1、Tackling cross-border business challenges in turbulent timesGlobal Business Complexity Index 2024ContentsForewordIntroduction Global themes Investing safely and securely in high complexity jurisdictions Multinational risk and how it shapes the business environment Growth in uncertain times strategie

2、s for success GBCI rankings 2024 Ten most complex jurisdictionsCore business areas Accounting and tax Global entity management Human resources and payrollTen least complex jurisdictions Conclusion Methodology Glossary3456643495556573Foreword/GBCI 2024ForewordThis year marks TMF Groups 11t

3、h annual report on global business complexity,exploring the challenges of establishing and running businesses in 79 jurisdictions around the world,that between them represent 93%of world GDP and 88%of net FDI inflow.While those challenges can result in various safeguards that matter to a particular

4、country-like employee protection for example-they can also create complexity that suppresses investment,employment and wealth creation.By comparing each countrys rules and regulations in detail and from that developing the aggregate ranking of countries based on complexity,we hope to alert firms to

5、the challenges of doing business in particular places,and to encourage governments to simplify wherever possible.A feature of the world at present is heightened geopolitical tension-in particular between the USA and Mainland China-the worlds two largest economies and by some way,its leading trading

6、pair.In response to lockdowns,political interference,the expectation of greater trade restrictions and a more multi-polar world economy,firms are creating more complex,resilient paths to trade,with multiple paths that put them inside different trade blocs and that create some redundancy in the event

7、 of any path failing.The talk is now of trade corridors and connector economies,with neutral countries receiving investment from both sides in a new Cold War.We highlight five such bridge countries in this years GBCI each that are seeing disproportionate FDI and growth.As a consequence,it means firm

8、s will be operating more complex structures in more complex jurisdictions,as the price of creating resilience against unpredictable political tensions.Adding to that complexity,we point out that several of these bridge economies are themselves complex places to do business.Mexico,for example,ranks a

9、s the 4th most complex jurisdiction in our study and the connector economies average ranking is in the top third of most complex jurisdictions.Yet,this is by no means an argument for avoiding complex jurisdictions.Instead,it is about being properly prepared for the complexity that you will encounter

10、 when you set up a fund,build a factory or employ people in those environments.Within this years GBCI,we highlight several case studies to illustrate complexity in action and the ways in which we as a company have been able to mitigate it.While we hope to see political tensions fade and governments

11、simplify the rules,we are not optimistic on either count.Instead,we are making sure TMF Group can act as a trusted global partner to help our clients navigate the growing complexity ahead.Mark WeilTMF Group CEO4Introduction/GBCI 2024IntroductionThe Global Business Complexity Index 2024(GBCI)provides

12、 an authoritative overview of the complexity of establishing and operating businesses around the world.It explores factors driving the success or failure of international business,with a focus on operating in foreign markets,and outlines key themes emerging globally,as well as local intricacies acro

13、ss 79 jurisdictions.The GBCI 2024 is based on 292 indicators relating to business complexity and provides in-depth analysis of the global and local challenges impacting on the ease of doing business around the world.These data points are used to compile a global ranking of the 79 jurisdictions,based

14、 on the complexity of their business environments and covering legislation,compliance,accounting procedures,tax regimes,human resources(HR)rules and payroll processes.4Introduction/GBCI 20245Global themes/GBCI 2024Investing safely and securely in high complexity jurisdictionsGrowth in uncertain time

15、s strategies for successThree global themesMultinational risk and how it shapes the business environmentWith global compliance legislation expected to tighten in the future,what will this mean for complexity?We will explore the impact of global regulatory compliance on foreign investments and what o

16、rganisations do to mitigate the risks associated with changing legislation.We explore the impact that geopolitical factors like supply chain disruption,trade barriers and high energy prices are having on businesses.We also examine what businesses are doing in the face of these challenges,such as out

17、sourcing,rethinking expansion and growth plans.We examine how organisations are adapting staffing levels to navigate the uncertainty of the business environment.This includes an assessment of how they attract and retain staff,while also exploring the benefits of working with a local workforce.6Inves

18、ting safely and securely in high complexity jurisdictions /GBCI 2024Investing safely and securely in high complexity jurisdictions7Investing safely and securely in high complexity jurisdictions /GBCI 2024Likelihood of change in legislation predicted in the next five years35%Not likely202051%202152%2

19、02257%202358%2024Risk factors considered the most challenging for organisationsNone of theseEconomicOperationalPoliticalRegulatory29%22%18%17%14%Over half of TMF Group experts report confidence in legislation stability in the next five yearsA majority of jurisdictions expressed confidence in legisla

20、tion stability across the next five years,representing a continued upward trajectory on previous years.In 2020,for example,just 35%of jurisdictions predicted it to be likely that there would be no significant change in legislation.Year on year,the sense that no significant change will occur has incr

21、eased.This jumped a considerable 17 percentage points to 52%in 2021.In 2023,the proportion of jurisdictions predicting no significant change jumped again to 57%,with only a marginal increase to 58%in 2024.Trends in reporting on ultimate beneficial owners(UBO)and persons of significant control(PSC),a

22、s well as regulations around know your customer(KYC)and anti-money laundering(AML)have been core parts of compliance processes in locations around the world for a number of years.And while there may be a minority of jurisdictions lagging behind on these fronts,regulation has been an important method

23、 of holding businesses to account on both transparency and safety.This helps to explain confidence in legislative stability in the medium term.Regulatory risk is the most challenging factor for investors worldwide,but political risk is impacting two thirds of South American jurisdictionsLabor regula

24、tions(38%),tax regulations(26%)and regulatory compliance(12%)were identified as the core complexities within regulatory risk.TMF Group experts highlighted that rather than the amount or complexity of legislation posing a challenge,it is instead the speed with which regulatory changes are introduced

25、where the true difficulty lies.Multiple jurisdictions spoke about minimal but regular changes to regulatory compliance requiring action within days of introduction.However,when split by region or complexity,high proportions of South American(60%)and North American(46%)jurisdictions,as well as half o

26、f those in the top ten most complex,identified political risk as a challenging factor.Experts identified recent changes in government or upcoming elections as key markers of risk.TMF Group experts operating in North and South American jurisdictions described political risk as much harder for interna

27、tional businesses to mitigate against.They explained how political changes can have a knock-on impact on regulation,taxation and trading policies,which can in turn make a jurisdiction much less attractive to invest in.The wholescale and unpredictable nature of these changes and the speed with which

28、they occur-given the political landscape-can make it difficult for international businesses to develop strategies to offset the risk.“The government is always changing the rules and regulations for tax applications.In some cases,that is with immediate effect.For example,they can announce the new VAT

29、 rate for all goods and services on a Friday night and after Monday,all the new rates should be applicable.”TMF Turkey expert8Investing safely and securely in high complexity jurisdictions /GBCI 2024North AmericaEMEASouth AmericaAPACOverallDespite some changes to regulatory compliance,two in five TM

30、F Group experts report that their clients are prepared for future reporting obligationsOf the jurisdictions that foresee further regulatory compliance,nearly half feel prepared for future reporting obligations.This is particularly high for jurisdictions in North America,at 71%,when compared to an ov

31、erall 43%.Comparably,it is particularly low for jurisdictions in South America at 20%.Some jurisdictions shared that changes in regulatory compliance reporting typically only impact larger companies operating in their jurisdictions.Many of these larger companies operate on a global scale and,as such

32、,are accustomed to completing reporting for other jurisdictions.Therefore,any changes to reporting will have a minimal impact.Just one third of those surveyed are rethinking expansion goals given changes in regulatory reporting requirements,indicating a level of preparedness for upcoming shifts.Howe

33、ver,despite global regulatory compliance plans seemingly not deterring expansion on the whole,50%of North American jurisdictions are rethinking their expansion goals.This could involve businesses pausing incorporation within a jurisdiction due to sizeable compliance reporting requirements,or busines

34、ses looking at other jurisdictions with more lenient rules.This can point to the importance of local experts in communicating the compliance processes and requirements to new entrants,so that reporting requirements are not seen as a barrier.“Weve got a 2-party election in the US.So,whatever they com

35、e back with I dont think that there is a significant percentage in the population that support either People are going to see that from an investment perspective and they may sit on the sideline for a few months,trying to figure out how that should even play out.”TMF USA expert“Its only major instit

36、utional banks,large companies and listed companies.For them,youd already be doing much of this anyway.”TMF New Zealand expertPrepared for future reporting obligations(Net:Yes)71%20%50%37%43%Rethinking expansion goals(Net:Yes)50%40%14%29%32%Increased speed of reporting(Net:Yes)21%20%7%10%13%In line w

37、ith the fact that large proportions of jurisdictions are prepared for future reporting obligations,very few feel that the speed of reporting requirements will increase.This may suggest why only a third(32%)of jurisdictions are reconsidering expansion goals as a result of increased regulatory complia

38、nce.With a steady rate of reporting required,businesses may develop such an expertise in reporting requirements that they become business-as-usual.In contrast,as before,more North and South American jurisdictions predict an increased speed of reporting,at 21%and 20%respectively.This is consistent wi

39、th these jurisdictions rethinking their expansion goals,given that businesses will not only have to navigate greater reporting demands,but they may also be expected to do so more quickly than before.9Investing safely and securely in high complexity jurisdictions /GBCI 2024Of the 22%that find regulat

40、ion hinders investment,complexity,language barriers and a lack of clarity are key drivers TMF Group experts cited the multiple laws or decrees with strict compliance as causing increased complexity.Data protection regulations were regularly identified as one such example-with severe sanctions if not

41、 adhered to.Another layer of complexity is often driven by the need for local reports and documents to be written in local languages,in order for organisations to be compliant.Not only does this require experts with local and up-to-date knowledge of an area,but a level of linguistic skill as well.In

42、 jurisdictions where regulations were complex,TMF Group experts reported that there often is a lack of clarity or transparency in how regulations need to be applied.Some jurisdictions mentioned inconsistency in advice or instruction between government documents or bodies.In contrast,nearly half of T

43、MF Group experts report that regulatory compliance facilitates foreign investment Nonetheless,increased regulatory compliance requirements are not necessarily viewed in a negative light.In fact,nearly half of TMF Group experts report that regulatory compliance actually facilitates foreign investment

44、.In the scenarios where regulatory compliance facilitates foreign investment,TMF Group experts spoke of the positive benefits associated with accountability.Regulation such as UBO registration or KYC and AML requirements boost confidence in financial markets,as investors feel more confident in the a

