Regional Profile 2017 European Union (EU) Doing Business 2017 EUROPEAN UNION (EU) 2 © 2017 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 19 18 17 16 This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 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Doing Business 2017 EUROPEAN UNION (EU) 3 CONTENTS Introduction .................................................................................................................................. 4 The business environment .......................................................................................................... 5 Starting a business ..................................................................................................................... 14 Dealing with construction permits ........................................................................................... 46 Getting electricity ....................................................................................................................... 84 Registering property ................................................................................................................ 117 Getting credit ............................................................................................................................ 158 Protecting minority investors ................................................................................................. 193 Paying taxes .............................................................................................................................. 231 Trading across borders ............................................................................................................ 271 Enforcing contracts .................................................................................................................. 317 Resolving insolvency ................................................................................................................ 351 Distance to frontier and ease of doing business ranking .................................................... 383 Resources on the Doing Business website ............................................................................ 386 Doing Business 2017 EUROPEAN UNION (EU) 4 INTRODUCTION Doing Business sheds light on how easy or difficult it is also provides data for other selected economies for a local entrepreneur to open and run a small to (comparator economies) for each indicator. The data in medium-size business when complying with relevant this report are current as of June 1, 2016 (except for the regulations. It measures and tracks changes in paying taxes indicators, which cover the period January– regulations affecting 11 areas in the life cycle of a December 2015). business: starting a business, dealing with construction The Doing Business methodology has limitations. Other permits, getting electricity, registering property, getting areas important to business—such as an economy’s credit, protecting minority investors, paying taxes, proximity to large markets, the quality of its trading across borders, enforcing contracts, resolving infrastructure services (other than those related to insolvency and labor market regulation. Doing Business trading across borders and getting electricity), the 2017 presents the data for the labor market regulation security of property from theft and looting, the indicators in an annex. The report does not present transparency of government procurement, rankings of economies on labor market regulation macroeconomic conditions or the underlying strength of indicators or include the topic in the aggregate distance institutions—are not directly studied by Doing Business. to frontier score or ranking on the ease of doing The indicators refer to a specific type of business, business. generally a local limited liability company operating in In a series of annual reports Doing Business presents the largest business city. Because standard assumptions quantitative indicators on business regulations and the are used in the data collection, comparisons and protection of property rights that can be compared benchmarks are valid across economies. The data not across 190 economies, from Afghanistan to Zimbabwe, only highlight the extent of obstacles to doing business; over time. The data set covers 48 economies in Sub- they also help identify the source of those obstacles, Saharan Africa, 32 in Latin America and the Caribbean, 25 supporting policy makers in designing regulatory reform. in East Asia and the Pacific, 25 in Eastern Europe and More information is available in the full report. Doing Central Asia, 20 in the Middle East and North Africa and Business 2017 presents the indicators, analyzes their 8 in South Asia, as well as 32 OECD high-income relationship with economic outcomes and presents economies. The indicators are used to analyze economic business regulatory reforms. The data, along with outcomes and identify what reforms have worked, where information on ordering Doing Business 2017, are and why. available on the Doing Business website at This economy profile presents the Doing Business http://www.doingbusiness.org. indicators for Afghanistan. To allow useful comparison, it Doing Business 2017 EUROPEAN UNION (EU) 5 THE BUSINESS ENVIRONMENT CHANGES IN DOING BUSINESS 2017 As part of a three-year update in methodology, Doing Business 2017 expands further by adding postfiling processes to the paying taxes indicator, including a gender component in three of the indicators and developing a new pilot indicator on selling to the government. Also, for the first time this year Doing Business collects data on Somalia, bringing the total number of economies covered to 190. The paying taxes indicator is expanded this year to include postfiling processes – those processes that occur after a firm complies with its regular tax obligations. These include tax refunds, tax audits and tax appeals. In particular, Doing Business measures the time it takes to get a value added tax (VAT) refund, deal with a simple mistake on a corporate tax return that can potentially trigger an audit and good practices with administrative appeals process. This year’s Doing Business report presents a gender dimension in four of the indicator sets: starting a business, registering property, enforcing contracts and labor market regulation. Three of these areas are included in the distance to frontier score and in the ease of doing business ranking, while the fourth—labor market regulation—is not. Doing Business has traditionally assumed that the entrepreneurs or workers discussed in the case studies were men. This was incomplete by not reflecting correctly the Doing Business processes as applied to women—which in some economies may be different from the processes applied to men. Starting this year, Doing Business measures the starting a business process for two case scenarios: one where all entrepreneurs are men and one where all entrepreneurs are women. In economies where the processes are more onerous if the entrepreneur is a woman, Doing Business now counts the extra procedures applied to roughly half of the population that is female (for example, obtaining a husband’s consent or gender-specific requirements for opening a personal bank account when starting a business). Within the registering property indicators, a gender component has been added to the quality of land administration index. This component measures women’s ability to use, own, and transfer property according to the law. Finally, within the enforcing contracts indicator set, economies will be scored on having equal evidentiary weight of women’s testimony in court. Also for the first time this year Doing Business collects data on Somalia, bringing the total number of economies covered to 190. For more details on the changes, see the “”Old and new factors covered in Doing Business” section in the Overview chapter starting on page 1 of the Doing Business 2017 report. For more details on the data and methodology, please see the “Data Notes” chapter starting on page 114 of the Doing Business 2017 report. For more details on the distance to frontier metric, please see the “Distance to frontier and ease of doing business ranking” chapter in this profile. Doing Business 2017 EUROPEAN UNION (EU) 6 THE BUSINESS ENVIRONMENT For policy makers trying to improve their economy’s permits, getting electricity, registering property, regulatory environment for business, a good place to getting credit, protecting minority investors, paying start is to find out how it compares with the regulatory taxes, trading across borders, enforcing contracts environment in other economies. Doing Business and resolving insolvency. The labor market provides an aggregate ranking on the ease of doing regulation indicators are not included in this year’s business based on indicator sets that measure and aggregate ease of doing business ranking, but the benchmark regulations applying to domestic small to data are presented in the economy profile. medium-size businesses through their life cycle. The ease of doing business ranking compares Economies are ranked from 1 to 190 by the ease of economies with one another; the distance to frontier doing business ranking. Doing Business presents results score benchmarks economies with respect to for 2 aggregate measures: the distance to frontier score regulatory best practice, showing the absolute and the ease of doing business ranking. The ranking of distance to the best performance on each Doing economies is determined by sorting the aggregate Business indicator. When compared across years, the distance to frontier scores, rounded to two decimals. An distance to frontier score shows how much the economy’s distance to frontier score is indicated on a regulatory environment for local entrepreneurs in an scale from 0 to 100, where 0 represents the worst economy has changed over time in absolute terms, performance and 100 the frontier. (See the chapter on while the ease of doing business ranking can show the distance to frontier and ease of doing business). only how much the regulatory environment has The 10 topics included in the ranking in Doing Business changed relative to that in other economies. 2017: starting a business, dealing with construction Figure 1.1 Where economies stand in the global ranking on the ease of doing business Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 7 THE BUSINESS ENVIRONMENT For policy makers, knowing where their economy stands in regional average (figure 1.2). Another perspective is the aggregate ranking on the ease of doing business is provided by the regional average rankings on the topics useful. Also useful is to know how it ranks compared with included in the ease of doing business ranking (figure 1.3) other economies in the region and compared with the and the distance to frontier scores (figures 1.4 and 1.5). Figure 1.2 How economies in European Union (EU) rank on the ease of doing business Note: The rankings are benchmarked to June 2015 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population- weighted average for the 2 cities. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 8 THE BUSINESS ENVIRONMENT Figure 1.3 Rankings on Doing Business topics - European Union (EU) (Scale: Rank 190 center, Rank 1 outer edge) Regional average ranking Source: Doing Business database. Figure 1.4 Distance to frontier scores on Doing Business topics - European Union (EU) (Scale: Score 0 center, Score 100 outer edge) Note: The rankings are benchmarked to June 2015 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population-weighted average for the 2 cities. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 9 Figure 1.5 How far has European Union (EU) come in the areas measured by Doing Business? Source: Doing Business database. Note: The distance to frontier score shows how far on average an economy is from the best performance achieved by any economy on each Doing Business indicator. Starting a business is comparable to 2010. Getting credit, protecting minority investors, paying taxes and resolving insolvency had methodology changes in 2014 and thus are only comparable to 2013. Dealing with construction permits, registering property, trading across borders, enforcing contracts and getting electricity had methodology changes in 2015 and thus are only comparable to 2014. The measure is normalized to range between 0 and 100, with 100 representing the best performance (the frontier). See the data notes starting on page 114 of the Doing Business 2017 report for more details on the distance to frontier score. Doing Business 2017 EUROPEAN UNION (EU) 10 THE BUSINESS ENVIRONMENT Just as the overall ranking on the ease of doing business The absolute values of the indicators tell another part of tells only part of the story, so do changes in that ranking. the story (table 1.1). Policy makers can learn much by Yearly movements in rankings can provide some comparing the indicators for their economy with those indication of changes in an economy’s regulatory for the lowest- and highest-scoring economies in the environment for firms, but they are always relative. An region as well as those for the best performers globally. economy’s ranking might change because of These comparisons may reveal unexpected strengths in developments in other economies. An economy that an area of business regulation—such as a regulatory implemented business regulation reforms may fail to rise process that can be completed with a small number of in the rankings (or may even drop) if it is passed by procedures in a few days and at a low cost. others whose business regulation reforms had a more significant impact as measured by Doing Business. Table 1.1 Summary of Doing Business indicators for European Union (EU) Lowest regional Best regional Best global Indicator Regional average performance performance performance Starting a Business 132 (Malta) 10 (Ireland) 55.57 1 (New Zealand) (rank) Starting a Business 80.21 (Malta) 95.91 (Ireland) 90.13 99.96 (New Zealand) (DTF Score) Procedure – Men 9.0 (Germany) 3.0 (Belgium) 5.3 1.0 (New Zealand) (number) Time – Men (days) 37.0 (Poland) 3.0 (Denmark) 10.4 0.5 (New Zealand) Cost – Men (% of 13.9 (Italy) 0.0 (Slovenia) 3.7 0.0 (Slovenia) income per capita) Procedure – Women 9.0 (Germany) 3.0 (Estonia) 5.3 1.0 (New Zealand) (number) Time – Women (days) 37.0 (Poland) 3.0 (Denmark) 10.4 0.5 (New Zealand) Cost – Women (% of 13.9 (Italy) 0.0 (Slovenia) 3.7 0.0 (Slovenia) income per capita) Paid-in min. capital (% 45.5 (Hungary) 0.0 (Italy) 10.9 0.0 (127 Economies*) of income per capita) Dealing with Construction Permits 130 (Czech Republic) 6 (Denmark) 56.82 1 (New Zealand) (rank) Dealing with Construction Permits 62.76 (Czech Republic) 84.69 (Denmark) 74.14 87.40 (New Zealand) (DTF Score) Procedures (number) 21.0 (Czech Republic) 7.0 (Denmark) 12.5 7.0 (4 Economies*) Time (days) 507.0 (Cyprus) 64.0 (Denmark) 168.7 28.0 (Korea, Rep.) Doing Business 2017 EUROPEAN UNION (EU) 11 Lowest regional Best regional Best global Indicator Regional average performance performance performance Cost (% of warehouse 0.1 (Trinidad and 8.3 (Croatia) 0.1 (Slovak Republic) 2.0 value) Tobago) Building quality control 9.0 (Sweden) 15.0 (Luxembourg) 11.4 15.0 (Luxembourg*) index (0-15) Getting Electricity 134 (Romania) 5 (Germany) 47.71 1 (Korea, Rep.) (rank) Getting Electricity 56.48 (Romania) 98.79 (Germany) 81.32 99.88 (Korea, Rep.) (DTF Score) Procedures (number) 8.0 (Romania) 3.0 (Sweden) 5.0 3.0 (15 Economies*) Time (days) 257.0 (Hungary) 23.0 (Austria) 90.0 18.0 (Korea, Rep.*) Cost (% of income per 561.1 (Romania) 19.0 (Poland) 128.5 0.0 (Japan) capita) Reliability of supply and transparency of 5.0 (Croatia) 8.0 (Portugal) 7.4 8.0 (26 Economies*) tariff index (0-8) Registering Property 147 (Malta) 2 (Lithuania) 50.54 1 (New Zealand) (rank) Registering Property 48.81 (Malta) 92.93 (Lithuania) 74.80 94.46 (New Zealand) (DTF Score) Procedures (number) 10.0 (Greece) 1.0 (Sweden) 5.0 1.0 (4 Economies*) Time (days) 64.0 (France) 1.0 (Portugal) 23.8 1.0 (3 Economies*) Cost (% of property 13.5 (Malta) 0.0 (Slovak Republic) 4.8 0.0 (Saudi Arabia) value) Quality of the land administration index 4.5 (Greece) 28.5 (Lithuania) 22.7 29.0 (Singapore) (0-30) Getting Credit (rank) 170 (Luxembourg) 7 (Romania) 61.18 1 (New Zealand) Getting Credit (DTF 15.00 (Luxembourg) 85.00 (Romania) 59.64 100.00 (New Zealand) Score) Strength of legal rights 2.0 (Portugal) 10.0 (Romania) 5.8 12.0 (3 Economies*) index (0-12) Depth of credit 0.0 (Luxembourg) 8.0 (United Kingdom) 6.2 8.0 (30 Economies*) information index (0-8) Credit registry 0.0 (Croatia) 100.0 (Portugal) 21.4 100.0 (3 Economies*) coverage (% of adults) Credit bureau coverage 0.0 (Luxembourg) 100.0 (Germany) 57.3 100.0 (23 Economies*) (% of adults) Doing Business 2017 EUROPEAN UNION (EU) 12 Lowest regional Best regional Best global Indicator Regional average performance performance performance Protecting Minority 123 (Luxembourg) 6 (United Kingdom) 44.86 1 (New Zealand*) Investors (rank) Protecting Minority 45.00 (Luxembourg) 78.33 (United Kingdom) 63.33 83.33 (New Zealand*) Investors (DTF Score) Strength of minority investor protection 4.5 (Luxembourg) 7.8 (United Kingdom) 6.3 8.3 (New Zealand*) index (0-10) Extent of conflict of interest regulation 4.0 (Hungary) 8.7 (Ireland) 5.9 9.3 (New Zealand*) index (0-10) Extent of shareholder governance index (0- 4.7 (Luxembourg) 8.0 (Bulgaria) 6.7 8.3 (Norway) 10) Paying Taxes (rank) 129 (Italy) 6 (Ireland) 41.14 1 (United Arab Emirates) Paying Taxes (DTF 99.44 (United Arab 66.06 (Italy) 94.97 (Ireland) 83.29 Score) Emirates) Payments (number per 3.0 (Hong Kong SAR, 31.0 (Croatia) 6.0 (Sweden) 11.3 year) China*) Time (hours per year) 453.0 (Bulgaria) 55.0 (Luxembourg) 175.6 55.0 (Luxembourg) Total tax rate (% of 62.8 (France) 25.0 (Denmark) 41.3 26.1 (32 Economies*) profit) Postfiling index (0-100) 89.3 98.5 (Estonia) Trading across 47 (Ireland) 1 (Slovak Republic) 13.43 1 (10 Economies*) Borders (rank) Trading across 87.25 (Ireland) 100.00 (Slovak Republic) 97.38 100.00 (10 Economies*) Borders (DTF Score) Time to export: Border 36 (Germany) 0 (France) 8 0 (18 Economies*) compliance (hours) Cost to export: Border 345 (Germany) 0 (Croatia) 85 0 (18 Economies*) compliance (USD) Time to export: Documentary 4 (United Kingdom) 1 (Ireland) 1 1 (25 Economies*) compliance (hours) Cost to export: Documentary 75 (Ireland) 0 (Estonia) 17 0 (19 Economies*) compliance (USD) Time to import: Border 24 (Ireland) 0 (Croatia) 2 0 (25 Economies*) compliance (hours) Doing Business 2017 EUROPEAN UNION (EU) 13 Lowest regional Best regional Best global Indicator Regional average performance performance performance Cost to import: Border 335 (Cyprus) 0 (Italy) 29 0 (28 Economies*) compliance (USD) Time to import: Documentary 2 (Cyprus) 1 (Ireland) 1 1 (29 Economies*) compliance (hours) Cost to import: Documentary 75 (Ireland) 0 (Hungary) 4 0 (30 Economies*) compliance (USD) Enforcing Contracts 139 (Cyprus) 6 (Lithuania) 47.14 1 (Korea, Rep.) (rank) Enforcing Contracts 48.59 (Cyprus) 77.88 (Lithuania) 66.63 84.15 (Korea, Rep.) (DTF Score) Time (days) 1,580.0 (Greece) 321.0 (Luxembourg) 593.7 164.0 (Singapore) Cost (% of claim) 43.9 (United Kingdom) 9.7 (Luxembourg) 22.0 9.0 (Iceland) Quality of judicial 7.0 (Netherlands) 15.0 (Croatia) 11.3 15.5 (Australia) processes index (0-18) Resolving Insolvency 84 (Malta) 1 (Finland) 31.29 1 (Finland) (rank) Resolving Insolvency 45.35 (Malta) 93.89 (Finland) 72.07 93.89 (Finland) (DTF Score) Recovery rate (cents on 33.7 (Croatia) 90.3 (Finland) 65.0 92.9 (Norway) the dollar) Time (years) 4.0 (Slovak Republic) 0.4 (Ireland) 2.0 0.4 (22 Economies*) Cost (% of estate) 22.0 (Italy) 3.5 (Netherlands) 10.3 1.0 (22 Economies*) Strength of insolvency 7.0 (Luxembourg) 15.0 (Germany) 11.9 15.0 (6 Economies*) framework index (0-16) * Two or more economies share the top ranking on this indicator. A number shown in place of an economy’s name indicates the number of economies that share the top ranking on the indicator. For a list of these economies, see the Doing Business website (http://www.doingbusiness.org). Note: The global best performer on time for paying taxes is defined as the lowest time recorded among all economies in the DB2017 sample that levy the 3 major taxes: profit tax, labor taxes and mandatory contributions, and VAT or sales tax. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 14 STARTING A BUSINESS WHAT THE STARTING A BUSINESS Formal registration of companies has many INDICATORS MEASURE immediate benefits for the companies and for business owners and employees. Legal entities can Procedures to legally start and operate a outlive their founders. Resources are pooled as company (number) several shareholders join forces to start a company. Formally registered companies have access to Preregistration (for example, name services and institutions from courts to banks as well verification or reservation, notarization) as to new markets. And their employees can benefit Registration in the economy’s largest from protections provided by the law. An additional business city1 benefit comes with limited liability companies. These Postregistration (for example, social security limit the financial liability of company owners to their registration, company seal) investments, so personal assets of the owners are not put at risk. Where governments make registration Obtaining approval from spouse to start a easy, more entrepreneurs start businesses in the business, to leave the home to register the formal sector, creating more good jobs and company or open a bank account. generating more revenue for the government. Obtaining any gender specific document for company registration and operation, national What do the indicators cover? identification card or opening a bank Doing Business measures the ease of starting a account. business in an economy by recording all procedures Time required to complete each procedure officially required or commonly done in practice by (calendar days) an entrepreneur to start up and formally operate an industrial or commercial business—as well as the Does not include time spent gathering time and cost required to complete these procedures. information It also records the paid-in minimum capital that Each procedure starts on a separate day (2 companies must deposit before registration (or procedures cannot start on the same day). within 3 months). The ranking of economies on the Procedures that can be fully completed ease of starting a business is determined by sorting online are recorded as ½ day. their distance to frontier scores for starting a Procedure completed once final document is business. These scores are the simple average of the received distance to frontier scores for each of the component indicators. No prior contact with officials To make the data comparable across economies, Cost required to complete each procedure Doing Business uses several assumptions about the (% of income per capita) business and the procedures. It assumes that all Official costs only, no bribes information is readily available to the entrepreneur and that there has been no prior contact with No professional fees unless services required officials. It also assumes that the entrepreneur will by law pay no bribes. And it assumes that the business: Paid-in minimum capital (% of income  Is a limited liability company (or its legal per capita) equivalent). If there is more than one type Deposited in a bank or with a notary before of limited liability company in the registration (or within 3 months) economy, the limited liability form most common among domestic firms is chosen. Has at least 10 and up to 50 employees one Information on the most common form is month after the commencement of operations, all obtained from incorporation lawyers or the of them domestic nationals.. statistical office.  Has a turnover of at least 100 times income per Doing Business 2017 EUROPEAN UNION (EU) 15  Operates in the economy’s largest business capita.Has a company deed 10 pages long. city. For 11 economies the data are also collected for the second largest business The owners: city.  Have reached the legal age of majority and are  The size of the entire office space is capable of making decisions as an adult. If there approximately 929 square meters (10,000 is no legal age of majority, they are assumed to square feet). be 30 years old.  Does not qualify for investment incentives  Are sane, competent, in good health and have no or any special benefits. criminal record. .  Are married, the marriage is monogamous and registered with the authorities.  