasing the cost of operations at the port of Basseterre. Suriname increased the time to export by involving more DB2013 Suriname customs departments in clearing exports. Trinidad and Tobago reduced the time to export and import by launching the ASYCUDA World electronic data interchange DB2013 Trinidad and Tobago system and simplifying the process for obtaining a certificate of origin. República Bolivariana de Venezuela made starting a business DB2013 Venezuela, RB more difficult by increasing the cost of company incorporation. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Panama made dealing with construction permits easier by reducing the fees for a permit from the fire department’s DB2013 Panama safety office and by accelerating the process at the building registry for obtaining a certificate of good standing and for registering the new building. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 184 DB year Economy Reform República Bolivariana de Venezuela introduced a new Labor DB2013 Venezuela, RB Code that prohibits redundancy dismissals. Brazil increased the notice period applicable in cases of DB2013 Brazil redundancy dismissal of employees. Brazil made transferring property more difficult by DB2013 Brazil introducing a new certificate on good standing on labor debts, adding to the number of due diligence procedures. In Trinidad and Tobago property transfers became faster DB2013 Trinidad and Tobago thanks to speedier issuance of clearance certificates by the Water and Sewerage Authority. Panama made property transfers faster by increasing working DB2013 Panama hours at the registry and reorganizing the caseload of its staff. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Dominica reduced the time to import by implementing the DB2013 Dominica ASYCUDA World electronic data interchange system. Puerto Rico (territory of the United States) made paying taxes easier and less costly for companies by introducing a new DB2013 Puerto Rico (U.S.) Internal Revenue Code and tax codification and by reducing the effective corporate income tax rate. Haiti made dealing with construction permits costlier by DB2012 Haiti increasing the fees to obtain a building permit. Puerto Rico (territory of the United States) made starting a DB2012 Puerto Rico (U.S.) business easier by merging the name search and company registration procedures. Puerto Rico (territory of the United States) made dealing with DB2012 Puerto Rico (U.S.) construction permits easier by creating the Office of Permits Management to streamline procedures. St. Kitts and Nevis made paying taxes easier by introducing a DB2012 St. Kitts and Nevis value added tax. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 185 DB year Economy Reform Nicaragua made paying taxes easier for companies by DB2012 Nicaragua promoting electronic filing and payment of the major taxes, an option now used by the majority of taxpayers. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Paraguay made paying taxes more burdensome for DB2012 Paraguay companies by introducing new tax declarations that must be filed monthly. República Bolivariana de Venezuela made paying taxes DB2012 Venezuela, RB costlier for firms by doubling the municipal economic activities tax (sales tax). Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Paraguay improved its credit information system by DB2012 Paraguay establishing an online platform for financial institutions to exchange information with the public credit registry. Uruguay improved its credit information system by DB2012 Uruguay introducing a new online platform allowing access to credit reports for financial institutions, public utilities and borrowers. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Brazil improved its credit information system by allowing DB2012 Brazil private credit bureaus to collect and share positive information. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. DB2012 Guyana Guyana eased the process of starting a business by reducing the time needed for registering a new company and for Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 186 DB year Economy Reform obtaining a tax identification number. Honduras made trading across borders faster by DB2012 Honduras implementing a web-based electronic data interchange system and X-ray machines at the port of Puerto Cortes. Uruguay made starting a business easier by establishing a DB2012 Uruguay one-stop shop for general commercial companies. Panama extended the operating hours of the public registry, DB2012 Panama reducing the time required to register a new company. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Nicaragua raised the monetary threshold for commercial claims that can be brought to the Managua local civil court, DB2012 Nicaragua leaving lower-value claims in the local courts, where proceedings are simpler and faster. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Trinidad and Tobago made dealing with construction permits DB2012 Trinidad and Tobago costlier by increasing the fees for building permit approvals. Paraguay made dealing with construction permits easier by DB2012 Paraguay implementing a risk-based approval system and a single window for obtaining construction permits. Nicaragua made transferring property more efficient by DB2012 Nicaragua introducing a fast-track procedure for registration. Argentina made transferring property more difficult by DB2012 Argentina adding a requirement that the notary obtain the tax agency’s reference value for property before notarizing the sale deed. Honduras strengthened its secured transactions system through a new decree establishing a centralized and DB2012 Honduras computerized collateral registry and providing for out-of- court enforcement of collateral upon default. DB2012 Honduras Honduras made paying taxes costlier for firms by raising the Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 187 DB year Economy Reform solidarity tax rate. In Guyana transferring property became slower because of a DB2012 Guyana lack of personnel at the deed registry. Honduras adopted a new civil procedure code that modified DB2012 Honduras litigation procedures for enforcing a contract. Guyana made getting electricity more expensive by tripling DB2012 Guyana the security deposit required for a new connection. Costa Rica made transferring property easier and quicker by DB2012 Costa Rica making property certificates available online through a single website. The Dominican Republic made starting a business easier by DB2012 Dominican Republic eliminating the requirement for a proof of deposit of capital when establishing a new company. Colombia reduced the costs associated with starting a DB2012 Colombia business, by no longer requiring upfront payment of the commercial license fee. Belize introduced the requirements to notify third parties in DB2012 Belize cases of redundancy dismissals. Belize made paying taxes easier for firms by improving DB2012 Belize electronic filing and payment for social security contributions, an option now used by the majority of taxpayers. DB2012 Bolivia Bolivia raised social security contribution rates for employers. Colombia amended regulations governing insolvency DB2012 Colombia proceedings to simplify the proceedings and reduce their time and cost El Salvador strengthened investor protections by allowing DB2012 El Salvador greater access to corporate information during the trial. Colombia eased the administrative burden of paying taxes for DB2012 Colombia firms by establishing mandatory electronic filing and payment for some of the major taxes. DB2012 Costa Rica In Costa Rica online payment of social security contributions Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 188 DB year Economy Reform is now widespread and used by the majority of taxpayers. The Bahamas made transferring property more costly by DB2012 Bahamas, The increasing the applicable stamp duty fees. In Antigua and Barbuda, to transfer property now requires DB2011 Antigua and Barbuda clearance by the chief surveyor to avoid mischievous declarations. Colombia eased the process of Starting a Business by DB2011 Colombia reducing the number of days to register with the Social Security System. The Dominican Republic made it more difficult to start a business by setting a minimum capital requirement of DB2011 Dominican Republic 100,000 Dominican pesos ($2,855) for its new type of company, sociedad de responsabilidad limitada (limited liability company). Ecuador made starting a business easier by introducing an DB2011 Ecuador online registration system for social security. Colombia eased construction permitting by improving the DB2011 Colombia electronic verification of prebuilding certificates. Guyana enhanced access to credit by establishing a regulatory framework that allows the licensing of private DB2011 Guyana credit bureaus and gives borrowers the right to inspect their data. Jamaica eased the transfer of property by lowering transfer taxes and fees, offering expedited registration procedures DB2011 Jamaica and making information from the company registrar available online. The appointment of a registrar focusing only on property cut DB2011 Grenada the time needed to transfer property in Grenada by almost half. Grenada’s customs administration made trading faster by DB2011 Grenada simplifying procedures, reducing inspections, improving staff training and enhancing communication with users. DB2011 Guyana Guyana improved its risk profiling system for customs inspection, reducing physical inspections of shipments and Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 189 DB year Economy Reform the time to trade. Guyana eased business start-up by digitizing company DB2011 Guyana records, which speeded up the process of company name search and reservation. Grenada eased business start-up by transferring responsibility DB2011 Grenada for the commercial registry from the courts to the civil administration. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. Nicaragua expedited trade by migrating to a new electronic data interchange system for customs, setting up a physical DB2011 Nicaragua one-stop shop for exports and investing in new equipment at the port of Corinto. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Panama eased business start-up by increasing efficiency at DB2011 Panama the registrar. República Bolivariana de Venezuela made starting a business DB2011 Venezuela, RB more difficult by introducing a new procedure for registering a company. Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Brazil eased business start-up by further enhancing the DB2011 Brazil electronic synchronization between federal and state tax authorities. In Uruguay the Municipality of Montevideo made registering DB2011 Uruguay property easier by eliminating the need to obtain a mandatory waiver for preemption rights. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 190 DB year Economy Reform Panama made it more expensive to transfer property by DB2011 Panama requiring that an amount equal to 3% of the property value be paid upon registration. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Paraguay made dealing with construction permits easier by DB2011 Paraguay creating a new administrative structure and a better tracking system in the municipality of Asunción. República Bolivariana de Venezuela improved access to credit DB2011 Venezuela, RB information by creating a private credit bureau. Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. República Bolivariana de Venezuela abolished the tax on DB2011 Venezuela, RB financial transactions. Panama reduced the corporate income tax rate, modified DB2011 Panama various taxes and created a new tax court of appeals. Nicaragua increased taxes on firms by raising social security contribution rates and introducing a 10% withholding tax on DB2011 Nicaragua the gross interest accrued from deposits. It also improved electronic payment of taxes through bank transfer. Puerto Rico made paying taxes more costly for business by DB2011 Puerto Rico (U.S.) introducing a special surtax of 5% on the tax liability in addition to the normal corporate income tax. Haiti eased business start-up by eliminating the review by the DB2011 Haiti president’s or the prime minister’s office of the incorporation act submitted for publication. 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 LATIN AMERICA AND CARIBBEAN (LAC) 191 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 LATIN AMERICA AND CARIBBEAN (LAC) 192  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 LATIN AMERICA AND CARIBBEAN (LAC) 193 PAYING TAXES Where do the region’s economies stand today? What is the administrative burden of complying with offer useful information for assessing the tax compliance taxes in economies in Latin America and Caribbean burden for businesses (figure 8.1). The average ranking (LAC)—and how much do firms pay in taxes? The global of the region provides a useful benchmark. rankings of these economies on the ease of paying taxes Figure 8.1 How economies in Latin America and Caribbean (LAC) 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 LATIN AMERICA AND CARIBBEAN (LAC) 194 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 Latin America and Caribbean (LAC)—and what are the total tax rates? Payments (number per year) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 195 PAYING TAXES Time (hours per year) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 196 PAYING TAXES Total tax rate (% of profit) Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 197 PAYING TAXES Postfiling Index (DTF) Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 198 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 Latin America and Caribbean (LAC) Many have lowered tax rates. Changes have brought (table 8.1)? Table 8.1 How have economies in Latin America and Caribbean (LAC) made paying taxes easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Antigua and Barbuda made trading across borders easier by DB2017 Antigua and Barbuda eliminating the tax compliance certificate required for import customs clearance. Bolivia made dealing with construction permits lengthier by DB2017 Bolivia implementing a new requirement to pay for the land registry certificate at the Judiciary Council. Bolivia made enforcing contracts easier by adopting a new DB2017 Bolivia code of civil procedure that introduces pre-trial conferences. Bolivia made starting a business easier by decreasing the time DB2017 Bolivia needed to register a company. The Bahamas made registering property easier by reducing DB2017 Bahamas, The the cost of transferring a property. The Bahamas made starting a business easier by allowing local limited liability companies to register online. On the DB2017 Bahamas, The other hand, The Bahamas made starting a business more costly by increasing the fees for registering a company name and incorporation. The Bahamas made paying taxes more complicated by DB2017 Bahamas, The introducing a value added tax. Ecuador adopted a new code of civil procedure that made DB2017 Ecuador enforcing contracts easier by introducing a pre-trial conference. The new code also made enforcing contracts more difficult by eliminating a dedicated procedure for the Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 199 DB year Economy Reform resolution of small claims. El Salvador made access to credit information more difficult DB2017 El Salvador by reducing the coverage of the credit bureau. The Dominican Republic made getting an electricity DB2017 Dominican Republic connection faster by reducing the time required to approve electrical connection plans. Colombia made starting a business easier by streamlining DB2017 Colombia registration procedures. Ecuador made starting a business easier by eliminating the DB2017 Ecuador publication of company charters in local newspapers. El Salvador made paying taxes easier by encouraging the use DB2017 El Salvador of the electronic system for filing taxes. The Dominican Republic made paying taxes less costly by DB2017 Dominican Republic decreasing the corporate income tax rate. Guyana improved access to credit information by expanding DB2017 Guyana the coverage of the credit bureau. Guyana made registering property easier by increasing the DB2017 Guyana transparency of the Lands & Survey Commission. Jamaica made starting a business more difficult by removing DB2017 Jamaica the ability to complete next day company incorporation. Jamaica reduced the time of documentary compliance for DB2017 Jamaica exporting by implementing an automated customs data management system, ASYCUDA World. Grenada made trading across borders easier by streamlining DB2017 Grenada import document submission procedures, reducing the time required for documentary compliance. Honduras made trading across borders more difficult by DB2017 Honduras increasing the number of intrusive inspections for importing, which increased the border compliance time. Guatemala made paying taxes less costly by reducing the rate DB2017 Guatemala of corporate income tax. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 200 DB year Economy Reform Jamaica made paying taxes less costly by increasing tax depreciation rates and the initial capital allowance for assets acquired on or after January 1, 2014. Furthermore, companies DB2017 Jamaica incorporated for less than 24 months are exempted from paying the minimum business tax. Jamaica also made paying taxes easier by implementing an electronic system for filing of corporate income tax, VAT and social contributions. Brazil made enforcing contracts easier through a new mediation law—that includes financial incentives for parties DB2017 Brazil to attempt mediation—and a new code of civil procedure. These reforms apply to both Rio de Janeiro and São Paulo. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. Brazil expanded eligibility for unemployment benefits to DB2017 Brazil employees with one year of continuous work experience. This reform applies to both Rio de Janeiro and São Paulo. Paraguay reduced access to credit information by limiting the DB2017 Paraguay distribution of historical data on borrowers. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Saint Kitts and Nevis made it more difficult to transfer property due to work overload at the Supreme Court Registry DB2017 St. Kitts and Nevis while also reducing the stamp duty for transferring real estate. Brazil reduced the time needed to start a business by implementing an online portal for business licenses in Rio de DB2017 Brazil Janeiro. However, Brazil also made starting a business more difficult by shortening the opening hours of the business registry in Rio de Janeiro. DB2017 Barbados Barbados made starting a business easier by reducing the Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 201 DB year Economy Reform time to register a company. The República Bolivariana de Venezuela made starting a business more expensive by raising the value of the tributary DB2017 Venezuela, RB unit and lawyers’ fees. It also made the process more time consuming by limiting the work schedule of the public sector. Uruguay made starting a business more costly by increasing DB2017 Uruguay the value of the official fiscal unit used for the payment of government fees. Brazil made trading across borders easier by implementing an electronic system for importing, which reduced the time DB2017 Brazil required for documentary compliance. This reform applies to both Rio de Janeiro and São Paulo. Nicaragua made trading across borders more expensive by DB2017 Nicaragua introducing a new security fee, increasing the cost of border compliance for exporting and importing. Paraguay made trading across borders easier by introducing DB2017 Paraguay a single window for exporting, which reduced the time required of border and documentary compliance. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. Uruguay made paying taxes easier by introducing an DB2017 Uruguay electronic system for paying social security contributions. Online filing was already in place. Argentina made dealing with construction permits more DB2017 Argentina difficult by increasing municipal fees. Argentina made trading across borders easier by introducing DB2017 Argentina a new licensing system for importing, which reduced the time required for documentary compliance. Argentina made paying taxes less costly by increasing the threshold for the 5% turnover tax. Argentina also made DB2017 Argentina paying taxes easier by introducing improvements to the online portal for filing taxes. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 202 DB year Economy Reform Dominica made paying taxes less costly by reducing the DB2017 Dominica corporate income tax rate. Haiti made trading across borders easier by improving port infrastructure and improving the SYDONIA electronic data DB2017 Haiti interchange system by allowing the submission of supporting documents online. The utility made getting electricity more difficult by DB2017 St. Lucia introducing a requirement to obtain a current land registry extract to get a new connection. Puerto Rico made registering property easier by digitizing its DB2017 Puerto Rico (U.S.) land records, improving the quality of infrastructure and transparency of its land administration system. St. Lucia made exporting and importing easier by upgrading an electronic data interchange system and linking the DB2017 St. Lucia customs and port authorities through a common online platform. Puerto Rico (territory of the United States) made paying taxes DB2017 Puerto Rico (U.S.) less costly by abolishing gross receipts tax. However, the capital gains tax rate was increased. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Peru improved its credit information system by implementing DB2016 Peru a new law on personal data protection. Jamaica made dealing with construction permits easier by DB2016 Jamaica implementing a new workflow for processing building permit applications. Jamaica made resolving insolvency easier by introducing a reorganization procedure; introducing provisions to facilitate the continuation of the debtor’s business during insolvency DB2016 Jamaica proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency proceedings. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 203 DB year Economy Reform Jamaica made paying taxes easier and less costly for companies by encouraging taxpayers to pay their taxes online, introducing an employment tax credit and increasing the depreciation rate for industrial buildings. At the same DB2016 Jamaica time, Jamaica introduced a minimum business tax, raised the contribution rate for the national insurance scheme paid by employers and increased the rates for stamp duty, the property tax, the property transfer tax and the education tax. Guatemala made paying taxes less costly for companies by DB2016 Guatemala reducing the corporate income tax rate. Honduras made paying taxes more costly for companies by DB2016 Honduras introducing an alternative minimum income tax. Honduras strengthened minority investor protections by introducing provisions requiring greater disclosure of related- party transactions, prohibiting interested parties from voting DB2016 Honduras on a related-party transaction, allowing shareholders representing at least 5% of a company’s shar e capital to bring a direct action for damages against its directors and giving any shareholder the right to inspect company documents. Jamaica made starting a business easier by streamlining DB2016 Jamaica internal procedures. Guatemala reduced the documentary and border compliance time for importing by making electronic submission of documents compulsory and eliminating the need for many DB2016 Guatemala hard-copy documents. Guyana improved access to credit information by establishing DB2016 Guyana a new credit bureau. Trinidad and Tobago made getting electricity more costly by DB2016 Trinidad and Tobago introducing a capital contribution toward connection costs. St. Vincent and the Grenadines made resolving insolvency DB2016 St. Vincent and the Grenadines easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s business during insolvency proceedings and allow creditors Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 204 DB year Economy Reform greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Barbados made paying taxes more costly for companies by DB2016 Barbados raising the ceiling for social security contributions and introducing a new municipal solid waste tax. Uruguay made paying taxes easier for companies by DB2016 Uruguay continually upgrading and improving the electronic system for filing and paying the major taxes. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be deductible. DB2016 Mexico These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Uruguay made registering property more difficult by requiring by law a certificate of connection of the property to DB2016 Uruguay the public sewage system to complete the process of transferring and registering property. Brazil made transferring property in São Paulo more DB2016 Brazil expensive by increasing the property transfer tax. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs. It also made starting a business more difficult by making the registration at the Venezuelan Social Security Institute (IVSS), the National DB2016 Venezuela, RB Bank for Housing and Habitat (BANAVIH) and the National Institute of Socialist Cooperation & Education (INCES) prerequisites for the Ministry of Labor (Minpptrass) registration. Uruguay made starting a business more difficult by increasing DB2016 Uruguay incorporation costs. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 205 DB year Economy Reform Suriname reduced the time for documentary and border compliance for exporting and importing by implementing an DB2016 Suriname automated customs data management system, ASYCUDA (Automated System for Customs Data) World. Brazil reduced the time for documentary and border compliance for exporting by implementing the electronic SISCOMEX Portal system. This reform applies to both Rio de DB2016 Brazil Janeiro and São Paulo. El Salvador improved access to credit by adopting the Law on Movable Property, which established a modern, centralized, DB2016 El Salvador notice-based collateral registry and allows a general description of a single category of assets granted as collateral. Costa Rica improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a modern, centralized, notice-based DB2016 Costa Rica collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and allows out-of-court enforcement of collateral. The Bahamas made paying taxes less costly for companies by DB2016 Bahamas, The reducing the business license tax—though it also raised the wage ceiling used in calculating social security contributions. The Bahamas made starting a business more difficult by DB2016 Bahamas, The adding a requirement for value added tax (VAT) registration. The Bahamas made trading across borders easier by fully implementing an electronic data interchange system, which DB2016 Bahamas, The reduced the time for preparation and submission of trade documents for both exporting and importing. The utility in Costa Rica made getting electricity easier by reducing the time required for preparing the design of the DB2016 Costa Rica external connection works and for installing the meter and initiating the electricity supply. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 206 DB year Economy Reform Colombia made paying taxes less costly for companies by DB2016 Colombia reducing the payroll tax rate and introducing exemptions for health care contributions paid by employers. Costa Rica made paying taxes easier for companies by DB2016 Costa Rica promoting the use of its electronic filing and payment system for corporate income tax and general sales tax. Ecuador made starting a business easier by simplifying the DB2016 Ecuador registration process and by eliminating the need to deposit 50% of the minimum capital in a special account. DB2016 Ecuador Ecuador eliminated fixed-term contracts for permanent tasks. El Salvador increased the border compliance time for DB2016 El Salvador exporting and importing by adding an extra, nonintrusive inspection at the Anguiatú border crossing with Guatemala. Colombia improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a centralized, notice-based collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets DB2015 Colombia granted as collateral, establishes clear priority rules inside bankruptcy for secured creditors, sets out grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures and allows out-of-court enforcement of collateral. The Dominican Republic improved its credit information system by enacting a new law regulating the protection of DB2015 Dominican Republic personal data and the operation of credit reporting institutions. Costa Rica reduced the time required for getting electricity by DB2015 Costa Rica improving the coordination between different departments at the utility. The Dominican Republic made dealing with construction DB2015 Dominican Republic permits more costly by increasing the building permit fees. DB2015 Costa Rica Costa Rica made paying taxes easier for companies by implementing an electronic system for filing corporate Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 207 DB year Economy Reform income tax and VAT. Colombia made paying taxes more complicated for DB2015 Colombia companies by introducing a new profit tax (CREE), though it also reduced the corporate income tax rate and payroll taxes. The Dominican Republic strengthened minority investor DB2015 Dominican Republic protections by introducing greater shareholder rights and requirements for greater corporate transparency. Ecuador strengthened minority investor protections by introducing greater requirements for disclosure of related- DB2015 Ecuador party transactions as well as a requirement that a potential acquirer make a tender offer to all shareholders upon acquiring voting shares. Colombia made transferring property easier by eliminating DB2015 Colombia the need for a provisional registration. The Dominican Republic made trading across borders easier DB2015 Dominican Republic by reducing the number of documents required for exports and imports. Ecuador made trading across borders easier by introducing a DB2015 Ecuador new electronic data interchange system called ECUAPASS. Bolivia made trading across borders more difficult by DB2015 Bolivia increasing customs clearance time. The Bahamas made dealing with construction permits more DB2015 Bahamas, The costly by increasing the building permit fees. The Bahamas made enforcing contracts easier by introducing new rules of civil procedure focused on streamlining and DB2015 Bahamas, The simplifying court proceedings and ensuring less costly resolution of disputes. Nicaragua improved access to credit information by starting DB2015 Nicaragua to provide credit scores to banks and financial institutions. Panama improved access to credit through a new law DB2015 Panama broadening the range of assets that can be used as collateral, allowing a general description of assets granted as collateral Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 208 DB year Economy Reform and allowing out-of-court enforcement of collateral. Trinidad and Tobago improved access to credit by adopting the Bankruptcy and Insolvency Act, which establishes clear DB2015 Trinidad and Tobago grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures as well as a time limit for the stay. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made dealing with construction permits DB2015 St. Kitts and Nevis more costly by increasing the building permit fees. Uruguay made enforcing contracts easier by simplifying and DB2015 Uruguay speeding up the proceedings for commercial disputes. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s business during DB2015 St. Kitts and Nevis insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Trinidad and Tobago made resolving insolvency easier by introducing a formal mechanism for rehabilitation, DB2015 Trinidad and Tobago establishing a public office responsible for the general administration of insolvency proceedings and clarifying the rules on appointment of trustees. St. Kitts and Nevis made paying taxes less costly for DB2015 St. Kitts and Nevis companies by reducing the corporate income tax rate. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 209 DB year Economy Reform República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs and by DB2015 Venezuela, RB requiring companies to register within the Superintendence for Socioeconomic Rights (SUNDEE). Trinidad and Tobago made starting a business easier by DB2015 Trinidad and Tobago introducing online systems for employer registration and tax registration. Suriname made starting a business easier by introducing an DB2015 Suriname online system for obtaining trade licenses. Nicaragua made starting a business easier by combining DB2015 Nicaragua multiple registration procedures. Uruguay made trading across borders easier by implementing DB2015 Uruguay a risk-based inspection system that reduced customs clearance time for both exports and imports. Jamaica improved access to credit by establishing credit bureaus and by adopting a new secured transactions law that implements a functional secured transactions system, DB2015 Jamaica broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and establishes a modern, notice-based collateral registry. Jamaica made getting electricity less expensive by reducing DB2015 Jamaica the cost of external connection works. Honduras made dealing with construction permits more DB2015 Honduras costly by increasing the building permit fees. Jamaica made paying taxes more costly for companies by DB2015 Jamaica introducing a new minimum business tax. Guatemala made paying taxes easier and less costly for companies by enhancing the electronic system for filing and paying corporate income tax and VAT and by reducing the DB2015 Guatemala capital gains and corporate income tax rates. On the other hand, it also made paying taxes more complicated by introducing a new form for capital gains tax. DB2015 Guatemala Guatemala made starting a business easier by eliminating Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 210 DB year Economy Reform certain registration fees and reducing the time to publish a notice of incorporation. Honduras made starting a business easier by eliminating the DB2015 Honduras paid-in minimum capital requirement. Jamaica made starting a business easier by consolidating forms, but also made it more time-consuming as a result of DB2015 Jamaica delays in the implementation of the electronic interface with different agencies. Argentina made dealing with construction permits more DB2015 Argentina costly by increasing several fees. Puerto Rico (territory of the United States) made dealing with construction permits easier by introducing the option of DB2015 Puerto Rico (U.S.) hiring authorized private professionals to carry out the fire safety recommendations and issue the fire safety and environmental health certificates. St. Lucia made trading across borders easier by implementing the ASYCUDA World electronic system for the submission of DB2015 St. Lucia export and import documents and by reducing the number of export documents required. St. Lucia made trading across borders more difficult by DB2014 St. Lucia introducing a new export document. Argentina reduced the number of documents necessary for DB2014 Argentina importing by eliminating nonautomatic license requirements. Argentina made starting a business more difficult by DB2014 Argentina increasing the incorporation costs. Jamaica improved its credit information system by creating a DB2014 Jamaica legal and regulatory framework for private credit bureaus. Nicaragua reduced the time required for getting electricity by increasing efficiency in granting approval of the connection DB2014 Nicaragua design and by informing the customer in advance what the amount of the security deposit will be. DB2014 Mexico Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 211 DB year Economy Reform “silence is consent” rule for the approval of the feasibility study for a new connection. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. Panama made paying taxes easier for companies by changing the payment frequency for corporate income taxes from DB2014 Panama monthly to quarterly and by implementing a new online platform for filing the social security payroll. Paraguay made paying taxes easier for companies by making DB2014 Paraguay electronic filing and payment mandatory for corporate income and value added taxes. Panama strengthened investor protections by increasing the DB2014 Panama disclosure requirements for publicly held companies. Panama made transferring property easier by connecting the DB2014 Panama land registry with the cadastre. Suriname made transferring property easier by increasing DB2014 Suriname administrative efficiency at the land registry. República Bolivariana de Venezuela made starting a business DB2014 Venezuela, RB more costly by increasing the company registration fees. Suriname made starting a business easier by reducing the DB2014 Suriname time required to obtain the president’s approval for the registration of a new company. Trinidad and Tobago made starting a business easier by DB2014 Trinidad and Tobago merging the statutory declaration of compliance into the standard articles of incorporation form. Nicaragua made starting a business easier by merging the procedures for registering with the revenue authority and DB2014 Nicaragua with the municipality and by reducing the time required for incorporation. DB2014 Panama Panama made starting a business easier by eliminating the need to visit the municipality to obtain the municipal taxpayer Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 212 DB year Economy Reform number. Uruguay made trading across borders easier by implementing DB2014 Uruguay an electronic customs declaration system. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. República Bolivariana de Venezuela improved access to credit DB2014 Venezuela, RB information by starting to collect data on firms from financial institutions. Guatemala made dealing with construction permits easier by streamlining procedures through the creation of a one-stop DB2014 Guatemala shop, backed by agreements between institutions and agencies involved in the permitting process. Jamaica made paying taxes less costly for companies by DB2014 Jamaica reducing the corporate income tax rate—though it also increased vehicle and asset taxes. Guatemala made paying taxes easier for companies by DB2014 Guatemala introducing a new electronic filing and payment system. Guyana made paying taxes easier for companies by reducing DB2014 Guyana the corporate income tax rate. Jamaica made transferring property more difficult by DB2014 Jamaica increasing the transfer tax and the stamp duty. Jamaica made starting a business easier by enabling the DB2014 Jamaica Companies Office of Jamaica to stamp the new company’s articles of incorporation at registration. Guatemala made starting a business easier by creating an DB2014 Guatemala online platform that allows simultaneous registration of a new company with different government agencies.. The Bahamas enhanced its insolvency process by implementing rules for the remuneration of liquidators, DB2014 Bahamas, The allowing voluntary liquidations and outlining clawback provisions for suspect transactions. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 213 DB year Economy Reform The Bahamas made transferring property easier by reducing DB2014 Bahamas, The the stamp duty. Colombia made getting electricity easier by opening a one- DB2014 Colombia stop shop for electricity connections and improving the efficiency of the utility’s internal processes. Ecuador made getting electricity easier by dividing the city of Quito into zones for the purpose of DB2014 Ecuador handling applications for new connections—a changethat improved the utility’s customer service—and by reducing the fees to obtain a connection. Costa Rica made dealing with construction permits easier by eliminating procedures, improving efficiency DB2014 Costa Rica and launching an online platform that streamlined the building permit process by integrating different agencies’ approval processes. Colombia made enforcing contracts easier by simplifying and DB2014 Colombia speeding up the proceedings for commercial disputes. El Salvador made paying taxes more costly for companies by DB2014 El Salvador increasing the corporate income tax rate. Costa Rica made starting a business easier by creating an online platform for business registration, eliminating the DB2014 Costa Rica requirement to have accounting books legalized and simplifying the legalization of company books. El Salvador made trading across borders easier by developing DB2014 El Salvador a one-stop shop for exporting and by implementing electronic data interchange systems. Antigua and Barbuda made trading across borders more DB2013 Antigua and Barbuda difficult by increasing the number of documents required to import. In Ecuador property transfers became more time consuming DB2013 Ecuador as a result of implementation problems in transferring authority over property records to the municipality of Quito. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 214 DB year Economy Reform El Salvador improved access to credit information through a DB2013 El Salvador new law regulating the management of personal credit information. Costa Rica improved access to credit information by DB2013 Costa Rica guaranteeing borrowers’ right to inspect their personal data. The Dominican Republic increased the corporate income tax DB2013 Dominican Republic rate. DB2013 El Salvador El Salvador introduced an alternative minimum tax. Costa Rica made paying taxes easier for companies by DB2013 Costa Rica implementing electronic payment for municipal taxes — though it also introduced a registration flat tax. Colombia made starting a business easier by eliminating the DB2013 Colombia requirement to purchase and register accounting books at the time of incorporation. Costa Rica made starting a business easier by streamlining DB2013 Costa Rica the process of obtaining a sanitary permit from the authorities for low-risk activities. Costa Rica streamlined the process for obtaining construction DB2013 Costa Rica permits by implementing online approval systems. Grenada reduced the time to export and import by DB2013 Grenada implementing the ASYCUDA World electronic data interchange system. Jamaica reduced the time to import by allowing customs DB2013 Jamaica entries to be lodged at night. Guatemala made dealing with construction permits easier by DB2013 Guatemala introducing a risk-based approval system Jamaica made paying taxes easier for companies by allowing DB2013 Jamaica joint filing and payment of all social security contributions. Belize reduced the time to export and import by DB2013 Belize implementing the ASYCUDA World electronic data interchange system. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 215 DB year Economy Reform Argentina increased the time, cost and number of documents needed to import by expanding the list of products requiring DB2013 Argentina nonautomatic licenses and introducing new preapproval procedures for all imports. Brazil made enforcing contracts easier by implementing an DB2013 Brazil electronic system for filing initial complaints at the São Paulo civil district court. In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training DB2013 Mexico opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials. Uruguay made paying taxes easier for small and medium-size companies by fully implementing an online filing and DB2013 Uruguay payment system for capital, value added and corporate income taxes and by improving the online facilities for social security contributions. República Bolivariana de Venezuela made paying taxes more DB2013 Venezuela, RB costly and difficult for companies by introducing a sports, physical activities and physical education tax. Panama made paying taxes easier for companies by enhancing the electronic filing system for value added tax DB2013 Panama and simplifying tax return forms for corporate income tax— though it also began requiring companies to pay corporate income tax monthly rather than quarterly. Uruguay reduced the time to import by improving port DB2013 Uruguay efficiency and introducing electronic payment and predeclaration systems for customs. St. Kitts and Nevis made it more expensive to export by DB2013 St. Kitts and Nevis increasing the cost of operations at the port of Basseterre. Suriname increased the time to export by involving more DB2013 Suriname customs departments in clearing exports. DB2013 Trinidad and Tobago Trinidad and Tobago reduced the time to export and import by launching the ASYCUDA World electronic data interchange Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 216 DB year Economy Reform system and simplifying the process for obtaining a certificate of origin. República Bolivariana de Venezuela made starting a business DB2013 Venezuela, RB more difficult by increasing the cost of company incorporation. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Panama made dealing with construction permits easier by reducing the fees for a permit from the fire department’s DB2013 Panama safety office and by accelerating the process at the building registry for obtaining a certificate of good standing and for registering the new building. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. República Bolivariana de Venezuela introduced a new Labor DB2013 Venezuela, RB Code that prohibits redundancy dismissals. Brazil increased the notice period applicable in cases of DB2013 Brazil redundancy dismissal of employees. Brazil made transferring property more difficult by DB2013 Brazil introducing a new certificate on good standing on labor debts, adding to the number of due diligence procedures. In Trinidad and Tobago property transfers became faster DB2013 Trinidad and Tobago thanks to speedier issuance of clearance certificates by the Water and Sewerage Authority. Panama made property transfers faster by increasing working DB2013 Panama hours at the registry and reorganizing the caseload of its staff. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. DB2013 Dominica Dominica reduced the time to import by implementing the Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 217 DB year Economy Reform ASYCUDA World electronic data interchange system. Puerto Rico (territory of the United States) made paying taxes easier and less costly for companies by introducing a new DB2013 Puerto Rico (U.S.) Internal Revenue Code and tax codification and by reducing the effective corporate income tax rate. Haiti made dealing with construction permits costlier by DB2012 Haiti increasing the fees to obtain a building permit. Puerto Rico (territory of the United States) made starting a DB2012 Puerto Rico (U.S.) business easier by merging the name search and company registration procedures. Puerto Rico (territory of the United States) made dealing with DB2012 Puerto Rico (U.S.) construction permits easier by creating the Office of Permits Management to streamline procedures. St. Kitts and Nevis made paying taxes easier by introducing a DB2012 St. Kitts and Nevis value added tax. Nicaragua made paying taxes easier for companies by DB2012 Nicaragua promoting electronic filing and payment of the major taxes, an option now used by the majority of taxpayers. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Paraguay made paying taxes more burdensome for DB2012 Paraguay companies by introducing new tax declarations that must be filed monthly. República Bolivariana de Venezuela made paying taxes DB2012 Venezuela, RB costlier for firms by doubling the municipal economic activities tax (sales tax). Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 218 DB year Economy Reform Paraguay improved its credit information system by DB2012 Paraguay establishing an online platform for financial institutions to exchange information with the public credit registry. Uruguay improved its credit information system by DB2012 Uruguay introducing a new online platform allowing access to credit reports for financial institutions, public utilities and borrowers. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Brazil improved its credit information system by allowing DB2012 Brazil private credit bureaus to collect and share positive information. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Guyana eased the process of starting a business by reducing DB2012 Guyana the time needed for registering a new company and for obtaining a tax identification number. Honduras made trading across borders faster by DB2012 Honduras implementing a web-based electronic data interchange system and X-ray machines at the port of Puerto Cortes. Uruguay made starting a business easier by establishing a DB2012 Uruguay one-stop shop for general commercial companies. Panama extended the operating hours of the public registry, DB2012 Panama reducing the time required to register a new company. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Nicaragua raised the monetary threshold for commercial claims that can be brought to the Managua local civil court, DB2012 Nicaragua leaving lower-value claims in the local courts, where proceedings are simpler and faster. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 219 DB year Economy Reform Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Trinidad and Tobago made dealing with construction permits DB2012 Trinidad and Tobago costlier by increasing the fees for building permit approvals. Paraguay made dealing with construction permits easier by DB2012 Paraguay implementing a risk-based approval system and a single window for obtaining construction permits. Nicaragua made transferring property more efficient by DB2012 Nicaragua introducing a fast-track procedure for registration. Argentina made transferring property more difficult by DB2012 Argentina adding a requirement that the notary obtain the tax agency’s reference value for property before notarizing the sale deed. Honduras strengthened its secured transactions system through a new decree establishing a centralized and DB2012 Honduras computerized collateral registry and providing for out-of- court enforcement of collateral upon default. Honduras made paying taxes costlier for firms by raising the DB2012 Honduras solidarity tax rate. In Guyana transferring property became slower because of a DB2012 Guyana lack of personnel at the deed registry. Honduras adopted a new civil procedure code that modified DB2012 Honduras litigation procedures for enforcing a contract. Guyana made getting electricity more expensive by tripling DB2012 Guyana the security deposit required for a new connection. Costa Rica made transferring property easier and quicker by DB2012 Costa Rica making property certificates available online through a single website. The Dominican Republic made starting a business easier by DB2012 Dominican Republic eliminating the requirement for a proof of deposit of capital when establishing a new company. DB2012 Colombia Colombia reduced the costs associated with starting a business, by no longer requiring upfront payment of the Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 220 DB year Economy Reform commercial license fee. Belize introduced the requirements to notify third parties in DB2012 Belize cases of redundancy dismissals. Belize made paying taxes easier for firms by improving DB2012 Belize electronic filing and payment for social security contributions, an option now used by the majority of taxpayers. DB2012 Bolivia Bolivia raised social security contribution rates for employers. Colombia amended regulations governing insolvency DB2012 Colombia proceedings to simplify the proceedings and reduce their time and cost El Salvador strengthened investor protections by allowing DB2012 El Salvador greater access to corporate information during the trial. Colombia eased the administrative burden of paying taxes for DB2012 Colombia firms by establishing mandatory electronic filing and payment for some of the major taxes. In Costa Rica online payment of social security contributions DB2012 Costa Rica is now widespread and used by the majority of taxpayers. The Bahamas made transferring property more costly by DB2012 Bahamas, The increasing the applicable stamp duty fees. In Antigua and Barbuda, to transfer property now requires DB2011 Antigua and Barbuda clearance by the chief surveyor to avoid mischievous declarations. Colombia eased the process of Starting a Business by DB2011 Colombia reducing the number of days to register with the Social Security System. The Dominican Republic made it more difficult to start a business by setting a minimum capital requirement of DB2011 Dominican Republic 100,000 Dominican pesos ($2,855) for its new type of company, sociedad de responsabilidad limitada (limited liability company). DB2011 Ecuador Ecuador made starting a business easier by introducing an Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 221 DB year Economy Reform online registration system for social security. Colombia eased construction permitting by improving the DB2011 Colombia electronic verification of prebuilding certificates. Guyana enhanced access to credit by establishing a regulatory framework that allows the licensing of private DB2011 Guyana credit bureaus and gives borrowers the right to inspect their data. Jamaica eased the transfer of property by lowering transfer taxes and fees, offering expedited registration procedures DB2011 Jamaica and making information from the company registrar available online. The appointment of a registrar focusing only on property cut DB2011 Grenada the time needed to transfer property in Grenada by almost half. Grenada’s customs administration made trading faster by DB2011 Grenada simplifying procedures, reducing inspections, improving staff training and enhancing communication with users. Guyana improved its risk profiling system for customs DB2011 Guyana inspection, reducing physical inspections of shipments and the time to trade. Guyana eased business start-up by digitizing company DB2011 Guyana records, which speeded up the process of company name search and reservation. Grenada eased business start-up by transferring responsibility DB2011 Grenada for the commercial registry from the courts to the civil administration. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. Nicaragua expedited trade by migrating to a new electronic data interchange system for customs, setting up a physical DB2011 Nicaragua one-stop shop for exports and investing in new equipment at the port of Corinto. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 222 DB year Economy Reform Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Panama eased business start-up by increasing efficiency at DB2011 Panama the registrar. República Bolivariana de Venezuela made starting a business DB2011 Venezuela, RB more difficult by introducing a new procedure for registering a company. Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Brazil eased business start-up by further enhancing the DB2011 Brazil electronic synchronization between federal and state tax authorities. In Uruguay the Municipality of Montevideo made registering DB2011 Uruguay property easier by eliminating the need to obtain a mandatory waiver for preemption rights. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Panama made it more expensive to transfer property by DB2011 Panama requiring that an amount equal to 3% of the property value be paid upon registration. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Paraguay made dealing with construction permits easier by DB2011 Paraguay creating a new administrative structure and a better tracking system in the municipality of Asunción. República Bolivariana de Venezuela improved access to credit DB2011 Venezuela, RB information by creating a private credit bureau. Mexico increased taxes on companies by raising several tax DB2011 Mexico rates, including the corporate income tax and the rate on cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 223 DB year Economy Reform and increased use of accounting software. República Bolivariana de Venezuela abolished the tax on DB2011 Venezuela, RB financial transactions. Panama reduced the corporate income tax rate, modified DB2011 Panama various taxes and created a new tax court of appeals. Nicaragua increased taxes on firms by raising social security contribution rates and introducing a 10% withholding tax on DB2011 Nicaragua the gross interest accrued from deposits. It also improved electronic payment of taxes through bank transfer. Puerto Rico made paying taxes more costly for business by DB2011 Puerto Rico (U.S.) introducing a special surtax of 5% on the tax liability in addition to the normal corporate income tax. Haiti eased business start-up by eliminating the review by the DB2011 Haiti president’s or the prime minister’s office of the incorporation act submitted for publication. 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 LATIN AMERICA AND CARIBBEAN (LAC) 224 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 LATIN AMERICA AND CARIBBEAN (LAC) 225 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 LATIN AMERICA AND CARIBBEAN (LAC) 226 TRADING ACROSS BORDERS Where do the region’s economies stand today? How easy it is for businesses in economies in Latin ease of trading across borders suggest an answer (figure America and Caribbean (LAC) to export and import 9.1). The average ranking of the region and comparator goods? The global rankings of these economies on the regions provide a useful benchmark. Figure 9.1 How economies in Latin America and Caribbean (LAC) rank on the ease of trading across borders Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 227 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 Latin America and Caribbean (LAC) Time to export: Border compliance (hours) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 228 TRADING ACROSS BORDERS Cost to export: Border compliance (USD) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 229 TRADING ACROSS BORDERS Time to export: Documentary compliance (hours) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 230 TRADING ACROSS BORDERS Cost to export: Documentary compliance (USD) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 231 TRADING ACROSS BORDERS Time to import: Border compliance (hours) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 232 TRADING ACROSS BORDERS Cost to import: Border compliance (USD) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 233 TRADING ACROSS BORDERS Time to import: Documentary compliance (hours) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 234 TRADING ACROSS BORDERS Cost to import: Documentary compliance (USD) Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 235 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 Latin America and Caribbean (LAC) (table based inspections and electronic data interchange 9.1)? Table 9.1 How have economies in Latin America and Caribbean (LAC) made trading across borders easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Antigua and Barbuda made trading across borders easier by DB2017 Antigua and Barbuda eliminating the tax compliance certificate required for import customs clearance. Bolivia made dealing with construction permits lengthier by DB2017 Bolivia implementing a new requirement to pay for the land registry certificate at the Judiciary Council. Bolivia made enforcing contracts easier by adopting a new DB2017 Bolivia code of civil procedure that introduces pre-trial conferences. Bolivia made starting a business easier by decreasing the time DB2017 Bolivia needed to register a company. The Bahamas made registering property easier by reducing DB2017 Bahamas, The the cost of transferring a property. The Bahamas made starting a business easier by allowing local limited liability companies to register online. On the DB2017 Bahamas, The other hand, The Bahamas made starting a business more costly by increasing the fees for registering a company name and incorporation. The Bahamas made paying taxes more complicated by DB2017 Bahamas, The introducing a value added tax. Ecuador adopted a new code of civil procedure that made DB2017 Ecuador enforcing contracts easier by introducing a pre-trial conference. The new code also made enforcing contracts more difficult by eliminating a dedicated procedure for the Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 236 DB year Economy Reform resolution of small claims. El Salvador made access to credit information more difficult DB2017 El Salvador by reducing the coverage of the credit bureau. The Dominican Republic made getting an electricity DB2017 Dominican Republic connection faster by reducing the time required to approve electrical connection plans. Colombia made starting a business easier by streamlining DB2017 Colombia registration procedures. Ecuador made starting a business easier by eliminating the DB2017 Ecuador publication of company charters in local newspapers. El Salvador made paying taxes easier by encouraging the use DB2017 El Salvador of the electronic system for filing taxes. The Dominican Republic made paying taxes less costly by DB2017 Dominican Republic decreasing the corporate income tax rate. Guyana improved access to credit information by expanding DB2017 Guyana the coverage of the credit bureau. Guyana made registering property easier by increasing the DB2017 Guyana transparency of the Lands & Survey Commission. Jamaica made starting a business more difficult by removing DB2017 Jamaica the ability to complete next day company incorporation. Jamaica reduced the time of documentary compliance for DB2017 Jamaica exporting by implementing an automated customs data management system, ASYCUDA World. Grenada made trading across borders easier by streamlining DB2017 Grenada import document submission procedures, reducing the time required for documentary compliance. Honduras made trading across borders more difficult by DB2017 Honduras increasing the number of intrusive inspections for importing, which increased the border compliance time. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 237 DB year Economy Reform Guatemala made paying taxes less costly by reducing the rate DB2017 Guatemala of corporate income tax. Jamaica made paying taxes less costly by increasing tax depreciation rates and the initial capital allowance for assets acquired on or after January 1, 2014. Furthermore, companies DB2017 Jamaica incorporated for less than 24 months are exempted from paying the minimum business tax. Jamaica also made paying taxes easier by implementing an electronic system for filing of corporate income tax, VAT and social contributions. Brazil made enforcing contracts easier through a new mediation law—that includes financial incentives for parties DB2017 Brazil to attempt mediation—and a new code of civil procedure. These reforms apply to both Rio de Janeiro and São Paulo. Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. Brazil expanded eligibility for unemployment benefits to DB2017 Brazil employees with one year of continuous work experience. This reform applies to both Rio de Janeiro and São Paulo. Paraguay reduced access to credit information by limiting the DB2017 Paraguay distribution of historical data on borrowers. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Saint Kitts and Nevis made it more difficult to transfer property due to work overload at the Supreme Court Registry DB2017 St. Kitts and Nevis while also reducing the stamp duty for transferring real estate. Brazil reduced the time needed to start a business by DB2017 Brazil implementing an online portal for business licenses in Rio de Janeiro. However, Brazil also made starting a business more Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 238 DB year Economy Reform difficult by shortening the opening hours of the business registry in Rio de Janeiro. Barbados made starting a business easier by reducing the DB2017 Barbados time to register a company. The República Bolivariana de Venezuela made starting a business more expensive by raising the value of the tributary DB2017 Venezuela, RB unit and lawyers’ fees. It also made the process more time consuming by limiting the work schedule of the public sector. Uruguay made starting a business more costly by increasing DB2017 Uruguay the value of the official fiscal unit used for the payment of government fees. Brazil made trading across borders easier by implementing an electronic system for importing, which reduced the time DB2017 Brazil required for documentary compliance. This reform applies to both Rio de Janeiro and São Paulo. Nicaragua made trading across borders more expensive by DB2017 Nicaragua introducing a new security fee, increasing the cost of border compliance for exporting and importing. Paraguay made trading across borders easier by introducing DB2017 Paraguay a single window for exporting, which reduced the time required of border and documentary compliance. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. Uruguay made paying taxes easier by introducing an DB2017 Uruguay electronic system for paying social security contributions. Online filing was already in place. Argentina made dealing with construction permits more DB2017 Argentina difficult by increasing municipal fees. Argentina made trading across borders easier by introducing DB2017 Argentina a new licensing system for importing, which reduced the time required for documentary compliance. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 239 DB year Economy Reform Argentina made paying taxes less costly by increasing the threshold for the 5% turnover tax. Argentina also made DB2017 Argentina paying taxes easier by introducing improvements to the online portal for filing taxes. Dominica made paying taxes less costly by reducing the DB2017 Dominica corporate income tax rate. Haiti made trading across borders easier by improving port infrastructure and improving the SYDONIA electronic data DB2017 Haiti interchange system by allowing the submission of supporting documents online. The utility made getting electricity more difficult by DB2017 St. Lucia introducing a requirement to obtain a current land registry extract to get a new connection. Puerto Rico made registering property easier by digitizing its DB2017 Puerto Rico (U.S.) land records, improving the quality of infrastructure and transparency of its land administration system. St. Lucia made exporting and importing easier by upgrading an electronic data interchange system and linking the DB2017 St. Lucia customs and port authorities through a common online platform. Puerto Rico (territory of the United States) made paying taxes DB2017 Puerto Rico (U.S.) less costly by abolishing gross receipts tax. However, the capital gains tax rate was increased. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. Peru improved its credit information system by implementing DB2016 Peru a new law on personal data protection. Jamaica made dealing with construction permits easier by DB2016 Jamaica implementing a new workflow for processing building permit applications. DB2016 Jamaica Jamaica made resolving insolvency easier by introducing a Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 240 DB year Economy Reform reorganization procedure; introducing provisions to facilitate the continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency proceedings. Jamaica made paying taxes easier and less costly for companies by encouraging taxpayers to pay their taxes online, introducing an employment tax credit and increasing the depreciation rate for industrial buildings. At the same DB2016 Jamaica time, Jamaica introduced a minimum business tax, raised the contribution rate for the national insurance scheme paid by employers and increased the rates for stamp duty, the property tax, the property transfer tax and the education tax. Guatemala made paying taxes less costly for companies by DB2016 Guatemala reducing the corporate income tax rate. Honduras made paying taxes more costly for companies by DB2016 Honduras introducing an alternative minimum income tax. Honduras strengthened minority investor protections by introducing provisions requiring greater disclosure of related- party transactions, prohibiting interested parties from voting DB2016 Honduras on a related-party transaction, allowing shareholders representing at least 5% of a company’s share capital to bring a direct action for damages against its directors and giving any shareholder the right to inspect company documents. Jamaica made starting a business easier by streamlining DB2016 Jamaica internal procedures. Guatemala reduced the documentary and border compliance time for importing by making electronic submission of documents compulsory and eliminating the need for many DB2016 Guatemala hard-copy documents. DB2016 Guyana Guyana improved access to credit information by establishing Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 241 DB year Economy Reform a new credit bureau. Trinidad and Tobago made getting electricity more costly by DB2016 Trinidad and Tobago introducing a capital contribution toward connection costs. St. Vincent and the Grenadines made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s DB2016 St. Vincent and the Grenadines business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Barbados made paying taxes more costly for companies by DB2016 Barbados raising the ceiling for social security contributions and introducing a new municipal solid waste tax. Uruguay made paying taxes easier for companies by DB2016 Uruguay continually upgrading and improving the electronic system for filing and paying the major taxes. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be deductible. DB2016 Mexico These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Uruguay made registering property more difficult by requiring by law a certificate of connection of the property to DB2016 Uruguay the public sewage system to complete the process of transferring and registering property. Brazil made transferring property in São Paulo more DB2016 Brazil expensive by increasing the property transfer tax. DB2016 Venezuela, RB República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs. It also made Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 242 DB year Economy Reform starting a business more difficult by making the registration at the Venezuelan Social Security Institute (IVSS), the National Bank for Housing and Habitat (BANAVIH) and the National Institute of Socialist Cooperation & Education (INCES) prerequisites for the Ministry of Labor (Minpptrass) registration. Uruguay made starting a business more difficult by increasing DB2016 Uruguay incorporation costs. Suriname reduced the time for documentary and border compliance for exporting and importing by implementing an DB2016 Suriname automated customs data management system, ASYCUDA (Automated System for Customs Data) World. Brazil reduced the time for documentary and border compliance for exporting by implementing the electronic SISCOMEX Portal system. This reform applies to both Rio de DB2016 Brazil Janeiro and São Paulo. El Salvador improved access to credit by adopting the Law on Movable Property, which established a modern, centralized, DB2016 El Salvador notice-based collateral registry and allows a general description of a single category of assets granted as collateral. Costa Rica improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a modern, centralized, notice-based DB2016 Costa Rica collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and allows out-of-court enforcement of collateral. The Bahamas made paying taxes less costly for companies by DB2016 Bahamas, The reducing the business license tax—though it also raised the wage ceiling used in calculating social security contributions. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 243 DB year Economy Reform The Bahamas made starting a business more difficult by DB2016 Bahamas, The adding a requirement for value added tax (VAT) registration. The Bahamas made trading across borders easier by fully implementing an electronic data interchange system, which DB2016 Bahamas, The reduced the time for preparation and submission of trade documents for both exporting and importing. The utility in Costa Rica made getting electricity easier by reducing the time required for preparing the design of the DB2016 Costa Rica external connection works and for installing the meter and initiating the electricity supply. Colombia made paying taxes less costly for companies by DB2016 Colombia reducing the payroll tax rate and introducing exemptions for health care contributions paid by employers. Costa Rica made paying taxes easier for companies by DB2016 Costa Rica promoting the use of its electronic filing and payment system for corporate income tax and general sales tax. Ecuador made starting a business easier by simplifying the DB2016 Ecuador registration process and by eliminating the need to deposit 50% of the minimum capital in a special account. DB2016 Ecuador Ecuador eliminated fixed-term contracts for permanent tasks. El Salvador increased the border compliance time for DB2016 El Salvador exporting and importing by adding an extra, nonintrusive inspection at the Anguiatú border crossing with Guatemala. Colombia improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a centralized, notice-based collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets DB2015 Colombia granted as collateral, establishes clear priority rules inside bankruptcy for secured creditors, sets out grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures and allows out-of-court enforcement of collateral. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 244 DB year Economy Reform The Dominican Republic improved its credit information system by enacting a new law regulating the protection of DB2015 Dominican Republic personal data and the operation of credit reporting institutions. Costa Rica reduced the time required for getting electricity by DB2015 Costa Rica improving the coordination between different departments at the utility. The Dominican Republic made dealing with construction DB2015 Dominican Republic permits more costly by increasing the building permit fees. Costa Rica made paying taxes easier for companies by DB2015 Costa Rica implementing an electronic system for filing corporate income tax and VAT. Colombia made paying taxes more complicated for DB2015 Colombia companies by introducing a new profit tax (CREE), though it also reduced the corporate income tax rate and payroll taxes. The Dominican Republic strengthened minority investor DB2015 Dominican Republic protections by introducing greater shareholder rights and requirements for greater corporate transparency. Ecuador strengthened minority investor protections by introducing greater requirements for disclosure of related- DB2015 Ecuador party transactions as well as a requirement that a potential acquirer make a tender offer to all shareholders upon acquiring voting shares. Colombia made transferring property easier by eliminating DB2015 Colombia the need for a provisional registration. The Dominican Republic made trading across borders easier DB2015 Dominican Republic by reducing the number of documents required for exports and imports. Ecuador made trading across borders easier by introducing a DB2015 Ecuador new electronic data interchange system called ECUAPASS. Bolivia made trading across borders more difficult by DB2015 Bolivia increasing customs clearance time. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 245 DB year Economy Reform The Bahamas made dealing with construction permits more DB2015 Bahamas, The costly by increasing the building permit fees. The Bahamas made enforcing contracts easier by introducing new rules of civil procedure focused on streamlining and DB2015 Bahamas, The simplifying court proceedings and ensuring less costly resolution of disputes. Nicaragua improved access to credit information by starting DB2015 Nicaragua to provide credit scores to banks and financial institutions. Panama improved access to credit through a new law broadening the range of assets that can be used as collateral, DB2015 Panama allowing a general description of assets granted as collateral and allowing out-of-court enforcement of collateral. Trinidad and Tobago improved access to credit by adopting the Bankruptcy and Insolvency Act, which establishes clear DB2015 Trinidad and Tobago grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures as well as a time limit for the stay. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made dealing with construction permits DB2015 St. Kitts and Nevis more costly by increasing the building permit fees. Uruguay made enforcing contracts easier by simplifying and DB2015 Uruguay speeding up the proceedings for commercial disputes. Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of DB2015 Mexico documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 246 DB year Economy Reform St. Kitts and Nevis made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s business during DB2015 St. Kitts and Nevis insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Trinidad and Tobago made resolving insolvency easier by introducing a formal mechanism for rehabilitation, DB2015 Trinidad and Tobago establishing a public office responsible for the general administration of insolvency proceedings and clarifying the rules on appointment of trustees. St. Kitts and Nevis made paying taxes less costly for DB2015 St. Kitts and Nevis companies by reducing the corporate income tax rate. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs and by DB2015 Venezuela, RB requiring companies to register within the Superintendence for Socioeconomic Rights (SUNDEE). Trinidad and Tobago made starting a business easier by DB2015 Trinidad and Tobago introducing online systems for employer registration and tax registration. Suriname made starting a business easier by introducing an DB2015 Suriname online system for obtaining trade licenses. Nicaragua made starting a business easier by combining DB2015 Nicaragua multiple registration procedures. Uruguay made trading across borders easier by implementing DB2015 Uruguay a risk-based inspection system that reduced customs clearance time for both exports and imports. Jamaica improved access to credit by establishing credit bureaus and by adopting a new secured transactions law that DB2015 Jamaica implements a functional secured transactions system, broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 247 DB year Economy Reform and establishes a modern, notice-based collateral registry. Jamaica made getting electricity less expensive by reducing DB2015 Jamaica the cost of external connection works. Honduras made dealing with construction permits more DB2015 Honduras costly by increasing the building permit fees. Jamaica made paying taxes more costly for companies by DB2015 Jamaica introducing a new minimum business tax. Guatemala made paying taxes easier and less costly for companies by enhancing the electronic system for filing and paying corporate income tax and VAT and by reducing the DB2015 Guatemala capital gains and corporate income tax rates. On the other hand, it also made paying taxes more complicated by introducing a new form for capital gains tax. Guatemala made starting a business easier by eliminating DB2015 Guatemala certain registration fees and reducing the time to publish a notice of incorporation. Honduras made starting a business easier by eliminating the DB2015 Honduras paid-in minimum capital requirement. Jamaica made starting a business easier by consolidating forms, but also made it more time-consuming as a result of DB2015 Jamaica delays in the implementation of the electronic interface with different agencies. Argentina made dealing with construction permits more DB2015 Argentina costly by increasing several fees. Puerto Rico (territory of the United States) made dealing with construction permits easier by introducing the option of DB2015 Puerto Rico (U.S.) hiring authorized private professionals to carry out the fire safety recommendations and issue the fire safety and environmental health certificates. St. Lucia made trading across borders easier by implementing DB2015 St. Lucia the ASYCUDA World electronic system for the submission of export and import documents and by reducing the number of Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 248 DB year Economy Reform export documents required. St. Lucia made trading across borders more difficult by DB2014 St. Lucia introducing a new export document. Argentina reduced the number of documents necessary for DB2014 Argentina importing by eliminating nonautomatic license requirements. Argentina made starting a business more difficult by DB2014 Argentina increasing the incorporation costs. Jamaica improved its credit information system by creating a DB2014 Jamaica legal and regulatory framework for private credit bureaus. Nicaragua reduced the time required for getting electricity by increasing efficiency in granting approval of the connection DB2014 Nicaragua design and by informing the customer in advance what the amount of the security deposit will be. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a DB2014 Mexico “silence is consent” rule for the approval of the feasibility study for a new connection. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. Panama made paying taxes easier for companies by changing the payment frequency for corporate income taxes from DB2014 Panama monthly to quarterly and by implementing a new online platform for filing the social security payroll. Paraguay made paying taxes easier for companies by making DB2014 Paraguay electronic filing and payment mandatory for corporate income and value added taxes. Panama strengthened investor protections by increasing the DB2014 Panama disclosure requirements for publicly held companies. Panama made transferring property easier by connecting the DB2014 Panama land registry with the cadastre. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 249 DB year Economy Reform Suriname made transferring property easier by increasing DB2014 Suriname administrative efficiency at the land registry. República Bolivariana de Venezuela made starting a business DB2014 Venezuela, RB more costly by increasing the company registration fees. Suriname made starting a business easier by reducing the DB2014 Suriname time required to obtain the president’s approval for the registration of a new company. Trinidad and Tobago made starting a business easier by DB2014 Trinidad and Tobago merging the statutory declaration of compliance into the standard articles of incorporation form. Nicaragua made starting a business easier by merging the procedures for registering with the revenue authority and DB2014 Nicaragua with the municipality and by reducing the time required for incorporation. Panama made starting a business easier by eliminating the DB2014 Panama need to visit the municipality to obtain the municipal taxpayer number. Uruguay made trading across borders easier by implementing DB2014 Uruguay an electronic customs declaration system. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. República Bolivariana de Venezuela improved access to credit DB2014 Venezuela, RB information by starting to collect data on firms from financial institutions. Guatemala made dealing with construction permits easier by streamlining procedures through the creation of a one-stop DB2014 Guatemala shop, backed by agreements between institutions and agencies involved in the permitting process. Jamaica made paying taxes less costly for companies by DB2014 Jamaica reducing the corporate income tax rate—though it also increased vehicle and asset taxes. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 250 DB year Economy Reform Guatemala made paying taxes easier for companies by DB2014 Guatemala introducing a new electronic filing and payment system. Guyana made paying taxes easier for companies by reducing DB2014 Guyana the corporate income tax rate. Jamaica made transferring property more difficult by DB2014 Jamaica increasing the transfer tax and the stamp duty. Jamaica made starting a business easier by enabling the DB2014 Jamaica Companies Office of Jamaica to stamp the new company’s articles of incorporation at registration. Guatemala made starting a business easier by creating an DB2014 Guatemala online platform that allows simultaneous registration of a new company with different government agencies.. The Bahamas enhanced its insolvency process by implementing rules for the remuneration of liquidators, DB2014 Bahamas, The allowing voluntary liquidations and outlining clawback provisions for suspect transactions. The Bahamas made transferring property easier by reducing DB2014 Bahamas, The the stamp duty. Colombia made getting electricity easier by opening a one- DB2014 Colombia stop shop for electricity connections and improving the efficiency of the utility’s internal processes. Ecuador made getting electricity easier by dividing the city of Quito into zones for the purpose of DB2014 Ecuador handling applications for new connections—a changethat improved the utility’s customer service—and by reducing the fees to obtain a connection. Costa Rica made dealing with construction permits easier by eliminating procedures, improving efficiency DB2014 Costa Rica and launching an online platform that streamlined the building permit process by integrating different agencies’ approval processes. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 251 DB year Economy Reform Colombia made enforcing contracts easier by simplifying and DB2014 Colombia speeding up the proceedings for commercial disputes. El Salvador made paying taxes more costly for companies by DB2014 El Salvador increasing the corporate income tax rate. Costa Rica made starting a business easier by creating an online platform for business registration, eliminating the DB2014 Costa Rica requirement to have accounting books legalized and simplifying the legalization of company books. El Salvador made trading across borders easier by developing DB2014 El Salvador a one-stop shop for exporting and by implementing electronic data interchange systems. Antigua and Barbuda made trading across borders more DB2013 Antigua and Barbuda difficult by increasing the number of documents required to import. In Ecuador property transfers became more time consuming DB2013 Ecuador as a result of implementation problems in transferring authority over property records to the municipality of Quito. El Salvador improved access to credit information through a DB2013 El Salvador new law regulating the management of personal credit information. Costa Rica improved access to credit information by DB2013 Costa Rica guaranteeing borrowers’ right to inspect their personal data. The Dominican Republic increased the corporate income tax DB2013 Dominican Republic rate. DB2013 El Salvador El Salvador introduced an alternative minimum tax. Costa Rica made paying taxes easier for companies by DB2013 Costa Rica implementing electronic payment for municipal taxes — though it also introduced a registration flat tax. Colombia made starting a business easier by eliminating the DB2013 Colombia requirement to purchase and register accounting books at the time of incorporation. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 252 DB year Economy Reform Costa Rica made starting a business easier by streamlining DB2013 Costa Rica the process of obtaining a sanitary permit from the authorities for low-risk activities. Costa Rica streamlined the process for obtaining construction DB2013 Costa Rica permits by implementing online approval systems. Grenada reduced the time to export and import by DB2013 Grenada implementing the ASYCUDA World electronic data interchange system. Jamaica reduced the time to import by allowing customs DB2013 Jamaica entries to be lodged at night. Guatemala made dealing with construction permits easier by DB2013 Guatemala introducing a risk-based approval system Jamaica made paying taxes easier for companies by allowing DB2013 Jamaica joint filing and payment of all social security contributions. Belize reduced the time to export and import by DB2013 Belize implementing the ASYCUDA World electronic data interchange system. Argentina increased the time, cost and number of documents needed to import by expanding the list of products requiring DB2013 Argentina nonautomatic licenses and introducing new preapproval procedures for all imports. Brazil made enforcing contracts easier by implementing an DB2013 Brazil electronic system for filing initial complaints at the São Paulo civil district court. In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training DB2013 Mexico opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials. Uruguay made paying taxes easier for small and medium-size DB2013 Uruguay companies by fully implementing an online filing and payment system for capital, value added and corporate Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 253 DB year Economy Reform income taxes and by improving the online facilities for social security contributions. República Bolivariana de Venezuela made paying taxes more DB2013 Venezuela, RB costly and difficult for companies by introducing a sports, physical activities and physical education tax. Panama made paying taxes easier for companies by enhancing the electronic filing system for value added tax DB2013 Panama and simplifying tax return forms for corporate income tax— though it also began requiring companies to pay corporate income tax monthly rather than quarterly. Uruguay reduced the time to import by improving port DB2013 Uruguay efficiency and introducing electronic payment and predeclaration systems for customs. St. Kitts and Nevis made it more expensive to export by DB2013 St. Kitts and Nevis increasing the cost of operations at the port of Basseterre. Suriname increased the time to export by involving more DB2013 Suriname customs departments in clearing exports. Trinidad and Tobago reduced the time to export and import by launching the ASYCUDA World electronic data interchange DB2013 Trinidad and Tobago system and simplifying the process for obtaining a certificate of origin. República Bolivariana de Venezuela made starting a business DB2013 Venezuela, RB more difficult by increasing the cost of company incorporation. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Panama made dealing with construction permits easier by reducing the fees for a permit from the fire department’s DB2013 Panama safety office and by accelerating the process at the building registry for obtaining a certificate of good standing and for registering the new building. DB2013 Peru Peru made obtaining a construction permit easier by Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 254 DB year Economy Reform eliminating requirements for several preconstruction approvals. República Bolivariana de Venezuela introduced a new Labor DB2013 Venezuela, RB Code that prohibits redundancy dismissals. Brazil increased the notice period applicable in cases of DB2013 Brazil redundancy dismissal of employees. Brazil made transferring property more difficult by DB2013 Brazil introducing a new certificate on good standing on labor debts, adding to the number of due diligence procedures. In Trinidad and Tobago property transfers became faster DB2013 Trinidad and Tobago thanks to speedier issuance of clearance certificates by the Water and Sewerage Authority. Panama made property transfers faster by increasing working DB2013 Panama hours at the registry and reorganizing the caseload of its staff. Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Dominica reduced the time to import by implementing the DB2013 Dominica ASYCUDA World electronic data interchange system. Puerto Rico (territory of the United States) made paying taxes easier and less costly for companies by introducing a new DB2013 Puerto Rico (U.S.) Internal Revenue Code and tax codification and by reducing the effective corporate income tax rate. Haiti made dealing with construction permits costlier by DB2012 Haiti increasing the fees to obtain a building permit. Puerto Rico (territory of the United States) made starting a DB2012 Puerto Rico (U.S.) business easier by merging the name search and company registration procedures. DB2012 Puerto Rico (U.S.) Puerto Rico (territory of the United States) made dealing with construction permits easier by creating the Office of Permits Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 255 DB year Economy Reform Management to streamline procedures. St. Kitts and Nevis made paying taxes easier by introducing a DB2012 St. Kitts and Nevis value added tax. Nicaragua made paying taxes easier for companies by DB2012 Nicaragua promoting electronic filing and payment of the major taxes, an option now used by the majority of taxpayers. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Paraguay made paying taxes more burdensome for DB2012 Paraguay companies by introducing new tax declarations that must be filed monthly. República Bolivariana de Venezuela made paying taxes DB2012 Venezuela, RB costlier for firms by doubling the municipal economic activities tax (sales tax). Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Paraguay improved its credit information system by DB2012 Paraguay establishing an online platform for financial institutions to exchange information with the public credit registry. Uruguay improved its credit information system by DB2012 Uruguay introducing a new online platform allowing access to credit reports for financial institutions, public utilities and borrowers. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Brazil improved its credit information system by allowing DB2012 Brazil private credit bureaus to collect and share positive information. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 256 DB year Economy Reform Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Guyana eased the process of starting a business by reducing DB2012 Guyana the time needed for registering a new company and for obtaining a tax identification number. Honduras made trading across borders faster by DB2012 Honduras implementing a web-based electronic data interchange system and X-ray machines at the port of Puerto Cortes. Uruguay made starting a business easier by establishing a DB2012 Uruguay one-stop shop for general commercial companies. Panama extended the operating hours of the public registry, DB2012 Panama reducing the time required to register a new company. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Nicaragua raised the monetary threshold for commercial claims that can be brought to the Managua local civil court, DB2012 Nicaragua leaving lower-value claims in the local courts, where proceedings are simpler and faster. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Trinidad and Tobago made dealing with construction permits DB2012 Trinidad and Tobago costlier by increasing the fees for building permit approvals. Paraguay made dealing with construction permits easier by DB2012 Paraguay implementing a risk-based approval system and a single window for obtaining construction permits. Nicaragua made transferring property more efficient by DB2012 Nicaragua introducing a fast-track procedure for registration. DB2012 Argentina Argentina made transferring property more difficult by adding a requirement that the notary obtain the tax agency’s Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 257 DB year Economy Reform reference value for property before notarizing the sale deed. Honduras strengthened its secured transactions system through a new decree establishing a centralized and DB2012 Honduras computerized collateral registry and providing for out-of- court enforcement of collateral upon default. Honduras made paying taxes costlier for firms by raising the DB2012 Honduras solidarity tax rate. In Guyana transferring property became slower because of a DB2012 Guyana lack of personnel at the deed registry. Honduras adopted a new civil procedure code that modified DB2012 Honduras litigation procedures for enforcing a contract. Guyana made getting electricity more expensive by tripling DB2012 Guyana the security deposit required for a new connection. Costa Rica made transferring property easier and quicker by DB2012 Costa Rica making property certificates available online through a single website. The Dominican Republic made starting a business easier by DB2012 Dominican Republic eliminating the requirement for a proof of deposit of capital when establishing a new company. Colombia reduced the costs associated with starting a DB2012 Colombia business, by no longer requiring upfront payment of the commercial license fee. Belize introduced the requirements to notify third parties in DB2012 Belize cases of redundancy dismissals. Belize made paying taxes easier for firms by improving DB2012 Belize electronic filing and payment for social security contributions, an option now used by the majority of taxpayers. DB2012 Bolivia Bolivia raised social security contribution rates for employers. DB2012 Colombia Colombia amended regulations governing insolvency proceedings to simplify the proceedings and reduce their Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 258 DB year Economy Reform time and cost El Salvador strengthened investor protections by allowing DB2012 El Salvador greater access to corporate information during the trial. Colombia eased the administrative burden of paying taxes for DB2012 Colombia firms by establishing mandatory electronic filing and payment for some of the major taxes. In Costa Rica online payment of social security contributions DB2012 Costa Rica is now widespread and used by the majority of taxpayers. The Bahamas made transferring property more costly by DB2012 Bahamas, The increasing the applicable stamp duty fees. In Antigua and Barbuda, to transfer property now requires DB2011 Antigua and Barbuda clearance by the chief surveyor to avoid mischievous declarations. Colombia eased the process of Starting a Business by DB2011 Colombia reducing the number of days to register with the Social Security System. The Dominican Republic made it more difficult to start a business by setting a minimum capital requirement of DB2011 Dominican Republic 100,000 Dominican pesos ($2,855) for its new type of company, sociedad de responsabilidad limitada (limited liability company). Ecuador made starting a business easier by introducing an DB2011 Ecuador online registration system for social security. Colombia eased construction permitting by improving the DB2011 Colombia electronic verification of prebuilding certificates. Guyana enhanced access to credit by establishing a regulatory framework that allows the licensing of private DB2011 Guyana credit bureaus and gives borrowers the right to inspect their data. DB2011 Jamaica Jamaica eased the transfer of property by lowering transfer taxes and fees, offering expedited registration procedures Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 259 DB year Economy Reform and making information from the company registrar available online. The appointment of a registrar focusing only on property cut DB2011 Grenada the time needed to transfer property in Grenada by almost half. Grenada’s customs administration made trading faster by DB2011 Grenada simplifying procedures, reducing inspections, improving staff training and enhancing communication with users. Guyana improved its risk profiling system for customs DB2011 Guyana inspection, reducing physical inspections of shipments and the time to trade. Guyana eased business start-up by digitizing company DB2011 Guyana records, which speeded up the process of company name search and reservation. Grenada eased business start-up by transferring responsibility DB2011 Grenada for the commercial registry from the courts to the civil administration. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. Nicaragua expedited trade by migrating to a new electronic data interchange system for customs, setting up a physical DB2011 Nicaragua one-stop shop for exports and investing in new equipment at the port of Corinto. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Panama eased business start-up by increasing efficiency at DB2011 Panama the registrar. República Bolivariana de Venezuela made starting a business DB2011 Venezuela, RB more difficult by introducing a new procedure for registering a company. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 260 DB year Economy Reform Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Brazil eased business start-up by further enhancing the DB2011 Brazil electronic synchronization between federal and state tax authorities. In Uruguay the Municipality of Montevideo made registering DB2011 Uruguay property easier by eliminating the need to obtain a mandatory waiver for preemption rights. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Panama made it more expensive to transfer property by DB2011 Panama requiring that an amount equal to 3% of the property value be paid upon registration. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Paraguay made dealing with construction permits easier by DB2011 Paraguay creating a new administrative structure and a better tracking system in the municipality of Asunción. República Bolivariana de Venezuela improved access to credit DB2011 Venezuela, RB information by creating a private credit bureau. Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. República Bolivariana de Venezuela abolished the tax on DB2011 Venezuela, RB financial transactions. Panama reduced the corporate income tax rate, modified DB2011 Panama various taxes and created a new tax court of appeals. DB2011 Nicaragua Nicaragua increased taxes on firms by raising social security contribution rates and introducing a 10% withholding tax on Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 261 DB year Economy Reform the gross interest accrued from deposits. It also improved electronic payment of taxes through bank transfer. Puerto Rico made paying taxes more costly for business by DB2011 Puerto Rico (U.S.) introducing a special surtax of 5% on the tax liability in addition to the normal corporate income tax. Haiti eased business start-up by eliminating the review by the DB2011 Haiti president’s or the prime minister’s office of the incorporation act submitted for publication. 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 LATIN AMERICA AND CARIBBEAN (LAC) 262 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 LATIN AMERICA AND CARIBBEAN (LAC) 263 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 LATIN AMERICA AND CARIBBEAN (LAC) 264 ENFORCING CONTRACTS Where do the region’s economies stand today? How efficient is the process of resolving a commercial suggest an answer (figure 10.1). The average ranking of dispute through the courts in economies in Latin the region and comparator regions provide a useful America and Caribbean (LAC)? The global rankings of benchmark. these economies on the ease of enforcing contracts Figure 10.1 How economies in Latin America and Caribbean (LAC) rank on the ease of enforcing contracts Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 265 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 Latin America and Caribbean (LAC) Time (days) Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 266 ENFORCING CONTRACTS Cost (% of claim) Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 267 ENFORCING CONTRACTS Quality of Judicial Processes Index (0-18) Source: Doing Business database. Note: Higher values indicate more efficient judicial processes. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 268 ENFORCING CONTRACTS What are the changes over time? Economies in all regions have improved contract clear inactive cases from the docket and by making enforcement in recent years. A judiciary can be improved procedures faster. What reforms making it easier (or in different ways. Higher-income economies tend to look more difficult) to enforce contracts has Doing Business for ways to enhance efficiency by introducing new recorded in Latin America and Caribbean (LAC) (table technology. Lower-income economies often work on 10.1)? reducing backlogs by introducing periodic reviews to Table 10.1 How have economies in Latin America and Caribbean (LAC) made enforcing contracts easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Antigua and Barbuda made trading across borders easier by DB2017 Antigua and Barbuda eliminating the tax compliance certificate required for import customs clearance. Bolivia made dealing with construction permits lengthier by DB2017 Bolivia implementing a new requirement to pay for the land registry certificate at the Judiciary Council. Bolivia made enforcing contracts easier by adopting a new DB2017 Bolivia code of civil procedure that introduces pre-trial conferences. Bolivia made starting a business easier by decreasing the time DB2017 Bolivia needed to register a company. The Bahamas made registering property easier by reducing DB2017 Bahamas, The the cost of transferring a property. The Bahamas made starting a business easier by allowing local limited liability companies to register online. On the DB2017 Bahamas, The other hand, The Bahamas made starting a business more costly by increasing the fees for registering a company name and incorporation. The Bahamas made paying taxes more complicated by DB2017 Bahamas, The introducing a value added tax. Ecuador adopted a new code of civil procedure that made enforcing contracts easier by introducing a pre-trial DB2017 Ecuador conference. The new code also made enforcing contracts more difficult by eliminating a dedicated procedure for the resolution of small claims. El Salvador made access to credit information more difficult DB2017 El Salvador by reducing the coverage of the credit bureau. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 269 DB year Economy Reform The Dominican Republic made getting an electricity DB2017 Dominican Republic connection faster by reducing the time required to approve electrical connection plans. Colombia made starting a business easier by streamlining DB2017 Colombia registration procedures. Ecuador made starting a business easier by eliminating the DB2017 Ecuador publication of company charters in local newspapers. El Salvador made paying taxes easier by encouraging the use DB2017 El Salvador of the electronic system for filing taxes. The Dominican Republic made paying taxes less costly by DB2017 Dominican Republic decreasing the corporate income tax rate. Guyana improved access to credit information by expanding DB2017 Guyana the coverage of the credit bureau. Guyana made registering property easier by increasing the DB2017 Guyana transparency of the Lands & Survey Commission. Jamaica made starting a business more difficult by removing DB2017 Jamaica the ability to complete next day company incorporation. Jamaica reduced the time of documentary compliance for DB2017 Jamaica exporting by implementing an automated customs data management system, ASYCUDA World. Grenada made trading across borders easier by streamlining DB2017 Grenada import document submission procedures, reducing the time required for documentary compliance. Honduras made trading across borders more difficult by DB2017 Honduras increasing the number of intrusive inspections for importing, which increased the border compliance time. Guatemala made paying taxes less costly by reducing the rate DB2017 Guatemala of corporate income tax. Jamaica made paying taxes less costly by increasing tax depreciation rates and the initial capital allowance for assets acquired on or after January 1, 2014. Furthermore, companies DB2017 Jamaica incorporated for less than 24 months are exempted from paying the minimum business tax. Jamaica also made paying taxes easier by implementing an electronic system for filing of corporate income tax, VAT and social contributions. Brazil made enforcing contracts easier through a new mediation law—that includes financial incentives for parties DB2017 Brazil to attempt mediation—and a new code of civil procedure. These reforms apply to both Rio de Janeiro and São Paulo. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 270 DB year Economy Reform Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. Brazil expanded eligibility for unemployment benefits to DB2017 Brazil employees with one year of continuous work experience. This reform applies to both Rio de Janeiro and São Paulo. Paraguay reduced access to credit information by limiting the DB2017 Paraguay distribution of historical data on borrowers. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Saint Kitts and Nevis made it more difficult to transfer property due to work overload at the Supreme Court Registry DB2017 St. Kitts and Nevis while also reducing the stamp duty for transferring real estate. Brazil reduced the time needed to start a business by implementing an online portal for business licenses in Rio de DB2017 Brazil Janeiro. However, Brazil also made starting a business more difficult by shortening the opening hours of the business registry in Rio de Janeiro. Barbados made starting a business easier by reducing the DB2017 Barbados time to register a company. The República Bolivariana de Venezuela made starting a business more expensive by raising the value of the tributary DB2017 Venezuela, RB unit and lawyers’ fees. It also made the process more time consuming by limiting the work schedule of the public sector. Uruguay made starting a business more costly by increasing DB2017 Uruguay the value of the official fiscal unit used for the payment of government fees. Brazil made trading across borders easier by implementing an electronic system for importing, which reduced the time DB2017 Brazil required for documentary compliance. This reform applies to both Rio de Janeiro and São Paulo. Nicaragua made trading across borders more expensive by DB2017 Nicaragua introducing a new security fee, increasing the cost of border compliance for exporting and importing. DB2017 Paraguay Paraguay made trading across borders easier by introducing Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 271 DB year Economy Reform a single window for exporting, which reduced the time required of border and documentary compliance. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. Uruguay made paying taxes easier by introducing an DB2017 Uruguay electronic system for paying social security contributions. Online filing was already in place. Argentina made dealing with construction permits more DB2017 Argentina difficult by increasing municipal fees. Argentina made trading across borders easier by introducing DB2017 Argentina a new licensing system for importing, which reduced the time required for documentary compliance. Argentina made paying taxes less costly by increasing the threshold for the 5% turnover tax. Argentina also made DB2017 Argentina paying taxes easier by introducing improvements to the online portal for filing taxes. Dominica made paying taxes less costly by reducing the DB2017 Dominica corporate income tax rate. Haiti made trading across borders easier by improving port infrastructure and improving the SYDONIA electronic data DB2017 Haiti interchange system by allowing the submission of supporting documents online. The utility made getting electricity more difficult by DB2017 St. Lucia introducing a requirement to obtain a current land registry extract to get a new connection. Puerto Rico made registering property easier by digitizing its DB2017 Puerto Rico (U.S.) land records, improving the quality of infrastructure and transparency of its land administration system. St. Lucia made exporting and importing easier by upgrading an electronic data interchange system and linking the DB2017 St. Lucia customs and port authorities through a common online platform. Puerto Rico (territory of the United States) made paying taxes DB2017 Puerto Rico (U.S.) less costly by abolishing gross receipts tax. However, the capital gains tax rate was increased. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. DB2016 Peru Peru improved its credit information system by implementing Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 272 DB year Economy Reform a new law on personal data protection. Jamaica made dealing with construction permits easier by DB2016 Jamaica implementing a new workflow for processing building permit applications. Jamaica made resolving insolvency easier by introducing a reorganization procedure; introducing provisions to facilitate the continuation of the debtor’s business during insolvency DB2016 Jamaica proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency proceedings. Jamaica made paying taxes easier and less costly for companies by encouraging taxpayers to pay their taxes online, introducing an employment tax credit and increasing the depreciation rate for industrial buildings. At the same DB2016 Jamaica time, Jamaica introduced a minimum business tax, raised the contribution rate for the national insurance scheme paid by employers and increased the rates for stamp duty, the property tax, the property transfer tax and the education tax. Guatemala made paying taxes less costly for companies by DB2016 Guatemala reducing the corporate income tax rate. Honduras made paying taxes more costly for companies by DB2016 Honduras introducing an alternative minimum income tax. Honduras strengthened minority investor protections by introducing provisions requiring greater disclosure of related- party transactions, prohibiting interested parties from voting DB2016 Honduras on a related-party transaction, allowing shareholders representing at least 5% of a company’s share capital to bring a direct action for damages against its directors and giving any shareholder the right to inspect company documents. Jamaica made starting a business easier by streamlining DB2016 Jamaica internal procedures. Guatemala reduced the documentary and border compliance time for importing by making electronic submission of documents compulsory and eliminating the need for many DB2016 Guatemala hard-copy documents. Guyana improved access to credit information by establishing DB2016 Guyana a new credit bureau. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 273 DB year Economy Reform Trinidad and Tobago made getting electricity more costly by DB2016 Trinidad and Tobago introducing a capital contribution toward connection costs. St. Vincent and the Grenadines made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s DB2016 St. Vincent and the Grenadines business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Barbados made paying taxes more costly for companies by DB2016 Barbados raising the ceiling for social security contributions and introducing a new municipal solid waste tax. Uruguay made paying taxes easier for companies by DB2016 Uruguay continually upgrading and improving the electronic system for filing and paying the major taxes. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be deductible. DB2016 Mexico These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Uruguay made registering property more difficult by requiring by law a certificate of connection of the property to DB2016 Uruguay the public sewage system to complete the process of transferring and registering property. Brazil made transferring property in São Paulo more DB2016 Brazil expensive by increasing the property transfer tax. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs. It also made starting a business more difficult by making the registration at the Venezuelan Social Security Institute (IVSS), the National DB2016 Venezuela, RB Bank for Housing and Habitat (BANAVIH) and the National Institute of Socialist Cooperation & Education (INCES) prerequisites for the Ministry of Labor (Minpptrass) registration. Uruguay made starting a business more difficult by increasing DB2016 Uruguay incorporation costs. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 274 DB year Economy Reform Suriname reduced the time for documentary and border compliance for exporting and importing by implementing an DB2016 Suriname automated customs data management system, ASYCUDA (Automated System for Customs Data) World. Brazil reduced the time for documentary and border compliance for exporting by implementing the electronic SISCOMEX Portal system. This reform applies to both Rio de DB2016 Brazil Janeiro and São Paulo. El Salvador improved access to credit by adopting the Law on Movable Property, which established a modern, centralized, DB2016 El Salvador notice-based collateral registry and allows a general description of a single category of assets granted as collateral. Costa Rica improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a modern, centralized, notice-based DB2016 Costa Rica collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and allows out-of-court enforcement of collateral. The Bahamas made paying taxes less costly for companies by DB2016 Bahamas, The reducing the business license tax—though it also raised the wage ceiling used in calculating social security contributions. The Bahamas made starting a business more difficult by DB2016 Bahamas, The adding a requirement for value added tax (VAT) registration. The Bahamas made trading across borders easier by fully implementing an electronic data interchange system, which DB2016 Bahamas, The reduced the time for preparation and submission of trade documents for both exporting and importing. The utility in Costa Rica made getting electricity easier by reducing the time required for preparing the design of the DB2016 Costa Rica external connection works and for installing the meter and initiating the electricity supply. Colombia made paying taxes less costly for companies by DB2016 Colombia reducing the payroll tax rate and introducing exemptions for health care contributions paid by employers. Costa Rica made paying taxes easier for companies by DB2016 Costa Rica promoting the use of its electronic filing and payment system Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 275 DB year Economy Reform for corporate income tax and general sales tax. Ecuador made starting a business easier by simplifying the DB2016 Ecuador registration process and by eliminating the need to deposit 50% of the minimum capital in a special account. DB2016 Ecuador Ecuador eliminated fixed-term contracts for permanent tasks. El Salvador increased the border compliance time for DB2016 El Salvador exporting and importing by adding an extra, nonintrusive inspection at the Anguiatú border crossing with Guatemala. Colombia improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a centralized, notice-based collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets DB2015 Colombia granted as collateral, establishes clear priority rules inside bankruptcy for secured creditors, sets out grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures and allows out-of-court enforcement of collateral. The Dominican Republic improved its credit information system by enacting a new law regulating the protection of DB2015 Dominican Republic personal data and the operation of credit reporting institutions. Costa Rica reduced the time required for getting electricity by DB2015 Costa Rica improving the coordination between different departments at the utility. The Dominican Republic made dealing with construction DB2015 Dominican Republic permits more costly by increasing the building permit fees. Costa Rica made paying taxes easier for companies by DB2015 Costa Rica implementing an electronic system for filing corporate income tax and VAT. Colombia made paying taxes more complicated for DB2015 Colombia companies by introducing a new profit tax (CREE), though it also reduced the corporate income tax rate and payroll taxes. The Dominican Republic strengthened minority investor DB2015 Dominican Republic protections by introducing greater shareholder rights and requirements for greater corporate transparency. Ecuador strengthened minority investor protections by DB2015 Ecuador introducing greater requirements for disclosure of related- party transactions as well as a requirement that a potential Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 276 DB year Economy Reform acquirer make a tender offer to all shareholders upon acquiring voting shares. Colombia made transferring property easier by eliminating DB2015 Colombia the need for a provisional registration. The Dominican Republic made trading across borders easier DB2015 Dominican Republic by reducing the number of documents required for exports and imports. Ecuador made trading across borders easier by introducing a DB2015 Ecuador new electronic data interchange system called ECUAPASS. Bolivia made trading across borders more difficult by DB2015 Bolivia increasing customs clearance time. The Bahamas made dealing with construction permits more DB2015 Bahamas, The costly by increasing the building permit fees. The Bahamas made enforcing contracts easier by introducing new rules of civil procedure focused on streamlining and DB2015 Bahamas, The simplifying court proceedings and ensuring less costly resolution of disputes. Nicaragua improved access to credit information by starting DB2015 Nicaragua to provide credit scores to banks and financial institutions. Panama improved access to credit through a new law broadening the range of assets that can be used as collateral, DB2015 Panama allowing a general description of assets granted as collateral and allowing out-of-court enforcement of collateral. Trinidad and Tobago improved access to credit by adopting the Bankruptcy and Insolvency Act, which establishes clear DB2015 Trinidad and Tobago grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures as well as a time limit for the stay. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made dealing with construction permits DB2015 St. Kitts and Nevis more costly by increasing the building permit fees. Uruguay made enforcing contracts easier by simplifying and DB2015 Uruguay speeding up the proceedings for commercial disputes. DB2015 Mexico Mexico made resolving insolvency easier by clarifying several Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 277 DB year Economy Reform rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s business during DB2015 St. Kitts and Nevis insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Trinidad and Tobago made resolving insolvency easier by introducing a formal mechanism for rehabilitation, DB2015 Trinidad and Tobago establishing a public office responsible for the general administration of insolvency proceedings and clarifying the rules on appointment of trustees. St. Kitts and Nevis made paying taxes less costly for DB2015 St. Kitts and Nevis companies by reducing the corporate income tax rate. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs and by DB2015 Venezuela, RB requiring companies to register within the Superintendence for Socioeconomic Rights (SUNDEE). Trinidad and Tobago made starting a business easier by DB2015 Trinidad and Tobago introducing online systems for employer registration and tax registration. Suriname made starting a business easier by introducing an DB2015 Suriname online system for obtaining trade licenses. Nicaragua made starting a business easier by combining DB2015 Nicaragua multiple registration procedures. Uruguay made trading across borders easier by implementing DB2015 Uruguay a risk-based inspection system that reduced customs clearance time for both exports and imports. Jamaica improved access to credit by establishing credit bureaus and by adopting a new secured transactions law that implements a functional secured transactions system, DB2015 Jamaica broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and establishes a modern, notice-based collateral registry. Jamaica made getting electricity less expensive by reducing DB2015 Jamaica the cost of external connection works. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 278 DB year Economy Reform Honduras made dealing with construction permits more DB2015 Honduras costly by increasing the building permit fees. Jamaica made paying taxes more costly for companies by DB2015 Jamaica introducing a new minimum business tax. Guatemala made paying taxes easier and less costly for companies by enhancing the electronic system for filing and paying corporate income tax and VAT and by reducing the DB2015 Guatemala capital gains and corporate income tax rates. On the other hand, it also made paying taxes more complicated by introducing a new form for capital gains tax. Guatemala made starting a business easier by eliminating DB2015 Guatemala certain registration fees and reducing the time to publish a notice of incorporation. Honduras made starting a business easier by eliminating the DB2015 Honduras paid-in minimum capital requirement. Jamaica made starting a business easier by consolidating forms, but also made it more time-consuming as a result of DB2015 Jamaica delays in the implementation of the electronic interface with different agencies. Argentina made dealing with construction permits more DB2015 Argentina costly by increasing several fees. Puerto Rico (territory of the United States) made dealing with construction permits easier by introducing the option of DB2015 Puerto Rico (U.S.) hiring authorized private professionals to carry out the fire safety recommendations and issue the fire safety and environmental health certificates. St. Lucia made trading across borders easier by implementing the ASYCUDA World electronic system for the submission of DB2015 St. Lucia export and import documents and by reducing the number of export documents required. St. Lucia made trading across borders more difficult by DB2014 St. Lucia introducing a new export document. Argentina reduced the number of documents necessary for DB2014 Argentina importing by eliminating nonautomatic license requirements. Argentina made starting a business more difficult by DB2014 Argentina increasing the incorporation costs. Jamaica improved its credit information system by creating a DB2014 Jamaica legal and regulatory framework for private credit bureaus. DB2014 Nicaragua Nicaragua reduced the time required for getting electricity by Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 279 DB year Economy Reform increasing efficiency in granting approval of the connection design and by informing the customer in advance what the amount of the security deposit will be. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a DB2014 Mexico “silence is consent” rule for the approval of the feasibility study for a new connection. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. Panama made paying taxes easier for companies by changing the payment frequency for corporate income taxes from DB2014 Panama monthly to quarterly and by implementing a new online platform for filing the social security payroll. Paraguay made paying taxes easier for companies by making DB2014 Paraguay electronic filing and payment mandatory for corporate income and value added taxes. Panama strengthened investor protections by increasing the DB2014 Panama disclosure requirements for publicly held companies. Panama made transferring property easier by connecting the DB2014 Panama land registry with the cadastre. Suriname made transferring property easier by increasing DB2014 Suriname administrative efficiency at the land registry. República Bolivariana de Venezuela made starting a business DB2014 Venezuela, RB more costly by increasing the company registration fees. Suriname made starting a business easier by reducing the DB2014 Suriname time required to obtain the president’s approval for the registration of a new company. Trinidad and Tobago made starting a business easier by DB2014 Trinidad and Tobago merging the statutory declaration of compliance into the standard articles of incorporation form. Nicaragua made starting a business easier by merging the procedures for registering with the revenue authority and DB2014 Nicaragua with the municipality and by reducing the time required for incorporation. Panama made starting a business easier by eliminating the DB2014 Panama need to visit the municipality to obtain the municipal taxpayer number. DB2014 Uruguay Uruguay made trading across borders easier by implementing Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 280 DB year Economy Reform an electronic customs declaration system. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. República Bolivariana de Venezuela improved access to credit DB2014 Venezuela, RB information by starting to collect data on firms from financial institutions. Guatemala made dealing with construction permits easier by streamlining procedures through the creation of a one-stop DB2014 Guatemala shop, backed by agreements between institutions and agencies involved in the permitting process. Jamaica made paying taxes less costly for companies by DB2014 Jamaica reducing the corporate income tax rate—though it also increased vehicle and asset taxes. Guatemala made paying taxes easier for companies by DB2014 Guatemala introducing a new electronic filing and payment system. Guyana made paying taxes easier for companies by reducing DB2014 Guyana the corporate income tax rate. Jamaica made transferring property more difficult by DB2014 Jamaica increasing the transfer tax and the stamp duty. Jamaica made starting a business easier by enabling the DB2014 Jamaica Companies Office of Jamaica to stamp the new company’s articles of incorporation at registration. Guatemala made starting a business easier by creating an DB2014 Guatemala online platform that allows simultaneous registration of a new company with different government agencies.. The Bahamas enhanced its insolvency process by implementing rules for the remuneration of liquidators, DB2014 Bahamas, The allowing voluntary liquidations and outlining clawback provisions for suspect transactions. The Bahamas made transferring property easier by reducing DB2014 Bahamas, The the stamp duty. Colombia made getting electricity easier by opening a one- DB2014 Colombia stop shop for electricity connections and improving the efficiency of the utility’s internal processes. Ecuador made getting electricity easier by dividing the city of Quito into zones for the purpose of DB2014 Ecuador handling applications for new connections—a changethat improved the utility’s customer service—and by reducing the fees to obtain a connection. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 281 DB year Economy Reform Costa Rica made dealing with construction permits easier by eliminating procedures, improving efficiency DB2014 Costa Rica and launching an online platform that streamlined the building permit process by integrating different agencies’ approval processes. Colombia made enforcing contracts easier by simplifying and DB2014 Colombia speeding up the proceedings for commercial disputes. El Salvador made paying taxes more costly for companies by DB2014 El Salvador increasing the corporate income tax rate. Costa Rica made starting a business easier by creating an online platform for business registration, eliminating the DB2014 Costa Rica requirement to have accounting books legalized and simplifying the legalization of company books. El Salvador made trading across borders easier by developing DB2014 El Salvador a one-stop shop for exporting and by implementing electronic data interchange systems. Antigua and Barbuda made trading across borders more DB2013 Antigua and Barbuda difficult by increasing the number of documents required to import. In Ecuador property transfers became more time consuming DB2013 Ecuador as a result of implementation problems in transferring authority over property records to the municipality of Quito. El Salvador improved access to credit information through a DB2013 El Salvador new law regulating the management of personal credit information. Costa Rica improved access to credit information by DB2013 Costa Rica guaranteeing borrowers’ right to inspect their personal data. The Dominican Republic increased the corporate income tax DB2013 Dominican Republic rate. DB2013 El Salvador El Salvador introduced an alternative minimum tax. Costa Rica made paying taxes easier for companies by DB2013 Costa Rica implementing electronic payment for municipal taxes — though it also introduced a registration flat tax. Colombia made starting a business easier by eliminating the DB2013 Colombia requirement to purchase and register accounting books at the time of incorporation. Costa Rica made starting a business easier by streamlining DB2013 Costa Rica the process of obtaining a sanitary permit from the Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 282 DB year Economy Reform authorities for low-risk activities. Costa Rica streamlined the process for obtaining construction DB2013 Costa Rica permits by implementing online approval systems. Grenada reduced the time to export and import by DB2013 Grenada implementing the ASYCUDA World electronic data interchange system. Jamaica reduced the time to import by allowing customs DB2013 Jamaica entries to be lodged at night. Guatemala made dealing with construction permits easier by DB2013 Guatemala introducing a risk-based approval system Jamaica made paying taxes easier for companies by allowing DB2013 Jamaica joint filing and payment of all social security contributions. Belize reduced the time to export and import by DB2013 Belize implementing the ASYCUDA World electronic data interchange system. Argentina increased the time, cost and number of documents needed to import by expanding the list of products requiring DB2013 Argentina nonautomatic licenses and introducing new preapproval procedures for all imports. Brazil made enforcing contracts easier by implementing an DB2013 Brazil electronic system for filing initial complaints at the São Paulo civil district court. In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training DB2013 Mexico opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials. Uruguay made paying taxes easier for small and medium-size companies by fully implementing an online filing and DB2013 Uruguay payment system for capital, value added and corporate income taxes and by improving the online facilities for social security contributions. República Bolivariana de Venezuela made paying taxes more DB2013 Venezuela, RB costly and difficult for companies by introducing a sports, physical activities and physical education tax. Panama made paying taxes easier for companies by enhancing the electronic filing system for value added tax DB2013 Panama and simplifying tax return forms for corporate income tax— though it also began requiring companies to pay corporate Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 283 DB year Economy Reform income tax monthly rather than quarterly. Uruguay reduced the time to import by improving port DB2013 Uruguay efficiency and introducing electronic payment and predeclaration systems for customs. St. Kitts and Nevis made it more expensive to export by DB2013 St. Kitts and Nevis increasing the cost of operations at the port of Basseterre. Suriname increased the time to export by involving more DB2013 Suriname customs departments in clearing exports. Trinidad and Tobago reduced the time to export and import by launching the ASYCUDA World electronic data interchange DB2013 Trinidad and Tobago system and simplifying the process for obtaining a certificate of origin. República Bolivariana de Venezuela made starting a business DB2013 Venezuela, RB more difficult by increasing the cost of company incorporation. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Panama made dealing with construction permits easier by reducing the fees for a permit from the fire department’s DB2013 Panama safety office and by accelerating the process at the building registry for obtaining a certificate of good standing and for registering the new building. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. República Bolivariana de Venezuela introduced a new Labor DB2013 Venezuela, RB Code that prohibits redundancy dismissals. Brazil increased the notice period applicable in cases of DB2013 Brazil redundancy dismissal of employees. Brazil made transferring property more difficult by DB2013 Brazil introducing a new certificate on good standing on labor debts, adding to the number of due diligence procedures. In Trinidad and Tobago property transfers became faster DB2013 Trinidad and Tobago thanks to speedier issuance of clearance certificates by the Water and Sewerage Authority. Panama made property transfers faster by increasing working DB2013 Panama hours at the registry and reorganizing the caseload of its staff. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 284 DB year Economy Reform Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Dominica reduced the time to import by implementing the DB2013 Dominica ASYCUDA World electronic data interchange system. Puerto Rico (territory of the United States) made paying taxes easier and less costly for companies by introducing a new DB2013 Puerto Rico (U.S.) Internal Revenue Code and tax codification and by reducing the effective corporate income tax rate. Haiti made dealing with construction permits costlier by DB2012 Haiti increasing the fees to obtain a building permit. Puerto Rico (territory of the United States) made starting a DB2012 Puerto Rico (U.S.) business easier by merging the name search and company registration procedures. Puerto Rico (territory of the United States) made dealing with DB2012 Puerto Rico (U.S.) construction permits easier by creating the Office of Permits Management to streamline procedures. St. Kitts and Nevis made paying taxes easier by introducing a DB2012 St. Kitts and Nevis value added tax. Nicaragua made paying taxes easier for companies by DB2012 Nicaragua promoting electronic filing and payment of the major taxes, an option now used by the majority of taxpayers. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Paraguay made paying taxes more burdensome for DB2012 Paraguay companies by introducing new tax declarations that must be filed monthly. República Bolivariana de Venezuela made paying taxes DB2012 Venezuela, RB costlier for firms by doubling the municipal economic activities tax (sales tax). Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Paraguay improved its credit information system by DB2012 Paraguay establishing an online platform for financial institutions to exchange information with the public credit registry. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 285 DB year Economy Reform Uruguay improved its credit information system by DB2012 Uruguay introducing a new online platform allowing access to credit reports for financial institutions, public utilities and borrowers. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Brazil improved its credit information system by allowing DB2012 Brazil private credit bureaus to collect and share positive information. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Guyana eased the process of starting a business by reducing DB2012 Guyana the time needed for registering a new company and for obtaining a tax identification number. Honduras made trading across borders faster by DB2012 Honduras implementing a web-based electronic data interchange system and X-ray machines at the port of Puerto Cortes. Uruguay made starting a business easier by establishing a DB2012 Uruguay one-stop shop for general commercial companies. Panama extended the operating hours of the public registry, DB2012 Panama reducing the time required to register a new company. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Nicaragua raised the monetary threshold for commercial claims that can be brought to the Managua local civil court, DB2012 Nicaragua leaving lower-value claims in the local courts, where proceedings are simpler and faster. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Trinidad and Tobago made dealing with construction permits DB2012 Trinidad and Tobago costlier by increasing the fees for building permit approvals. Paraguay made dealing with construction permits easier by DB2012 Paraguay implementing a risk-based approval system and a single window for obtaining construction permits. Nicaragua made transferring property more efficient by DB2012 Nicaragua introducing a fast-track procedure for registration. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 286 DB year Economy Reform Argentina made transferring property more difficult by DB2012 Argentina adding a requirement that the notary obtain the tax agency’s reference value for property before notarizing the sale deed. Honduras strengthened its secured transactions system through a new decree establishing a centralized and DB2012 Honduras computerized collateral registry and providing for out-of- court enforcement of collateral upon default. Honduras made paying taxes costlier for firms by raising the DB2012 Honduras solidarity tax rate. In Guyana transferring property became slower because of a DB2012 Guyana lack of personnel at the deed registry. Honduras adopted a new civil procedure code that modified DB2012 Honduras litigation procedures for enforcing a contract. Guyana made getting electricity more expensive by tripling DB2012 Guyana the security deposit required for a new connection. Costa Rica made transferring property easier and quicker by DB2012 Costa Rica making property certificates available online through a single website. The Dominican Republic made starting a business easier by DB2012 Dominican Republic eliminating the requirement for a proof of deposit of capital when establishing a new company. Colombia reduced the costs associated with starting a DB2012 Colombia business, by no longer requiring upfront payment of the commercial license fee. Belize introduced the requirements to notify third parties in DB2012 Belize cases of redundancy dismissals. Belize made paying taxes easier for firms by improving DB2012 Belize electronic filing and payment for social security contributions, an option now used by the majority of taxpayers. DB2012 Bolivia Bolivia raised social security contribution rates for employers. Colombia amended regulations governing insolvency DB2012 Colombia proceedings to simplify the proceedings and reduce their time and cost El Salvador strengthened investor protections by allowing DB2012 El Salvador greater access to corporate information during the trial. Colombia eased the administrative burden of paying taxes for DB2012 Colombia firms by establishing mandatory electronic filing and payment for some of the major taxes. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 287 DB year Economy Reform In Costa Rica online payment of social security contributions DB2012 Costa Rica is now widespread and used by the majority of taxpayers. The Bahamas made transferring property more costly by DB2012 Bahamas, The increasing the applicable stamp duty fees. In Antigua and Barbuda, to transfer property now requires DB2011 Antigua and Barbuda clearance by the chief surveyor to avoid mischievous declarations. Colombia eased the process of Starting a Business by DB2011 Colombia reducing the number of days to register with the Social Security System. The Dominican Republic made it more difficult to start a business by setting a minimum capital requirement of DB2011 Dominican Republic 100,000 Dominican pesos ($2,855) for its new type of company, sociedad de responsabilidad limitada (limited liability company). Ecuador made starting a business easier by introducing an DB2011 Ecuador online registration system for social security. Colombia eased construction permitting by improving the DB2011 Colombia electronic verification of prebuilding certificates. Guyana enhanced access to credit by establishing a regulatory framework that allows the licensing of private DB2011 Guyana credit bureaus and gives borrowers the right to inspect their data. Jamaica eased the transfer of property by lowering transfer taxes and fees, offering expedited registration procedures DB2011 Jamaica and making information from the company registrar available online. The appointment of a registrar focusing only on property cut DB2011 Grenada the time needed to transfer property in Grenada by almost half. Grenada’s customs administration made trading faster by DB2011 Grenada simplifying procedures, reducing inspections, improving staff training and enhancing communication with users. Guyana improved its risk profiling system for customs DB2011 Guyana inspection, reducing physical inspections of shipments and the time to trade. Guyana eased business start-up by digitizing company DB2011 Guyana records, which speeded up the process of company name search and reservation. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 288 DB year Economy Reform Grenada eased business start-up by transferring responsibility DB2011 Grenada for the commercial registry from the courts to the civil administration. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. Nicaragua expedited trade by migrating to a new electronic data interchange system for customs, setting up a physical DB2011 Nicaragua one-stop shop for exports and investing in new equipment at the port of Corinto. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Panama eased business start-up by increasing efficiency at DB2011 Panama the registrar. República Bolivariana de Venezuela made starting a business DB2011 Venezuela, RB more difficult by introducing a new procedure for registering a company. Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Brazil eased business start-up by further enhancing the DB2011 Brazil electronic synchronization between federal and state tax authorities. In Uruguay the Municipality of Montevideo made registering DB2011 Uruguay property easier by eliminating the need to obtain a mandatory waiver for preemption rights. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Panama made it more expensive to transfer property by DB2011 Panama requiring that an amount equal to 3% of the property value be paid upon registration. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Paraguay made dealing with construction permits easier by DB2011 Paraguay creating a new administrative structure and a better tracking system in the municipality of Asunción. República Bolivariana de Venezuela improved access to credit DB2011 Venezuela, RB information by creating a private credit bureau. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 289 DB year Economy Reform Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. República Bolivariana de Venezuela abolished the tax on DB2011 Venezuela, RB financial transactions. Panama reduced the corporate income tax rate, modified DB2011 Panama various taxes and created a new tax court of appeals. Nicaragua increased taxes on firms by raising social security contribution rates and introducing a 10% withholding tax on DB2011 Nicaragua the gross interest accrued from deposits. It also improved electronic payment of taxes through bank transfer. Puerto Rico made paying taxes more costly for business by DB2011 Puerto Rico (U.S.) introducing a special surtax of 5% on the tax liability in addition to the normal corporate income tax. Haiti eased business start-up by eliminating the review by the DB2011 Haiti president’s or the prime minister’s office of the incorporation act submitted for publication. 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 LATIN AMERICA AND CARIBBEAN (LAC) 290 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 LATIN AMERICA AND CARIBBEAN (LAC) 291 . 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 LATIN AMERICA AND CARIBBEAN (LAC) 292 RESOLVING INSOLVENCY Where do the region’s economies stand today? How efficient are insolvency proceedings in economies in the region and comparator regions provide a useful Latin America and Caribbean (LAC)? The global rankings benchmark for assessing the efficiency of insolvency of these economies on the ease of resolving insolvency proceedings. Speed, low costs and continuation of viable suggest an answer (figure 11.1). The average ranking of businesses characterize the top-performing economies. Figure 11.1 How economies in Latin America and Caribbean (LAC) rank on the ease of resolving insolvency Source: Doing Business database. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 293 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 Latin America and Caribbean (LAC) 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 LATIN AMERICA AND CARIBBEAN (LAC) 294 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 Latin America and Caribbean (LAC) (table even viable businesses are liquidated. This is starting to 11.1)? Table 11.1 How have economies in Latin America and Caribbean (LAC) made resolving insolvency easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Antigua and Barbuda made trading across borders easier by DB2017 Antigua and Barbuda eliminating the tax compliance certificate required for import customs clearance. Bolivia made dealing with construction permits lengthier by DB2017 Bolivia implementing a new requirement to pay for the land registry certificate at the Judiciary Council. Bolivia made enforcing contracts easier by adopting a new DB2017 Bolivia code of civil procedure that introduces pre-trial conferences. Bolivia made starting a business easier by decreasing the time DB2017 Bolivia needed to register a company. The Bahamas made registering property easier by reducing DB2017 Bahamas, The the cost of transferring a property. The Bahamas made starting a business easier by allowing local limited liability companies to register online. On the DB2017 Bahamas, The other hand, The Bahamas made starting a business more costly by increasing the fees for registering a company name and incorporation. The Bahamas made paying taxes more complicated by DB2017 Bahamas, The introducing a value added tax. Ecuador adopted a new code of civil procedure that made enforcing contracts easier by introducing a pre-trial DB2017 Ecuador conference. The new code also made enforcing contracts more difficult by eliminating a dedicated procedure for the resolution of small claims. El Salvador made access to credit information more difficult DB2017 El Salvador by reducing the coverage of the credit bureau. The Dominican Republic made getting an electricity DB2017 Dominican Republic connection faster by reducing the time required to approve Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 295 DB year Economy Reform electrical connection plans. Colombia made starting a business easier by streamlining DB2017 Colombia registration procedures. Ecuador made starting a business easier by eliminating the DB2017 Ecuador publication of company charters in local newspapers. El Salvador made paying taxes easier by encouraging the use DB2017 El Salvador of the electronic system for filing taxes. The Dominican Republic made paying taxes less costly by DB2017 Dominican Republic decreasing the corporate income tax rate. Guyana improved access to credit information by expanding DB2017 Guyana the coverage of the credit bureau. Guyana made registering property easier by increasing the DB2017 Guyana transparency of the Lands & Survey Commission. Jamaica made starting a business more difficult by removing DB2017 Jamaica the ability to complete next day company incorporation. Jamaica reduced the time of documentary compliance for DB2017 Jamaica exporting by implementing an automated customs data management system, ASYCUDA World. Grenada made trading across borders easier by streamlining DB2017 Grenada import document submission procedures, reducing the time required for documentary compliance. Honduras made trading across borders more difficult by DB2017 Honduras increasing the number of intrusive inspections for importing, which increased the border compliance time. Guatemala made paying taxes less costly by reducing the rate DB2017 Guatemala of corporate income tax. Jamaica made paying taxes less costly by increasing tax depreciation rates and the initial capital allowance for assets acquired on or after January 1, 2014. Furthermore, companies DB2017 Jamaica incorporated for less than 24 months are exempted from paying the minimum business tax. Jamaica also made paying taxes easier by implementing an electronic system for filing of corporate income tax, VAT and social contributions. Brazil made enforcing contracts easier through a new mediation law—that includes financial incentives for parties DB2017 Brazil to attempt mediation—and a new code of civil procedure. These reforms apply to both Rio de Janeiro and São Paulo. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 296 DB year Economy Reform Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform DB2017 Mexico Mexico was divided into two zones—zone A and zone B— with different applicable minimum wages. This reform applies to both Mexico City and Monterrey. Brazil expanded eligibility for unemployment benefits to DB2017 Brazil employees with one year of continuous work experience. This reform applies to both Rio de Janeiro and São Paulo. Paraguay reduced access to credit information by limiting the DB2017 Paraguay distribution of historical data on borrowers. Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry DB2017 Mexico infrastructure and making the registration process more efficient. Saint Kitts and Nevis made it more difficult to transfer property due to work overload at the Supreme Court Registry DB2017 St. Kitts and Nevis while also reducing the stamp duty for transferring real estate. Brazil reduced the time needed to start a business by implementing an online portal for business licenses in Rio de DB2017 Brazil Janeiro. However, Brazil also made starting a business more difficult by shortening the opening hours of the business registry in Rio de Janeiro. Barbados made starting a business easier by reducing the DB2017 Barbados time to register a company. The República Bolivariana de Venezuela made starting a business more expensive by raising the value of the tributary DB2017 Venezuela, RB unit and lawyers’ fees. It also made the process more time consuming by limiting the work schedule of the public sector. Uruguay made starting a business more costly by increasing DB2017 Uruguay the value of the official fiscal unit used for the payment of government fees. Brazil made trading across borders easier by implementing an electronic system for importing, which reduced the time DB2017 Brazil required for documentary compliance. This reform applies to both Rio de Janeiro and São Paulo. Nicaragua made trading across borders more expensive by DB2017 Nicaragua introducing a new security fee, increasing the cost of border compliance for exporting and importing. DB2017 Paraguay Paraguay made trading across borders easier by introducing Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 297 DB year Economy Reform a single window for exporting, which reduced the time required of border and documentary compliance. Peru made paying taxes less costly by decreasing the DB2017 Peru corporate income tax rate. Uruguay made paying taxes easier by introducing an DB2017 Uruguay electronic system for paying social security contributions. Online filing was already in place. Argentina made dealing with construction permits more DB2017 Argentina difficult by increasing municipal fees. Argentina made trading across borders easier by introducing DB2017 Argentina a new licensing system for importing, which reduced the time required for documentary compliance. Argentina made paying taxes less costly by increasing the threshold for the 5% turnover tax. Argentina also made DB2017 Argentina paying taxes easier by introducing improvements to the online portal for filing taxes. Dominica made paying taxes less costly by reducing the DB2017 Dominica corporate income tax rate. Haiti made trading across borders easier by improving port infrastructure and improving the SYDONIA electronic data DB2017 Haiti interchange system by allowing the submission of supporting documents online. The utility made getting electricity more difficult by DB2017 St. Lucia introducing a requirement to obtain a current land registry extract to get a new connection. Puerto Rico made registering property easier by digitizing its DB2017 Puerto Rico (U.S.) land records, improving the quality of infrastructure and transparency of its land administration system. St. Lucia made exporting and importing easier by upgrading an electronic data interchange system and linking the DB2017 St. Lucia customs and port authorities through a common online platform. Puerto Rico (territory of the United States) made paying taxes DB2017 Puerto Rico (U.S.) less costly by abolishing gross receipts tax. However, the capital gains tax rate was increased. Mexico improved access to credit by implementing a decree DB2016 Mexico allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey. DB2016 Peru Peru improved its credit information system by implementing Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 298 DB year Economy Reform a new law on personal data protection. Jamaica made dealing with construction permits easier by DB2016 Jamaica implementing a new workflow for processing building permit applications. Jamaica made resolving insolvency easier by introducing a reorganization procedure; introducing provisions to facilitate the continuation of the debtor’s business during insolvency DB2016 Jamaica proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency proceedings. Jamaica made paying taxes easier and less costly for companies by encouraging taxpayers to pay their taxes online, introducing an employment tax credit and increasing the depreciation rate for industrial buildings. At the same DB2016 Jamaica time, Jamaica introduced a minimum business tax, raised the contribution rate for the national insurance scheme paid by employers and increased the rates for stamp duty, the property tax, the property transfer tax and the education tax. Guatemala made paying taxes less costly for companies by DB2016 Guatemala reducing the corporate income tax rate. Honduras made paying taxes more costly for companies by DB2016 Honduras introducing an alternative minimum income tax. Honduras strengthened minority investor protections by introducing provisions requiring greater disclosure of related- party transactions, prohibiting interested parties from voting DB2016 Honduras on a related-party transaction, allowing shareholders representing at least 5% of a company’s share capital to bring a direct action for damages against its directors and giving any shareholder the right to inspect company documents. Jamaica made starting a business easier by streamlining DB2016 Jamaica internal procedures. Guatemala reduced the documentary and border compliance time for importing by making electronic submission of documents compulsory and eliminating the need for many DB2016 Guatemala hard-copy documents. Guyana improved access to credit information by establishing DB2016 Guyana a new credit bureau. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 299 DB year Economy Reform Trinidad and Tobago made getting electricity more costly by DB2016 Trinidad and Tobago introducing a capital contribution toward connection costs. St. Vincent and the Grenadines made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s DB2016 St. Vincent and the Grenadines business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Barbados made paying taxes more costly for companies by DB2016 Barbados raising the ceiling for social security contributions and introducing a new municipal solid waste tax. Uruguay made paying taxes easier for companies by DB2016 Uruguay continually upgrading and improving the electronic system for filing and paying the major taxes. Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be deductible. DB2016 Mexico These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City. Peru made paying taxes easier for companies by creating an DB2016 Peru advanced online registry with up-to-date information on employees. Uruguay made registering property more difficult by requiring by law a certificate of connection of the property to DB2016 Uruguay the public sewage system to complete the process of transferring and registering property. Brazil made transferring property in São Paulo more DB2016 Brazil expensive by increasing the property transfer tax. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs. It also made starting a business more difficult by making the registration at the Venezuelan Social Security Institute (IVSS), the National DB2016 Venezuela, RB Bank for Housing and Habitat (BANAVIH) and the National Institute of Socialist Cooperation & Education (INCES) prerequisites for the Ministry of Labor (Minpptrass) registration. Uruguay made starting a business more difficult by increasing DB2016 Uruguay incorporation costs. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 300 DB year Economy Reform Suriname reduced the time for documentary and border compliance for exporting and importing by implementing an DB2016 Suriname automated customs data management system, ASYCUDA (Automated System for Customs Data) World. Brazil reduced the time for documentary and border compliance for exporting by implementing the electronic SISCOMEX Portal system. This reform applies to both Rio de DB2016 Brazil Janeiro and São Paulo. El Salvador improved access to credit by adopting the Law on Movable Property, which established a modern, centralized, DB2016 El Salvador notice-based collateral registry and allows a general description of a single category of assets granted as collateral. Costa Rica improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a modern, centralized, notice-based DB2016 Costa Rica collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and allows out-of-court enforcement of collateral. The Bahamas made paying taxes less costly for companies by DB2016 Bahamas, The reducing the business license tax—though it also raised the wage ceiling used in calculating social security contributions. The Bahamas made starting a business more difficult by DB2016 Bahamas, The adding a requirement for value added tax (VAT) registration. The Bahamas made trading across borders easier by fully implementing an electronic data interchange system, which DB2016 Bahamas, The reduced the time for preparation and submission of trade documents for both exporting and importing. The utility in Costa Rica made getting electricity easier by reducing the time required for preparing the design of the DB2016 Costa Rica external connection works and for installing the meter and initiating the electricity supply. Colombia made paying taxes less costly for companies by DB2016 Colombia reducing the payroll tax rate and introducing exemptions for health care contributions paid by employers. Costa Rica made paying taxes easier for companies by DB2016 Costa Rica promoting the use of its electronic filing and payment system Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 301 DB year Economy Reform for corporate income tax and general sales tax. Ecuador made starting a business easier by simplifying the DB2016 Ecuador registration process and by eliminating the need to deposit 50% of the minimum capital in a special account. DB2016 Ecuador Ecuador eliminated fixed-term contracts for permanent tasks. El Salvador increased the border compliance time for DB2016 El Salvador exporting and importing by adding an extra, nonintrusive inspection at the Anguiatú border crossing with Guatemala. Colombia improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a centralized, notice-based collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets DB2015 Colombia granted as collateral, establishes clear priority rules inside bankruptcy for secured creditors, sets out grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures and allows out-of-court enforcement of collateral. The Dominican Republic improved its credit information system by enacting a new law regulating the protection of DB2015 Dominican Republic personal data and the operation of credit reporting institutions. Costa Rica reduced the time required for getting electricity by DB2015 Costa Rica improving the coordination between different departments at the utility. The Dominican Republic made dealing with construction DB2015 Dominican Republic permits more costly by increasing the building permit fees. Costa Rica made paying taxes easier for companies by DB2015 Costa Rica implementing an electronic system for filing corporate income tax and VAT. Colombia made paying taxes more complicated for DB2015 Colombia companies by introducing a new profit tax (CREE), though it also reduced the corporate income tax rate and payroll taxes. The Dominican Republic strengthened minority investor DB2015 Dominican Republic protections by introducing greater shareholder rights and requirements for greater corporate transparency. Ecuador strengthened minority investor protections by DB2015 Ecuador introducing greater requirements for disclosure of related- party transactions as well as a requirement that a potential Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 302 DB year Economy Reform acquirer make a tender offer to all shareholders upon acquiring voting shares. Colombia made transferring property easier by eliminating DB2015 Colombia the need for a provisional registration. The Dominican Republic made trading across borders easier DB2015 Dominican Republic by reducing the number of documents required for exports and imports. Ecuador made trading across borders easier by introducing a DB2015 Ecuador new electronic data interchange system called ECUAPASS. Bolivia made trading across borders more difficult by DB2015 Bolivia increasing customs clearance time. The Bahamas made dealing with construction permits more DB2015 Bahamas, The costly by increasing the building permit fees. The Bahamas made enforcing contracts easier by introducing new rules of civil procedure focused on streamlining and DB2015 Bahamas, The simplifying court proceedings and ensuring less costly resolution of disputes. Nicaragua improved access to credit information by starting DB2015 Nicaragua to provide credit scores to banks and financial institutions. Panama improved access to credit through a new law broadening the range of assets that can be used as collateral, DB2015 Panama allowing a general description of assets granted as collateral and allowing out-of-court enforcement of collateral. Trinidad and Tobago improved access to credit by adopting the Bankruptcy and Insolvency Act, which establishes clear DB2015 Trinidad and Tobago grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures as well as a time limit for the stay. Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from DB2015 Mexico a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made dealing with construction permits DB2015 St. Kitts and Nevis more costly by increasing the building permit fees. Uruguay made enforcing contracts easier by simplifying and DB2015 Uruguay speeding up the proceedings for commercial disputes. DB2015 Mexico Mexico made resolving insolvency easier by clarifying several Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 303 DB year Economy Reform rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey. St. Kitts and Nevis made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s business during DB2015 St. Kitts and Nevis insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases. Trinidad and Tobago made resolving insolvency easier by introducing a formal mechanism for rehabilitation, DB2015 Trinidad and Tobago establishing a public office responsible for the general administration of insolvency proceedings and clarifying the rules on appointment of trustees. St. Kitts and Nevis made paying taxes less costly for DB2015 St. Kitts and Nevis companies by reducing the corporate income tax rate. República Bolivariana de Venezuela made starting a business more difficult by increasing incorporation costs and by DB2015 Venezuela, RB requiring companies to register within the Superintendence for Socioeconomic Rights (SUNDEE). Trinidad and Tobago made starting a business easier by DB2015 Trinidad and Tobago introducing online systems for employer registration and tax registration. Suriname made starting a business easier by introducing an DB2015 Suriname online system for obtaining trade licenses. Nicaragua made starting a business easier by combining DB2015 Nicaragua multiple registration procedures. Uruguay made trading across borders easier by implementing DB2015 Uruguay a risk-based inspection system that reduced customs clearance time for both exports and imports. Jamaica improved access to credit by establishing credit bureaus and by adopting a new secured transactions law that implements a functional secured transactions system, DB2015 Jamaica broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral and establishes a modern, notice-based collateral registry. Jamaica made getting electricity less expensive by reducing DB2015 Jamaica the cost of external connection works. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 304 DB year Economy Reform Honduras made dealing with construction permits more DB2015 Honduras costly by increasing the building permit fees. Jamaica made paying taxes more costly for companies by DB2015 Jamaica introducing a new minimum business tax. Guatemala made paying taxes easier and less costly for companies by enhancing the electronic system for filing and paying corporate income tax and VAT and by reducing the DB2015 Guatemala capital gains and corporate income tax rates. On the other hand, it also made paying taxes more complicated by introducing a new form for capital gains tax. Guatemala made starting a business easier by eliminating DB2015 Guatemala certain registration fees and reducing the time to publish a notice of incorporation. Honduras made starting a business easier by eliminating the DB2015 Honduras paid-in minimum capital requirement. Jamaica made starting a business easier by consolidating forms, but also made it more time-consuming as a result of DB2015 Jamaica delays in the implementation of the electronic interface with different agencies. Argentina made dealing with construction permits more DB2015 Argentina costly by increasing several fees. Puerto Rico (territory of the United States) made dealing with construction permits easier by introducing the option of DB2015 Puerto Rico (U.S.) hiring authorized private professionals to carry out the fire safety recommendations and issue the fire safety and environmental health certificates. St. Lucia made trading across borders easier by implementing the ASYCUDA World electronic system for the submission of DB2015 St. Lucia export and import documents and by reducing the number of export documents required. St. Lucia made trading across borders more difficult by DB2014 St. Lucia introducing a new export document. Argentina reduced the number of documents necessary for DB2014 Argentina importing by eliminating nonautomatic license requirements. Argentina made starting a business more difficult by DB2014 Argentina increasing the incorporation costs. Jamaica improved its credit information system by creating a DB2014 Jamaica legal and regulatory framework for private credit bureaus. DB2014 Nicaragua Nicaragua reduced the time required for getting electricity by Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 305 DB year Economy Reform increasing efficiency in granting approval of the connection design and by informing the customer in advance what the amount of the security deposit will be. Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a DB2014 Mexico “silence is consent” rule for the approval of the feasibility study for a new connection. Mexico made enforcing contracts easier by creating small DB2014 Mexico claims courts, with oral proceedings, that can hear both civil and commercial cases. Panama made paying taxes easier for companies by changing the payment frequency for corporate income taxes from DB2014 Panama monthly to quarterly and by implementing a new online platform for filing the social security payroll. Paraguay made paying taxes easier for companies by making DB2014 Paraguay electronic filing and payment mandatory for corporate income and value added taxes. Panama strengthened investor protections by increasing the DB2014 Panama disclosure requirements for publicly held companies. Panama made transferring property easier by connecting the DB2014 Panama land registry with the cadastre. Suriname made transferring property easier by increasing DB2014 Suriname administrative efficiency at the land registry. República Bolivariana de Venezuela made starting a business DB2014 Venezuela, RB more costly by increasing the company registration fees. Suriname made starting a business easier by reducing the DB2014 Suriname time required to obtain the president’s approval for the registration of a new company. Trinidad and Tobago made starting a business easier by DB2014 Trinidad and Tobago merging the statutory declaration of compliance into the standard articles of incorporation form. Nicaragua made starting a business easier by merging the procedures for registering with the revenue authority and DB2014 Nicaragua with the municipality and by reducing the time required for incorporation. Panama made starting a business easier by eliminating the DB2014 Panama need to visit the municipality to obtain the municipal taxpayer number. DB2014 Uruguay Uruguay made trading across borders easier by implementing Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 306 DB year Economy Reform an electronic customs declaration system. Mexico made trading across borders easier by implementing DB2014 Mexico an electronic single-window system. República Bolivariana de Venezuela improved access to credit DB2014 Venezuela, RB information by starting to collect data on firms from financial institutions. Guatemala made dealing with construction permits easier by streamlining procedures through the creation of a one-stop DB2014 Guatemala shop, backed by agreements between institutions and agencies involved in the permitting process. Jamaica made paying taxes less costly for companies by DB2014 Jamaica reducing the corporate income tax rate—though it also increased vehicle and asset taxes. Guatemala made paying taxes easier for companies by DB2014 Guatemala introducing a new electronic filing and payment system. Guyana made paying taxes easier for companies by reducing DB2014 Guyana the corporate income tax rate. Jamaica made transferring property more difficult by DB2014 Jamaica increasing the transfer tax and the stamp duty. Jamaica made starting a business easier by enabling the DB2014 Jamaica Companies Office of Jamaica to stamp the new company’s articles of incorporation at registration. Guatemala made starting a business easier by creating an DB2014 Guatemala online platform that allows simultaneous registration of a new company with different government agencies.. The Bahamas enhanced its insolvency process by implementing rules for the remuneration of liquidators, DB2014 Bahamas, The allowing voluntary liquidations and outlining clawback provisions for suspect transactions. The Bahamas made transferring property easier by reducing DB2014 Bahamas, The the stamp duty. Colombia made getting electricity easier by opening a one- DB2014 Colombia stop shop for electricity connections and improving the efficiency of the utility’s internal processes. Ecuador made getting electricity easier by dividing the city of Quito into zones for the purpose of DB2014 Ecuador handling applications for new connections—a changethat improved the utility’s customer service—and by reducing the fees to obtain a connection. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 307 DB year Economy Reform Costa Rica made dealing with construction permits easier by eliminating procedures, improving efficiency DB2014 Costa Rica and launching an online platform that streamlined the building permit process by integrating different agencies’ approval processes. Colombia made enforcing contracts easier by simplifying and DB2014 Colombia speeding up the proceedings for commercial disputes. El Salvador made paying taxes more costly for companies by DB2014 El Salvador increasing the corporate income tax rate. Costa Rica made starting a business easier by creating an online platform for business registration, eliminating the DB2014 Costa Rica requirement to have accounting books legalized and simplifying the legalization of company books. El Salvador made trading across borders easier by developing DB2014 El Salvador a one-stop shop for exporting and by implementing electronic data interchange systems. Antigua and Barbuda made trading across borders more DB2013 Antigua and Barbuda difficult by increasing the number of documents required to import. In Ecuador property transfers became more time consuming DB2013 Ecuador as a result of implementation problems in transferring authority over property records to the municipality of Quito. El Salvador improved access to credit information through a DB2013 El Salvador new law regulating the management of personal credit information. Costa Rica improved access to credit information by DB2013 Costa Rica guaranteeing borrowers’ right to inspect their personal data. The Dominican Republic increased the corporate income tax DB2013 Dominican Republic rate. DB2013 El Salvador El Salvador introduced an alternative minimum tax. Costa Rica made paying taxes easier for companies by DB2013 Costa Rica implementing electronic payment for municipal taxes — though it also introduced a registration flat tax. Colombia made starting a business easier by eliminating the DB2013 Colombia requirement to purchase and register accounting books at the time of incorporation. Costa Rica made starting a business easier by streamlining DB2013 Costa Rica the process of obtaining a sanitary permit from the Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 308 DB year Economy Reform authorities for low-risk activities. Costa Rica streamlined the process for obtaining construction DB2013 Costa Rica permits by implementing online approval systems. Grenada reduced the time to export and import by DB2013 Grenada implementing the ASYCUDA World electronic data interchange system. Jamaica reduced the time to import by allowing customs DB2013 Jamaica entries to be lodged at night. Guatemala made dealing with construction permits easier by DB2013 Guatemala introducing a risk-based approval system Jamaica made paying taxes easier for companies by allowing DB2013 Jamaica joint filing and payment of all social security contributions. Belize reduced the time to export and import by DB2013 Belize implementing the ASYCUDA World electronic data interchange system. Argentina increased the time, cost and number of documents needed to import by expanding the list of products requiring DB2013 Argentina nonautomatic licenses and introducing new preapproval procedures for all imports. Brazil made enforcing contracts easier by implementing an DB2013 Brazil electronic system for filing initial complaints at the São Paulo civil district court. In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training DB2013 Mexico opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials. Uruguay made paying taxes easier for small and medium-size companies by fully implementing an online filing and DB2013 Uruguay payment system for capital, value added and corporate income taxes and by improving the online facilities for social security contributions. República Bolivariana de Venezuela made paying taxes more DB2013 Venezuela, RB costly and difficult for companies by introducing a sports, physical activities and physical education tax. Panama made paying taxes easier for companies by enhancing the electronic filing system for value added tax DB2013 Panama and simplifying tax return forms for corporate income tax— though it also began requiring companies to pay corporate Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 309 DB year Economy Reform income tax monthly rather than quarterly. Uruguay reduced the time to import by improving port DB2013 Uruguay efficiency and introducing electronic payment and predeclaration systems for customs. St. Kitts and Nevis made it more expensive to export by DB2013 St. Kitts and Nevis increasing the cost of operations at the port of Basseterre. Suriname increased the time to export by involving more DB2013 Suriname customs departments in clearing exports. Trinidad and Tobago reduced the time to export and import by launching the ASYCUDA World electronic data interchange DB2013 Trinidad and Tobago system and simplifying the process for obtaining a certificate of origin. República Bolivariana de Venezuela made starting a business DB2013 Venezuela, RB more difficult by increasing the cost of company incorporation. Mexico made starting a business easier by eliminating the DB2013 Mexico minimum capital requirement for limited liability companies. Panama made dealing with construction permits easier by reducing the fees for a permit from the fire department’s DB2013 Panama safety office and by accelerating the process at the building registry for obtaining a certificate of good standing and for registering the new building. Peru made obtaining a construction permit easier by DB2013 Peru eliminating requirements for several preconstruction approvals. República Bolivariana de Venezuela introduced a new Labor DB2013 Venezuela, RB Code that prohibits redundancy dismissals. Brazil increased the notice period applicable in cases of DB2013 Brazil redundancy dismissal of employees. Brazil made transferring property more difficult by DB2013 Brazil introducing a new certificate on good standing on labor debts, adding to the number of due diligence procedures. In Trinidad and Tobago property transfers became faster DB2013 Trinidad and Tobago thanks to speedier issuance of clearance certificates by the Water and Sewerage Authority. Panama made property transfers faster by increasing working DB2013 Panama hours at the registry and reorganizing the caseload of its staff. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 310 DB year Economy Reform Peru strengthened investor protections through a new law regulating the approval of related-party transactions and DB2013 Peru making it easier to sue directors when such transactions are prejudicial. Dominica reduced the time to import by implementing the DB2013 Dominica ASYCUDA World electronic data interchange system. Puerto Rico (territory of the United States) made paying taxes easier and less costly for companies by introducing a new DB2013 Puerto Rico (U.S.) Internal Revenue Code and tax codification and by reducing the effective corporate income tax rate. Haiti made dealing with construction permits costlier by DB2012 Haiti increasing the fees to obtain a building permit. Puerto Rico (territory of the United States) made starting a DB2012 Puerto Rico (U.S.) business easier by merging the name search and company registration procedures. Puerto Rico (territory of the United States) made dealing with DB2012 Puerto Rico (U.S.) construction permits easier by creating the Office of Permits Management to streamline procedures. St. Kitts and Nevis made paying taxes easier by introducing a DB2012 St. Kitts and Nevis value added tax. Nicaragua made paying taxes easier for companies by DB2012 Nicaragua promoting electronic filing and payment of the major taxes, an option now used by the majority of taxpayers. Peru made paying taxes easier for companies by improving electronic filing and payment of the major taxes and DB2012 Peru promoting the use of the electronic option among the majority of taxpayers. Paraguay made paying taxes more burdensome for DB2012 Paraguay companies by introducing new tax declarations that must be filed monthly. República Bolivariana de Venezuela made paying taxes DB2012 Venezuela, RB costlier for firms by doubling the municipal economic activities tax (sales tax). Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a DB2012 Mexico yearly value added tax return and reduced filing requirements for other taxes Paraguay improved its credit information system by DB2012 Paraguay establishing an online platform for financial institutions to exchange information with the public credit registry. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 311 DB year Economy Reform Uruguay improved its credit information system by DB2012 Uruguay introducing a new online platform allowing access to credit reports for financial institutions, public utilities and borrowers. Mexico strengthened its secured transactions system by DB2012 Mexico implementing a centralized collateral registry with an electronic database that is accessible online. Brazil improved its credit information system by allowing DB2012 Brazil private credit bureaus to collect and share positive information. Peru strengthened investor protections through a new law DB2012 Peru allowing minority shareholders to request access to nonconfidential corporate documents. Guyana eased the process of starting a business by reducing DB2012 Guyana the time needed for registering a new company and for obtaining a tax identification number. Honduras made trading across borders faster by DB2012 Honduras implementing a web-based electronic data interchange system and X-ray machines at the port of Puerto Cortes. Uruguay made starting a business easier by establishing a DB2012 Uruguay one-stop shop for general commercial companies. Panama extended the operating hours of the public registry, DB2012 Panama reducing the time required to register a new company. Peru made starting a business easier by eliminating the DB2012 Peru requirement for micro and small enterprises to deposit start- up capital in a bank before registration. Nicaragua raised the monetary threshold for commercial claims that can be brought to the Managua local civil court, DB2012 Nicaragua leaving lower-value claims in the local courts, where proceedings are simpler and faster. Mexico made dealing with construction permits faster by DB2012 Mexico consolidating internal administrative procedures. Trinidad and Tobago made dealing with construction permits DB2012 Trinidad and Tobago costlier by increasing the fees for building permit approvals. Paraguay made dealing with construction permits easier by DB2012 Paraguay implementing a risk-based approval system and a single window for obtaining construction permits. Nicaragua made transferring property more efficient by DB2012 Nicaragua introducing a fast-track procedure for registration. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 312 DB year Economy Reform Argentina made transferring property more difficult by DB2012 Argentina adding a requirement that the notary obtain the tax agency’s reference value for property before notarizing the sale deed. Honduras strengthened its secured transactions system through a new decree establishing a centralized and DB2012 Honduras computerized collateral registry and providing for out-of- court enforcement of collateral upon default. Honduras made paying taxes costlier for firms by raising the DB2012 Honduras solidarity tax rate. In Guyana transferring property became slower because of a DB2012 Guyana lack of personnel at the deed registry. Honduras adopted a new civil procedure code that modified DB2012 Honduras litigation procedures for enforcing a contract. Guyana made getting electricity more expensive by tripling DB2012 Guyana the security deposit required for a new connection. Costa Rica made transferring property easier and quicker by DB2012 Costa Rica making property certificates available online through a single website. The Dominican Republic made starting a business easier by DB2012 Dominican Republic eliminating the requirement for a proof of deposit of capital when establishing a new company. Colombia reduced the costs associated with starting a DB2012 Colombia business, by no longer requiring upfront payment of the commercial license fee. Belize introduced the requirements to notify third parties in DB2012 Belize cases of redundancy dismissals. Belize made paying taxes easier for firms by improving DB2012 Belize electronic filing and payment for social security contributions, an option now used by the majority of taxpayers. DB2012 Bolivia Bolivia raised social security contribution rates for employers. Colombia amended regulations governing insolvency DB2012 Colombia proceedings to simplify the proceedings and reduce their time and cost El Salvador strengthened investor protections by allowing DB2012 El Salvador greater access to corporate information during the trial. Colombia eased the administrative burden of paying taxes for DB2012 Colombia firms by establishing mandatory electronic filing and payment for some of the major taxes. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 313 DB year Economy Reform In Costa Rica online payment of social security contributions DB2012 Costa Rica is now widespread and used by the majority of taxpayers. The Bahamas made transferring property more costly by DB2012 Bahamas, The increasing the applicable stamp duty fees. In Antigua and Barbuda, to transfer property now requires DB2011 Antigua and Barbuda clearance by the chief surveyor to avoid mischievous declarations. Colombia eased the process of Starting a Business by DB2011 Colombia reducing the number of days to register with the Social Security System. The Dominican Republic made it more difficult to start a business by setting a minimum capital requirement of DB2011 Dominican Republic 100,000 Dominican pesos ($2,855) for its new type of company, sociedad de responsabilidad limitada (limited liability company). Ecuador made starting a business easier by introducing an DB2011 Ecuador online registration system for social security. Colombia eased construction permitting by improving the DB2011 Colombia electronic verification of prebuilding certificates. Guyana enhanced access to credit by establishing a regulatory framework that allows the licensing of private DB2011 Guyana credit bureaus and gives borrowers the right to inspect their data. Jamaica eased the transfer of property by lowering transfer taxes and fees, offering expedited registration procedures DB2011 Jamaica and making information from the company registrar available online. The appointment of a registrar focusing only on property cut DB2011 Grenada the time needed to transfer property in Grenada by almost half. Grenada’s customs administration made trading faster by DB2011 Grenada simplifying procedures, reducing inspections, improving staff training and enhancing communication with users. Guyana improved its risk profiling system for customs DB2011 Guyana inspection, reducing physical inspections of shipments and the time to trade. Guyana eased business start-up by digitizing company DB2011 Guyana records, which speeded up the process of company name search and reservation. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 314 DB year Economy Reform Grenada eased business start-up by transferring responsibility DB2011 Grenada for the commercial registry from the courts to the civil administration. Peru made trading easier by implementing a new web-based DB2011 Peru electronic data interchange system, risk-based inspections and payment deferrals. Nicaragua expedited trade by migrating to a new electronic data interchange system for customs, setting up a physical DB2011 Nicaragua one-stop shop for exports and investing in new equipment at the port of Corinto. Peru eased business start-up by simplifying the requirements DB2011 Peru for operating licenses and creating an online one-stop shop for business registration. Panama eased business start-up by increasing efficiency at DB2011 Panama the registrar. República Bolivariana de Venezuela made starting a business DB2011 Venezuela, RB more difficult by introducing a new procedure for registering a company. Mexico launched an online one-stop shop for initiating DB2011 Mexico business registration. Brazil eased business start-up by further enhancing the DB2011 Brazil electronic synchronization between federal and state tax authorities. In Uruguay the Municipality of Montevideo made registering DB2011 Uruguay property easier by eliminating the need to obtain a mandatory waiver for preemption rights. Peru introduced fast-track procedures at the land registry, DB2011 Peru cutting by half the time needed to register property. Panama made it more expensive to transfer property by DB2011 Panama requiring that an amount equal to 3% of the property value be paid upon registration. Peru streamlined construction permitting by implementing DB2011 Peru administrative reforms. Paraguay made dealing with construction permits easier by DB2011 Paraguay creating a new administrative structure and a better tracking system in the municipality of Asunción. República Bolivariana de Venezuela improved access to credit DB2011 Venezuela, RB information by creating a private credit bureau. Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 315 DB year Economy Reform Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on DB2011 Mexico cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. República Bolivariana de Venezuela abolished the tax on DB2011 Venezuela, RB financial transactions. Panama reduced the corporate income tax rate, modified DB2011 Panama various taxes and created a new tax court of appeals. Nicaragua increased taxes on firms by raising social security contribution rates and introducing a 10% withholding tax on DB2011 Nicaragua the gross interest accrued from deposits. It also improved electronic payment of taxes through bank transfer. Puerto Rico made paying taxes more costly for business by DB2011 Puerto Rico (U.S.) introducing a special surtax of 5% on the tax liability in addition to the normal corporate income tax. Haiti eased business start-up by eliminating the review by the DB2011 Haiti president’s or the prime minister’s office of the incorporation act submitted for publication. 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 LATIN AMERICA AND CARIBBEAN (LAC) 316 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 LATIN AMERICA AND CARIBBEAN (LAC) 317 identical to the simple average used by Doing Business3. than it would have had before (line D is bigger than line Thus Doing Business uses the simplest method: C in figure 14.2 of the Doing Business 2017 report). weighting all topics equally and, within each topic, giving The nonlinear transformation is not based on any equal weight to each of the topic components 4. economic theory of an “optimal tax rate” that minimizes An economy’s distance to frontier score is indicated on a distortions or maximizes efficiency in an economy’s scale from 0 to 100, where 0 represents the worst overall tax system. Instead, it is mainly empirical in performance and 100 the frontier. All distance to frontier nature. The nonlinear transformation along with the calculations are based on a maximum of five decimals. threshold reduces the bias in the indicator toward However, indicator ranking calculations and the ease of economies that do not need to levy significant taxes on doing business ranking calculations are based on two companies like the Doing Business standardized case decimals. study company because they raise public revenue in other ways—for example, through taxes on foreign The difference between an economy’s distance to companies, through taxes on sectors other than frontier score in any previous year and its score in 2015 manufacturing or from natural resources (all of which are illustrates the extent to which the economy has closed outside the scope of the methodology). In addition, it the gap to the regulatory frontier over time. And in any acknowledges the need of economies to collect taxes given year the score measures how far an economy is from firms. from the best performance at that time. Calculation of scores for economies with 2 cities Treatment of the total tax rate covered The total tax rate component of the paying taxes For each of the 11 economies in which Doing Business indicator set enters the distance to frontier calculation in collects data for the second largest business city as well a different way than any other indicator. The distance to as the largest one, the distance to frontier score is frontier score obtained for the total tax rate is calculated as the population-weighted average of the transformed in a nonlinear fashion before it enters the distance to frontier scores for these two cities (table distance to frontier score for paying taxes. As a result of 13.1). This is done for the aggregate score, the scores for the nonlinear transformation, an increase in the total tax each topic and the scores for all the component rate has a smaller impact on the distance to frontier indicators for each topic. score for the total tax rate—and therefore on the distance to frontier score for paying taxes—for economies with a below-average total tax rate than it would have had before this approach was adopted in Doing Business 2015 (line B is smaller than line A in figure 14.2 of the Doing Business 2017 report). And for economies with an extreme total tax rate (a rate that is very high relative to the average), an increase has a greater impact on both these distance to frontier scores 3 See Djankov, Manraj and others (2005). Principal components and unobserved components methods yield a ranking nearly identical to that from the simple average method because both these methods assign roughly equal weights to the topics, since the pairwise correlations among indicators do not differ much. An alternative to the simple average method is to give different weights to the topics, depending on which are considered of more or less importance in the context of a specific economy. 4 For getting credit, indicators are weighted proportionally, according to their contribution to the total score, with a weight of 60% assigned to the strength of legal rights index and 40% to the depth of credit information index. Indicators for all other topics are assigned equal weights Doing Business 2017 LATIN AMERICA AND CARIBBEAN (LAC) 318 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 LATIN AMERICA AND CARIBBEAN (LAC) 319 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 LATIN AMERICA AND CARIBBEAN (LAC) 320