45、ccuracy and transparency of funds.Interestingly though,half of the top ten most complex jurisdictions(50%)report that regulatory compliance hinders foreign investment,compared to just 10%of the bottom ten jurisdictions.Meanwhile,seven of the bottom ten least complex jurisdictions report that regulat

46、ory compliance facilitates foreign investment.This relates to what drives the complexity of adhering to regulation.For those considered more complex,lack of clarity and changeable regulation discourage investment.However,for those considered less complex,strong regulatory compliance offers both acco

47、untability of and protections for investments.“Some of the main challenges associated with regulatory obligations in France include navigating a strict and dense regulatory environment,as well as overcoming the language barrier,since the use of French is required.”TMF France expert“Regulatory obliga

48、tion in South Africa often lacks proper insight it often tries to provide a one size fits all approach and often falls under corporate dispute.”TMF South Africa expertHindersFacilitatesHow regulatory compliance impacts foreign investmentEMEANorth America29%14%South America40%40%APAC64%14%50%23%Overa

49、ll47%22%10Investing safely and securely in high complexity jurisdictions /GBCI 2024Almost half of jurisdictions are well-prepared to manage risks,but South America is lagging behind On the surface,GBCI data suggests that jurisdictions are mostly well-prepared to manage business risk.However,North Am

50、erica and EMEA are the only regions where jurisdictions identified themselves as very well-prepared.The majority of the least complex jurisdictions are well-prepared to manage risks(80%),compared to one in five of the most complex jurisdictions(20%).Of course,preparedness for risk may depend on the

51、type of risk a jurisdiction faces.TMF Group experts described regulatory risk being easier to prepare for,given the ability to easily predict certain trends within the business environment.What is less easy to predict is political risk,which can see changes to the business environment required at pa

52、ce.To increase preparedness,jurisdictions regularly engage local experts to stay informed of changesEngaging local experts is one crucial method by which organisations can increase their preparedness for risk.Legal advisors,tax consultants,compliance officers and even labour representatives are ofte

53、n employed by businesses to counter the regulatory complexities of their jurisdictions.Others outsource compliance tasks to avoid the risk of non-adherence.Given the often quick pace of change,several TMF Group experts mentioned the importance of staying up to date on legislation and regulatory requ

54、irements.This involves regular professional training,updates from regulatory bodies and ongoing research into the regulatory environment.“To comply with frequent law changes,clients either check the regulation changes by themselves or turn to their service provider,tax or legal advisors or outsource

55、 their financial activity.”TMF Hungary expertWell-preparedIll-PreparedPreparedness to manage business risks29%30%15%53%45%EMEANorth AmericaSouth AmericaAPACOverall14%50%15%30%7%11Multinational risk and how it shapes the business environment /GBCI 2024Multinational risk and how it shapes the business

56、 environment12Multinational risk and how it shapes the business environment /GBCI 2024Energy price increases are viewed as the biggest fallout from geopolitical instabilityThese results are largely driven by EMEA and the bottom ten jurisdictions,where over half highlight energy price increases as th

57、e largest impact of geopolitical instability.In contrast,APAC,South America and the top ten jurisdictions felt more impact from disruption of supply chains at 54%,50%and 33%respectively.Unsurprisingly,the war in Ukraine,the Red Sea blockage and declining relations between the US and Mainland China w

58、ere all identified as key geopolitical issues causing severe disruptions to global supply chains.For example,jurisdictions that rely on Ukraine for agricultural exports must now find alternatives at less competitive prices,whilst the Red Sea blockage is causing severe delays to the provision of chem

59、icals.In a similar vein,worsening relations between the US and Mainland China were identified as causing supply chain disruptions,due to increased trade barriers and in some places,sanctions.Jurisdictions are finding themselves needing to align with one of the two blocs and thus,halting trade with t

60、he alternative side accordingly.However,supply chain disruption has not necessarily negatively impacted all jurisdictions-for some,it is an opportunity to take market share from previously successful players.For instance,the war in Ukraine has meant that wheat exports from Russia and Ukraine have se

61、en a dramatic reduction.As a result,many jurisdictions are looking elsewhere for a supplier of agricultural produce.Not only has this provided an opportunity for Argentina to boost its exports,less wheat in circulation also means it has been able to increase its export price.TMF Group experts in Arg

62、entina highlighted that while this a key area for growth for the country,it is not without its challenges.Strict export quotas are imposed by the government to ensure there is enough grain supplied internally.This will limit how much the country can grow its exports to meet demand.The cost of fertil

63、izer has also risen due to the conflict in Ukraine.This is having considerable profitability implications for farmers in Argentina,who require more fertilizer to meet increased demand.This is a good example of where supply chain disruption can positively impact a developing jurisdiction,as long as i

64、ts systems are set-up to respond flexibly.Similarly,Vietnam is benefitting from the China Plus One Policy,where jurisdictions are looking for more cost-effective manufacturing hubs outside of Mainland China.Disruption of supply chainsImpacts of geopolitical instability41%29%13%13%4%OtherEnergy price

65、 increasesIncrease in refugeesTrade barriers“The main geopolitical issue is the struggle between the US and Mainland China,where Australia has taken a stance with the US.This has caused trade tensions with Mainland China,who are imposing restrictions on certain Australian exports.Inflation across wa

66、ges,oil prices and real estate in Australia has affected businesses adversely,leading to hiring freezes.”TMF Australia expert13Multinational risk and how it shapes the business environment /GBCI 2024Case study:VietnamVietnam finds itself a direct beneficiary of the China Plus One policy,where global

67、 investors are looking to diversify their investments away from Mainland China.As a country that shares a border with Mainland China,many companies are now relocating their factories to Vietnam.TMF Group experts explain that in the last five years,imports from Mainland China into Vietnam have double

68、d.Considerable work has been done to attract investment from Mainland China,through institutional reforms seeking to simplify the investment procedure for new clients.This includes speeding up the process for licensing and introducing tax incentives in the north of the country for those investing,pa

69、rticularly in technology.Significant investment has also been made in order to digitalise processes across regulatory reporting requirements,accounting and tax,and HR and payroll.Within tax,all industries can use e-invoicing and all tax reports are filed online via the website of local tax authoriti

70、es.This is all in order to help businesses save time and cost and view the process of setting up a business in Vietnam as favourably as possible.However,this does not mean that the links between Vietnam,Mainland China and the US have been completely removed.In fact,the USA and Vietnam have improved

71、their strategic partnership,upgrading ties to a Comprehensive Strategic Partnership in 2023.In this context,exports from Vietnam to the USA have doubled.This positions Vietnam as a key connector(or bridge economy)between the two power blocs,where they once may have traded directly.“Vietnams economy

72、is projected to grow by 6%in 2024,rebounding from a slowdown in 2023.We are continuing to see businesses seeking to relocate their Chinese manufacturing facilities to Vietnam-but there are things we need to get right.The government is focusing a lot on improving infrastructure to demonstrate our att

73、ractiveness as a hub,as well as improving tax incentives to attract foreign investment.”TMF Vietnam expert13Multinational risk and how it shapes the business environment /GBCI 202414Multinational risk and how it shapes the business environment /GBCI 2024Spotlight:Connector economiesPolarisation is t

74、aking place across the world,with declining US and Chinese relations at the heart of this new shift.Global trade flows are rapidly changing and,as a result,we are seeing the emergence of new connector economies,which play a neutral role between the US and Chinese power blocs.As relations between the

75、 US and Mainland China continue to decline,two trends are occurring;both the lengthening and the shifting of the supply chain.Bloomberg identified five key players in this process-Mexico,Vietnam,Indonesia,Poland and Morocco.1 According to Bloomberg Economics,these countries combined accrued$4 trilli

76、on in economic output in 2022,surpassing India and approaching Germany and Japan.2 The lengthening of supply chains has seen companies shift production away from Mainland China.This does not sever the link with Chinese trade,as many of these additional stops are highly integrated with Mainland China

77、s economy.This can be seen in the China Plus One strategy where investors are looking to diversify their source of goods away from Mainland China.Vietnam and Indonesia,in particular,are beneficiaries here.According to Bloomberg Economics,Vietnam saw a 60%increase in manufacturing export performance

78、relative to global trends since 2017,whilst Indonesia saw a 32%increase.3 1https:/ the shifting of supply chains can be seen in the examples of Poland and Mexico.Mexico has benefitted from the US nearshoring production to their shores and away from the Chinese hub.Similarly,Poland has positioned its

79、elf as a link between Europe and the rest of the world,getting investment from Mainland China,South Korea and US chipmakers.According to Bloomberg Economics,Mexico and Poland have benefitted most from an increased share in global greenfield investment,with Mexico increasing by 58%and Poland by 12%.4

80、 Again,both examples represent an indirect link between the two power blocs,having witnessed an increase in Chinese investment as a result.Whilst these may not be the only players benefitting from shifting global trade,these jurisdictions are geographically and strategically well-positioned to conti

81、nue to be an important link in US-Mainland China trade.4Ibid.15Multinational risk and how it shapes the business environment /GBCI 2024Combatting geopolitical instability Hiring freezeClosing offices/locationsReducing headcountOutsourcing71%57%57%57%Predictions of long-term impacts of global geopoli

82、tical instability36%34%5%12%Companies revising their potential growth plansLong-term refugee settlementsContinued disruption of supply chainsContinued trade barriersOtherCompanies rethinking their expansion goalsCompanies feeling pressure to take sides4%4%4%To combat geopolitical instability,jurisdi

83、ctions are opting to outsourceTMF Group experts across the globe have highlighted the challenges of hiring in the current market climate.An expensive and shrinking talent pool is resulting in higher recruitment and hiring costs,which has led many jurisdictions to outsource.Almost all regions with th

84、e exception of North America-are outsourcing at a high proportion.APAC jurisdictions are outsourcing at a higher rate of 86%,compared to just 42%of North America.Outsourcing enables businesses to approach economic challenges with high degrees of flexibility,bringing in expertise for short-term contr

85、acts only when required.The high-level of outsourcing is also consistent across both the top and bottom ten jurisdictions,at 78%and 75%respectively.Instead of outsourcing to combat instability,North America adopts a variety of strategies which include the closure of offices/locations,headcount reduc