Where the answer differs according to the legal system applicable to the woman or man in question (as may be the case in economies where there is legal plurality), the answer used will be the one that applies to the majority of the population Doing Business 2017 EUROPEAN UNION (EU) 16 STARTING A BUSINESS Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in business suggest an answer (figure 2.1). The average European Union (EU) to start a business? The global ranking of the region and comparator regions provide a rankings of these economies on the ease of starting a useful benchmark. Figure 2.1 How economies in European Union (EU) rank on the ease of starting a business Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 17 STARTING A BUSINESS The indicators underlying the rankings may be more and the paid-in minimum capital requirement (figure revealing. Data collected by Doing Business show what 2.2). Comparing these indicators across the region and it takes to start a business in each economy in the with averages both for the region and for comparator region: the number of procedures, the time, the cost regions can provide useful insights. Figure 2.2 What it takes to start a business in economies in European Union (EU) Procedures (number) Doing Business 2017 EUROPEAN UNION (EU) 18 STARTING A BUSINESS Time (days) Doing Business 2017 EUROPEAN UNION (EU) 19 STARTING A BUSINESS Cost (% of income per capita) Doing Business 2017 EUROPEAN UNION (EU) 20 STARTING A BUSINESS Paid-in minimum capital (% of income per capita) Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 21 STARTING A BUSINESS What are the changes over time? Economies around the world have taken steps making it often as part of a larger regulatory reform program. easier to start a business—streamlining procedures by Among the benefits have been greater firm satisfaction setting up a one-stop shop, making procedures simpler and savings and more registered businesses, financial or faster by introducing technology, and reducing or resources and job opportunities. eliminating minimum capital requirements. Many have What business registration reforms has Doing Business undertaken business registration reforms in stages—and recorded in European Union (EU) (table 2.1)? Table 2.1 How have economies in European Union (EU) made starting a business easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by stopping the distribution of historical credit data. DB2017 Cyprus Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Doing Business 2017 EUROPEAN UNION (EU) 22 DB year Economy Reform Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Hungary made paying taxes less costly for small and DB2017 Hungary medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) purposes, as well as updating coefficients used for calculation DB2017 Italy of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying labor taxes was improved. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. DB2017 Malta Malta improved access to credit information by launching a Doing Business 2017 EUROPEAN UNION (EU) 23 DB year Economy Reform new credit registry. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater DB2017 Poland participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Malta simplified the process of starting a business by DB2017 Malta reducing the time needed to register a company. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, unemployment insurance and real estate taxes. The DB2017 Netherlands Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. Malta made paying taxes more costly by replacing the capital DB2017 Malta gains tax with a property transfer tax, increasing the maximum social security contribution paid by employers. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property DB2017 Spain tax rate, vehicle tax rate, tax on property transfer, and Doing Business 2017 EUROPEAN UNION (EU) 24 DB year Economy Reform abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring that major sales of company assets be subject to shareholder DB2016 Spain approval. The utility in Malta reduced the time required for getting an DB2016 Malta electricity connection by improving its supervision of trenching works. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. Romania made enforcing contracts easier by transferring DB2016 Romania some enforcement responsibilities from the court to the bailiff, by making it easier for the bailiff to obtain information Doing Business 2017 EUROPEAN UNION (EU) 25 DB year Economy Reform from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Malta made the transfer of a property more expensive by DB2016 Malta introducing the new property transfer tax. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Doing Business 2017 EUROPEAN UNION (EU) 26 DB year Economy Reform Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social insurance paid DB2016 Cyprus by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, published DB2016 Croatia in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the Doing Business 2017 EUROPEAN UNION (EU) 27 DB year Economy Reform architectural planning conditions. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. Ireland strengthened minority investor protections by DB2016 Ireland introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time DB2016 Italy and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Doing Business 2017 EUROPEAN UNION (EU) 28 DB year Economy Reform Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. Doing Business 2017 EUROPEAN UNION (EU) 29 DB year Economy Reform France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Doing Business 2017 EUROPEAN UNION (EU) 30 DB year Economy Reform Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. Malta made starting a business easier by creating an electronic link between the Registrar of Companies and the DB2015 Malta Inland Revenue Department to facilitate issuance of a tax identification number. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. Doing Business 2017 EUROPEAN UNION (EU) 31 DB year Economy Reform The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the DB2014 Spain requirement to obtain a municipal license before starting operations and by improving the efficiency of the commercial Doing Business 2017 EUROPEAN UNION (EU) 32 DB year Economy Reform registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Malta made dealing with construction permits less costly by DB2014 Malta significantly reducing the building permit fees. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Doing Business 2017 EUROPEAN UNION (EU) 33 DB year Economy Reform Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the minimum wage. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Denmark made dealing with construction permits more costly DB2014 Denmark by increasing the fee for building permits. Doing Business 2017 EUROPEAN UNION (EU) 34 DB year Economy Reform Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Doing Business 2017 EUROPEAN UNION (EU) 35 DB year Economy Reform Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Hungary made starting a business more complex by increasing the registration fees for limited liability companies DB2013 Hungary and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database Doing Business 2017 EUROPEAN UNION (EU) 36 DB year Economy Reform with positive credit information on individuals. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. Poland strengthened its insolvency process by updating DB2013 Poland guidelines on the information and documents that need to be included in the bankruptcy petition and by granting secured Doing Business 2017 EUROPEAN UNION (EU) 37 DB year Economy Reform creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. Doing Business 2017 EUROPEAN UNION (EU) 38 DB year Economy Reform Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems —though it DB2013 Poland also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the credit ors’ committee in a bankruptcy proceeding; prohibiting DB2013 Slovenia insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Doing Business 2017 EUROPEAN UNION (EU) 39 DB year Economy Reform Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. DB2012 Greece Greece reduced its corporate income tax rate. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Sweden increased the cost of transferring property between DB2012 Sweden companies. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. Doing Business 2017 EUROPEAN UNION (EU) 40 DB year Economy Reform The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Doing Business 2017 EUROPEAN UNION (EU) 41 DB year Economy Reform Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured DB2012 Lithuania creditors and introduce professional requirements for insolvency administrators. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. Cyprus strengthened investor protections by requiring DB2012 Cyprus greater corporate disclosure to the board of directors, to the public and in the annual report. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments Doing Business 2017 EUROPEAN UNION (EU) 42 DB year Economy Reform regime. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Amendments to Estonia’s recent insolvency law increased the chances that viable businesses will survive insolvency by DB2011 Estonia improving procedures and changing the qualification requirements for insolvency administrators. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. DB2011 Lithuania Lithuania reduced corporate tax rates. DB2011 Hungary Hungary simplified taxes and tax bases. DB2011 Latvia Latvia reduced the time to export and import by introducing Doing Business 2017 EUROPEAN UNION (EU) 43 DB year Economy Reform electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Doing Business 2017 EUROPEAN UNION (EU) 44 DB year Economy Reform Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. Latvia introduced a mechanism for out-of-court settlement of DB2011 Latvia insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Doing Business 2017 EUROPEAN UNION (EU) 45 DB year Economy Reform Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of adminis trators’ fees. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 46 DEALING WITH CONSTRUCTION PERMITS Regulation of construction is critical to protect the WHAT THE DEALING WITH CONSTRUCTION public. But it needs to be efficient, to avoid excessive PERMITS INDICATORS MEASURE constraints on a sector that plays an important part in every economy. Where complying with building regulations is excessively costly in time and money, Procedures to legally build a warehouse (number) many builders opt out. They may pay bribes to pass inspections or simply build illegally, leading to Submitting all relevant documents and hazardous construction that puts public safety at risk. obtaining all necessary clearances, licenses, Where compliance is simple, straightforward and permits and certificates inexpensive, everyone is better off. Submitting all required notifications and receiving all necessary inspections What do the indicators cover? Obtaining utility connections for water and Doing Business records all procedures required for a sewerage business in the construction industry to build a warehouse along with the time and cost to complete Registering and selling the warehouse after its each procedure. In addition, this year Doing Business completion introduces a new measure, the building quality Time required to complete each procedure control index, evaluating the quality of building (calendar days) regulations, the strength of quality control and safety Does not include time spent gathering mechanisms, liability and insurance regimes, and information professional certification requirements. Each procedure starts on a separate day. The ranking of economies on the ease of dealing with Procedures that can be fully completed online construction permits is determined by sorting their are recorded as ½ day distance to frontier scores for dealing with construction permits. These scores are the simple Procedure considered completed once final document is received average of the distance to frontier scores for each of the component indicators. No prior contact with officials To make the data comparable across economies, Cost required to complete each procedure (% several assumptions about the construction of warehouse value) company, the warehouse project and the utility Official costs only, no bribes connections are used. Assumptions about the construction company Building quality control index (0-15) Sum of the scores of six component indices: The construction company (BuildCo): Quality of building regulations (0-2)  Is a limited liability company (or its legal equivalent). Quality control before construction (0-1)  Operates in the economy’s largest business Quality control during construction (0-3) city. For 11 economies the data are also Quality control after construction (0-3) collected for the second largest business city. Liability and insurance regimes (0-2)  Is 100% domestically and privately owned Professional certifications (0-4)  Has five owners, none of whom is a legal entity..   Is fully licensed and insured to carry out  construction projects, such as building  Doing Business 2017 EUROPEAN UNION (EU) 47 warehouses.   The construction company (BuildCo) (continued):  Will be a new construction (there was no previous construction on the land), with no trees, natural  Has 60 builders and other employees, all of them water sources, natural reserves or historical nationals with the technical expertise and monuments of any kind on the plot. professional experience necessary to obtain construction permits and approvals.  Will have complete architectural and technical plans prepared by a licensed architect. If preparation of  Has a licensed architect and a licensed engineer, the plans requires such steps as obtaining further bothregistered with the local association of documentation or getting prior approvals from architects or engineers. BuildCo is not assumed external agencies, these are counted as procedures. to have any other employees who are technical or licensed experts, such as geological or  Will include all technical equipment required to be topographical experts. fully operational.  Has paid all taxes and taken out all necessary  Will take 30 weeks to construct (excluding all delays insurance applicable to its general business due to administrative and regulatory requirements). activity (for example, accidental insurance for  Assumptions about the utility connections construction workers and third-person liability).  The water and sewerage connections:  Owns the land on which the warehouse will be • Will be 150 meters (492 feet) from the existing built and will sell the warehouse upon its water source and sewer tap. If there is no water completion. delivery infrastructure in the economy, a borehole  Is valued at 50 times income per capita. will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be  Assumptions about the warehouse installed or built.  The warehouse:  Will not require water for fire protection reasons; a  Will be used for general storage activities, such fire extinguishing system (dry system) will be used as storage of books or stationery. The warehouse instead. If a wet fire protection system is required will not be used for any goods requiring special by law, it is assumed that the water demand conditions, such as food, chemicals or specified below also covers the water needed for pharmaceuticals. fire protection.  Will have two stories, both above ground, with a  Will have an average water use of 662 liters (175 total constructed area of approximately 1,300.6 gallons) a day and an average wastewater flow of square meters (14,000 square feet). Each floor will 568 liters (150 gallons) a day. Will have a peak be 3 meters (9 feet, 10 inches) high. water use of 1,325 liters (350 gallons) a day and a  Will have road access and be located in the peak wastewater flow of 1,136 liters (300 gallons) a day. periurban area of the economy’s largest business city (that is, on the fringes of the city but still  Will have a constant level of water demand and within its official limits). For 11 economies the wastewater flow throughout the year. data are also collected for the second largest  Will be 1 inch in diameter for the water connection business city. and 4 inches in diameter for the sewerage  • Will not be located in a special economic or connection. industrial zone. Will be located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo and is accurately registered in the cadastre and land registry. Doing Business 2017 EUROPEAN UNION (EU) 48 DEALING WITH CONSTRUCTION PERMITS Where do the region’s economies stand today? How easy it is for entrepreneurs in economies in dealing with construction permits suggest an answer European Union (EU) to legally build a warehouse? The (figure 3.1). The average ranking of the region and global rankings of these economies on the ease of comparator regions provide a useful benchmark. Figure 3.1 How economies in European Union (EU) rank on the ease of dealing with construction permits Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 49 DEALING WITH CONSTRUCTION PERMITS The indicators underlying the rankings may be more the time and the cost (figure 3.2). Comparing these revealing. Data collected by Doing Business show what it indicators across the region and with averages both for takes to comply with formalities to build a warehouse in the region and for comparator regions can provide each economy in the region: the number of procedures, useful insights. Figure 3.2 What it takes to comply with formalities to build a warehouse in economies in European Union (EU) Procedures (number) Doing Business 2017 EUROPEAN UNION (EU) 50 DEALING WITH CONSTRUCTION PERMITS Time (days) Doing Business 2017 EUROPEAN UNION (EU) 51 DEALING WITH CONSTRUCTION PERMITS Cost (% of warehouse value) * Indicates a “no practice” mark. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice” mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a competing regulation prohibits such practice. Either way, a “no practice” mark puts the economy at the bottom of the ranking on the relevant indicator. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 52 DEALING WITH CONSTRUCTION PERMITS Building Quality Control Index (0-15) * Indicates a “no practice” mark. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice” mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a competing regulation prohibits such practice. Either way, a “no practice” mark puts the economy at the bottom of the ranking on the relevant indicator. Note: The index ranges from 0 to 15, with higher values indicating better quality control and safety mechanisms in the construction permitting system. The indicator is based on the same case study assumptions as the measures of efficiency. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 53 DEALING WITH CONSTRUCTION PERMITS What are the changes over time? Smart regulation ensures that standards are met while compliance costs reasonable, governments around the making compliance easy and accessible to all. Coherent world have worked on consolidating permitting and transparent rules, efficient processes and adequate requirements. What construction permitting reforms has allocation of resources are especially important in sectors Doing Business recorded in European Union (EU) (table where safety is at stake. Construction is one of them. In 3.1)? an effort to ensure building safety while keeping Table 3.1 How have economies in European Union (EU) made dealing with construction permits easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by stopping the distribution of historical credit data. DB2017 Cyprus Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. Doing Business 2017 EUROPEAN UNION (EU) 54 DB year Economy Reform France made dealing with construction permits less DB2017 France expensive by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Hungary made paying taxes less costly for small and DB2017 Hungary medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) purposes, as well as updating coefficients used for DB2017 Italy calculation of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying labor taxes was improved. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Doing Business 2017 EUROPEAN UNION (EU) 55 DB year Economy Reform Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Malta improved access to credit information by launching a DB2017 Malta new credit registry. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater DB2017 Poland participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Malta simplified the process of starting a business by DB2017 Malta reducing the time needed to register a company. DB2017 Slovak Republic The Slovak Republic made paying taxes less costly and easier by reducing the motor vehicle tax and the number of Doing Business 2017 EUROPEAN UNION (EU) 56 DB year Economy Reform property tax payments. Portugal made paying taxes easier and less costly by using better accounting software and enhancing the online filing DB2017 Portugal system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, unemployment insurance and real estate taxes. The DB2017 Netherlands Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. Malta made paying taxes more costly by replacing the DB2017 Malta capital gains tax with a property transfer tax, increasing the maximum social security contribution paid by employers. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, DB2017 Spain and abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on DB2017 Greece adjournments, impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Doing Business 2017 EUROPEAN UNION (EU) 57 DB year Economy Reform Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring that major sales of company assets be subject to DB2016 Spain shareholder approval. The utility in Malta reduced the time required for getting an DB2016 Malta electricity connection by improving its supervision of trenching works. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of DB2016 Romania bankruptcy made) and for the implementation of the reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on Doing Business 2017 EUROPEAN UNION (EU) 58 DB year Economy Reform payment priority for claims of post-commencement creditors. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Malta made the transfer of a property more expensive by DB2016 Malta introducing the new property transfer tax. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. DB2016 Portugal Portugal introduced priority rules for redundancy dismissals Doing Business 2017 EUROPEAN UNION (EU) 59 DB year Economy Reform and new regulations for collective bargaining agreements. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a DB2016 Cyprus fast-track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate DB2016 Cyprus the continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social DB2016 Cyprus insurance paid by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. DB2016 Croatia 2) In accordance with the Minimal Wage Act, Art. 1, published in Official Gazette No.151/2014, the minimum Doing Business 2017 EUROPEAN UNION (EU) 60 DB year Economy Reform wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to DB2016 Lithuania perform the external connection works. Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, DB2016 Italy simplifying the rules for electronic service of process and automating the enforcement process. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt DB2016 Latvia provisions. On the other hand, Latvia reduced the rate for social security contributions paid by employers. DB2016 Lithuania Lithuania strengthened minority investor protections by prohibiting subsidiaries from acquiring shares issued by their Doing Business 2017 EUROPEAN UNION (EU) 61 DB year Economy Reform parent company. Ireland strengthened minority investor protections by DB2016 Ireland introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Latvia made transferring property easier by introducing a DB2016 Latvia new application form for transfers. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the DB2016 Italy time and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Doing Business 2017 EUROPEAN UNION (EU) 62 DB year Economy Reform Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time DB2015 France it takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Hungary made starting a business more difficult by DB2015 Hungary increasing the paid-in minimum capital requirement. Italy made starting a business easier by reducing both the DB2015 Italy minimum capital requirement and the paid-in minimum capital requirement and by streamlining registration Doing Business 2017 EUROPEAN UNION (EU) 63 DB year Economy Reform procedures. Italy relaxed the conditions for using fixed-term contracts DB2015 Italy but reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Belgium made resolving insolvency more difficult by DB2015 Belgium establishing additional requirements for commencing reorganization proceedings, including the submission of Doing Business 2017 EUROPEAN UNION (EU) 64 DB year Economy Reform documents verified by external parties. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. Malta made starting a business easier by creating an DB2015 Malta electronic link between the Registrar of Companies and the Inland Revenue Department to facilitate issuance of a tax Doing Business 2017 EUROPEAN UNION (EU) 65 DB year Economy Reform identification number. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a DB2015 Slovenia simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and large ones, by allowing creditors greater participation in the Doing Business 2017 EUROPEAN UNION (EU) 66 DB year Economy Reform management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by DB2014 Greece increasing the corporate income tax rate—though it also reduced the employers’ contribution rate to the social Doing Business 2017 EUROPEAN UNION (EU) 67 DB year Economy Reform security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Malta made dealing with construction permits less costly by DB2014 Malta significantly reducing the building permit fees. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. DB2014 United Kingdom The United Kingdom made transferring property easier by introducing electronic lodgment for property transfer Doing Business 2017 EUROPEAN UNION (EU) 68 DB year Economy Reform applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the minimum wage. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Denmark made dealing with construction permits more DB2014 Denmark costly by increasing the fee for building permits. Doing Business 2017 EUROPEAN UNION (EU) 69 DB year Economy Reform Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. Italy made enforcing contracts easier by regulating DB2014 Italy attorneys’ fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. DB2014 Italy Italy made transferring property easier by eliminating the requirement for an energy performance certificate for Doing Business 2017 EUROPEAN UNION (EU) 70 DB year Economy Reform commercial buildings with no heating system. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Doing Business 2017 EUROPEAN UNION (EU) 71 DB year Economy Reform Hungary made starting a business more complex by increasing the registration fees for limited liability companies and adding a new tax registration at the time of DB2013 Hungary incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Hungary improved access to credit information by passing DB2013 Hungary its first credit bureau law mandating the creation of a database with positive credit information on individuals. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. DB2013 Hungary Hungary reduced the time to export and import by allowing electronic submission of customs declarations and other Doing Business 2017 EUROPEAN UNION (EU) 72 DB year Economy Reform documents. Germany strengthened its insolvency process by adopting a new insolvency law that facilitates in-court restructurings of DB2013 Germany distressed companies and increases participation by creditors. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to DB2013 Poland be included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Doing Business 2017 EUROPEAN UNION (EU) 73 DB year Economy Reform Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. DB2013 Romania Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security Doing Business 2017 EUROPEAN UNION (EU) 74 DB year Economy Reform interests to the products, proceeds and replacement of collateral. The Netherlands strengthened investor protections through DB2013 Netherlands a new law regulating the approval of related-party transactions. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment DB2013 Poland systems—though it also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by DB2013 Portugal implementing an electronic single window for port procedures. The Netherlands made importing easier by introducing a DB2013 Netherlands new web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the DB2013 Poland civil procedure code and appointing more judges to commercial courts. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. DB2013 Greece Greece strengthened investor protections by requiring greater immediate and annual disclosure of material related- Doing Business 2017 EUROPEAN UNION (EU) 75 DB year Economy Reform party transactions. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ committee in a bankruptcy proceeding; prohibiting DB2013 Slovenia insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import DB2013 Czech Republic by allowing electronic submission of customs declarations and other documents. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. DB2012 Greece Greece reduced its corporate income tax rate. Doing Business 2017 EUROPEAN UNION (EU) 76 DB year Economy Reform The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Sweden increased the cost of transferring property between DB2012 Sweden companies. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Doing Business 2017 EUROPEAN UNION (EU) 77 DB year Economy Reform Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Portugal made starting a business easier by allowing company founders to choose the amount of minimum DB2012 Portugal capital and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Hungary made paying taxes costlier for firms by introducing DB2012 Hungary a sector-specific surtax Finland simplified reporting and payment for the value DB2012 Finland added tax and labor tax. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by DB2012 Lithuania abolishing the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and DB2012 Lithuania shorten reorganization proceedings, grant priority to secured creditors and introduce professional requirements for Doing Business 2017 EUROPEAN UNION (EU) 78 DB year Economy Reform insolvency administrators. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for DB2012 Belgium entrepreneurs by setting time limits and implementing its “e- notariat” system. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. Cyprus strengthened investor protections by requiring DB2012 Cyprus greater corporate disclosure to the board of directors, to the public and in the annual report. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the DB2012 Latvia tax status of property, eliminating the requirement to obtain this information in paper format. DB2012 Denmark Denmark introduced new rules on company reorganization, which led to the elimination of the suspension-of-payments Doing Business 2017 EUROPEAN UNION (EU) 79 DB year Economy Reform regime. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Belgium introduced a new law that will promote and DB2011 Belgium facilitate the survival of viable businesses experiencing financial difficulties. Amendments to Estonia’s recent insolvency law increased the chances that viable businesses will survive insolvency by DB2011 Estonia improving procedures and changing the qualification requirements for insolvency administrators. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. DB2011 Hungary Hungary reduced the property registration fee by 6% of the Doing Business 2017 EUROPEAN UNION (EU) 80 DB year Economy Reform property value. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. DB2011 Lithuania Lithuania reduced corporate tax rates. DB2011 Hungary Hungary simplified taxes and tax bases. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. Doing Business 2017 EUROPEAN UNION (EU) 81 DB year Economy Reform DB2011 Croatia Croatia increased the mandatory paid annual leave. Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also DB2011 Estonia removed restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Austria made it easier to transfer property by requiring DB2011 Austria online submission of all applications to register property transfers. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. Latvia introduced a mechanism for out-of-court settlement DB2011 Latvia of insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Doing Business 2017 EUROPEAN UNION (EU) 82 DB year Economy Reform Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed- DB2011 Slovak Republic term contracts. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. Doing Business 2017 EUROPEAN UNION (EU) 83 DB year Economy Reform Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 84 GETTING ELECTRICITY Access to reliable and affordable electricity is vital WHAT THE GETTING ELECTRICITY for businesses. To counter weak electricity supply, many firms in developing economies have to rely on INDICATORS MEASURE self-supply, often at a prohibitively high cost. Whether electricity is reliably available or not, the Procedures to obtain an electricity connection first step for a customer is always to gain access by (number) obtaining a connection. Submitting all relevant documents and What do the indicators cover? obtaining all necessary clearances and permits Doing Business records all procedures required for a Completing all required notifications and local business to obtain a permanent electricity receiving all necessary inspections connection and supply for a standardized Obtaining external installation works and warehouse, as well as the time and cost to complete possibly purchasing material for these works them. These procedures include applications and Concluding any necessary supply contract and contracts with electricity utilities, clearances from obtaining final supply other agencies and the external and final connection works. In addition, this year Doing Business adds Time required to complete each procedure two new measures: the reliability of supply and (calendar days) transparency of tariffs index (included in the Is at least 1 calendar day aggregate distance to frontier score and ranking on Each procedure starts on a separate day the ease of doing business) and the price of electricity (omitted from these aggregate measures). Does not include time spent gathering The ranking of economies on the ease of getting information electricity is determined by sorting their distance to Reflects the time spent in practice, with little frontier scores for getting electricity. These scores follow-up and no prior contact with officials are the simple average of the distance to frontier Cost required to complete each procedure (% scores for each of the component indicators. To of income per capita) make the data comparable across economies, several assumptions are used. Official costs only, no bribes Assumptions about the warehouse Excludes value added tax The reliability of supply and transparency of The warehouse: tariffs index  Is owned by a local entrepreneur. Sum of the scores of six component indices:  Is located in the economy’s largest business city. Duration and frequency of outages For 11 economies the data are also collected for the second largest business city. Tools to monitor power outages  Is located in an area where similar warehouses Tools to restore power supply are typically located. In this area a new Regulatory monitoring of utilities’ performance electricity connection is not eligible for a special Financial deterrents aimed at limiting outages investment promotion regime (offering special subsidization or faster service, for example). Transparency and accessibility of tariffs  It is located in an area with no physical Price of electricity (cents per kilowatt-hour)* constraints. For example, the property is not Price based on monthly bill for commercial near a railway. warehouse in case study  Is a new construction and is being connected to *Price of electricity is not included in the calculation of electricity for the first time. distance to frontier nor ease of doing business ranking Doing Business 2017 EUROPEAN UNION (EU) 85 The warehouse (continued):   Has two stories, both above ground, with a Assumptions about the monthly consumption total surface area of approximately 1,300.6 square meters (14,000 square feet). The plot  It is assumed that the warehouse operates 30 of land on which it is built is 929 square days a month from 9:00 a.m. to 5:00 p.m. (8 meters (10,000 square feet). hours a day), with equipment utilized at 80% of capacity on average and that there are no  Is used for storage of goods. electricity cuts (assumed for simplicity reasons).  The monthly energy consumption is 26,880 kilowatt- Assumptions about the electricity connection hours (kWh); hourly consumption is 112 kWh. The electricity connection:  If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.  Is a permanent one.  Tariffs effective in March of the current year are  Is a three-phase, four-wire Y connection used for calculation of the price of electricity for with a subscribed capacity of 140-kilo-volt- the warehouse. Although March has 31 days, for ampere (kVA) with a power factor of 1, calculation purposes only 30 days are used. when 1 kVA = 1 kilowatt (kW   Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more common in the area where the warehouse is located.Requires works that involve the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other owners’ private property because the warehouse has access to a road.  Includes only a negligible length in the customer’s private domain.  Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service panel or switchboard and the meter base. Doing Business 2017 EUROPEAN UNION (EU) 86 GETTING ELECTRICITY Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in 4.1). The average ranking of the region and comparator European Union (EU) to connect a warehouse to regions provide a useful benchmark. electricity? The global rankings of these economies on the ease of getting electricity suggest an answer (figure Figure 4.1 How economies in European Union (EU) rank on the ease of getting electricity Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 87 GETTING ELECTRICITY The indicators underlying the rankings may be more time and the cost (figure 4.2). Comparing these revealing. Data collected by Doing Business show what it indicators across the region and with averages both for takes to get a new electricity connection in each the region and for comparator regions can provide economy in the region: the number of procedures, the useful insights. Figure 4.2 What it takes to get an electricity connection in economies in European Union (EU) Procedures (number) Doing Business 2017 EUROPEAN UNION (EU) 88 GETTING ELECTRICITY Time (days) Doing Business 2017 EUROPEAN UNION (EU) 89 GETTING ELECTRICITY Cost (% of income per capita) Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 90 GETTING ELECTRICITY Reliability of supply and transparency of tariff index (0-8) Source: Doing Business database. Note: The index ranges from 0 to 8, with higher values indicating greater reliability of electricity supply and greater transparency of tariffs. Doing Business 2017 EUROPEAN UNION (EU) 91 GETTING ELECTRICITY What are the changes over time? Obtaining an electricity connection is essential to enable ensure safety in the connection process while keeping a business to conduct its most basic operations. In many connection costs reasonable, governments around the economies the connection process is complicated by the world have worked to consolidate requirements for multiple laws and regulations involved—covering service obtaining an electricity connection. What reforms in quality, general safety, technical standards, procurement getting electricity has Doing Business recorded in practices and internal wiring installations. In an effort to European Union (EU) (table 4.1)? Table 4.1 How have economies in European Union (EU) made getting electricity easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by stopping the distribution of historical credit data. DB2017 Cyprus Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Doing Business 2017 EUROPEAN UNION (EU) 92 DB year Economy Reform Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Hungary made paying taxes less costly for small and DB2017 Hungary medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) purposes, as well as updating coefficients used for calculation DB2017 Italy of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying labor taxes was improved. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Malta improved access to credit information by launching a DB2017 Malta new credit registry. Doing Business 2017 EUROPEAN UNION (EU) 93 DB year Economy Reform Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater DB2017 Poland participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Malta simplified the process of starting a business by DB2017 Malta reducing the time needed to register a company. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, unemployment insurance and real estate taxes. The DB2017 Netherlands Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. Malta made paying taxes more costly by replacing the capital DB2017 Malta gains tax with a property transfer tax, increasing the maximum social security contribution paid by employers. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property DB2017 Spain tax rate, vehicle tax rate, tax on property transfer, and abolishing the environmental fee. Spain made paying taxes Doing Business 2017 EUROPEAN UNION (EU) 94 DB year Economy Reform easier by introducing a new electronic system for filing social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring that major sales of company assets be subject to shareholder DB2016 Spain approval. The utility in Malta reduced the time required for getting an DB2016 Malta electricity connection by improving its supervision of trenching works. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. Romania made enforcing contracts easier by transferring DB2016 Romania some enforcement responsibilities from the court to the bailiff, by making it easier for the bailiff to obtain information Doing Business 2017 EUROPEAN UNION (EU) 95 DB year Economy Reform from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Malta made the transfer of a property more expensive by DB2016 Malta introducing the new property transfer tax. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Doing Business 2017 EUROPEAN UNION (EU) 96 DB year Economy Reform Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social insurance paid DB2016 Cyprus by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, published DB2016 Croatia in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. Doing Business 2017 EUROPEAN UNION (EU) 97 DB year Economy Reform Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. Ireland strengthened minority investor protections by DB2016 Ireland introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Doing Business 2017 EUROPEAN UNION (EU) 98 DB year Economy Reform Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time DB2016 Italy and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Doing Business 2017 EUROPEAN UNION (EU) 99 DB year Economy Reform Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Doing Business 2017 EUROPEAN UNION (EU) 100 DB year Economy Reform Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. Malta made starting a business easier by creating an electronic link between the Registrar of Companies and the DB2015 Malta Inland Revenue Department to facilitate issuance of a tax identification number. The Slovak Republic made starting a business easier by DB2015 Slovak Republic reducing the time needed to register with the district court Doing Business 2017 EUROPEAN UNION (EU) 101 DB year Economy Reform and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Doing Business 2017 EUROPEAN UNION (EU) 102 DB year Economy Reform Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Malta made dealing with construction permits less costly by DB2014 Malta significantly reducing the building permit fees. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the Doing Business 2017 EUROPEAN UNION (EU) 103 DB year Economy Reform geotechnical documentation of the land. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the DB2014 Slovak Republic requirement for third-party notification when terminating an employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and Doing Business 2017 EUROPEAN UNION (EU) 104 DB year Economy Reform increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the minimum wage. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Denmark made dealing with construction permits more costly DB2014 Denmark by increasing the fee for building permits. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. Doing Business 2017 EUROPEAN UNION (EU) 105 DB year Economy Reform France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Hungary made starting a business more complex by increasing the registration fees for limited liability companies DB2013 Hungary and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Doing Business 2017 EUROPEAN UNION (EU) 106 DB year Economy Reform Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and Doing Business 2017 EUROPEAN UNION (EU) 107 DB year Economy Reform reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Doing Business 2017 EUROPEAN UNION (EU) 108 DB year Economy Reform Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems —though it DB2013 Poland also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. Doing Business 2017 EUROPEAN UNION (EU) 109 DB year Economy Reform Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ committee in a bankruptcy proceeding; prohibiting DB2013 Slovenia insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. Doing Business 2017 EUROPEAN UNION (EU) 110 DB year Economy Reform DB2012 Greece Greece reduced its corporate income tax rate. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Sweden increased the cost of transferring property between DB2012 Sweden companies. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Doing Business 2017 EUROPEAN UNION (EU) 111 DB year Economy Reform Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured DB2012 Lithuania creditors and introduce professional requirements for insolvency administrators. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Doing Business 2017 EUROPEAN UNION (EU) 112 DB year Economy Reform Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. Cyprus strengthened investor protections by requiring DB2012 Cyprus greater corporate disclosure to the board of directors, to the public and in the annual report. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Amendments to Estonia’s recent insolvency law increased the DB2011 Estonia chances that viable businesses will survive insolvency by improving procedures and changing the qualification Doing Business 2017 EUROPEAN UNION (EU) 113 DB year Economy Reform requirements for insolvency administrators. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. DB2011 Lithuania Lithuania reduced corporate tax rates. DB2011 Hungary Hungary simplified taxes and tax bases. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Denmark eased business start-up by reducing the minimum DB2011 Denmark capital requirement for limited liability companies from 125,000 Danish kroner ($22,850) to 80,000 Danish kroner Doing Business 2017 EUROPEAN UNION (EU) 114 DB year Economy Reform ($14,620). Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. Latvia introduced a mechanism for out-of-court settlement of DB2011 Latvia insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Doing Business 2017 EUROPEAN UNION (EU) 115 DB year Economy Reform Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates Doing Business 2017 EUROPEAN UNION (EU) 116 DB year Economy Reform The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 117 REGISTERING PROPERTY Ensuring formal property rights is fundamental. WHAT THE REGISTERING PROPERTY Effective administration of land is part of that. If INDICATORS MEASURE formal property transfer is too costly or complicated, formal titles might go informal again. And where property is informal or poorly Procedures to legally transfer title on administered, it has little chance of being accepted immovable property (number) as collateral for loans—limiting access to finance. Preregistration (for example, checking for liens, notarizing sales agreement, paying property What do the indicators cover? transfer taxes) Doing Business records the full sequence of Registration in the economy’s largest business procedures necessary for a business to purchase city2 property from another business and transfer the property title to the buyer’s name. The transaction is Postregistration (for example, filing title with the municipality) considered complete when it is opposable to third parties and when the buyer can use the property, Time required to complete each procedure use it as collateral for a bank loan or resell it. In (calendar days) addition, this year Doing Business adds a new Does not include time spent gathering measure to the set of registering property information indicators, an index of the quality of the land administration system in each economy. The Each procedure starts on a separate day. ranking of economies on the ease of registering Procedures that can be fully completed online are recorded as ½ day. property is determined by sorting their distance to frontier scores for registering property. These scores Procedure considered completed once final are the simple average of the distance to frontier document is received scores for each of the component indicators. To No prior contact with officials make the data comparable across economies, several assumptions about the parties to the Cost required to complete each procedure transaction, the property and the procedures are (% of property value) used. Official costs only, no bribes The parties (buyer and seller): No value added or capital gains taxes included  Are limited liability companies (or the legal Quality of land administration index (0-30) equivalent).1.  Is located in a periurban commercial zone, and no  Are located in the periurban area of the rezoning is required. economy’s largest business city. For 11 economies the data are also collected for the  Has no mortgages attached, has been under the second largest business city same ownership for the past 10 years.  