Cayman at bottom of new list for right reasons

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Cayman News Service

George Town, Grand Cayman

(CNS): A new report analysing business complexity in 76 countries has found that the largest economies in the world are often the most complex and unpredictable places in which to do business, but the Cayman Islands came bottom of the whole list, indicating that it is the easiest place in the world. The Global Complexity Index, commissioned by Dutch consulting firm the TMP Group, is the first of its kind and used a combination of data and research among local market experts on rules, regulations and penalties; accounting and tax; and hiring, firing and paying employees.

Greece was declared the most complex country overall due to frequently changing legislation, differing regional tax rates and inconsistent treatment of firms by the authorities. By contrast, the Cayman Islands, Curaçao and Jersey thrive “on the back of politically-stable and pro-business policies”, the authors found.

The UK came around the middle of the list at 43 because of strict governance standards and a complex tax system; anticipated legislative changes following Brexit added to complexity.

“The findings confirm that the business landscape has become more challenging. Any business looking to expand into new territories faces a formidable array of potential hurdles,” said Mark Weil, CEO of TMF Group.

“Trade disputes, tariffs, rising nationalism and political unrest point to a shift from globalisation to economic fragmentation. This has made some of the world’s most commercially attractive countries among the most complex to operate in. More than ever, businesses with global ambitions must have a good understanding of the rules and regulations that prevail locally, and how to manage them,” he added.

When it comes to the world’s biggest economies, China and the United States are at opposite ends. China was the ninth most complex country because of regional variations in legislation but the USA was deemed the eleventh least complex jurisdiction because of regulatory standards and recent tax reforms that make it easier for firms to repatriate profits.

In over a third of countries analysed, local rules, regulations and penalty systems present major challenges for companies.

“This report will help give businesses a better understanding of the idiosyncrasies that make up the global business landscape,” said Weil. “Complexity is no reason to avoid investing. It is a dimension which must be managed. With the right local knowledge and preparation, good companies can thrive anywhere.”

See the report here.

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