86、tion and hiring freezes.High proportions of South America(80%)also opt for headcount reduction,with this strategy strongly linked to a jurisdictions labour laws.Where countries are more easily able to let employees go and in doing so create a leaner workforce,it can be an easier method of off-settin

87、g instability.Jurisdictions are revising potential growth plans and expansion goals due to geopolitical instabilityWorldwide geopolitical instability is predicted to have a longer-term impact on growth(36%)and expansion goals(34%)for organisations operating globally.For jurisdictions in North Americ

88、a,this increases to nearly half(46%)of jurisdictions revising their potential growth plans and half of jurisdictions(50%)in South America rethinking their expansion goals.In comparison,whilst supply chains in the short-term are being disrupted,jurisdictions are confident this will stabilise somewhat

89、 in the long run,with only 12%predicting continued disruption.This points to a confidence in the ability of the global market to adapt and identify opportunities elsewhere.“I think if clients relied on the human resources,that would be too risky because as we all know,the talent in Hong Kong,SAR is

90、very expensive.This year,our talent pool has also become smaller because more people are looking to migrate.”TMF Hong Kong expert16Multinational risk and how it shapes the business environment /GBCI 2024Case study:MexicoSince 2020,Mexico has benefitted from the US adopting a nearshoring approach for

91、 sourcing manufactured goods.Before Covid-19,the US relied on the trade of goods from Mainland China,Vietnam and Thailand,amongst others.When this was halted and as relations with Mainland China declined,the US were forced to reconsider its trading routes.As a result,it has relocated a lot of its bu

92、siness to closer jurisdictions,including Mexico.Whilst this is an incredible growth opportunity for Mexico,it also comes with its challenges.Businesses operating in Mexico face difficulties around finding a skilled workforce,long procedures to set-up a business with many elements to comply with and

93、unclear tax requirements.The country is working to improve tax incentives and tax treaties with the US as a way of combatting this.“Mexico was a perfect location for the US to establish business.Covid-19 saw big changes in US supply chains and we were a good option because we are cheap,we have space

94、 and we have infrastructure.But we do need to work on certain aspects of business,such as digitalisation of taxation.This will help even more people in wanting to set up business here.”TMF Mexico expertImpact of recent changes in government trade policies25%64%12%NeutralPositiveNegative16Multination

95、al risk and how it shapes the business environment /GBCI 2024Outside of the APAC region,many jurisdictions see recent changes in trade policies as having had no impactOverall,64%of jurisdictions see recent changes in trade policies as having had no impact on level of trade.In contrast,43%of jurisdic

96、tions in the APAC region and 30%of top ten jurisdictions view impacts to have been more positive.TMF Group experts operating both in APAC and more complex jurisdictions spoke of numerous trade policies created to cement close liaison within the region.Indonesia and Malaysia(with the former also iden

97、tified as a bridge country)are both examples of this.In Malaysia,the government has implemented the New Industrial Master Plan and the National Trade Blueprint,both attempts to boost export capacity with key players in the region.Likewise,the global entity management section of this report outlines

98、the role of the Omnibus Law in Indonesia.In contrast,none of the bottom ten jurisdictions perceived a positive impact of recent changes in government trade policies,with a third citing a negative impact.Some TMF Group experts,namely Australia and the UK,suggested this was the result of aforementione

99、d geopolitical tensions,with jurisdictions limiting or stopping trade with certain jurisdictions,or having high tariffs imposed against them.17Multinational risk and how it shapes the business environment /GBCI 2024Importance of regional integration in organisational successExtremely ImportantNot ve

100、ry importantNeutralNot important at allImportant18%55%19%6%1%Net:important73%8%Net:not importantExtent that organisations leverage regional integration opportunities for business growthFully leveragesDoes not leverageNeutralFully does not leverageLeverages 65%24%5%5%0%Impact of regional integration

101、on accessing new marketsPositiveNegativeNo impact66%33%1%The majority of jurisdictions recognise the importance of regional integrationThree quarters of jurisdictions(73%)acknowledge the importance of regional integration in organisational success.North American and APAC jurisdictions particularly r

102、ecognise the benefit of regional integration at 86%,which then drops to 50%for South America.South American jurisdictions also have the highest proportion of jurisdictions who view regional integration as unimportant,at 20%compared to 8%overall.TMF Group experts located in APAC-namely Singapore,Hong

103、 Kong,SAR,Vietnam,Malaysia and Indonesia-noted that integration can be a beneficial way to create a frictionless flow of trade,capital and intellectual property.Creating trade policies or improving economic cooperation can not only improve market efficiency,but also lead to faster regional growth.Ju

104、risdictions utilise regional integration as a way to access new markets and for business growthA large majority(71%)of jurisdictions leverage regional integration for business growth(71%)and use it as a tool for accessing new markets(66%).Only 1%of jurisdictions report a negative impact of regional

105、integration.Regional integration is most commonly leveraged in South America(89%)and APAC(79%),and commonly adopted in APAC(86%)to access new markets.As mentioned previously in this report,some bridge economies-namely Indonesia and Vietnam are tangible examples of jurisdictions that benefit from reg

106、ional integration as a means of accessing new markets.Net:important71%5%Net:not important18Growth in uncertain times strategies for success/GBCI 2024Growth in uncertain times strategies for success19Growth in uncertain times strategies for success/GBCI 2024Factors that offer opportunity for growthSt

107、able economic outlookCompetitive regionally(compared to other jurisdictions)Political stabilityAdvanced use of digital technologiesNo answerStable regulatory regimeWorkforce availability24%23%11%19%16%5%1%Speed that organisations can adapt staffing levelsSlowlyVery quicklyVery slowlyQuicklyNeutral4%

108、3%29%34%30%Growth opportunities can be found in regional competition and workforce availabilityJurisdictions identified being more competitive than their neighbours as a major driver of growth.This is closely followed by workforce availability.Being competitive regionally allows jurisdictions to sta

109、nd out within an area and become the most attractive option for foreign investors.This can be for a variety of reasons,including ease of setting up a business,reduced complexity around regulatory compliance,transparent regulations and even natural resources.Interestingly,this is slightly different w

110、hen split by complexity-where the top ten most complex jurisdictions find growth in the competition their jurisdiction offers,in comparison to other regions,while the bottom ten find growth in stability.Similarly,whilst South American jurisdictions benefit from regional competition,APAC and North Am

111、erica benefit from their respective stable economic outlooks and regulatory regimes.Areas that drive growth are diverse,with the contribution of technology most commonAlthough jurisdictions named a variety of factors that impact growth,IT and technology topped the rankings as most influential.Jurisd

112、ictions in North America showed slight deviation,with tourism placing particularly high at 33%.Technology offers growth in multiple ways.It can provide growth opportunities where countries possess technological manufacturing expertise and can increase their market share through production.Using tech

113、nology to boost productivity was also identified in relation to workforce streamlining.Multiple jurisdictions,including New Zealand and Hong Kong,SAR,were seeing companies automating back-office,entry level and part-time jobs using generative AI to keep workforce numbers low and focus on higher valu

114、e tasks.Opinion is split on businesses ability to quickly adapt staffing levels to meet demandOne third of jurisdictions feel they can adapt staffing levels quickly to meet demand(34%),while a similar proportion suggest a slower pace(32%).When split by regions,South America and APAC are more able to

115、 adapt staffing levels quickly(at 50%for both),while nearly half of EMEA jurisdictions(46%)report only being able to adapt slowly.The ability to effectively respond to demand is largely dependent on two dynamics:local labour laws and regional talent.Jurisdictions with tight labour laws and a strong

116、union presence-or those with a shortage of available talent-are much less able to adapt staffing levels responsively.Main opportunities for growthEconomic growthIT sector/TechnologyDigitisationTourismFinanceRenewable energy29%23%21%21%18%18%20Growth in uncertain times strategies for success/GBCI 202

117、4How challenging is it for organisations to attract and retain talent?Net:challengingNET:challenging78%6%NET:not challengingTop factors preventing organisations from quickly adapting staffing levels28%26%22%21%10%10%Economic factors/uncertaintyRigid labour lawsHard to find good talentCost considerat

118、ions(salaries/taxation/social security etc)Cultural differences(language barrier/generational)Low unemploymentOpportunities associated with the existing talent35%29%17%16%13%Multi-lingualTechnology/IT skillsHighly educated/qualifiedHighly skilled/talentedManufacturing and engineeringThe majority of

119、jurisdictions find it challenging to retain and attract talentA large majority of jurisdictions find it challenging to attract and retain talent(78%)with this number even higher for the EMEA(90%)and APAC(79%)regions.In contrast,only 43%of North America find it challenging to attract talent.The North

120、 American results may be linked to the limited,albeit improving,severance packages operable in the US,where greater turnover of staff will have a limited impact on businesses bottom line.Factors preventing an agile workforce tend to relate to the regulatory or economic environment of a jurisdictionH

121、igh costs,elusive talent,rigid labour laws and economic uncertainty were all cited as key factors preventing organisations from quickly adapting staffing levels.High costs were more strongly emphasised in South America at 38%,compared to 28%overall.Meanwhile,jurisdictions in EMEA find it particularl

122、y hard to find good talent at 36%,compared to 26%overall.High costs tended to be linked to a limited talent pool,where trained talent had either moved elsewhere or were demanding higher salaries due to an increased cost of living.In some jurisdictions,union presence can make it costly for businesses

123、 to invest in the local workforce,with tight laws on severance and pay packets.“Low unemployment makes it an employee market.Finding new staff is not easy and increases salary expectations automatically.”TMF Switzerland expert“The Belgian labour market is extraordinarily candidate-driven,and talent

124、is the new gold.So there is currently a war for talent,meaning a very challenging labour market for employers.”TMF Belgium expertArgentina has high inflation,which generates a rotation in the work teams of all companies.Labour unions are also very involved and generate an increasing labour cost-in s

125、ome cases even above business performance.”TMF Argentina expertNorth AmericaSouth AmericaAPACEMEA43%80%79%90%21Growth in uncertain times strategies for success/GBCI 2024Government legislation requirements for companiesRequired to reportRequired to abideYes,clients are generally prepared but feel the

126、 pressureNot applicable,there is no new and/or expected ESG legislationYes,clients are generally prepared and not concernedNo,clients are generally unpreparedPreparation for new/unexpected ESG legislation41%NET:PreparedDespite the barriers in hiring staff,TMF Group experts highlight several areas of