Are 100% domestically and privately owned  Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-story  Have 50 employees each, all of whom are warehouse of 929 square meters (10,000 square feet) nationals is located on the land. The warehouse is 10 years old,  Perform general commercial activities. is in good condition and complies with all safety standards, building codes and other legal requirements. It has no heating system. The property of land and building will be transferred in its entirety 1 For the 11 economies with a population of more than 100 million, data for a second city have been added. Doing Business 2017 EUROPEAN UNION (EU) 118 The property (fully owned by the seller):  Will not be subject to renovations or additional building following the purchase.  Has a value of 50 times income per capita. The sale price equals the value and entire property  Has no trees, natural water sources, natural reserves will be transferred. or historical monuments of any kind.  Is fully owned by the seller  Will not be used for special purposes, and no special permits, such as for residential use, industrial plants,  Is registered in the land registry or cada-stre, or waste storage or certain types of agricultural both, and is free of title disputes. activities, are required.  Has no occupants, and no other party holds a legal interest in it.  . Doing Business 2017 EUROPEAN UNION (EU) 119 REGISTERING PROPERTY Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in property suggest an answer (figure 5.1). The average European Union (EU) to transfer property? The global ranking of the region and comparator regions provide a rankings of these economies on the ease of registering useful benchmark. Figure 5.1 How economies in European Union (EU) rank on the ease of registering property Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 120 REGISTERING PROPERTY The indicators underlying the rankings may be more time and the cost (figure 5.2). Comparing these revealing. Data collected by Doing Business show what indicators across the region and with averages both for it takes to complete a property transfer in each the region and for comparator regions can provide economy in the region: the number of procedures, the useful insights. Figure 5.2 What it takes to register property in economies in European Union (EU) Procedures (number) Doing Business 2017 EUROPEAN UNION (EU) 121 REGISTERING PROPERTY Time (days) Doing Business 2017 EUROPEAN UNION (EU) 122 REGISTERING PROPERTY Cost (% of property value) * Indicates a “no practice” mark. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice” mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a competing regulation prohibits such practice. Either way, a “no practice” mark puts the economy at the bottom of the ranking on the relevant indicator. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 123 REGISTERING PROPERTY Quality of Land Administration Index (0-30) * Indicates a “no practice” mark. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice” mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a competing regulation prohibits such practice. Either way, a “no practice” mark puts the economy at the bottom of the ranking on the relevant indicator. Source: Doing Business database. Note: The index ranges from 0 to 30, with higher values indicating better quality of the land administration system. Doing Business 2017 EUROPEAN UNION (EU) 124 REGISTERING PROPERTY What are the changes over time? Economies worldwide have been making it easier for buyers to use or mortgage their property earlier. What entrepreneurs to register and transfer property—such as property registration reforms has Doing Business by computerizing land registries, introducing time limits recorded in European Union (EU) (table 5.1)? for procedures and setting low fixed fees. Many have cut the time required substantially—enabling Table 5.1 How have economies in European Union (EU) made registering property easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by stopping the distribution of historical credit data. DB2017 Cyprus Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Doing Business 2017 EUROPEAN UNION (EU) 125 DB year Economy Reform Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Hungary made paying taxes less costly for small and DB2017 Hungary medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) DB2017 Italy purposes, as well as updating coefficients used for calculation of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying Doing Business 2017 EUROPEAN UNION (EU) 126 DB year Economy Reform labor taxes was improved. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Malta improved access to credit information by launching a DB2017 Malta new credit registry. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater DB2017 Poland participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Doing Business 2017 EUROPEAN UNION (EU) 127 DB year Economy Reform Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Malta simplified the process of starting a business by DB2017 Malta reducing the time needed to register a company. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, unemployment insurance and real estate taxes. The DB2017 Netherlands Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. Malta made paying taxes more costly by replacing the capital DB2017 Malta gains tax with a property transfer tax, increasing the maximum social security contribution paid by employers. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property DB2017 Spain tax rate, vehicle tax rate, tax on property transfer, and abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social Doing Business 2017 EUROPEAN UNION (EU) 128 DB year Economy Reform security contributions. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring that major sales of company assets be subject to shareholder DB2016 Spain approval. DB2016 Malta The utility in Malta reduced the time required for getting an electricity connection by improving its supervision of Doing Business 2017 EUROPEAN UNION (EU) 129 DB year Economy Reform trenching works. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. DB2016 Netherlands The Netherlands made paying taxes more costly for companies by increasing employer-paid labor contributions Doing Business 2017 EUROPEAN UNION (EU) 130 DB year Economy Reform as well as road taxes, property taxes and polder board taxes. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Malta made the transfer of a property more expensive by DB2016 Malta introducing the new property transfer tax. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. DB2016 Croatia Croatia made enforcing contracts easier by introducing an Doing Business 2017 EUROPEAN UNION (EU) 131 DB year Economy Reform electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social insurance paid DB2016 Cyprus by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, published DB2016 Croatia in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. Doing Business 2017 EUROPEAN UNION (EU) 132 DB year Economy Reform Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. DB2016 Ireland Ireland strengthened minority investor protections by introducing provisions stipulating that directors can be held Doing Business 2017 EUROPEAN UNION (EU) 133 DB year Economy Reform liable for breach of their fiduciary duties. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time DB2016 Italy and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. DB2015 Lithuania Lithuania made dealing with construction permits easier by Doing Business 2017 EUROPEAN UNION (EU) 134 DB year Economy Reform reducing the time required for processing building permit applications. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Doing Business 2017 EUROPEAN UNION (EU) 135 DB year Economy Reform Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. DB2015 Croatia Croatia lifted the 3-year limit on the duration of first-time Doing Business 2017 EUROPEAN UNION (EU) 136 DB year Economy Reform fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Doing Business 2017 EUROPEAN UNION (EU) 137 DB year Economy Reform Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. Malta made starting a business easier by creating an electronic link between the Registrar of Companies and the DB2015 Malta Inland Revenue Department to facilitate issuance of a tax identification number. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. Doing Business 2017 EUROPEAN UNION (EU) 138 DB year Economy Reform Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. Doing Business 2017 EUROPEAN UNION (EU) 139 DB year Economy Reform The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. DB2014 Malta Malta made dealing with construction permits less costly by Doing Business 2017 EUROPEAN UNION (EU) 140 DB year Economy Reform significantly reducing the building permit fees. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. DB2014 Poland Poland made starting a business easier by eliminating the requirement to register the new company at the National Doing Business 2017 EUROPEAN UNION (EU) 141 DB year Economy Reform Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the minimum wage. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Denmark made dealing with construction permits more costly DB2014 Denmark by increasing the fee for building permits. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. DB2014 Croatia Croatia made paying taxes easier for companies by Doing Business 2017 EUROPEAN UNION (EU) 142 DB year Economy Reform introducing an electronic system for social security contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Doing Business 2017 EUROPEAN UNION (EU) 143 DB year Economy Reform Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. DB2013 Hungary Hungary made starting a business more complex by increasing the registration fees for limited liability companies Doing Business 2017 EUROPEAN UNION (EU) 144 DB year Economy Reform and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Doing Business 2017 EUROPEAN UNION (EU) 145 DB year Economy Reform Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. DB2013 Portugal Portugal made resolving insolvency easier by introducing a new insolvency law that expedites liquidation procedures and Doing Business 2017 EUROPEAN UNION (EU) 146 DB year Economy Reform creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. Doing Business 2017 EUROPEAN UNION (EU) 147 DB year Economy Reform The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems —though it DB2013 Poland also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by DB2013 Slovak Republic adopting several amendments to the code of civil procedure intended to simplify and speed up proceedings as well as to Doing Business 2017 EUROPEAN UNION (EU) 148 DB year Economy Reform limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ committee in a bankruptcy proceeding; prohibiting DB2013 Slovenia insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. DB2013 Czech Republic The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial Doing Business 2017 EUROPEAN UNION (EU) 149 DB year Economy Reform registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. DB2012 Greece Greece reduced its corporate income tax rate. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Sweden increased the cost of transferring property between DB2012 Sweden companies. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. DB2012 Poland Poland made trading across borders faster by implementing electronic preparation and submission of customs Doing Business 2017 EUROPEAN UNION (EU) 150 DB year Economy Reform documents. The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Doing Business 2017 EUROPEAN UNION (EU) 151 DB year Economy Reform Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured DB2012 Lithuania creditors and introduce professional requirements for insolvency administrators. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. DB2012 Belgium Belgium increased the severance payment obligation. Doing Business 2017 EUROPEAN UNION (EU) 152 DB year Economy Reform Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. Cyprus strengthened investor protections by requiring DB2012 Cyprus greater corporate disclosure to the board of directors, to the public and in the annual report. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. Doing Business 2017 EUROPEAN UNION (EU) 153 DB year Economy Reform Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Amendments to Estonia’s recent insolvency law increased the chances that viable businesses will survive insolvency by DB2011 Estonia improving procedures and changing the qualification requirements for insolvency administrators. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. Doing Business 2017 EUROPEAN UNION (EU) 154 DB year Economy Reform DB2011 Lithuania Lithuania reduced corporate tax rates. DB2011 Hungary Hungary simplified taxes and tax bases. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Doing Business 2017 EUROPEAN UNION (EU) 155 DB year Economy Reform Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. Latvia introduced a mechanism for out-of-court settlement of DB2011 Latvia insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. Doing Business 2017 EUROPEAN UNION (EU) 156 DB year Economy Reform Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Doing Business 2017 EUROPEAN UNION (EU) 157 DB year Economy Reform Portugal established a one-stop shop for property DB2011 Portugal registration. Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. Doing Business 2017 EUROPEAN UNION (EU) 158 Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. GETTING CREDIT Two types of frameworks can facilitate access to WHAT THE GETTING CREDIT INDICATORS credit and improve its allocation: credit information MEASURE systems and borrowers and lenders in collateral and bankruptcy laws. Credit information systems enable lenders’ rights to view a potential borrower’s financial Strength of legal rights index (0–12) history (positive or negative)—valuable information to Rights of borrowers and lenders through consider when assessing risk. And they permit collateral laws borrowers to establish a good credit history that will Protection of secured creditors’ rights through allow easier access to credit. Sound collateral laws bankruptcy laws enable businesses to use their assets, especially movable property, as security to generate capital— Depth of credit information index (0–8) while strong creditors’ rights have been associated Scope and accessibility of credit information with higher ratios of private sector credit to GDP. distributed by credit bureaus and credit registries What do the indicators cover? Credit bureau coverage (% of adults) Doing Business assesses the sharing of credit information and the legal rights of borrowers and Number of individuals and firms listed in largest lenders with respect to secured transactions through credit bureau as percentage of adult population 2 sets of indicators. The depth of credit information Credit registry coverage (% of adults) index measures rules and practices affecting the coverage, scope and accessibility of credit Number of individuals and firms listed in credit registry as percentage of adult population information available through a credit registry or a credit bureau. The strength of legal rights index measures whether certain features that facilitate lending exist within the applicable collateral and bankruptcy laws. Doing Business uses two case scenarios, Case A and Case B, to determine the scope of the secured transactions system, involving a  Has up to 50 employees. secured borrower and a secured lender and  Is 100% domestically owned, as is the lender. examining legal restrictions on the use of movable  The ranking of economies on the ease of getting collateral (for more details on each case, see the Data credit is determined by sorting their distance to Notes section of the Doing Business 2017 report). frontier scores for getting credit. These scores are These scenarios assume that the borrower: the distance to frontier score for the strength of  Is a private limited liability company. legal rights index and the depth of credit  Has its headquarters and only base of operations information index. in the largest business city. For the 11 economies with a population of more than 100 million, data for a second city have been added. Doing Business 2017 EUROPEAN UNION (EU) 159 GETTING CREDIT Where do the region’s economies stand today? How well do the credit information systems and of these economies on the ease of getting credit suggest collateral and bankruptcy laws in economies in European an answer (figure 6.1). The average ranking of the region Union (EU) facilitate access to credit? The global rankings and comparator regions provide a useful benchmark. Figure 6.1 How economies in European Union (EU) rank on the ease of getting credit Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 160 GETTING CREDIT Another way to assess how well regulations and the strength of legal rights index for European Union institutions support lending and borrowing in the region (EU) and comparators on the strength of legal rights is to see where the region stands in the distribution of index. Figure 6.3 shows the same thing for the depth of scores across regions. Figure 6.2 highlights the score on credit information index. Figure 6.2 How strong are legal rights for borrowers and lenders? Region scores on strength of legal rights index Note: Higher scores indicate that collateral and bankruptcy laws are better designed to facilitate access to credit. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 161 Figure 6.3 How much credit information is shared—and how widely? Region scores on depth of credit information index Note: Higher scores indicate the availability of more credit information, from either a credit registry or a credit bureau, to facilitate lending decisions. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 162 GETTING CREDIT What are the changes over time? When economies strengthen the legal rights of lenders information, they can increase entrepreneurs’ access to and borrowers under collateral and bankruptcy laws, and credit. What credit reforms has Doing Business recorded increase the scope, coverage and accessibility of credit in European Union (EU) (table 6.1)? Table 6.1 How have economies in European Union (EU) made getting credit easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by stopping the distribution of historical credit data. DB2017 Cyprus Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. Doing Business 2017 EUROPEAN UNION (EU) 163 DB year Economy Reform France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Hungary made paying taxes less costly for small and DB2017 Hungary medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) purposes, as well as updating coefficients used for calculation DB2017 Italy of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying labor taxes was improved. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Doing Business 2017 EUROPEAN UNION (EU) 164 DB year Economy Reform Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Malta improved access to credit information by launching a DB2017 Malta new credit registry. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater DB2017 Poland participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Malta simplified the process of starting a business by DB2017 Malta reducing the time needed to register a company. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Doing Business 2017 EUROPEAN UNION (EU) 165 DB year Economy Reform Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, unemployment insurance and real estate taxes. The DB2017 Netherlands Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. Malta made paying taxes more costly by replacing the capital DB2017 Malta gains tax with a property transfer tax, increasing the maximum social security contribution paid by employers. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, and DB2017 Spain abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by DB2016 Greece reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible Doing Business 2017 EUROPEAN UNION (EU) 166 DB year Economy Reform and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring that major sales of company assets be subject to shareholder DB2016 Spain approval. The utility in Malta reduced the time required for getting an DB2016 Malta electricity connection by improving its supervision of trenching works. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. DB2016 United Kingdom The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and Doing Business 2017 EUROPEAN UNION (EU) 167 DB year Economy Reform increasing the wage amount per employee that is exempted from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Malta made the transfer of a property more expensive by DB2016 Malta introducing the new property transfer tax. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Cyprus improved access to credit information by allowing DB2016 Cyprus credit bureaus to collect and report positive credit information and to report credit histories for both borrowers Doing Business 2017 EUROPEAN UNION (EU) 168 DB year Economy Reform and guarantors. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social insurance paid DB2016 Cyprus by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, published DB2016 Croatia in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. DB2016 Lithuania The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform Doing Business 2017 EUROPEAN UNION (EU) 169 DB year Economy Reform the external connection works. Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. Ireland strengthened minority investor protections by DB2016 Ireland introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Doing Business 2017 EUROPEAN UNION (EU) 170 DB year Economy Reform Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time DB2016 Italy and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Doing Business 2017 EUROPEAN UNION (EU) 171 DB year Economy Reform Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. DB2015 France France substantially amended its labor market regulations, including the provisions dealing with large-scale collective Doing Business 2017 EUROPEAN UNION (EU) 172 DB year Economy Reform redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. DB2015 Belgium Belgium increased the notice period for redundancy Doing Business 2017 EUROPEAN UNION (EU) 173 DB year Economy Reform dismissals. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. Malta made starting a business easier by creating an electronic link between the Registrar of Companies and the DB2015 Malta Inland Revenue Department to facilitate issuance of a tax identification number. The Slovak Republic made starting a business easier by DB2015 Slovak Republic reducing the time needed to register with the district court and eliminating the need (and therefore the fee) for the Doing Business 2017 EUROPEAN UNION (EU) 174 DB year Economy Reform verification of signatures by a notary public. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. DB2015 Spain Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions Doing Business 2017 EUROPEAN UNION (EU) 175 DB year Economy Reform applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Doing Business 2017 EUROPEAN UNION (EU) 176 DB year Economy Reform Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Malta made dealing with construction permits less costly by DB2014 Malta significantly reducing the building permit fees. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. Doing Business 2017 EUROPEAN UNION (EU) 177 DB year Economy Reform The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the minimum wage. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Denmark made dealing with construction permits more costly DB2014 Denmark by increasing the fee for building permits. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Doing Business 2017 EUROPEAN UNION (EU) 178 DB year Economy Reform Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Doing Business 2017 EUROPEAN UNION (EU) 179 DB year Economy Reform Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Hungary made starting a business more complex by increasing the registration fees for limited liability companies DB2013 Hungary and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Doing Business 2017 EUROPEAN UNION (EU) 180 DB year Economy Reform Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Doing Business 2017 EUROPEAN UNION (EU) 181 DB year Economy Reform Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the DB2013 Slovenia claims within 4 years; giving greater power to the creditors’ committee in a bankruptcy proceeding; prohibiting insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and Doing Business 2017 EUROPEAN UNION (EU) 182 DB year Economy Reform establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. Doing Business 2017 EUROPEAN UNION (EU) 183 DB year Economy Reform Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems —though it DB2013 Poland also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. DB2013 Slovenia Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of Doing Business 2017 EUROPEAN UNION (EU) 184 DB year Economy Reform social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. DB2012 Greece Greece reduced its corporate income tax rate. