#

Ease of Doing Business in

Tonga

Tonga Download Profile (1694.5KB, pdf)
Region East Asia & Pacific
Income Category Lower middle income
Population 106,170
GNI Per Capita (US$) 4,067
City covered Nukualofa

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 85 76 down
9
63.58 63.83 down
0.25
Starting a Business 55 48 down
7
90.85 90.75 up
0.10
Dealing with Construction Permits 14 7 down
7
80.96 83.79 down
2.83
Getting Electricity 67 64 down
3
76.29 76.26 up
0.03
Registering Property 158 156 down
2
44.64 44.64
-
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 123 118 down
5
45.00 45.00
-
Paying Taxes 80 78 down
2
73.76 73.76
-
Trading across Borders 100 98 down
2
68.20 68.20
-
Enforcing Contracts 92 91 down
1
57.32 57.32
-
Resolving Insolvency 132 131 down
1
33.82 33.60 up
0.22

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

80

DB 2016 Rank:

78

Change in Rank:

down2

DB 2017 DTF (% points):

73.76

DB 2016 DTF (% points):

73.76

Change in DTF (% points):

0.00

Indicator Tonga East Asia & Pacific OECD high income
Payments (number per year) info_outline 30 22.9 10.9
Time (hours per year) info_outline 200 198.0 163.4
Total tax rate (% of profit) info_outline 30.1 33.9 40.9
Postfiling index (0-100) info_outline 68.9 59.6 85.1
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Corporate income tax 1 8 25% taxable profit 23.78
Superannuation levy - employer 12 48 5% gross salary 5.64
Vehicle license 4 fixed fee 0.65
Business License 1 TOP50 + 15% fixed fee 0.01
Employee paid - Superannuation levy 0 jointly 5% gross salary 0.00 withheld
Tax on interest 0 10% interest income 0.00 included in other taxes
Value added tax (VAT) 12 144 15% value added 0.00 not included
Totals: 30 200 30.1
  • Taxes by type Answer
    Profit tax (% of profit) 23.8
    Labor tax and contributions (% of profit) 5.6
    Other taxes (% of profit) 0.7
    Answer Score
    Postfiling index (0-100) 68.9
    VAT refunds 17.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission monthly
    Does a VAT/GST refund process exist per the case study? Yes
    Restrictions on VAT refund process Carry forward for 2 months
    Likelihood of VAT audit Highly Likely
    Time to comply with VAT refund (hours) 41.5 17.0
    Time to obtain a VAT refund (weeks) 23.7 60.4
    Corporate income tax audits 98.2
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Unlikely
    Time to comply with a corporate income tax audit (hours) 2.5 98.2
    Time to complete a corporate income tax audit (weeks) 0.0 100.0
    Administrative appeal process
    First level administrative appeal authority Chief Commissioner of Revenue authority
    Is the appeal authority independent? Same Auditor
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines other
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? No
    Legal time limit

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.