Doing Business 2020



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Doing-Business-2020-Comparing-Business-Regulation-in-190-Economies

FIGURE 3.6 
Fewer tax payments are associated with a lower perception of corruption 
Sources: Doing Business database; Transparency International data (https://www.transparency.org/cpi2017).
Note: The figure compares the Corruption Perceptions Index with the absolute number of tax payments that a 
medium-size company pays in a year (for each year between 2012 and 2018). The analysis was conducted using 
cross-sectional data as well as panel data with economy and year fixed effects regression. The relationship is 
significant at the 5% level after controlling for income per capita. A higher score on the Corruption Perceptions 
Index indicates a lower level of perceived corruption. Data for the Corruption Perceptions Index are for 2017. The 
sample comprises 169 economies. In the paying taxes methodology, the number of tax payments is recorded as one 
when a tax is filed and paid online regardless of the statutory number of filings and payments.
20
40
60
80
100
0
10
20
30
40
50
60
70
Payments (number per year)
Corruption Perceptions Index score (0–100)


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Removing obstacles to entrepreneurship
15 years, tax administrations worldwide have sought to introduce and 
continuously enhance their online systems to improve their efficiency and 
facilitate more comprehensive and faster risk assessment and compliance 
checks on returns.
23
This efficiency in turn has benefitted taxpayers by eas-
ing the compliance burden. 
Resolving insolvency: Introducing or strengthening 
reorganization procedures
Since Doing Business 2006, more than 40 economies have adopted reforms 
implementing or strengthening reorganization procedures to resolve insol-
vency. Having reorganization procedures reduces failure rates of small and 
medium-size enterprises and prevents the liquidation of insolvent but via-
ble businesses. 

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