Italy And Greece Among Most Complex Places In The World For Accounting And Tax Compliance

Italy is the most complex jurisdiction in Europe and comes in first place globally for 'tax' complexity, while Greece is most complex in the world for 'compliance.'

Italy and Greece are among the five most complex jurisdictions in the world for Accounting and Tax compliance, according to TMF Group's inaugural Financial Complexity Index 2017.

The southern European nations are 3rd and 4th respectively, behind Brazil, 2nd, and Turkey - 1st. Vietnam is in 5th place.

Leading provider of global business and compliance services TMF Group ranked 94 jurisdictions across Europe, the Middle East, Africa, Asia Pacific and the Americas; 1 being most complex through to 94 the least complex.

The Cayman Islands came in at 94 as the least complex place for compliance from an accounting and tax perspective.

In determining the rankings with its in-house accounting and tax experts, TMF Group used four weighted complexity parameters, considering the accounting and tax rules and regulations in different jurisdictions, and risks associated with non-compliance.

At 78%, Greece rates as the most complex jurisdiction globally for 'compliance' while Italy at 68% is most complex in the world for 'tax' complexity.

TOP 10 MOST COMPLEX JURISDICTIONS FOR ACCOUNTING AND TAX COMPLIANCE

JURISDICTION GLOBAL RANKING Turkey 1 Brazil 2 Italy 3 Greece 4 Vietnam 5 Colombia 6 China 7 Belgium 8 Argentina 9 India 10 MOST COMPLEX BY EACH COMPLEXITY PARAMETER

Most complex Global average Least complex Compliance Greece 78% 60% Cayman Islands 32% Reporting Argentina 88% 55% Curacao 8% Bookkeeping Mexico 84% 51% Cayman Islands 27% Tax Italy 68% 48% UAE 7% Commenting on the rankings, TMF Group's Head of EMEA Juraj Gerzeni said:

"Both Italy and Greece have very localised complexities. In Italy taxes are levied at a national, regional and municipal level, while in Greece taxes are divided into three categories: income, property and consumption tax.

"Despite measures to reduce taxation and align Italian accounting measures with international rules, the country still has some very specific requirements that contribute to its Index ranking. Greece meanwhile has an extremely complex set of tax rules that directly impact local accounting.

"Organisations can find it very difficult to navigate the many accounting and tax requirements in Italy and Greece. In order to remain compliant and reach their full business potential in these markets, it's necessary to work with in-country professionals that...