127、 opportunity in attracting and retaining talentMany TMF Group experts cited the availability of a highly skilled and educated workforce-specifically expertise in IT,engineering,finance and technology-as a crucial benefit of existing talent in certain jurisdictions.Several experts also emphasised the

128、 multilingual skills of the local workforce as a great opportunity for investment,particularly in the increasingly global context of business operations.In the majority of jurisdictions,companies are required to abide by at least one ESG legislationConsumer protection and human rights are embedded r

129、egulations,with large proportions of jurisdictions having to abide and report by these legislations.In only two jurisdictions,namely Curacao and Venezuela,are companies not required to abide by any ESG legislation and/or report on their activities.Higher proportions have to abide by human rights leg

130、islation in EMEA(95%)and North America(93%),compared to 88%overall.Legislation on greenhouse gas emissions,sustainability and reducing waste also feature highly,with over half of all jurisdictions needing to report on their activities.This continues an upward trend on reporting on environmental sust

131、ainability from 2023,with many governments and authorities making concerted efforts to hold businesses to account in reducing their carbon footprint.This is a slightly different story in South America,with a large proportion of South American jurisdictions not required to abide by or report on susta

132、inability legislation(40%)or human rights(40%).TMF Group experts noted how political instability in the region,namely in Argentina,Peru and Bolivia,can make it difficult for ESG legislation to be sustained or prioritised.There is a split among jurisdictions feeling prepared for new or unexpected ESG

133、 legislationWhile 41%expressed preparedness,a third of jurisdictions still feel the pressure around ESG legislation.Adhering to global sustainability standards(28%)and cross-industry ESG reporting(26%)are the two most common elements of changing ESG legislation that can create complexity for jurisdi

134、ctions.This is particularly the case in APAC jurisdictions,scoring 46%and 62%,respectively.Given reporting requirements for ESG are likely to increase,it is likely that companies will continue to feel this pressure.It is expected that the level of reporting will only become more pronounced-moving aw

135、ay from box-ticking exercises and toward more in-depth metrics.Greenhouse gas emissionsSustainability and reducing wasteRules around pay of senior executivesHuman rights(e.g.modern slavery)Consumer protectionDiversity of the workforce(e.g.gender,ethnicity,sexuality etc.)Ensuring investments are resp

136、onsible16%11%43%30%71%51%67%51%51%40%88%29%93%32%64%32%63%27%22Global Business Complexity Index/GBCI 202420242023202217Croatia203418Poland121019South Korea161620Romania243321Chile141522Venezuela222123Hungary283824Ukraine173125Portugal383726Uruguay352727Slovakia292928Egypt30NA29Malaysia212230Ecuador4

137、04031Slovenia322632Austria34232024202320221Greece262France123Colombia554Mexico445Bolivia996Turkey677Brazil318Italy889Peru7310Kazakhstan232411Chinas Mainland151412Argentina101213Paraguay191914Belgium131715Spain413916Indonesia1111Global Business Complexity Index Rankings 2024Ten most complex jurisdict

138、ions23Global Business Complexity Index/GBCI 202420242023202233India332534Philippines313035Russia363236Germany252037Saudi ArabiaNewNew38Japan435139Panama273540United Arab Emirates536141Serbia424142Sweden391343Bulgaria555044Guatemala373645Canada485246Dominican Republic182847Singapore595848Qatar585549V

139、ietnam464250El Salvador444451Costa Rica454552Taiwan ROC544353Nicaragua261854Thailand524955Finland504656Switzerland626020242023202257South Africa514858Australia606559Israel636460Honduras474761Mauritius646262Cyprus565363United States of America(USA)687164Luxembourg665765Guernsey616666Norway676967Repub

140、lic of Ireland575468Malta696769Czech Republic656370Jamaica495971British Virgin Islands737372Jersey707273United Kingdom726874The Netherlands755675New Zealand717076Hong Kong,SAR747477Denmark777578Curacao767679Cayman Islands7877Ten least complex jurisdictions23Global Business Complexity Index/GBCI 2024

141、24Global Business Complexity Index/GBCI 2024Ten most complex jurisdictionsJurisdiction2024 rankingGreece1France2Colombia3Mexico4Bolivia5Turkey6Brazil7Italy8Peru9Kazakhstan1024Ten most complex jurisdictions/GBCI 202425Ten most complex jurisdictions /GBCI 2024 1.GreeceGreece ranks as this years most c

142、omplex jurisdiction,climbing from 6th in 2022 and 2nd in 2023.While Greece has consistently been considered complex,particularly within accounting and taxation(A&T),its HR and payroll(HRP)functions have increased in complexity in 2024.The complexity of todays business environment is driven by severa

143、l key factors.In the first instance,there is the need to comply with numerous aspects of legislation.TMF Group experts in Greece identified up to 31 decisions and one new legislation per week that companies have to abide by.And rather than simplifying processes,digitalisation has instead added an ad

144、ditional layer of complexity.One example is MyData,an accounting software necessitating digital submissions,that requires multiple new deadlines across platforms.Limited knowledge of these complexities can often compel foreign investors to seek third-party advisors for A&T and HRP,only increasing co

145、sts.Challenges are expected to persist in the short-term as businesses adapt to new requirements,but the long-term outlooks anticipates that digitalisation will simplify operations over time.“I believe that 2024 is going to be the worst in terms of complexity and compliance.This is because the major

146、ity of the local small and medium-sized accounting firms never thought that data would progress,nor that authorities would introduce such mandatory changes.So now they are facing huge backlog.”TMF Greece expert 2.France France ranks second in this years GBCI,dropping from first place in 2023.The nat

147、ions unique accounting measures and French language requirements surprise many foreign finance directors,adding to its complexity as a place to do business.The country has seen a rise in new regulations in 2024,including UBO identification and tax changes,which has also increased compliance costs.In

148、 addition,stringent labour regulations designed to protect employees make workforce adjustments challenging,increasing hiring and retention costs.Despite these complexities,France has a stable trading environment,largely driven by European regulations.As an EU member and OECD headquarters,France att

149、racts talent from all over Europe.However,compliance with the European Union Non-Financial Reporting Directive(NFRD)and rising ESG regulations introduces additional reporting challenges-from disability and gender gaps to waste and other environmental concerns.While some of these challenges are offse

150、t by strides in digitalisation of reporting,implementation is slow and requires upfront adaptation.“France is often viewed as an attractive market to operate in,in the European Union,with a high number of senior executives of foreign companies operating here.However,it can also be challenging for fo

151、reign businesses.Factors that contribute to this complexity include the focus on maintaining traditional ways of working,such as the use of the French language,particularly with administrations.The regulatory environment is very heavy and labour laws are particularly complex,with high protection for

152、 employees.Despite these challenges,the French government is making progress in developing more simplified processes in certain areas.”TMF France expert26Ten most complex jurisdictions /GBCI 2024 3.Colombia Colombias high ranking is driven by its complex accounting and tax systems.As a jurisdiction,

153、its business environment is characterised by frequent tax reforms,with as many as 19 reforms introduced in the past seven years.Whilst Colombia boasts over 100 international treaties to boost trade and investment,it faces political and social instability which has in turn discouraged investors.It is

154、 expected that this trend will reverse in the next three to six months,presenting more opportunities for investment in the jurisdiction.For example,following recent regional elections,there has been a shift towards the political centre right,encouraging more investors to consider Colombia as a viabl

155、e investment destination.Colombia has been ahead of the curve in implementing ESG reporting processes,as businesses have been adapting to this standard for around five to six years.As such,while additional reporting adds an element of complexity,it is not expected to significantly impact the overall

156、 business environment.Instead,it places Columbia in a good position,as ESG principles become increasingly more common worldwide.“Colombia is a very complex country in which to do business.The complexity includes not only regulatory issues but also the cultural aspects of its regions.It is essential

157、that investors always have a local ally who knows how to guide them through the subtleties that each complexity may present.”TMF Colombia expert 4.MexicoMexico ranks 4th in the 2024 GBCI,with complex rules and regulations making a major contribution to its overall complexity.The time it takes to set

158、 up a bank account and varying requirements for obtaining a working visa are examples of this complexity.Despite these,Mexico has made strides in digitalisation,with systems like e-invoicing and electronic signatures simplifying bookkeeping.Efforts to improve AML requirements are underway to boost i

159、nvestor confidence,though this also means increased audits for companies.Mexico benefits from nearshoring with the US due to its geographical location,infrastructure,land availability and lower costs,contributing to 4%of its growth.Participation in the T-MEC treaty with the US and Canada has enabled

160、 this and has created one of the worlds largest free trade zones.Efforts to improve automation,particularly within HR and payroll,are ongoing,with OECD alignment providing confidence and security for investors,despite additional complexities.“Mexico is the door to all of Latam and at the same time,t

161、he window to the US.So,I think that,even though we have experienced challenges-changes in our processes and government-were still ready.”TMF Mexico expert26Ten most complex jurisdictions /GBCI 202427Ten most complex jurisdictions /GBCI 202427Ten most complex jurisdictions /GBCI 2024 5.Bolivia Bolivi

162、a remains a complex jurisdiction,ranking 5th in overall rankings and up from 9th in 2023.Its complexity is driven by an old-fashioned taxation system,requiring physical presence and knowledge of the local language.Both to set up a business and report on an ongoing basis,in-person submissions are oft

163、en required.Not only does this slow a process down,but it requires a regular physical presence in the region.This is further complicated by the fact that there are high sanctions should your company not abide by taxation and payroll requirements.Currently,its main opportunity for growth comes from a

164、gricultural exports,trading with other South American countries.However,the political situation in South America poses a threat to this set-up.With changing governments across the region,the jurisdiction is unsure of how long positive relations will maintain.“It can be difficult to operate in Bolivi

165、a because of the taxation system.You have to make tax submissions using physical or paper submissions.In addition,you have to maintain these physical papers for 8 years,in the case of auditing.This can make it hard for international business.”TMF Bolivia expert 6.Turkey Ranking 6th in the GBCI,Turke

166、y maintains its position as a highly complex jurisdiction.The frequent changes to tax laws,including procedural tax,VAT and income tax,primarily drive this complexity.For example,the recent introduction of a recycling contribution fee as a new customs tax on imports has further complicated tax repor

167、ting.Hyperinflation has led to new capital requirements for specific sectors,increasing the risk of non-compliance and complexity.Despite the government implementing VAT exemptions to reduce complexity for the production sector,the resulting bureaucratic process and additional paperwork often deter

