Business Reforms in Tonga
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Dealing with Construction Permits: Tonga made dealing with construction permits more complex by introducing two new procedures.
Paying Taxes: Tonga made paying taxes more complicated for companies by reintroducing the annual fee for a business license.
Getting Credit: Tonga improved access to credit information by establishing a private credit bureau.
Paying Taxes: Tonga made paying taxes more complicated for companies by introducing a superannuation levy—though it also abolished the business license for 2013.
Starting a Business: Tonga made starting a business easier by implementing an electronic system at the registry, which reduced the time required for verification of the uniqueness of the company name and for registration of the company. The costs for the name search, company registration and business license increased, however.
Getting Electricity: Tonga made getting electricity faster by implementing a time limit for the safety inspection.
Registering Property: Tonga made transferring property more costly.
Getting Credit: Tonga strengthened its secured transactions system by passing a new law that allows a general description of the obligation in the security agreement and gives secured creditors priority outside bankruptcy.
Paying Taxes: Tonga simplified the payment of taxes by replacing a 2-tier system with a 25% corporate income tax rate for both domestic and foreign companies and introducing tax incentives with a broad-based capital allowance system to replace tax holidays and other tax concessions.
Paying Taxes: Tonga made paying taxes easier and less costly for companies through a new income tax law introducing self-assessment as well as accelerated depreciation and amortization for certain assets.
Starting a Business: Tonga reduced the time and cost to start a business by reforming business licensing regulations.
Dealing with Construction Permits: Tonga made dealing with construction permits easier by simplifying procedures and reducing the time needed to obtain a building permit.
Enforcing Contracts: Tonga speeded up the resolution of commercial disputes by implementing an electronic case management system.