168、companies from taking advantage of these incentives.The requirement for Turkish language proficiency in this bureaucratic environment presents another layer of complexity.All documents must be in Turkish,posing a challenge for companies without Turkish-speaking employees.Therefore,the combination of

169、 staying abreast of changing laws and ensuring linguistic adequacy in document submission contributes to a challenging business environment.“Unfortunately,the Turkish government does not have a specific economic plan to address hyperinflation,nor the devaluation of Turkish lira.This economic instabi

170、lity affects all the people and for sure,clients.”TMF Turkey expert28Ten most complex jurisdictions /GBCI 202428Ten most complex jurisdictions /GBCI 2024 7.Brazil In this years GBCI,Brazils ranking fell from 3rd to 7th.This change is attributed more to other jurisdictions becoming more complex than

171、any internal changes in Brazil.The prime complexity drivers in Brazil are tax legislation and varied legislation at different administrative levels.Brazils tax legislation,characterised by local variations,makes operations planning complex.Choosing an optimal tax regime will depend on the industry a

172、nd the part of Brazil you want to operate in.Additionally,labour regimes and union strength also majorly differ across the country,with the South having more available talent.This necessitates strong local knowledge of the country.There are some internal concerns over proposed tax reforms,which is a

173、 key topic on the governments agenda.The proposed reform is not expected to be radical,but it has raised concerns among companies about a potential increase in taxes.Specifically for services and IT,discussions around an incentive designed to reduce labour taxes and encourage hiring are being recons

174、idered.Despite these complexities and uncertainties,Brazil seeks to expand its global trade reach,particularly within agro-exports.Efforts are ongoing to join the OECD,boost international trading relations and promote regional integration through Mercosur.“When inflation started to skyrocket,Brazils

175、 Central Bank put measures in place to control inflation and was one step ahead of the trend.So,with both the cost of capital and inflation rates coming down,theres probably more predictability.”TMF Brazil expert 8.ItalyItaly,ranking 8th in complexity,has shown significant improvement in its HRP ser

176、vices,while A&T and GEM remain complex.Italys tax complexity is due to numerous decrees,laws and resolutions issued on an annual basis.Despite efforts to reduce tax complexity,such as replacing the Dividend Exemption with a preferential tax rate for foreign shareholders,frequent changes remain.Digit

177、alisation efforts,like e-invoicing,have made bookkeeping simpler,though each new entry adds to the tax treatment complexity.Companies often rely on specialists to interpret and understand the impact of these changes.Incorporating a company in Italy is not overly complicated,but complying with numero

178、us monthly obligations across accounting,tax,invoicing and HR is challenging.The online UBO registry has introduced another layer of compliance,particularly due to its slight difference in requirements from other countries.Geopolitically,Italys status as a production hub makes it vulnerable to suppl

179、y chain disruptions,such as sourcing grain from Ukraine and the blockage of the Red Sea oil route,causing delays and forcing the exploration of potentially less competitive alternatives.“Despite the regulatory challenges,Italy remains a reliable place to do business.However,businesses often require

180、the services of lawyers,tax specialists and labour consultants to navigate the business environment.”TMF Peru expert29Ten most complex jurisdictions /GBCI 202429Ten most complex jurisdictions /GBCI 2024 9.Peru Ranking 9th overall,Peru is least complex within its HRP service line,but ranks as highly

181、complex across A&T and GEM.Peru offers good natural resources,but due to complicated licensing processes for international companies,it can be a challenging place in which to set up a business.This is amplified by the political situation,which has been uncertain since 2016.There have been considerab

182、le public grievances,driven by distrust of political leaders,economic inequality and extreme polarisation,for multiple years.This both makes it an unstable place to invest in and offers a limited talent pool for companies due to limited investment in education.Whilst there are hubs of skilled workfo

183、rce,this is not consistent across the country.The complexity of regulation,particularly around labour laws,also poses difficulties for international investors.The labour market is highly regulated and tilts the balance towards the worker,with limitations on dismissal for payment of compensation.This

184、 can slow down hiring.With regards to tax,there are regular changes to laws around submissions which can be difficult to follow.However,this varies across industries.There are sectors such as pharmaceuticals that are complex due to the difficulty of obtaining records for products,but mining is more

185、attractive.This is predicted to be an area of economic growth.“Mining will be the engine of economic growth in Peru.Whilst there are complexities to our labour laws and changing taxation regulation,this is no different to other countries.Investors are just not confident in the stability of the count

186、ry due to a polarisation of the political landscape.”TMF Peru expert 10.Kazakhstan Kazakhstans complexity is mostly driven by its complex HRP processes.Increased scrutiny on currency control and international taxation pose additional challenges,especially when applying for working visas and permits.

187、Despite these complexities,Kazakhstans government is keen to attract investments and continuously reviews legislation.Notably,a shift in tax regulation was marked by replacing the Dividend Exemption with a preferential tax rate for foreign shareholders.However,global corporations often struggle to k

188、eep internal reporting up to date with the frequently changing legislation.In line with global digitalisation trends,Kazakhstan is transforming its processes for transparency and accountability,with a focus on data privacy and security.Unsurprisingly,Kazakhstan has also been largely impacted by the

189、conflict in Ukraine.Regulatory measures have been implemented to manage parallel imports and reduce disruptions,but these have not completely reduced the risk.Nonetheless,the economy has witnessed a positive trend with Russian businesses relocating to Kazakhstan.Efforts are also being made to attrac

190、t talent from other regions,particularly within expertise-specific industries like the nuclear sector.“The intent of our governments is to behave in a diplomatic way within the market,with both our near and far neighbours and partisan country partners.So,its balancing that intent while still attract

191、ing investments to help the economy grow.”TMF Kazakhstan expert30Accounting and tax/GBCI 2024Accounting and tax(A&T)31Accounting and tax/GBCI 2024Agreement that over the next five years A&T will be more complexYesRequirement to obtain local business licence prior to becoming operational75%39%36%2020

192、75%40%35%202181%47%34%202279%42%38%202382%43%39%2024Yes,depending on certain criteriaYesNET-yes(including depending on certain criteria)20202022440%39%44%45%42%Local GAAP-Application of accounting standardsAll companies must adhere to this standardComplexity has levelled out but continues

193、 to be a burden for many jurisdictions Accounting and tax(A&T)is a key pillar of business incorporation and operation worldwide.It can contribute to overall complexity for businesses by creating cumbersome administrative tasks,but also by raising the threat of serious consequences,like forced termin

194、ation of operations and even imprisonment.As such,getting A&T right is crucial in driving global business forward.42%of jurisdictions continue to predict that A&T will become more complex over the next five years.Although this is a slight drop on 2023(from 45%),it represents a net increase on 2020 a

195、nd 2021 at 40%and 39%.Tax was repeatedly noted by jurisdictions to be the service line that drove complexity,with frequency of changes in legislation and tax along with the complexity of the tax system cited as challenges for foreign investors.Legislation continues to be tough and inflexibleLegislat

196、ion continues to be stringent.Increased licensing is affecting the majority of jurisdictions,representing an increase from 75%in 2020-2021 to now 82%.Increased licensing is something that all of the most complex jurisdictions have to follow,compared to four of the least complex jurisdictions who do

197、not have this requirement.These include the BVI,New Zealand,the United Kingdom,and Denmark,who all highlighted that A&T requirements drive complexity.There has been a notable increase in businesses needing to comply with local GAAP-an increase over the past five years from 42%in 2020,with now two th

198、irds(64%)of jurisdictions requiring all companies to adhere to this standard.Such accounting standards add to the complexity of compliance,particularly if local standards differ from global ones.These complexities in legislation include transfer pricing and the multitude of statutory and varied requ

199、irements-not only compared to other jurisdictions,but also within the various regions in a singular jurisdiction.“In Italy,there are multiple decrees,laws and resolutions that tax officers issue every year-the complexity is to serve into each of them.”TMF Italy expert20202022442%57%59%58%

200、64%32Accounting and tax/GBCI 2024The need for local input and local requirements in tax compliance increasesLocal language requirements continue to be a barrier in many jurisdictions.This can cause significant problems for multinational companies and foreign investors as it increases the need to mai

201、ntain language proficiency and translation capabilities within their organisations.This can be costly and also cause additional compliance and legal risks if local experts are not engaged to support.Language requirements also often work in conjunction with other local specificities.For almost half(4

202、8%)of jurisdictions,it is compulsory for at least some companies to upload tax invoices onto a government platform.Although this is an increase of 9%on 2020,it represents only 1 percentage point increase from 2023.Again,localisation is more prominent in South America,where all jurisdictions require

203、all companies to upload tax invoices to the government platform.Mandatory submission of invoices,as also seen in Greece and the Philippines,can lead to further complexity issues.Adhering to local government platforms can be confusing,bringing about numerous challenges,such as the need for multinatio

204、nal organisations to modify their own internal system and procedures to meet local government standards.Likewise,in Mainland China,the localisation of e-invoicing in accounting introduces new requirements around management and digital archiving.Is it compulsory to maintain the local accounts (TB and

205、 GL)in local language?Yes20202022469%66%65%63%66%“South African transfer pricing and permanent establishment rules and requirements are quite onerous.Securing VAT and tax representative registrations continue to be challenging and are known to be riddled with excessive bureaucracy,inconsi

206、stent execution and major delays.”TMF South Africa expert“Two things are certain:taxes and changes.This year the combination of the two changes in tax landscape are especially visible,according to our on-the-ground experts.Digitalisation,shorter time spans and greater granularity are some of the tre

207、nds here.While those changes might simplify the tax compliance burden for companies in the longer term,they undoubtfully bring initially some complexity spikes and require a diligent preparation.”TMF Accounting and tax expert“There are over 100 platforms on which to submit reports/returns or applica

208、tions,with each requiring different credentials.Furthermore,alignment between the Greek books and the corporate books is almost impossible.”TMF Greece expertCompulsory for tax invoices to be uploaded onto a government platform NET39%39%47%47%48%Yes compulsory for all companies to upload tax invoices

209、 onto a government platformYes,depending on certain criteria it is compulsory for companies to upload tax invoices onto a government platformNo202112%61%27%202410%52%38%202212%53%35%202310%53%37%Compulsory for at least SOME companies to upload tax invoices onto a government platform202061%24%15%33Ac

210、counting and tax/GBCI 2024Electronic payment of taxesCorporation/income taxValue-added Tax(VAT)/Goods and Services Tax(GST)Payroll taxesNational insurance contributionsWithholding tax for cross-border transactionsCapital gains taxExcise taxSales taxProperty tax on business premisesWithholding tax fo

211、r local transactions71%29%0%72%26%1%0%2%63%37%70%29%4%3%63%33%65%32%2%3%63%33%54%43%0%11%67%33%44%45%Insurance Premium Tax(IPT)11%59%27%It is mandatory to submit electronicallyIt can be submitted electronicallyIt cannot be submitted electronicallyThere is now less flexibility when it comes to tax au

212、ditsOver the last 5 years,the proportion of jurisdictions not allowing organisations to postpone tax audit start dates has stayed level,but high.This limited flexibility for organisations can cause added workload burdens and pressures,as there is no leeway on resource allocation.This can cause opera

213、tional disruptions if companies are not prepared.Similarly,compulsory tax audits also remain high at 96%of all jurisdictions.Limited flexibility when it comes to tax audits adds further complexity,particularly if organisations have to report to the US IRS.Digitalisation and the use of online systems

214、 continues to be a key trend in A&T,however this still poses a challenge for several jurisdictions The trend of digitalisation continues to increase,on a global scale.Whilst the proportion of jurisdictions where e-invoicing can be done has stayed level,there has been an increase Compulsory for tax i

215、nvoices to be issued in an electronic formatNET-Compulsory for at least some companies to issue their tax invoices in an electronic formatCompulsory for all companiesCompulsory for some companies38%18%202020%41%24%202117%51%26%202225%53%28%202324%53%27%202427%Compulsory auditing of accountsIts compu

216、lsory to have the accounts audited for some/all companies20202022491%94%96%95%96%Is a company allowed to postpone the start of a tax audit?No businesses are not allowed to postpone the start of a tax audit20202022463%60%62%59%62%34Accounting and tax/GBCI 2024in this as a compul

217、sory requirement from 24%in 2023,to 27%in 2024.This suggests that governments and local authorities are pushing for this trend to become a permanent way of working.Similarly,most forms of tax payments can be made electronically.For the most part,this is a compulsory requirement,particularly for corp

218、oration and income tax(71%),VAT and GST(72%)and National Insurance contributions(70%).This can give organisations greater control and visibility over their payments,creating ease in terms of payments and returns filing,as well as reducing the burden of tax compliance.Several jurisdictions,however,ha

219、ve noted that the transition-from traditional paper-based ways of working to digital practices-can cause initial complexities.In Mexico,whilst processes have moved online,there is still a lack of clarity from the government bodies on the correct procedures,slowing down business processes.Likewise,in

220、 Italy,whilst moving reporting requirements online has simplified submissions,this has created additional obligations for businesses to adhere to.However,jurisdictions also recognise that whilst the transition to digital ways of working can be initially complex,in the long run and once the processes

221、 have been fully implemented,it will be of added benefit to investors and will simplify many aspects of business operations.“Although many procedures are already online,there are still some that needs to be attended in person.The authorities are not clear on some procedures and slow in responding to

222、 queries and resolving situations raised by taxpayers.”TMF Mexico expert“The implementation of an e-invoicing system offers businesses of all sizes and sectors in Malaysia an opportunity to streamline their financial processes,reduce costs and enhance transparency.Embracing e-invoicing implementatio

223、n enables businesses to stay ahead in an increasingly digital world.”TMF Malaysia expertWhilst the A&T trends from 2023 continue into 2024,the risk of non-compliance is increasing“The French Tax Administration is working a lot on simplification and improvement of digitised services.Even if electroni

224、c billing will represent a challenge,it will in the end simplify the accounting and tax processes.”TMF France expertIn the case of doing business without being tax registeredFines Suspension of activityPrevention from doing further businessLicence suspensionImprisonment20202022484%57%34%3

225、6%43%93%47%45%39%68%94%61%48%44%39%92%39%35%29%48%96%49%40%35%57%35Accounting and tax/GBCI 2024Organisations now face increased risk of penalties across the board if they do business without being registered with tax authorities.Facing fines has always been a penalty implemented in most jurisdiction

226、s,but this has increased to its highest point in the past five years-from 84%of jurisdictions distributing fines to now 96%.Additionally,all jurisdictions now have fines in place as a penalty for missing tax filing deadlines.TMF Group experts in Argentina state that the lack of clarity around tax re

227、gulations and exchange rates means that companies are unintentionally making mistakes,resulting in said penalties.Similarly,investors in Italy face high stakes if mistakes are made,which means organisations are heavily reliant on outsourcing these tasks in order to stay compliant.“The foreign exchan

228、ge restrictions are very confusing and sometimes the company,without intention,make mistakes.This leads to warnings or penalties from the regulator.This can be a big disincentive for those looking to invest,particularly if they want short-term gains.”TMF Argentina expertIn the case of missed deadlin

229、es for tax filingsFines Suspension of activityPrevention from doing further businessLicence suspensionImprisonment20202022497%20%14%13%16%97%13%14%10%19%99%29%13%14%9%97%17%13%16%34%100%21%18%14%38%36Global entity management/GBCI 2024Global entity management(GEM)37Global entity management

230、/GBCI 2024Average length of incorporationJurisdictions reporting the average length of incorporation is up to 3 months private companiesJurisdictions reporting the average length of incorporation is up to 3 months public companiesLevels of government required for incorporation202020224Nat

231、ional governmentProvince/state governmentCity/local government22%68%39%27%66%42%22%69%38%21%73%36%21%77%41%The percentage of jurisdictions expecting further entity/SPV management complexity remains stableManaging and maintaining entities across borders and in unfamiliar jurisdictions can be a source

232、 of disruption,uncertainty,and risk.Businesses may face frequent and fast-paced rule changes,regional intricacies and complex procedures that can be confusing to navigate.But while the data suggests that over the next five years the entity/SPV management landscape is set to stabilise-with over half

233、of the jurisdictions surveyed(53%)expecting no changes to complexity-this does not tell the whole story.This is because while expectation remains steady,the steps foreign businesses need to take to incorporate into a jurisdiction have already become slightly more complex.While the average length of

234、incorporation is much shorter for private companies(average length is up to 3 months for 95%of jurisdictions),for public companies,this is only 67%.This also reflects a slight drop from 69%in 2023.There have been increases in the number of jurisdictions requiring contact with national and local gove

235、rnments in order to incorporateAcross the board,there have been increases in the number of government organisations from which investors must secure approval when incorporating.This aligns with the increasing trend(across the service lines)of localisation.For example,local government is becoming inc

236、reasingly important in incorporation,with now 41%of jurisdictions requiring local government approval,an increase from 36%in 2023.The importance of government input is particularly key in South America,where 100%of jurisdictions require national government consent and 63%require local government inp

237、ut.Entity/SPV management-Next 5 years complexity of service linesJurisdictions agreeing that over the next 5 years,entity/SPV management will become more complexJurisdictions agreeing that over the next 5 years,entity/SPV management complexity will not change202130%52%202228%43%202325%53%202426%53%2

238、02080%96%202272%95%202467%95%202369%95%202171%95%38Global entity management/GBCI 2024Many jurisdictions require local presence,in the form of local resident directors or a physical office Globally,27%of jurisdictions require at least one director of the organisation to be locally resident.This incur

239、s recruitment costs and admin for said organisation and is particularly common in South America(60%)and APAC(50%).This is likely a push to ensure that there will continue to be local economic development and investment within these jurisdictions,with those benefits not taken elsewhere.Directors loca

240、lly residentRequires at least one director to be locally resident Average time to open a bank account from abroadThe multitude of local and legal frameworks across jurisdictions can be complicated for businesses to navigate,particularly when first incorporating and entering a region.As a result of i

241、ncreased localisation,many organisations might not be aware of the level of government input that is required.These various levels can slow processes down and increase the length of time it takes to incorporate,which can then pose operational challenges and financial risk,particularly for organisati

242、ons that cant afford to delay business.“Officers,employees and government staff may all have different interpretations of the laws and regulations in place,which may cause confusion for businesses and investors.Weve seen the lack of standard or unified implementation of these laws and regulations de

243、lays start-up entities in obtaining their licenses or registrations.”TMF Philippines expert“In terms of market entry,there are serious restrictions for foreign companies to be able to fully own business in Thailand.This acts as a real deterrent for a lot of global companies to enter the country.”TMF

244、 Thailand expertOverall27%South America60%North America7%APAC50%EMEA17%202020224Net:under a monthNet:over a month65%35%57%43%45%55%44%56%38%62%Up to 1 week2 to 3 weeksAround a month2 to 3 months4 to 6 monthsOver 6 months3%9%1%9%24%53%0%8%28%41%7%16%1%7%41%28%8%16%1%5%42%30%9%13%1%5%43%26%

245、14%10%It takes over a month to open a bank account from abroad in an increased proportion of jurisdictions when compared to 2023 39Global entity management/GBCI 2024Digitalisation has made steps to simplify incorporation,yet there continues to be a lag in digital processes being implemented In 2023,

246、78%of jurisdictions allowed official submissions to authorities to be done electronically.However,in 2024,this has decreased to 75%.Whilst still a high proportion,it does indicate a lag in digitalisation which could hinder efficient business operations.The lag is significant in North America(29%allo

247、w for electronic submissions)and to a lesser extent South America(60%).Several jurisdictions note that there is still reliance on paper-based documentation and in-person procedures.This lag in digital practices has been mentioned specifically in Romania,where Covid-19 brought about positive steps in

248、 allowing electronic document submissions.However,authorities have now reverted back to paper-based,requiring hard copies after e-submission.This further complicates administrative tasks,as documents now have to be completed in two formats.In 2023,56%of jurisdictions reported that opening a bank acc

249、ount took more than a month.This has now increased to 62%of jurisdictions reporting the same in 2024.Slow and cumbersome bureaucratic processes can act as a delay to business operations and often require a significant amount of documentation and information.Additional requirements around AML and KYC

250、,in particular,can stunt incorporation for organisations who are unfamiliar with local procedures.This increase has been particularly felt in jurisdictions like Panama,Hong Kong,SAR,Mexico and Luxembourg,all of which cite slow process,the multitude of documentation and additional compliance checks.A

251、re official submissions to the authorities done electronically/via the internet?2020202120222023YesNo202471%27%77%23%69%31%78%22%75%25%“Our banks are still very old-fashioned.I would say 90%of them still require face to face.The banks have also strengthened their requirements for accepting new clien

252、ts-especially on those newly incorporated companies that do not have any existing business and financial records.”TMF Hong Kong expertRules,regulations and penalties-Next 5 years complexity of service linesNet:more complexNet:simpler49%12%40%13%43%18%49%13%54%11%Significantly more complex Slightly m

253、ore complex Neither more nor less complex Slightly simplerSignificantly simpler 202044%39%12%5%0%202134%47%12%1%6%202449%34%10%1%5%202236%38%17%1%8%202344%10%5%3%38%40Global entity management/GBCI 2024Industries abiding by legislation20202022426%47%19%40%28%44%29%41%30%44%47%49%50%51%49%K

254、YC All industriesAML All industriesCounterterrorism All industriesGlobal regulatory requirements are expected to continue to become more complexIn 2023,49%of jurisdictions expected rules,regulations and penalties to become more complex over the next five years.In 2024,54%of jurisdictions would say t

255、he same.However,increased regulatory compliance should not always be viewed negatively.For example,jurisdictions like Jersey and Italy note that the stringent rules and regulations in their jurisdiction can be complex to navigate but once understood and implemented,provide investors with a greater s

256、ense of security and further attracts FDI.Recent changes in legislation continue the global clampdown on financial crime and focus on national security While counter-terrorism legislation has stayed level since 2023,it still remains the highest requirement for all industries across counterterrorism,

257、Know Your Customer(KYC)and Anti-Money Laundering(AML).KYC and AML have also seen a slight uptick in requirements for all industries.This highlights a continued trend in a global clampdown on financial crime and an increased focus in national security.Whilst beneficial to both society and business in

258、tegrity,it does cause complications-particularly when entering a new market.Although these regulations can slow down business operations,they also provide safety and security across the business world.With the right information and guidance in handling complex legislation,businesses will not only co

259、mply with local laws but also position themselves as strong applicants.“Recurring investors are coming back-theyre happy to invest into funds in Jersey because they know the regulations,they know how it works.I think in years gone by,it was,Why are we being asked for this documentation?Is it really

260、necessary?.Whereas I think investors now understand and appreciate the level of scrutiny that goes into making sure that weve got all the necessary KYC and CDD that we need.”TMF Jersey expert“The main challenges are with the banks strictly following the AML rules,making it very difficult to open a n

261、ew bank account.Quite often,bank accounts are blocked until KYC information is updated.”TMF Bulgaria expert41Global entity management/GBCI 2024Whilst there have been increased requirements,investments are not expected to decrease and there have been initiatives to attract FDIThe majority of jurisdic

262、tions(79%),expect there to be increased investment in the next five years.This highlights that whilst rules and regulations are expected to become more complex,this is unlikely to translate into negative impacts or prohibit economic growth.APAC is now expected to attract increased investment in 93%o

263、f its jurisdictions,an increase from 85%in 2023.South America has the lowest proportion of jurisdictions expecting increased investments.However,this has increased from 56%in 2023 to 67%expected increased investment in 2024.“The Ley de Creacin y Crecimiento Empresarial,known as Ley Crea y Crece by t

264、he Government,represents one of the most significant reforms within their recovery,transformation and resilience plan,aimed at strengthening and stimulating the development of small and medium-sized enterprises in Spain.With the implementation of this legislation,the procedure for setting up a compa

265、ny will be considerably simplified,with a decrease in both the costs and the time needed to carry it out.”TMF Spain expert“Increasing regulation and complexity in entity management may slow down operations,yet they continue to play a vital role in ensuring protection and market stability.Despite sho

266、rt-term hurdles like delays in bank account opening or increased economic substance requirements,these measures typically contribute positively.”TMF Global entity management expertJurisdictions have made notable changes in the past 12 months to attract FDI and ensure that increased GEM complexity do

267、es not negatively impact economic growth.Regulatory changes have taken place across the globe to try and facilitate business operations and to ensure easier market access.This includes easing access restrictions in locations like Spain and Egypt,where golden licenses are being introduced to reduce d

268、iffering approval requirements.North AmericaExpected investment in the next five yearsTotalSouth AmericaAPACEMEANet:increaseNet:decrease79%8%86%0%67%11%93%0%75%13%There will be a significant increase in investmentThere will be a slight increase in investmentThere will be no changeThere will be a sli

269、ght decrease in investmentThere will be a significant decrease in investment3%5%32%13%47%0%43%14%11%22%33%0%0%7%36%3%10%13%55%43%33%57%20%42Global entity management/GBCI 2024Case study:Indonesia Omnibus Law 2020Since 2020,Indonesia has dropped from 1st to 16th in the annual GBCI rankings.The key dri

270、ver of the nations reduced complexity is cited as being the 2020 Omnibus Law,the main aim of which is to attract foreign investment.The Omnibus Law has reduced the complexities of market entry,making it much simpler for foreign investors to set-up business in the jurisdiction.The law has reduced bur

271、eaucratic and regulatory barriers such as lowering the capital requirements to incorporate.There have also been new labour reforms,such as lowering severance payments,while the introduction of the golden visa scheme is set to boost investments further.“The changes have made regulations much simpler,

272、even if the market entry requirement is high on the capital side.Within A&T as well,the Omnibus Law has lowered the corporate income tax rate to 20%(from 25%),which provides a lot of incentive.”TMF Indonesia expertIndonesia has also been identified as a bridge country between major economic blocs in

273、 the US and Mainland China.This has been driven by the governments focus on becoming more than a producer and adding further value.With Mainland China opening up manufacturing to other jurisdictions,Indonesia has intentionally reduced its complexity to leverage the opportunity.As a result,were likel

274、y to see a greater global presence from Indonesia as they continue to open-up business avenues to attract foreign investment.“In 2023,Tesla opted to manufacture in Malaysia,despite Indonesia being the biggest nickel producer in the world.So Indonesia needs to be more competitive.The government has b

275、een making these moves to reduce complexity for this very reason.”TMF Indonesia expert42Global entity management/GBCI 202443Human resources and payroll /GBCI 2024Human resources and payroll(HRP)44Human resources and payroll /GBCI 2024Jurisdictions are expecting greater complexity in the HRP space in

276、 the next 5 yearsHuman resources and payroll(HRP)are essential for both workforce management and business operations.Having a strong HRP team can ensure your organisation is able to forecast demands for labour,assess current workforce supplies,ensure you attract the right people with the right skill

277、s and ensure that strong employees are retained.But HRP can also add to overall complexities,with businesses needing to adhere to various legal and regulatory requirements.And 54%of jurisdictions expect there to be no change in HRP complexity over the next 5 years.But while almost a third of jurisdi

278、ctions(29%)predict there to be increased complexity,this does not compare to previous years levels such as 35%in 2022.Nonetheless,with just 14%of jurisdictions expecting HRP to become simpler over the next 5 years,organisations should expect that the complexity of HRP requirements is here to stay.Th

279、ere continues to be an increased focus on progressive benefits for permanent employees HR and payroll-Next 5 years complexity of service linesJurisdictions agreeing over the next 5 years,HRP will become more complex20202022438%30%35%25%29%92%94%28%62%88%86%56%83%82%42%51%55%29%27%32%84%96

280、%92%58%85%87%57%85%70%33%45%58%26%28%27%86%94%94%58%83%86%57%83%62%32%43%52%27%31%29%87%88%91%57%84%84%58%81%64%34%48%46%13%16%45%86%94%92%58%87%83%48%61%34%43%51%25%30%31%78%Minimum wage/minimum hourly ratePaid vacation/time offPaid maternity leaveBenefits legally required permanent employees202120

281、20202220232024Severance/redundancy payPaid sick daysOvertime payPaid paternity leaveHealth insurancePension fundCompassionate leaveShared maternity/paternity leavePaying a 13-month salary or bonusPersonal leaveChildcare assistanceHousing/social care contributions45Human resources and payroll /GBCI 2

282、024Regular pay increases mandatory20202022431%27%27%27%32%Yes regular pay increases are mandatoryRegular pay increases mandatory(regions)Whilst the top benefits-such as minimum wage and paid vacation-are consistent with 2023,with more than 90%of jurisdictions having this as a legal requir

283、ement,there have been some notable trends in legally mandated benefits in 2024.Since 2020,there have been rises in the adoption of paid vacation(88%to 96%),paid paternity leave(64%to 70%)and compassionate leave being a legal requirement(46%to 58%).Whilst this suggests that there is a global consensu

284、s that these are essential benefits,it does create added budgetary pressures and extended workforce planning.Along with greater benefits,there also are greater protections surrounding employee payAfter staying level for the previous three years,32%of jurisdictions now require regular pay increases f

285、or employees.This may be linked to cost-of-living increases and the need to hold onto domestic workers.Again,South America leads the way in protecting employee pay,as 70%of jurisdictions in the region require regular pay increases.This is much higher than APAC,which lags behind at 7%.Having to mitig

286、ate frequent changes in pay can lead to greater admin for payroll teams,require frequent business monitoring of the requirements and also creates greater budgetary constraints as organisations negotiate and implement competitive salaries.“Labour laws change frequently and these changes have an impac

287、t on employers costs and sometimes on the net amounts paid to employees.This means more questions from employees about their pay slips and labour costs that are not completely predictable.”TMF Italy expert“Average holiday pay is changing as there are new calculations for your non-standard workers.So

288、,zero-hour workers and that type of activity is becoming more challenging.There is also more demand on auto-enrolment,pension activity and the understanding and the awareness of what impact that has.”TMF UK expertOverall32%South America70%North America50%APAC7%EMEA24%Yes46Human resources and payroll

289、 /GBCI 2024Factors such as the number of payroll runs per month,type of employee,and region or city have also seen a steady rise,highlighting an increase in the customisation and detail of payroll calculations.A particular focus on employee type considerations like gender and income(rising to 58%in

290、2024)could be indicative of pay equity efforts.For example,in Sweden there are a multitude of different situations and benefits,all of which have different tax treatments.What these trends underline is an increased complexity in payroll administration.With more factors to consider,the calculations b

291、ecome more complex-requiring more time,resources,and expertise to remain compliant.Variations in labour laws as a result of the multiplicity of governing bodies adds complexity to payroll processes and staying compliant with labour benefits Overall,variations in benefits are rare but there are a few

292、 key areas of difference.For example,20%of jurisdictions globally have variations in minimum wage-these differences can cause added costs and also complications in various payroll calculation considerations.Increased benefits for employees are protecting workers but this adds complexity to business

293、operations,particularly around processing payrollWhen calculating gross-to-net payroll,jurisdictions are considering a greater variety of factors such as legal and HR-related updates and retro-calculations.Legal and HR-related updates have seen the most prominent rise,with 87%of jurisdictions incorp

294、orating these factors in 2024,up from 71%in 2021.This points to an increased emphasis on compliance with laws and HR policies that change over time,affecting aspects like tax deductions,which can be region-specific or event driven.For example,in the UK and Hungary,frequent changes in labour laws and

295、 new tax reforms have increased the need for more regular legal and HR updates.“There are an extreme amount of payroll and social security-related laws,which are changing frequently as well,and therefore need to be monitored regularly.This makes compliance challenging.”TMF Hungary experts20222021202

296、32024Legal and HR-related updates74%71%71%87%Retro-calculations67%66%65%76%Number of payroll runs per month59%56%48%68%Type of employee(e.g.gender,income)53%51%49%58%Region or city29%26%23%35%Socio-economic factors21%17%13%21%Considerations for calculation of gross-to-net payrollVariation of benefit

297、s across jurisdiction0%10%20%30%40%50%60%70%80%90%100%Health insuranceMinimum wagePaid sick daysPaid vacation/time offHousing contributionsOverallSouth AmericaNorth AmericaAPACEMEA47Human resources and payroll /GBCI 2024Factors influencing notice needed202020224Variation is mostly seen in

298、 APAC,where 43%of jurisdictions have variations in minimum wage and 21%vary in housing contributions.These variations can create a dependence on local expertise to navigate the different regulations.This can also be an added burden if digitalisation processes are not yet in place.Whilst there are in

299、creased protections for employees,there are some developments that have lessened the burden on operationsMany jurisdictions noted the progress and improvements made in the past year that have helped simplify HRP processes for organisations.These revolve around digitalisation of processes and reducti

300、on in bureaucracy.Digital transformation in HRP has become a pivotal trend in several jurisdictions,catering to both convenience and efficiency.For example,jurisdictions such as Germany have simplified payment processing to align with standardised European systems.This has significantly reduced the

301、burden of cross-border transactions.Brazil too has worked extensively on improving their systems.Introduced in 2018 through several phases,Brazils eSocial is a digital bookkeeping system used to unify and simplify work-related reporting obligations for employers across the country.The shift in simpl

302、ifying obligations provides government transparency and reduces red tape,making the country more attractive to foreign companies.These developments point towards a drive for simplified regulatory compliance,making it easier for businesses to operate smoothly.“There are some trends and changes that m

303、ake Brazil more attractive to foreign companies.In recent years,the government has been working on improving the eSocial process,summarising several additional obligations with the aim of reducing bureaucracy in the processes associated with sending labour and social security charges.”TMF Brazil exp

304、ert“Still almost all the procedures need to be attended in person,which is time consuming.Additionally,there are local procedures which need to be attended in the exact locality,resulting in having to do different calculations and visiting different places to be compliant.”TMF Mexico expertsProcesse

305、s for terminating employment have become more straightforward Whilst additional benefits and protection continue to be in place for employees,there have been other related processes that have become simpler for organisations.For example,there has been a notable drop in factors that influence the abi

306、lity to terminate an employment contract.In 2023,the length of service was a factor needed for 77%of jurisdictions.However,this has decreased to 68%in 2024-the lowest proportion seen since 2021.8%9%Contract type(e.g.part-time,or temporary workers)59%79%77%68%79%76%73%84%85%72%27%33%34%31%25%14%29%28

307、%21%21%38%35%43%49%47%Length of serviceSeniorityIndustry that the company is operating withinSalaryLocation(i.e.differences within jurisdiction)48Human resources and payroll /GBCI 2024It has also become easier for employers to terminate employment without needing to cite a reason.Progress in terms o

308、f employee protection had been made in previous years to improve transparency around termination process.However,in 2024,up to 28%of jurisdictions allow for employers to terminate contracts without reason.This is highest in North America where almost half(43%)of jurisdictions have a simple terminati

309、on process for this exact reason.Whilst the ease of termination procedure places employees at more risk of losing their job,it does help simplify business operations-particularly for organisations that are suffering with underperforming employees.Despite the complexities that employee protections an

310、d benefits might present,businesses may find it necessary to embrace them,especially in view of prevailing talent challenges.Ensuring proper support and protection for employees fosters a more equal business environment,which in turn can drive greater organisational success.29%202071%202064%36%20212

311、0%80%202123%77%202225%75%202236%64%202323%77%202336%64%202428%72%202443%57%Termination without citing a reasonYesNoTotalNorth America49Human resources and payroll /GBCI 2024Ten least complex jurisdictionsJurisdiction2024 rankingJamaica70British Virgin Islands71Jersey72United Kingdom73The Netherlands

312、74New Zealand75Hong Kong,SAR76Denmark77Curacao78Cayman Islands7949Ten least complex jurisdictions/GBCI 202450Ten least complex jurisdictions/GBCI 2024“When clients are able to submit taxation documents online-from their offices or homes-instead of having to go into the tax office to submit a sales s

313、tats report,annual income tax report or a payroll reduction report,it will be even easier.”TMF Jamaica expert“BVI is a well-regulated jurisdiction with constant updates in legislation.This can sometimes be hard and costly to keep up to date with.However,as a politically stable jurisdiction based on

314、English common law,we remain an attractive option to businesses operating globally.”TMF BVI expert 70.Jamaica Jamaica has witnessed a significant drop in complexity,with GEM identified as the key driver of this change.The main shift surrounds UBO registry.In 2024,all organisations are now required t

315、o adhere to the UBO registry,boosting Jamaicas international image by facilitating due diligence processes and enhancing investor confidence.Setting up a company in Jamaica is generally straightforward due to clear rules and regulations.Challenges typically arise around KYC demands and physical requ

316、irements for signing documents.However,these challenges mainly occur during company establishment as taxation submissions have predominantly moved online,easing the process and improving compliance.The positive trend is expected to continue with a stable political situation and potential tax reducti

317、ons in the annual budget,possibly across value-added tax and payroll taxes,making Jamaica attractive for international clients seeking lower business costs and investment opportunities.71.British Virgin Islands(BVI)BVI consistently ranks among the least complex jurisdictions in GBCI thanks to its co

318、mmitment to regulatory alignment with international standards,providing a familiar framework for multinational entities to operate within.Despite occasional legislative challenges,the BVI continues to foster a favourable business environment,helping the jurisdiction maintain its global market allure

319、.Recent changes in the BVIs legislation,however,have added a level of complexity for businesses,particularly affecting companies with simple operations.With a more stringent need for reporting and compliance,businesses are now compelled to fulfil more robust legal requirements,such as filing annual

320、returns through a registered agent.Earlier concerns about the BVI being blacklisted by the EU have not significantly affected multinational organisations.The blacklist placement resulted from legislative changes that were not effectively implemented in time but are now positively resolved.The BVI Bu

321、siness Companies Act has further streamlined operations by incorporating multinational clients into local legislation.Improved connectivity and digitalisation have simplified business operations,enabling easy transfer and transmission of information across the BVI.51Ten least complex jurisdictions/G

322、BCI 202451Ten least complex jurisdictions/GBCI 2024“Investors might be turned off by the level of due diligence involved and the time it takes to onboard-but we now fine-tune that process where I think as administrators,we understand what the regulators are looking for.Youve got Jersey Finance,the J

323、FSC and the government of Jersey all working closely and who are quite nimble in how they react together and adapt to the change in regulatory framework at any point in time.”-TMF Jersey expert“We should no longer be viewing the UK as one of the simplest places to set up payroll.Its simplicity is mo

324、re driven by the fact that its an English-speaking country so that may make it easier for those operating internationally.But the reality is that the complexities behind that now are becoming more demanding.”TMF UK expert 72.Jersey Jersey remains one of the simplest jurisdictions in the GBCI,droppin

325、g from 70th to 72nd in 2024.The stability is mainly due to its highly regulated environment,providing assurance to foreign businesses and investors.Geographically,Jerseys proximity and similar time zone to the UK make it favourable for business operations.A wealth of tax and legal experts in the are

326、a can also help ensure seamless regulatory compliance for those navigating the operational challenges of complying with multiple jurisdictions.Whilst enhancements in AML legislation have resulted in wider scrutiny from the Jersey Financial Services Commission(JFSC)and,therefore,initial delays for ne

327、wly incorporating businesses,these processes are now running smoothly.Like many jurisdictions,Jersey faces talent acquisition and management challenges.To address these,technology and AI are being harnessed to improve efficiencies and manage workload,aiming to increase output,ensure job satisfaction

328、 and improve staff retention.73.United KingdomThe UK consistently ranks among the least complex jurisdictions in which to do business.This year it stands at 73rd,a slight decrease from 72nd last year.The UK exhibits low complexity in A&T and GEM due to its simple,stable tax system and adherence to i

329、nternational financial standards.The regulatory environment is stable,adding to predictability for businesses.However,the UK faces challenges in HRP.Anticipated changes in payroll regulations,potential legislative changes around pensions,holiday pay and absence payments,and potential reductions in t

330、he auto-enrolment age for pensions could impact payroll operations.There are also cultural changes in UK talent,with workers expecting competitive benefits packages and better work-life balance.Post-Brexit,some businesses have re-located their headquarters out of the UK due to high costs and complex

331、 hiring requirements.These are unique post-COVID challenges that businesses must stay informed of to ensure success.52Ten least complex jurisdictions/GBCI 2024“Stability and certainty are important,which is something that the Netherlands can offer.So,whether its companies that are investing into tar

332、gets or whether its indeed the fintech world or a start-up and scale-up type of businesses that are being set up in the Netherlands,the country is an attractive option for foreign investment.”TMF Netherlands expert“Its very easy to start a company,hire people and then comply with laws and regulation

333、s.I think its quite simple.All online in black and white.”TMF New Zealand expert 74.The Netherlands Thanks to its client-friendly approach to laws,regulations and process,the Netherlands regularly ranks as one of the simplest jurisdictions for business operations.Notably,the countrys regulatory stability,support for new ventures,and strong ecosystems for fintech and AI-driven businesses attracts f