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. DB2012 Greece Greece decreased the severance pay applicable in case of Doing Business 2017 EUROPEAN UNION (EU) 185 DB year Economy Reform redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Sweden increased the cost of transferring property between DB2012 Sweden companies. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Doing Business 2017 EUROPEAN UNION (EU) 186 DB year Economy Reform Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured DB2012 Lithuania creditors and introduce professional requirements for insolvency administrators. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. Doing Business 2017 EUROPEAN UNION (EU) 187 DB year Economy Reform France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. Cyprus strengthened investor protections by requiring DB2012 Cyprus greater corporate disclosure to the board of directors, to the public and in the annual report. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. Doing Business 2017 EUROPEAN UNION (EU) 188 DB year Economy Reform Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Amendments to Estonia’s recent insolvency law increased the chances that viable businesses will survive insolvency by DB2011 Estonia improving procedures and changing the qualification requirements for insolvency administrators. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. Doing Business 2017 EUROPEAN UNION (EU) 189 DB year Economy Reform DB2011 Lithuania Lithuania reduced corporate tax rates. DB2011 Hungary Hungary simplified taxes and tax bases. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Estonia eliminated the applicable priority rules for dismissals DB2011 Estonia as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed Doing Business 2017 EUROPEAN UNION (EU) 190 DB year Economy Reform restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. Latvia introduced a mechanism for out-of-court settlement of DB2011 Latvia insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. Doing Business 2017 EUROPEAN UNION (EU) 191 DB year Economy Reform Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates DB2011 United Kingdom The United Kingdom improved the process for enforcing contracts by modernizing civil procedures in the commercial Doing Business 2017 EUROPEAN UNION (EU) 192 DB year Economy Reform court. Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 193 PROTECTING MINORITY INVESTORS Protecting minority investors matters for the ability of WHAT THE PROTECTING MINORITY INVESTORS companies to raise the capital they need to grow, INDICATORS MEASURE innovate, diversify and compete. Effective regulations define related-party transactions precisely, promote clear and efficient disclosure requirements, require Extent of disclosure index (0–10) shareholder participation in major decisions of the Review and approval requirements for related-party company and set detailed standards of accountability transactions ; Disclosure requirements for related-party for company insiders. transactions What do the indicators cover? Extent of director liability index (0–10) Doing Business measures the protection of minority Ability of minority shareholders to sue and hold interested investors from conflicts of interest through one set of directors liable for prejudicial related-party transactions; indicators and shareholders’ rights in corporate Available legal remedies (damages, disgorgement of profits, governance through another. The ranking of economies fines, imprisonment, rescission of the transaction) on the strength of minority investor protections is determined by sorting their distance to frontier scores Ease of shareholder suits index (0–10) for protecting minority investors. These scores are the Access to internal corporate documents; Evidence simple average of the distance to frontier scores for the obtainable during trial and allocation of legal expenses extent of conflict of interest regulation index and the Extent of conflict of interest regulation index extent of shareholder governance index. To make the (0–10) data comparable across economies, a case study uses Simple average of the extent of disclosure, extent of director several assumptions about the business and the liability and ease of shareholder indices transaction. Extent of shareholder rights index (0-10) The business (Buyer): Shareholders’ rights and role in major corporate decisions  Is a publicly traded corporation listed on the economy’s most important stock exchange. If Extent of ownership and control index (0-10) the number of publicly traded companies listed Governance safeguards protecting shareholders from undue on that exchange is less than 10, or if there is board control and entrenchment no stock exchange in the economy, it is Extent of corporate transparency index (0-10) assumed that Buyer is a large private company with multiple shareholders. Corporate transparency on ownership stakes, compensation,  Has a board of directors and a chief executive audits and financial prospects officer (CEO) who may legally act on behalf of Extent of shareholder governance index (0– Buyer where permitted, even if this is not 10) specifically required by law. Simple average of the extent of shareholders rights, extent  Has a supervisory board (applicable to of ownership and control and extent of corporate economies with a two-tier board system) on transparency indices which 60% of the shareholder-elected Strength of investor protection index (0–10) members have been appointed by Mr. James, who is Buyer’s controlling shareholder and a Simple average of the extent of conflict of interest regulation and extent of shareholder governance indices member of Buyer’s board of directors.  Has not adopted any bylaws or articles of association that differ from default minimum  standards and does not follow any nonmandatory codes, principles, Doing Business 2017 EUROPEAN UNION (EU) 194 recommendations or guidelines relating to corporate governance.  Is a manufacturing company with its own distribution network The transaction involves the following details:  Mr. James owns 60% of Buyer and elected two directors to Buyer’s five-member board.  Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores. Seller recently closed a large number of its stores.  Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of Buyer’s assets and is higher than the market value.  The proposed transaction is part of the company’s ordinary course of business and is not outside the authority of the company.  Buyer enters into the transaction. All required approvals are obtained, and all required disclosures made (that is, the transaction is not fraudulent).  The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. . Doing Business 2017 EUROPEAN UNION (EU) 195 PROTECTING MINORITY INVESTORS Where do the region’s economies stand today? How strong are investor protections against self-dealing protection of minority investors, a higher ranking does in economies in European Union (EU)? The global indicate that an economy’s regulations offer stronger rankings of these economies on the strength of investor investor protections against self-dealing in the areas protection index suggest an answer (figure 7.1). While measured. the indicator does not measure all aspects related to the Figure 7.1 How economies in European Union (EU) rank on the strength of investor protection index Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 196 PROTECTING MINORITY INVESTORS The strength of minority investor protection index is the highlight the scores on the various minority investor average of the extent of conflict of interest regulation protection indices for European Union (EU). Comparing index and the extent of shareholder governance index. the scores across the region and with averages both for The index ranges from 0 to 10, rounded to the nearest the region and for comparator regions can provide decimal place, with higher values indicating stronger useful insights. minority investor protections. Figures 7.2 and 7.3 Figure 7.2 How extensive are conflict of interest regulations? Extent of conflict of interest regulation index (0-10) Note: Higher values indicate stronger regulation of conflicts of interest. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 197 Figure 7.3 How extensive is shareholder governance? Extent of shareholder governance index (0-10) Note: Higher scores indicate stronger rights of shareholders in corporate governance. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 198 PROTECTING MINORITY INVESTORS What are the changes over time? Economies with the strongest protections of minority reforms to strengthen minority investor protections may investors from self-dealing require detailed disclosure move ahead on different fronts—such as through new or and define clear duties for directors. They also have well- amended company laws, securities regulations or functioning courts and up-to-date procedural rules that revisions to court procedures. What minority investor give minority shareholders the means to prove their case protection reforms has Doing Business recorded in and obtain a judgment within a reasonable time. So European Union (EU) (table 7.1)? Table 7.1 How have economies in European Union (EU) strengthened minority investor protections—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by stopping the distribution of historical credit data. DB2017 Cyprus Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Doing Business 2017 EUROPEAN UNION (EU) 199 DB year Economy Reform Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Hungary made paying taxes less costly for small and DB2017 Hungary medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) purposes, as well as updating coefficients used for calculation DB2017 Italy of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying labor taxes was improved. Doing Business 2017 EUROPEAN UNION (EU) 200 DB year Economy Reform Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Malta improved access to credit information by launching a DB2017 Malta new credit registry. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater DB2017 Poland participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. DB2017 Romania Romania made starting a business more difficult by increasing the time to register for Value Added Tax. Doing Business 2017 EUROPEAN UNION (EU) 201 DB year Economy Reform Malta simplified the process of starting a business by DB2017 Malta reducing the time needed to register a company. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, unemployment insurance and real estate taxes. The DB2017 Netherlands Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. Malta made paying taxes more costly by replacing the capital DB2017 Malta gains tax with a property transfer tax, increasing the maximum social security contribution paid by employers. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, and DB2017 Spain abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. Doing Business 2017 EUROPEAN UNION (EU) 202 DB year Economy Reform The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring that major sales of company assets be subject to shareholder DB2016 Spain approval. The utility in Malta reduced the time required for getting an DB2016 Malta electricity connection by improving its supervision of trenching works. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. DB2016 Romania Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the Doing Business 2017 EUROPEAN UNION (EU) 203 DB year Economy Reform bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by DB2016 Portugal reducing the corporate income tax rate and increasing the allowable amount of the loss carried forward. At the same Doing Business 2017 EUROPEAN UNION (EU) 204 DB year Economy Reform time, Portugal slightly increased the vehicle tax. Malta made the transfer of a property more expensive by DB2016 Malta introducing the new property transfer tax. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, DB2016 Cyprus Cyprus raised the contribution rate for social insurance paid by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and Doing Business 2017 EUROPEAN UNION (EU) 205 DB year Economy Reform increased the vehicle tax. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, published DB2016 Croatia in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. Doing Business 2017 EUROPEAN UNION (EU) 206 DB year Economy Reform France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. Ireland strengthened minority investor protections by DB2016 Ireland introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time DB2016 Italy and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. Doing Business 2017 EUROPEAN UNION (EU) 207 DB year Economy Reform 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Doing Business 2017 EUROPEAN UNION (EU) 208 DB year Economy Reform Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Croatia made paying taxes more complicated for companies DB2015 Croatia by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing more detailed filing requirements for VAT. On the other hand, Doing Business 2017 EUROPEAN UNION (EU) 209 DB year Economy Reform it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Doing Business 2017 EUROPEAN UNION (EU) 210 DB year Economy Reform Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. Malta made starting a business easier by creating an electronic link between the Registrar of Companies and the DB2015 Malta Inland Revenue Department to facilitate issuance of a tax identification number. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. DB2015 Greece Greece made enforcing contracts easier by introducing an electronic filing system for court users. Doing Business 2017 EUROPEAN UNION (EU) 211 DB year Economy Reform Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Doing Business 2017 EUROPEAN UNION (EU) 212 DB year Economy Reform Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. DB2014 Netherlands The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act Doing Business 2017 EUROPEAN UNION (EU) 213 DB year Economy Reform that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Malta made dealing with construction permits less costly by DB2014 Malta significantly reducing the building permit fees. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Doing Business 2017 EUROPEAN UNION (EU) 214 DB year Economy Reform Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the minimum wage. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Denmark made dealing with construction permits more costly DB2014 Denmark by increasing the fee for building permits. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. DB2014 Croatia Croatia made paying taxes easier for companies by introducing an electronic system for social security Doing Business 2017 EUROPEAN UNION (EU) 215 DB year Economy Reform contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible DB2014 Latvia to file the applications for company registration and value added tax registration simultaneously at the commercial Doing Business 2017 EUROPEAN UNION (EU) 216 DB year Economy Reform registry. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Hungary made starting a business more complex by increasing the registration fees for limited liability companies DB2013 Hungary and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. DB2013 Ireland Ireland made starting a business easier by introducing a new Doing Business 2017 EUROPEAN UNION (EU) 217 DB year Economy Reform online facility for business registration. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Doing Business 2017 EUROPEAN UNION (EU) 218 DB year Economy Reform Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Doing Business 2017 EUROPEAN UNION (EU) 219 DB year Economy Reform Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. Romania strengthened its legal framework for secured DB2013 Romania transactions by allowing the automatic extension of security interests to the products, proceeds and replacement of Doing Business 2017 EUROPEAN UNION (EU) 220 DB year Economy Reform collateral. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems —though it DB2013 Poland also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. DB2013 Greece Greece strengthened investor protections by requiring greater immediate and annual disclosure of material related- Doing Business 2017 EUROPEAN UNION (EU) 221 DB year Economy Reform party transactions. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ committee in a bankruptcy proceeding; prohibiting DB2013 Slovenia insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. Doing Business 2017 EUROPEAN UNION (EU) 222 DB year Economy Reform DB2012 Greece Greece reduced its corporate income tax rate. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Sweden increased the cost of transferring property between DB2012 Sweden companies. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. DB2012 Slovenia Slovenia made transferring property easier and less costly by Doing Business 2017 EUROPEAN UNION (EU) 223 DB year Economy Reform introducing online procedures and reducing fees. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Doing Business 2017 EUROPEAN UNION (EU) 224 DB year Economy Reform Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured DB2012 Lithuania creditors and introduce professional requirements for insolvency administrators. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. Cyprus strengthened investor protections by requiring DB2012 Cyprus greater corporate disclosure to the board of directors, to the public and in the annual report. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. Doing Business 2017 EUROPEAN UNION (EU) 225 DB year Economy Reform Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Amendments to Estonia’s recent insolvency law increased the chances that viable businesses will survive insolvency by DB2011 Estonia improving procedures and changing the qualification requirements for insolvency administrators. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Doing Business 2017 EUROPEAN UNION (EU) 226 DB year Economy Reform Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. DB2011 Lithuania Lithuania reduced corporate tax rates. DB2011 Hungary Hungary simplified taxes and tax bases. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Doing Business 2017 EUROPEAN UNION (EU) 227 DB year Economy Reform Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. Doing Business 2017 EUROPEAN UNION (EU) 228 DB year Economy Reform Latvia introduced a mechanism for out-of-court settlement of DB2011 Latvia insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. Doing Business 2017 EUROPEAN UNION (EU) 229 DB year Economy Reform Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. Doing Business 2017 EUROPEAN UNION (EU) 230 DB year Economy Reform The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 231 WHAT THE PAYING TAXES INDICATORS PAYING TAXES Taxes are essential. The level of tax rates needs to MEASURE be carefully chosen—and needless complexity in tax rules avoided. Firms in economies that rank Tax payments for a manufacturing company better on the ease of paying taxes in the Doing in 2014 (number per year adjusted for Business study tend to perceive both tax rates and electronic and joint filing and payment) tax administration as less of an obstacle to Total number of taxes and contributions paid, business according to the World Bank Enterprise including consumption taxes (value added tax, Survey research. sales tax or goods and service tax) Method and frequency of filing and payment What do the indicators cover? Time required to comply with 3 major taxes Using a case scenario, Doing Business records the (hours per year) taxes and mandatory contributions that a medium- size company must pay in a given year as well as Collecting information and computing the tax measures of the administrative burden of paying payable taxes and contributions and dealing with postfiling Completing tax return forms, filing with processes. This case scenario uses a set of financial proper agencies statements and assumptions about transactions Arranging payment or withholding made over the year. Information is also compiled on the frequency of filing and payments, time taken to Preparing separate tax accounting books, if comply with tax laws, time taken to comply with the required requirements of postfiling processes and time Total tax rate (% of profit before all taxes) waiting for these processes to be completed. The ranking of economies on the ease of paying taxes is Profit or corporate income tax determined by sorting their distance to frontier Social contributions and labor taxes paid by scores on the ease of paying taxes. These scores are the employer the simple average of the distance to frontier scores Property and property transfer taxes for each of the four component indicators – number of tax payments. time, total tax rate and postfiling Dividend, capital gains and financial index – with a threshold and a nonlinear transactions taxes transformation applied to one of the component Waste collection, vehicle, road and other taxes indicators, the total tax rate2. If both VAT (or GST) Postfiling Index and corporate income tax apply, the postfiling index is the simple average of the distance to frontier sores The time to comply with a VAT or GST refund for each of the four components: the time to comply The time to receive a VAT or GST refund with a VAT or GST refund, the time to obtain a VAT The time to comply with a corporate income or GST refund, the time to comply with a corporate tax audit income tax audit and the time to complete a The time to complete a corporate income corporate income tax audit. If only VAT (or GST) or tax audit corporate income applies, the postfiling index is the simple average of the scores for only the two components pertaining to the applicable tax. If  neither VAT (or GST) nor corporate income tax  applies, the postfiling index is not included in the ranking of the ease of paying taxes.  2 The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is defined as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Doing Business 2017 EUROPEAN UNION (EU) 232  Taxes and mandatory contributions include Assumptions about the corporate income tax corporate income tax, turnover tax and all labor audit process: taxes and contributions paid by the company. A range of standard deductions and exemptions  An error in the calculation of the income tax liability are also recorded. (for example, use of incorrect tax depreciation rates, or incorrectly treating an expense as tax deductible) All financial statement variables are proportional to leads to an incorrect income tax return and 2012 income per capita. To make the data consequently an underpayment of corporate comparable across economies, several assumptions income tax. are used.  TaxpayerCo. discovered the error and voluntarily  TaxpayerCo is a medium-size business that notified the tax authority of the error in the started operations on January 1, 2014. corporate income tax return.  The business starts from the same financial  position in each economy. All the taxes and mandatory contributions paid during the second  year of operation are recorded.   Taxes and mandatory contributions are measured at all levels of government. Assumptions about the VAT refund process:  In June 2015, TaxpayerCo. makes a large capital purchase: one additional machine for manufacturing pots.  The value of the machine is 65 times income per capita of the economy.  Sales are equally spread per month (that is, 1,050 times income per capita divided by 12).  Cost of goods sold are equally expensed per month (that is, 875 times income per capita divided by 12).  The seller of the machinery is registered for VAT or general sales tax (GST).  Excess input VAT incurred in June will be fully recovered after four consecutive months if the VAT or GST rate is the same for inputs, sales and the machine and the tax reporting period is every month.   Doing Business 2017 EUROPEAN UNION (EU) 233 PAYING TAXES Where do the region’s economies stand today? What is the administrative burden of complying with information for assessing the tax compliance burden for taxes in economies in European Union (EU)—and how businesses (figure 8.1). The average ranking of the region much do firms pay in taxes? The global rankings of these provides a useful benchmark. economies on the ease of paying taxes offer useful Figure 8.1 How economies in European Union (EU) rank on the ease of paying taxes Note: All economies with a total tax rate below the threshold of 26.1% applied in DB2015, receive the same distance to frontier score for the total tax rate (a distance to frontier score of 100 for the total tax rate) for the purpose of calculating the ranking on the ease of paying taxes. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 234 PAYING TAXES The indicators underlying the rankings may be more major taxes (corporate income tax, VAT or sales tax and revealing. Data collected by Doing Business show what it labor taxes and mandatory contributions)—as well as the takes to comply with tax regulations in each economy in total tax rate (figure 8.2). Comparing these indicators the region—the number of payments per year and the across the region and with averages both for the region time required to prepare, and file and pay taxes the 3 and for comparator regions can provide useful insights. Figure 8.2 How easy is it to pay taxes in economies in European Union (EU)—and what are the total tax rates? Payments (number per year) Doing Business 2017 EUROPEAN UNION (EU) 235 PAYING TAXES Time (hours per year) Doing Business 2017 EUROPEAN UNION (EU) 236 PAYING TAXES Total tax rate (% of profit) Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 237 PAYING TAXES Postfiling Index (DTF) Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 238 PAYING TAXES What are the changes over time? Economies around the world have made paying taxes concrete results. Some economies simplifying faster and easier for businesses—such as by compliance with tax obligations and reducing rates have consolidating filings, reducing the frequency of seen tax revenue rise. What tax reforms has Doing payments or offering electronic filing and payment. Business recorded in European Union (EU) (table 8.1)? Many have lowered tax rates. Changes have brought Table 8.1 How have economies in European Union (EU) made paying taxes easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by stopping the distribution of historical credit data. DB2017 Cyprus Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Doing Business 2017 EUROPEAN UNION (EU) 239 DB year Economy Reform Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Hungary made paying taxes less costly for small and DB2017 Hungary medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) purposes, as well as updating coefficients used for calculation DB2017 Italy of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying labor taxes was improved. Doing Business 2017 EUROPEAN UNION (EU) 240 DB year Economy Reform Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Malta improved access to credit information by launching a DB2017 Malta new credit registry. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater DB2017 Poland participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. Doing Business 2017 EUROPEAN UNION (EU) 241 DB year Economy Reform Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Malta simplified the process of starting a business by DB2017 Malta reducing the time needed to register a company. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, unemployment insurance and real estate taxes. The DB2017 Netherlands Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. Malta made paying taxes more costly by replacing the capital DB2017 Malta gains tax with a property transfer tax, increasing the maximum social security contribution paid by employers. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, and DB2017 Spain abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Doing Business 2017 EUROPEAN UNION (EU) 242 DB year Economy Reform Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring that major sales of company assets be subject to shareholder DB2016 Spain approval. The utility in Malta reduced the time required for getting an DB2016 Malta electricity connection by improving its supervision of trenching works. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. DB2016 United Kingdom The United Kingdom made enforcing contracts more costly Doing Business 2017 EUROPEAN UNION (EU) 243 DB year Economy Reform by increasing the court fees for filing a claim. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Poland made paying taxes easier for companies by DB2016 Poland introducing an electronic system for filing and paying VAT and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to Doing Business 2017 EUROPEAN UNION (EU) 244 DB year Economy Reform the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Malta made the transfer of a property more expensive by DB2016 Malta introducing the new property transfer tax. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Doing Business 2017 EUROPEAN UNION (EU) 245 DB year Economy Reform Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social insurance paid DB2016 Cyprus by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, published DB2016 Croatia in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. Latvia made enforcing contracts easier by restructuring its DB2016 Latvia courts and by introducing comprehensive specialized laws regulating domestic arbitration and voluntary mediation. Doing Business 2017 EUROPEAN UNION (EU) 246 DB year Economy Reform Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. Ireland strengthened minority investor protections by DB2016 Ireland introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. DB2016 Italy Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time Doing Business 2017 EUROPEAN UNION (EU) 247 DB year Economy Reform and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. Latvia made paying taxes easier for companies by simplifying DB2015 Latvia the VAT return, enhancing the electronic system for filing corporate income tax returns and reducing employers’ social Doing Business 2017 EUROPEAN UNION (EU) 248 DB year Economy Reform security contribution rate. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. DB2015 Cyprus Cyprus improved its credit information system by adopting a central bank directive eliminating the minimum threshold for Doing Business 2017 EUROPEAN UNION (EU) 249 DB year Economy Reform loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Austria made starting a business easier by reducing the DB2015 Austria minimum capital requirement, which in turn reduced the paid-in minimum capital requirement, and by lowering notary Doing Business 2017 EUROPEAN UNION (EU) 250 DB year Economy Reform fees. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. Malta made starting a business easier by creating an electronic link between the Registrar of Companies and the DB2015 Malta Inland Revenue Department to facilitate issuance of a tax identification number. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Doing Business 2017 EUROPEAN UNION (EU) 251 DB year Economy Reform Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Doing Business 2017 EUROPEAN UNION (EU) 252 DB year Economy Reform Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by DB2014 Greece increasing the corporate income tax rate—though it also reduced the employers’ contribution rate to the social Doing Business 2017 EUROPEAN UNION (EU) 253 DB year Economy Reform security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Malta made dealing with construction permits less costly by DB2014 Malta significantly reducing the building permit fees. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. DB2014 Netherlands The Netherlands made transferring property easier by Doing Business 2017 EUROPEAN UNION (EU) 254 DB year Economy Reform increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the minimum wage. Doing Business 2017 EUROPEAN UNION (EU) 255 DB year Economy Reform Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Denmark made dealing with construction permits more costly DB2014 Denmark by increasing the fee for building permits. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an DB2014 Italy amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing Doing Business 2017 EUROPEAN UNION (EU) 256 DB year Economy Reform a restructuring plan, makes it easier to convert from one type of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. DB2013 Croatia Croatia made paying taxes less costly for companies by Doing Business 2017 EUROPEAN UNION (EU) 257 DB year Economy Reform reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Hungary made starting a business more complex by increasing the registration fees for limited liability companies DB2013 Hungary and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. Doing Business 2017 EUROPEAN UNION (EU) 258 DB year Economy Reform Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. Doing Business 2017 EUROPEAN UNION (EU) 259 DB year Economy Reform The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ committee in a bankruptcy proceeding; prohibiting DB2013 Slovenia insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Doing Business 2017 EUROPEAN UNION (EU) 260 DB year Economy Reform The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting DB2013 Poland the use of electronic filing and payment systems —though it also made paying taxes more costly by increasing social Doing Business 2017 EUROPEAN UNION (EU) 261 DB year Economy Reform security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. DB2013 Greece Greece strengthened investor protections by requiring greater immediate and annual disclosure of material related- Doing Business 2017 EUROPEAN UNION (EU) 262 DB year Economy Reform party transactions. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. DB2012 Greece Greece reduced its corporate income tax rate. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. DB2012 Sweden Sweden increased the cost of transferring property between Doing Business 2017 EUROPEAN UNION (EU) 263 DB year Economy Reform companies. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. Doing Business 2017 EUROPEAN UNION (EU) 264 DB year Economy Reform Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured DB2012 Lithuania creditors and introduce professional requirements for insolvency administrators. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. Doing Business 2017 EUROPEAN UNION (EU) 265 DB year Economy Reform France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. Cyprus strengthened investor protections by requiring DB2012 Cyprus greater corporate disclosure to the board of directors, to the public and in the annual report. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. DB2012 Latvia Latvia made starting a business easier by reducing the minimum capital requirement and introducing a common Doing Business 2017 EUROPEAN UNION (EU) 266 DB year Economy Reform application for value added tax and company registration. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Amendments to Estonia’s recent insolvency law increased the chances that viable businesses will survive insolvency by DB2011 Estonia improving procedures and changing the qualification requirements for insolvency administrators. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. DB2011 Hungary Hungary reduced the property registration fee by 6% of the Doing Business 2017 EUROPEAN UNION (EU) 267 DB year Economy Reform property value. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. DB2011 Lithuania Lithuania reduced corporate tax rates. DB2011 Hungary Hungary simplified taxes and tax bases. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. DB2011 Croatia Croatia replaced the location permit and project design confirmation with a single certificate, simplifying and Doing Business 2017 EUROPEAN UNION (EU) 268 DB year Economy Reform speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. Latvia introduced a mechanism for out-of-court settlement of DB2011 Latvia insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. DB2011 Portugal Portugal made it easier dealing with construction permits by implementing the 95 day time limit for the approval of Doing Business 2017 EUROPEAN UNION (EU) 269 DB year Economy Reform project designs. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. Doing Business 2017 EUROPEAN UNION (EU) 270 DB year Economy Reform Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. Note: For information on reforms in earlier years (back to DB2006), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 271 TRADING ACROSS BORDERS In today’s globalized world, making trade between WHAT THE TRADING ACROSS BORDERS economies easier is increasingly important for INDICATORS MEASURE FOR IMPORT & EXPORT business. Excessive document requirements, burdensome customs procedures, inefficient port Documentary compliance – cost (US$) & time operations and inadequate infrastructure all lead to (hours) extra costs and delays for exporters and importers, stifling trade potential. Obtain, prepare and submit documents: What do the indicators cover? -During transport, clearance, inspections and port or border handling in origin economy Doing Business records the time and cost associated with the logistical process of exporting and -Required by origin, transit and destination economies importing goods. Under the new methodology introduced this year, Doing Business measures the Covers all documents by law and in practice time and cost (excluding tariffs) associated with three Border compliance – cost (US$) & time sets of procedures—documentary compliance, (hours) border compliance and domestic transport—within the overall process of exporting or importing a Customs clearance and inspections shipment of goods. The ranking of economies on the Inspections by other agencies ease of trading across borders is determined by Port or border handling sorting their distance to frontier scores for trading across borders. These scores are the simple average Obtaining, preparing and submitting of the distance to frontier scores for the time and documents during clearance, inspections and port or border handling cost for documentary compliance and border compliance to export and import. Domestic transport* Loading and unloading of shipment To make the data comparable across economies, a few assumptions are made about the traded goods Transport between warehouse and terminal/port and the transactions: Transport between terminal/port and border Time Obtaining, preparing and submitting  Time is measured in hours, and 1 day is 24 hours documents during domestic transport (for example, 22 days are recorded as 22 × 24 = Traffic delays and road police checks while 528 hours). If customs clearance takes 7.5 hours, shipment is en route the data are recorded as is. Alternatively, suppose that documents are submitted to a * Although Doing Business collects and publishes data on customs agency at 8:00 a.m., are processed the time and cost for domestic transport, it does not use overnight and can be picked up at 8:00 a.m. the these data in calculating the distance to frontier score for next day. In this case the time for customs trading across borders or the ranking on the ease of trading clearance would be recorded as 24 hours across borders. because the actual procedure took 24 hours. Cost   Insurance cost and informal payments for which no  receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars.  Contributors are asked to convert local currency into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire. Doing Business 2017 EUROPEAN UNION (EU) 272 Assumptions of the case study  For each of the 190 economies covered by Doing  Shipping cost based on weight is assumed to be Business, it is assumed that a shipment travels greater than shipping cost based on volume. from a warehouse in the largest business city of  If government fees are determined by the value of the exporting economy to a warehouse in the the shipment, the value is assumed to be $50,000. largest business city of the importing economy. For 11 economies the data are also collected,  The product is new, not secondhand or used under the same case study assumptions, for the merchandise. second largest business city.  The exporting firm is responsible for hiring and  The import and export case studies assume paying for a freight forwarder or customs broker (or different traded products. It is assumed that each both) and pays for all costs related to international economy imports a standardized shipment of 15 shipping, domestic transport, clearance and metric tons of containerized auto parts (HS 8708) mandatory inspections by customs and other from its natural import partner—the economy government agencies, port or border handling, from which it imports the largest value (price documentary compliance fees and the like for times quantity) of auto parts. It is assumed that exports. The importing firm is responsible for the each economy exports the product of its above costs for imports. comparative advantage (defined by the largest  The mode of transport is the one most widely used export value) to its natural export partner—the for the chosen export or import product and the economy that is the largest purchaser of this trading partner, as is the seaport, airport or land product. Precious metal and gems, live animals border crossing. and pharmaceuticals are excluded from the list of possible export products, however, and the  All electronic submissions of information requested second largest product category is considered as by any government agency in connection with the needed. shipment are considered to be documents obtained, prepared and submitted during the  A shipment is a unit of trade. Export shipments do export or import process. not necessarily need to be containerized, while import shipments of auto parts are assumed to be  A port or border is defined as a place (seaport, containerized. airport or land border crossing) where merchandise can enter or leave an economy.  Government agencies considered relevant are agencies such as customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Doing Business 2017 EUROPEAN UNION (EU) 273 TRADING ACROSS BORDERS Where do the region’s economies stand today? How easy it is for businesses in economies in European across borders suggest an answer (figure 9.1). The Union (EU) to export and import goods? The global average ranking of the region and comparator regions rankings of these economies on the ease of trading provide a useful benchmark. Figure 9.1 How economies in European Union (EU) rank on the ease of trading across borders Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 274 TRADING ACROSS BORDERS The indicators reported here are for trading a shipment and import is collected from local freight forwarders, of goods by the most widely used mode of transport customs brokers and traders. Comparing these indicators (whether sea, land, air or some combination of these). across the region and with averages both for the region The information on the time and cost to complete export and for comparator regions can provide useful insights. Figure 9.2 What it takes to trade across borders in economies in European Union (EU) Time to export: Border compliance (hours) Doing Business 2017 EUROPEAN UNION (EU) 275 TRADING ACROSS BORDERS Cost to export: Border compliance (USD) Doing Business 2017 EUROPEAN UNION (EU) 276 TRADING ACROSS BORDERS Time to export: Documentary compliance (hours) Doing Business 2017 EUROPEAN UNION (EU) 277 TRADING ACROSS BORDERS Cost to export: Documentary compliance (USD) Doing Business 2017 EUROPEAN UNION (EU) 278 TRADING ACROSS BORDERS Time to import: Border compliance (hours) Doing Business 2017 EUROPEAN UNION (EU) 279 TRADING ACROSS BORDERS Cost to import: Border compliance (USD) Doing Business 2017 EUROPEAN UNION (EU) 280 TRADING ACROSS BORDERS Time to import: Documentary compliance (hours) Doing Business 2017 EUROPEAN UNION (EU) 281 TRADING ACROSS BORDERS Cost to import: Documentary compliance (USD) Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 282 TRADING ACROSS BORDERS What are the changes over time? In economies around the world, trading across borders systems. These changes help improve their trading as measured by Doing Business has become faster and environment and boost firms’ international easier over the years. Governments have introduced competitiveness. What trade reforms has Doing Business tools to facilitate trade—including single windows, risk- recorded in European Union (EU) (table 9.1)? based inspections and electronic data interchange Table 9.1 How have economies in European Union (EU) made trading across borders easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by stopping the distribution of historical credit data. DB2017 Cyprus Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Doing Business 2017 EUROPEAN UNION (EU) 283 DB year Economy Reform Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Hungary made paying taxes less costly for small and DB2017 Hungary medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) DB2017 Italy purposes, as well as updating coefficients used for calculation of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying Doing Business 2017 EUROPEAN UNION (EU) 284 DB year Economy Reform labor taxes was improved. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Malta improved access to credit information by launching a DB2017 Malta new credit registry. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater DB2017 Poland participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Doing Business 2017 EUROPEAN UNION (EU) 285 DB year Economy Reform Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Malta simplified the process of starting a business by DB2017 Malta reducing the time needed to register a company. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, unemployment insurance and real estate taxes. The DB2017 Netherlands Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the rates for disablement insurance contribution paid by employers, polder board tax and motor tax. Malta made paying taxes more costly by replacing the capital DB2017 Malta gains tax with a property transfer tax, increasing the maximum social security contribution paid by employers. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property DB2017 Spain tax rate, vehicle tax rate, tax on property transfer, and abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social Doing Business 2017 EUROPEAN UNION (EU) 286 DB year Economy Reform security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring that major sales of company assets be subject to shareholder DB2016 Spain approval. DB2016 Malta The utility in Malta reduced the time required for getting an electricity connection by improving its supervision of Doing Business 2017 EUROPEAN UNION (EU) 287 DB year Economy Reform trenching works. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. DB2016 Netherlands The Netherlands made paying taxes more costly for companies by increasing employer-paid labor contributions Doing Business 2017 EUROPEAN UNION (EU) 288 DB year Economy Reform as well as road taxes, property taxes and polder board taxes. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Malta made the transfer of a property more expensive by DB2016 Malta introducing the new property transfer tax. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. DB2016 Croatia Croatia made enforcing contracts easier by introducing an Doing Business 2017 EUROPEAN UNION (EU) 289 DB year Economy Reform electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social insurance paid DB2016 Cyprus by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, published DB2016 Croatia in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. Doing Business 2017 EUROPEAN UNION (EU) 290 DB year Economy Reform Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. DB2016 Ireland Ireland strengthened minority investor protections by introducing provisions stipulating that directors can be held Doing Business 2017 EUROPEAN UNION (EU) 291 DB year Economy Reform liable for breach of their fiduciary duties. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time DB2016 Italy and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional DB2015 Hungary approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. DB2015 Lithuania Lithuania made dealing with construction permits easier by Doing Business 2017 EUROPEAN UNION (EU) 292 DB year Economy Reform reducing the time required for processing building permit applications. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Doing Business 2017 EUROPEAN UNION (EU) 293 DB year Economy Reform Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. DB2015 Croatia Croatia lifted the 3-year limit on the duration of first-time Doing Business 2017 EUROPEAN UNION (EU) 294 DB year Economy Reform fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Doing Business 2017 EUROPEAN UNION (EU) 295 DB year Economy Reform Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. Malta made starting a business easier by creating an electronic link between the Registrar of Companies and the DB2015 Malta Inland Revenue Department to facilitate issuance of a tax identification number. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. Doing Business 2017 EUROPEAN UNION (EU) 296 DB year Economy Reform The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the DB2014 Spain requirement to obtain a municipal license before starting operations and by improving the efficiency of the commercial Doing Business 2017 EUROPEAN UNION (EU) 297 DB year Economy Reform registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system through an amendment to the Collection of State Taxes Act DB2014 Netherlands that grants priority outside bankruptcy to tax claims over secured creditors’ claims. DB2014 Malta Malta made dealing with construction permits less costly by Doing Business 2017 EUROPEAN UNION (EU) 298 DB year Economy Reform significantly reducing the building permit fees. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. DB2014 Poland Poland made starting a business easier by eliminating the requirement to register the new company at the National Doing Business 2017 EUROPEAN UNION (EU) 299 DB year Economy Reform Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the minimum wage. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Denmark made dealing with construction permits more costly DB2014 Denmark by increasing the fee for building permits. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. DB2014 Croatia Croatia made paying taxes easier for companies by Doing Business 2017 EUROPEAN UNION (EU) 300 DB year Economy Reform introducing an electronic system for social security contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Doing Business 2017 EUROPEAN UNION (EU) 301 DB year Economy Reform Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. DB2013 Hungary Hungary made starting a business more complex by increasing the registration fees for limited liability companies Doing Business 2017 EUROPEAN UNION (EU) 302 DB year Economy Reform and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the land registry. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Doing Business 2017 EUROPEAN UNION (EU) 303 DB year Economy Reform Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. DB2013 Portugal Portugal made resolving insolvency easier by introducing a new insolvency law that expedites liquidation procedures and Doing Business 2017 EUROPEAN UNION (EU) 304 DB year Economy Reform creates fast-track mechanisms both in and out of court. The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. Doing Business 2017 EUROPEAN UNION (EU) 305 DB year Economy Reform The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems —though it DB2013 Poland also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by DB2013 Slovak Republic adopting several amendments to the code of civil procedure intended to simplify and speed up proceedings as well as to Doing Business 2017 EUROPEAN UNION (EU) 306 DB year Economy Reform limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ committee in a bankruptcy proceeding; prohibiting DB2013 Slovenia insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. DB2013 Czech Republic The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial Doing Business 2017 EUROPEAN UNION (EU) 307 DB year Economy Reform registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. DB2012 Greece Greece reduced its corporate income tax rate. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Sweden increased the cost of transferring property between DB2012 Sweden companies. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. DB2012 Poland Poland made trading across borders faster by implementing electronic preparation and submission of customs Doing Business 2017 EUROPEAN UNION (EU) 308 DB year Economy Reform documents. The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Doing Business 2017 EUROPEAN UNION (EU) 309 DB year Economy Reform Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured DB2012 Lithuania creditors and introduce professional requirements for insolvency administrators. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. DB2012 Belgium Belgium increased the severance payment obligation. Doing Business 2017 EUROPEAN UNION (EU) 310 DB year Economy Reform Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. Cyprus strengthened investor protections by requiring DB2012 Cyprus greater corporate disclosure to the board of directors, to the public and in the annual report. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. Doing Business 2017 EUROPEAN UNION (EU) 311 DB year Economy Reform Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Amendments to Estonia’s recent insolvency law increased the chances that viable businesses will survive insolvency by DB2011 Estonia improving procedures and changing the qualification requirements for insolvency administrators. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. Doing Business 2017 EUROPEAN UNION (EU) 312 DB year Economy Reform DB2011 Lithuania Lithuania reduced corporate tax rates. DB2011 Hungary Hungary simplified taxes and tax bases. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Doing Business 2017 EUROPEAN UNION (EU) 313 DB year Economy Reform Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. Latvia introduced a mechanism for out-of-court settlement of DB2011 Latvia insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. Doing Business 2017 EUROPEAN UNION (EU) 314 DB year Economy Reform Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Doing Business 2017 EUROPEAN UNION (EU) 315 DB year Economy Reform Portugal established a one-stop shop for property DB2011 Portugal registration. Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Doing Business 2017 EUROPEAN UNION (EU) 316 Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 317 ENFORCING CONTRACTS Effective commercial dispute resolution has many WHAT THE ENFORCING CONTRACTS benefits. Courts are essential for entrepreneurs INDICATORS MEASURE because they interpret the rules of the market and protect economic rights. Efficient and transparent Time required to enforce a contract through courts encourage new business relationships because the courts (calendar days) businesses know they can rely on the courts if a new customer fails to pay. Speedy trials are essential for Time to file and serve the case small enterprises, which may lack the resources to Time for trial and to obtain the judgment stay in business while awaiting the outcome of a long court dispute. Time to enforce the judgment What do the indicators cover? Cost required to enforce a contract through the courts (% of claim) Doing Business measures the time and cost for resolving a standardized commercial dispute through Attorney fees a local first-instance court. In addition, this year it Court fees introduces a new measure, the quality of judicial Enforcement fees processes index, evaluating whether each economy has adopted a series of good practices that promote Quality of judicial processes index (0-18) quality and efficiency in the court system. This new Court structure and proceedings (0-5) index replaces the indicator on procedures, which was eliminated this year. The ranking of economies Case management (0-6) on the ease of enforcing contracts is determined by Court automation (0-4) sorting their distance to frontier scores. These scores Alternative dispute resolution (0-3) are the simple average of the distance to frontier scores for each of the component indicators The dispute in the case study involves the breach of a sales contract between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes the case from simple debt enforcement. To make the data comparable across economies, Doing Business uses several assumptions about the case:  The value of the claim is equal to 200% of the economy’s income per capita or $5,000, whichever is greater.  The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.  Seller (the plaintiff) sues Buyer (the defendant) to recover the amount under the sales agreement. The dispute is brought before the court located in the economy’s largest business city with jurisdiction over commercial cases worth 200% Doing Business 2017 EUROPEAN UNION (EU) 318 of income per capita or $5,000, whichever is greater. As noted, for 11 economies the data are also collected for the second largest business city.  At the outset of the dispute, Seller decides to attach Buyer’s movable assets (for example, office equipment and vehicles) because Seller fears that Buyer may hide its assets or otherwise become insolvent.  The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods was not adequate. Because the court cannot decide the case on the basis of documentary evidence or legal title alone, an expert opinion is given on the quality of the goods. If it is standard practice in the economy for each party to call its own expert witness, the parties each call one expert witness. If it is standard practice for the judge to appoint an independent expert, the judge does so. In this case the judge does not allow opposing expert testimony  Following the expert opinion, the judge decides that the goods delivered by Seller were of adequate quality and that Buyer must pay the contract price. The judge thus renders a final judgment that is 100% in favor of Seller.  Buyer does not appeal the judgment. Seller decides to start enforcing the judgment as soon as the time allocated by law for appeal lapses.  Seller takes all required steps for prompt enforcement of the judgment. The money is successfully collected through a public sale of Buyer’s movable assets (for example, office equipment and vehicles). Doing Business 2017 EUROPEAN UNION (EU) 319 ENFORCING CONTRACTS Where do the region’s economies stand today? How efficient is the process of resolving a commercial the ease of enforcing contracts suggest an answer (figure dispute through the courts in economies in European 10.1). The average ranking of the region and comparator Union (EU)? The global rankings of these economies on regions provide a useful benchmark. Figure 10.1 How economies in European Union (EU) rank on the ease of enforcing contracts Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 320 ENFORCING CONTRACTS The indicators underlying the rankings may also be judicial processes index (figure 10.2). Comparing these revealing. Data collected by Doing Business show what it indicators across the region and with averages both for takes to enforce a contract through the courts in each the region and for comparator regions can provide economy in the region: the time, the cost and quality of useful insights. Figure 10.2 What it takes to enforce a contract through the courts in economies in European Union (EU) Time (days) Doing Business 2017 EUROPEAN UNION (EU) 321 ENFORCING CONTRACTS Cost (% of claim) Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 322 ENFORCING CONTRACTS Quality of Judicial Processes Index (0-18) Source: Doing Business database. Note: Higher values indicate more efficient judicial processes. Doing Business 2017 EUROPEAN UNION (EU) 323 ENFORCING CONTRACTS What are the changes over time? Economies in all regions have improved contract reducing backlogs by introducing periodic reviews to enforcement in recent years. A judiciary can be improved clear inactive cases from the docket and by making in different ways. Higher-income economies tend to look procedures faster. What reforms making it easier (or for ways to enhance efficiency by introducing new more difficult) to enforce contracts has Doing Business technology. Lower-income economies often work on recorded in European Union (EU) (table 10.1)? Table 10.1 How have economies in European Union (EU) made enforcing contracts easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by stopping the distribution of historical credit data. DB2017 Cyprus Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Doing Business 2017 EUROPEAN UNION (EU) 324 DB year Economy Reform Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Hungary made paying taxes less costly for small and DB2017 Hungary medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) purposes, as well as updating coefficients used for calculation DB2017 Italy of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying labor taxes was improved. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. Doing Business 2017 EUROPEAN UNION (EU) 325 DB year Economy Reform The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Malta improved access to credit information by launching a DB2017 Malta new credit registry. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater DB2017 Poland participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Malta simplified the process of starting a business by DB2017 Malta reducing the time needed to register a company. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, DB2017 Netherlands unemployment insurance and real estate taxes. The Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the Doing Business 2017 EUROPEAN UNION (EU) 326 DB year Economy Reform rates for disablement insurance contribution paid by employers, polder board tax and motor tax. Malta made paying taxes more costly by replacing the capital DB2017 Malta gains tax with a property transfer tax, increasing the maximum social security contribution paid by employers. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, and DB2017 Spain abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring DB2016 Spain that major sales of company assets be subject to shareholder approval. Doing Business 2017 EUROPEAN UNION (EU) 327 DB year Economy Reform The utility in Malta reduced the time required for getting an DB2016 Malta electricity connection by improving its supervision of trenching works. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate Doing Business 2017 EUROPEAN UNION (EU) 328 DB year Economy Reform for accident risk fund contributions paid by employers. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Malta made the transfer of a property more expensive by DB2016 Malta introducing the new property transfer tax. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating DB2016 Cyprus online payment of corporate income tax. At the same time, Doing Business 2017 EUROPEAN UNION (EU) 329 DB year Economy Reform Cyprus raised the contribution rate for social insurance paid by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, published DB2016 Croatia in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and Doing Business 2017 EUROPEAN UNION (EU) 330 DB year Economy Reform reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. Ireland strengthened minority investor protections by DB2016 Ireland introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time DB2016 Italy and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. Hungary improved access to credit by adopting a new legal DB2015 Hungary regime on secured transactions that implements a functional Doing Business 2017 EUROPEAN UNION (EU) 331 DB year Economy Reform approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Doing Business 2017 EUROPEAN UNION (EU) 332 DB year Economy Reform Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Doing Business 2017 EUROPEAN UNION (EU) 333 DB year Economy Reform Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. Malta made starting a business easier by creating an electronic link between the Registrar of Companies and the DB2015 Malta Inland Revenue Department to facilitate issuance of a tax identification number. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Doing Business 2017 EUROPEAN UNION (EU) 334 DB year Economy Reform Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Doing Business 2017 EUROPEAN UNION (EU) 335 DB year Economy Reform Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system DB2014 Netherlands through an amendment to the Collection of State Taxes Act Doing Business 2017 EUROPEAN UNION (EU) 336 DB year Economy Reform that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Malta made dealing with construction permits less costly by DB2014 Malta significantly reducing the building permit fees. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Romania made starting a business easier by transferring DB2014 Romania responsibility for issuing the headquarters clearance Doing Business 2017 EUROPEAN UNION (EU) 337 DB year Economy Reform certificate from the Fiscal Administration Office to the Trade Registry. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the minimum wage. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Denmark made dealing with construction permits more costly DB2014 Denmark by increasing the fee for building permits. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Latvia made dealing with construction permits easier by DB2014 Latvia introducing new time limits for issuing a building permit and by eliminating the Public Health Agency’s role in approving Doing Business 2017 EUROPEAN UNION (EU) 338 DB year Economy Reform building permits and conducting inspections. Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. Doing Business 2017 EUROPEAN UNION (EU) 339 DB year Economy Reform Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Hungary made starting a business more complex by increasing the registration fees for limited liability companies DB2013 Hungary and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the Doing Business 2017 EUROPEAN UNION (EU) 340 DB year Economy Reform land registry. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. Doing Business 2017 EUROPEAN UNION (EU) 341 DB year Economy Reform The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. Doing Business 2017 EUROPEAN UNION (EU) 342 DB year Economy Reform Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems —though it DB2013 Poland also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. Slovenia strengthened its insolvency process by requiring that DB2013 Slovenia the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ Doing Business 2017 EUROPEAN UNION (EU) 343 DB year Economy Reform committee in a bankruptcy proceeding; prohibiting insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. DB2012 Greece Greece reduced its corporate income tax rate. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Doing Business 2017 EUROPEAN UNION (EU) 344 DB year Economy Reform Sweden increased the cost of transferring property between DB2012 Sweden companies. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Doing Business 2017 EUROPEAN UNION (EU) 345 DB year Economy Reform Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured DB2012 Lithuania creditors and introduce professional requirements for insolvency administrators. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Doing Business 2017 EUROPEAN UNION (EU) 346 DB year Economy Reform Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. Cyprus strengthened investor protections by requiring DB2012 Cyprus greater corporate disclosure to the board of directors, to the public and in the annual report. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Amendments to Estonia’s recent insolvency law increased the DB2011 Estonia chances that viable businesses will survive insolvency by Doing Business 2017 EUROPEAN UNION (EU) 347 DB year Economy Reform improving procedures and changing the qualification requirements for insolvency administrators. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. DB2011 Lithuania Lithuania reduced corporate tax rates. DB2011 Hungary Hungary simplified taxes and tax bases. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court Doing Business 2017 EUROPEAN UNION (EU) 348 DB year Economy Reform registries electronically through the notary public. Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. Latvia introduced a mechanism for out-of-court settlement of DB2011 Latvia insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Doing Business 2017 EUROPEAN UNION (EU) 349 DB year Economy Reform Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Doing Business 2017 EUROPEAN UNION (EU) 350 DB year Economy Reform Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 351 RESOLVING INSOLVENCY A robust bankruptcy system functions as a filter, WHAT THE RESOLVING INSOLVENCY ensuring the survival of economically efficient companies and reallocating the resources of INDICATORS MEASURE inefficient ones. Fast and cheap insolvency proceedings result in the speedy return of businesses to normal operation and increase returns to Time required to recover debt (years) creditors. By clarifying the expectations of creditors Measured in calendar years and debtors about the outcome of insolvency Appeals and requests for extension are proceedings, well-functioning insolvency systems can included facilitate access to finance, save more viable businesses and sustainably grow the economy. Cost required to recover debt (% of debtor’s estate) What do the indicators cover? Doing Business studies the time, cost and outcome of Measured as percentage of estate value insolvency proceedings involving domestic legal Court fees entities. These variables are used to calculate the Fees of insolvency administrators recovery rate, which is recorded as cents on the dollar recovered by secured creditors through Lawyers’ fees reorganization, liquidation or debt enforcement Assessors’ and auctioneers’ fees (foreclosure or receivership) proceedings. To Other related fees determine the present value of the amount recovered by creditors, Doing Business uses the Outcome lending rates from the International Monetary Fund, Whether business continues operating as a supplemented with data from central banks and the going concern or business assets are sold Economist Intelligence Unit. piecemeal In addition, Doing Business evaluates the adequacy Recovery rate for creditors and integrity of the existing legal framework applicable to liquidation and reorganization Measures the cents on the dollar recovered by proceedings through the strength of insolvency secured creditors framework index. The index tests whether economies Outcome for the business (survival or not) adopted internationally accepted good practices in determines the maximum value that can be four areas: commencement of proceedings, recovered management of debtor’s assets, reorganization Official costs of the insolvency proceedings are proceedings and creditor participation. deducted The ranking of economies on the ease of resolving Depreciation of furniture is taken into account insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores Present value of debt recovered are the simple average of the distance to frontier Strength of insolvency framework index (0- scores for the recovery rate and the strength of 16) insolvency framework index. The Resolving Sum of the scores of four component indices: Insolvency indicator does not measure insolvency proceedings of individuals and financial institutions. Commencement of proceedings index (0-3) The data are derived from questionnaire responses Management of debtor’s assets index (0-6) by local insolvency practitioners and verified through a study of laws and regulations as well as public Reorganization proceedings index (0-3) information on bankruptcy systems Creditor participation index (0-4) Doing Business 2017 EUROPEAN UNION (EU) 352 . A robust bankruptcy system functions as a filter, In addition, Doing Business evaluates the adequacy ensuring the survival of economically efficient and integrity of the existing legal framework companies and reallocating the resources of applicable to liquidation and reorganization inefficient ones. Fast and cheap insolvency proceedings through the strength of insolvency proceedings result in the speedy return of businesses framework index. The index tests whether to normal operation and increase returns to economies adopted internationally accepted good creditors. By clarifying the expectations of creditors practices in four areas: commencement of and debtors about the outcome of insolvency proceedings, management of debtor’s assets, proceedings, well-functioning insolvency systems can reorganization proceedings and creditor facilitate access to finance, save more viable participation. businesses and sustainably grow the economy. What do the indicators cover? Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are used:  A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel experiences financial difficulties.  The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD 200,000, whichever is greater.  The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate. The hotel cannot pay back the loan, but makes enough money to operate otherwise. Doing Business 2017 EUROPEAN UNION (EU) 353 RESOLVING INSOLVENCY Where do the region’s economies stand today? How efficient are insolvency proceedings in economies in region and comparator regions provide a useful European Union (EU)? The global rankings of these benchmark for assessing the efficiency of insolvency economies on the ease of resolving insolvency suggest proceedings. Speed, low costs and continuation of viable an answer (figure 11.1). The average ranking of the businesses characterize the top-performing economies. Figure 11.1 How economies in European Union (EU) rank on the ease of resolving insolvency Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 354 RESOLVING INSOLVENCY The indicators underlying the rankings may be more these indicators across the region and with averages revealing. Data collected by Doing Business show the both for the region and for comparator regions can average recovery rate and the average strength of provide useful insights. insolvency framework index (figure 11.2). Comparing Figure 11.2 How efficient is the insolvency process in economies in European Union (EU) Recovery Rate (0–100) Source: Doing Business database. Total Strength of Insolvency Framework index (0-16) Source: Doing Business database. * Indicates a “no practice” mark. See the data notes for details. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice” mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a competing regulation prohibits such practice. Either way, a “ no practice” mark puts the economy at the bottom of the ranking on the relevant indicator. Source: Doing Business database. Note: Higher values indicate insolvency legislation that is better designed for rehabilitating viable firms and liquidating nonviable ones. Doing Business 2017 EUROPEAN UNION (EU) 355 RESOLVING INSOLVENCY What are the changes over time? A well-balanced bankruptcy system distinguishes change. Many recent reforms of bankruptcy laws have companies that are financially distressed but been aimed at helping more of the viable businesses economically viable from inefficient companies that survive. What insolvency reforms has Doing Business should be liquidated. But in some insolvency systems recorded in European Union (EU) (table 11.1)? even viable businesses are liquidated. This is starting to Table 11.1 How have economies in European Union (EU) made resolving insolvency easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by stopping the distribution of historical credit data. DB2017 Cyprus Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. France made dealing with construction permits less expensive DB2017 France by reducing the cost of obtaining a building permit Doing Business 2017 EUROPEAN UNION (EU) 356 DB year Economy Reform Hungary made enforcing contracts easier by introducing an DB2017 Hungary electronic filing system. Hungary amended legislation to remove restrictions limiting DB2017 Hungary the operating hours for retail shops. France reformed its labor legislation by introducing changes to the administration of labor tribunals, extending Sunday DB2017 France and evening work in areas designated as international tourist zones and facilitating employee employer dialogue. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. France made transferring property more expensive by DB2017 France increasing property transfer tax rate and introducing an additional tax for businesses in Paris. Ireland made starting a business easier by removing the DB2017 Ireland requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. Hungary made paying taxes less costly for small and DB2017 Hungary medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings. Italy made paying taxes easier by allowing full cost of labor to be deductible for regional tax on productive activities (IRAP) purposes, as well as updating coefficients used for calculation DB2017 Italy of tax on real estate (IMU) and municipal service tax (TASI). Furthermore, electronic system for preparing and paying labor taxes was improved. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Poland made dealing with construction permits simpler by DB2017 Poland streamlining the process of obtaining a building permit. Portugal reduced the maximum duration of fixed-term DB2017 Portugal contracts. Poland reduced the maximum duration of fixed term contracts to 33 months and limited the total number of fixed DB2017 Poland term contracts between the same employer and employee to three. Doing Business 2017 EUROPEAN UNION (EU) 357 DB year Economy Reform The Netherlands reduced the maximum duration of fixed- term contracts from 36 to 24 months. Severance pay was DB2017 Netherlands introduced for redundancy dismissals for employees with at least 2 years of continuous employment. Malta improved access to credit information by launching a DB2017 Malta new credit registry. Poland made getting an electricity connection faster by eliminating the need to secure an excavation permit for DB2017 Poland external connection works, which reduced the time of mentioned works. Portugal made getting an electricity connection faster by DB2017 Portugal reducing the time required to approve electrical connection requests. Poland made resolving insolvency easier by introducing new restructuring mechanisms, changing voting procedures for restructuring plans and allowing creditors greater DB2017 Poland participation in insolvency proceedings. It also established a central restructuring and bankruptcy register and released guidelines for the remuneration of insolvency representatives. Sweden made it easier to transfer a property by increasing DB2017 Sweden administrative efficiency and introducing an independent and separate mechanism for reporting errors on maps. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Malta simplified the process of starting a business by DB2017 Malta reducing the time needed to register a company. The Slovak Republic made paying taxes less costly and easier DB2017 Slovak Republic by reducing the motor vehicle tax and the number of property tax payments. Portugal made paying taxes easier and less costly by using DB2017 Portugal better accounting software and enhancing the online filing system of taxes and decreasing the corporate income tax rate. The Netherlands made paying taxes less costly by lowering the rates paid by employers for health insurance contributions, special unemployment insurance, DB2017 Netherlands unemployment insurance and real estate taxes. The Netherlands also made paying taxes easier by improving the online system for paying corporate income tax. However, the Netherlands made paying taxes more costly by increasing the Doing Business 2017 EUROPEAN UNION (EU) 358 DB year Economy Reform rates for disablement insurance contribution paid by employers, polder board tax and motor tax. Malta made paying taxes more costly by replacing the capital DB2017 Malta gains tax with a property transfer tax, increasing the maximum social security contribution paid by employers. Spain made enforcing contracts easier by introducing a DB2017 Spain mandatory electronic filing system for court users. Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, and DB2017 Spain abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for filing social security contributions. Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, DB2017 Greece impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings. Greece made paying taxes more costly by increasing the DB2017 Greece corporate income tax rate. The Czech Republic made getting electricity faster by DB2017 Czech Republic designating personnel to deal with all incoming connection applications. The Czech Republic made starting a business easier by reducing the cost and the time required to register a DB2017 Czech Republic company in commercial courts by allowing notaries to directly register companies through an online system. Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible DB2016 Greece and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income. Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the DB2016 Spain online Cl@ve system for filing VAT returns. At the same time, Spain reduced the amount allowable for depreciation of fixed assets and raised the ceiling for social security contributions. Spain strengthened minority investor protections by requiring DB2016 Spain that major sales of company assets be subject to shareholder approval. Doing Business 2017 EUROPEAN UNION (EU) 359 DB year Economy Reform The utility in Malta reduced the time required for getting an DB2016 Malta electricity connection by improving its supervision of trenching works. The utility in Poland reduced delays in processing applications for new electricity connections by increasing DB2016 Poland human and capital resources and by enforcing service delivery timelines. The United Kingdom made enforcing contracts more costly DB2016 United Kingdom by increasing the court fees for filing a claim. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. The United Kingdom made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the wage amount per employee that is exempted DB2016 United Kingdom from social security contributions paid by employers. On the other hand, the United Kingdom increased municipal tax rates and environment taxes. The Slovak Republic made paying taxes easier for companies by introducing an electronic filing and payment system for VAT—and made paying taxes less costly by reducing the DB2016 Slovak Republic corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. The Netherlands made paying taxes more costly for DB2016 Netherlands companies by increasing employer-paid labor contributions as well as road taxes, property taxes and polder board taxes. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate Doing Business 2017 EUROPEAN UNION (EU) 360 DB year Economy Reform for accident risk fund contributions paid by employers. Poland made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Poland and transport tax—though it also made paying taxes more costly by increasing transport tax rates and contributions to the National Disabled Fund paid by employers. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and increasing the DB2016 Portugal allowable amount of the loss carried forward. At the same time, Portugal slightly increased the vehicle tax. Malta made the transfer of a property more expensive by DB2016 Malta introducing the new property transfer tax. Sweden made starting a business easier by requiring the DB2016 Sweden company registry to register a company in five days. The Slovak Republic simplified the process of starting a DB2016 Slovak Republic business by introducing court registration at the one-stop shop. Portugal introduced priority rules for redundancy dismissals DB2016 Portugal and new regulations for collective bargaining agreements. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belgium made transferring property easier by introducing DB2016 Belgium electronic property registration. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating DB2016 Cyprus online payment of corporate income tax. At the same time, Doing Business 2017 EUROPEAN UNION (EU) 361 DB year Economy Reform Cyprus raised the contribution rate for social insurance paid by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. Denmark made starting a business easier by introducing an DB2016 Denmark online platform allowing simultaneous completion of business and tax registration. Estonia made starting a business simpler by allowing DB2016 Estonia minimum capital to be deposited at the time of company registration. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, published DB2016 Croatia in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Italy made enforcing contracts easier by introducing a mandatory electronic filing system for court users, simplifying DB2016 Italy the rules for electronic service of process and automating the enforcement process. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring DB2016 Ireland additional financial statements to be submitted with the income tax return. France made paying taxes less costly for companies by DB2016 France introducing a credit against corporate income tax and Doing Business 2017 EUROPEAN UNION (EU) 362 DB year Economy Reform reducing labor tax rates paid by employers. Finland made paying taxes less costly for companies by reducing the corporate income tax rate—though it also DB2016 Finland increased the total rate for social security contributions paid by employers and reduced the allowed deductible amount for owners’ expenses. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. Ireland strengthened minority investor protections by DB2016 Ireland introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Germany made starting a business easier by making the DB2016 Germany process more efficient and less costly. Hungary adopted legislation limiting the operating hours for DB2016 Hungary retail shops. Italy adopted the Jobs Act, which simplifies redundancy rules and encourages out-of-court reconciliation, reducing the time DB2016 Italy and cost for resolving labor disputes. The new legislation also broadens the coverage of unemployment insurance. Germany introduced a minimum wage of €8.50 an hour in DB2016 Germany accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. Hungary improved access to credit by adopting a new legal DB2015 Hungary regime on secured transactions that implements a functional Doing Business 2017 EUROPEAN UNION (EU) 363 DB year Economy Reform approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry. Ireland improved its credit information system by passing a DB2015 Ireland new act that provides for the establishment and operation of a credit registry. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Ireland made enforcing contracts easier by modifying the DB2015 Ireland monetary jurisdictions of its courts. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been DB2015 Hungary temporarily introduced in 2010 and by reducing the vehicle tax rate. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. Ireland made transferring property easier by enhancing its DB2015 Ireland computerized system at the land registry and implementing an online system for the registration of title. Germany made it more expensive to register property by DB2015 Germany increasing the property transfer tax. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. Germany made starting a business more difficult by DB2015 Germany increasing notary fees. France made starting a business easier by reducing the time it DB2015 France takes to register a company at the one-stop shop (Centre de Formalités des Entreprises). Hungary made starting a business more difficult by increasing DB2015 Hungary the paid-in minimum capital requirement. Doing Business 2017 EUROPEAN UNION (EU) 364 DB year Economy Reform Italy made starting a business easier by reducing both the minimum capital requirement and the paid-in minimum DB2015 Italy capital requirement and by streamlining registration procedures. Italy relaxed the conditions for using fixed-term contracts but DB2015 Italy reduced their maximum duration to 36 months. France substantially amended its labor market regulations, DB2015 France including the provisions dealing with large-scale collective redundancy processes. Finland eliminated the requirement to notify a third party DB2015 Finland before dismissing a redundant employee or group of redundant employees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Denmark made starting a business easier by reducing the DB2015 Denmark paid-in minimum capital requirement. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Belgium made resolving insolvency more difficult by establishing additional requirements for commencing DB2015 Belgium reorganization proceedings, including the submission of documents verified by external parties. Doing Business 2017 EUROPEAN UNION (EU) 365 DB year Economy Reform Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Belgium increased the notice period for redundancy DB2015 Belgium dismissals. Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the DB2015 Austria paid-in minimum capital requirement, and by lowering notary fees. Poland made getting electricity less costly by revising the fee DB2015 Poland structure for new connections. Portugal made enforcing contracts easier by adopting a new code of civil procedure designed to reduce case backlogs, DB2015 Portugal streamline court procedures, enhance the role of judges and speed up the resolution of standard civil and commercial disputes. Portugal made paying taxes less costly for companies by reducing the corporate income tax rate and introducing a DB2015 Portugal reduced corporate tax rate for a portion of the taxable profits of qualifying small and medium-size enterprises. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. The United Kingdom made paying taxes less costly for DB2015 United Kingdom companies by reducing the corporate income tax rate. On the other hand, it increased the landfill tax. Poland made transferring property easier by introducing DB2015 Poland online procedures and reducing notary fees. Sweden made registering property easier by fully DB2015 Sweden implementing a new system for property registration. The United Kingdom made starting a business easier by DB2015 United Kingdom speeding up tax registration. Malta made starting a business easier by creating an electronic link between the Registrar of Companies and the DB2015 Malta Inland Revenue Department to facilitate issuance of a tax identification number. The Slovak Republic made starting a business easier by reducing the time needed to register with the district court DB2015 Slovak Republic and eliminating the need (and therefore the fee) for the verification of signatures by a notary public. Doing Business 2017 EUROPEAN UNION (EU) 366 DB year Economy Reform Portugal reduced the amount of severance pay per year of DB2015 Portugal service and increased the maximum cumulative duration of fixed-term contracts. Poland made trading across borders easier by implementing DB2015 Poland a new terminal operating system at the port of Gdansk. The Slovak Republic improved its credit information system DB2015 Slovak Republic by implementing a new law on the protection of personal data. Greece made enforcing contracts easier by introducing an electronic filing system for court users. DB2015 Greece Greece made it easier to transfer property by reducing the DB2015 Greece property transfer tax and removing the requirement for the municipal tax clearance certificate. Greece made starting a business easier by lowering DB2015 Greece registration costs. The Czech Republic made enforcing contracts easier by DB2015 Czech Republic amending its civil procedure code and modifying the monetary jurisdictions of its courts. The Czech Republic made starting a business easier by DB2015 Czech Republic substantially reducing the minimum capital requirement and the paid-in minimum capital requirement. The Czech Republic improved access to credit by adopting a new legal regime on secured transactions that allows the DB2015 Czech Republic registration of receivables at the collateral registry and permits out-of-court enforcement of collateral. Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and DB2015 Slovenia large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps. Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions DB2015 Spain applicable to prepackaged reorganizations and making insolvency proceedings more public. Spain made paying taxes less costly for companies by DB2015 Spain reducing the statutory corporate income tax rate. Doing Business 2017 EUROPEAN UNION (EU) 367 DB year Economy Reform Spain made transferring property easier by reducing the DB2015 Spain property transfer tax rate. Spain made starting a business easier by introducing an DB2015 Spain electronic system linking several public agencies and thereby simplifying business registration. Slovenia made dealing with construction permits easier by DB2014 Slovenia eliminating the requirement to obtain project conditions from the water and sewerage provider. Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting DB2014 Spain operations and by improving the efficiency of the commercial registry. Slovenia abolished priority rules for reemployment, changed DB2014 Slovenia the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage. Spain reduced the maximum cumulative duration of fixed- DB2014 Spain term contracts and increased the minimum wage. The Czech Republic made enforcing contracts easier by DB2014 Czech Republic simplifying and speeding up the proceedings for the execution and enforcement of judgments. The Czech Republic made transferring property more costly DB2014 Czech Republic by increasing the property transfer tax rate. The Czech Republic abolished the minimum wage for young DB2014 Czech Republic workers. Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also DB2014 Greece reduced the employers’ contribution rate to the social security fund. Greece strengthened investor protections by introducing a DB2014 Greece requirement for director approval of related-party transactions. Greece made starting a business easier by introducing a DB2014 Greece simpler form of limited liability company and abolishing the minimum capital requirement for such companies. Greece made trading across borders easier by implementing DB2014 Greece a system allowing electronic submission of customs declarations for exports. The Netherlands weakened its secured transactions system DB2014 Netherlands through an amendment to the Collection of State Taxes Act Doing Business 2017 EUROPEAN UNION (EU) 368 DB year Economy Reform that grants priority outside bankruptcy to tax claims over secured creditors’ claims. Malta made dealing with construction permits less costly by DB2014 Malta significantly reducing the building permit fees. Poland made dealing with construction permits easier by DB2014 Poland eliminating the requirement to obtain a description of the geotechnical documentation of the land. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Sweden made paying taxes less costly for companies by DB2014 Sweden reducing the corporate income tax rate. The Slovak Republic made paying taxes more costly for DB2014 Slovak Republic companies by increasing the corporate income tax rate and by adjusting land appraisal values. The Netherlands made transferring property easier by DB2014 Netherlands increasing the efficiency of the title search process. The United Kingdom made transferring property easier by DB2014 United Kingdom introducing electronic lodgment for property transfer applications. The United Kingdom made starting a business easier by DB2014 United Kingdom providing model articles for use in preparing memorandums and articles of association. The Slovak Republic made starting a business more difficult DB2014 Slovak Republic by adding a new procedure for establishing a limited liability company. The Netherlands made starting a business easier by DB2014 Netherlands abolishing the minimum capital requirement. Poland made starting a business easier by eliminating the DB2014 Poland requirement to register the new company at the National Labor Inspectorate and the National Sanitary Inspectorate. Portugal made starting a business easier by eliminating the DB2014 Portugal requirement to report to the Ministry of Labor. Romania made starting a business easier by transferring DB2014 Romania responsibility for issuing the headquarters clearance Doing Business 2017 EUROPEAN UNION (EU) 369 DB year Economy Reform certificate from the Fiscal Administration Office to the Trade Registry. Portugal reduced the wage premium for weekly holiday work DB2014 Portugal and abolished priority rules for redundancy dismissals. The Slovak Republic reduced the maximum cumulative duration of fixed-term contracts, reintroduced the requirement for third-party notification when terminating an DB2014 Slovak Republic employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. United Kingdom increased the cap on weekly wage provided DB2014 United Kingdom to employees on the severance payment and the minimum wage. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Denmark made dealing with construction permits more costly DB2014 Denmark by increasing the fee for building permits. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Estonia made enforcing contracts easier by lowering court DB2014 Estonia fees. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Latvia made dealing with construction permits easier by DB2014 Latvia introducing new time limits for issuing a building permit and by eliminating the Public Health Agency’s role in approving Doing Business 2017 EUROPEAN UNION (EU) 370 DB year Economy Reform building permits and conducting inspections. Italy made enforcing contracts easier by regulating attorneys’ DB2014 Italy fees and streamlining some court proceedings. Italy made resolving insolvency easier through an amendment to its bankruptcy code that introduces a stay period for enforcement actions while the debtor is preparing a restructuring plan, makes it easier to convert from one type DB2014 Italy of restructuring proceeding to another, facilitates continued operation by the debtor during restructuring and imposes stricter requirements on auditors evaluating a restructuring plan. France made transferring property easier by speeding up the DB2014 France registration of the deed of sale at the land registry. Italy made transferring property easier by eliminating the DB2014 Italy requirement for an energy performance certificate for commercial buildings with no heating system. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Hungary reduced the premium for night work and weekly DB2014 Hungary holiday work and increased the minimum wage. Ireland ended a 60% rebate for employers on severance DB2014 Ireland payments and eliminated the requirement for third-party notification when terminating a redundant worker. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. Doing Business 2017 EUROPEAN UNION (EU) 371 DB year Economy Reform Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Hungary made starting a business more complex by increasing the registration fees for limited liability companies DB2013 Hungary and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry. Ireland made starting a business easier by introducing a new DB2013 Ireland online facility for business registration. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Italy made transferring property easier by digitizing cadastral DB2013 Italy maps of properties and making the maps available to notaries online. Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential DB2013 Ireland property. It also extended compulsory registration to all property in Ireland. Hungary improved access to credit information by passing its DB2013 Hungary first credit bureau law mandating the creation of a database with positive credit information on individuals. Germany made paying taxes more convenient for companies DB2013 Germany by canceling ELENA procedures and implementing electronic filing and payment system for most taxes. Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary DB2013 Hungary increased health insurance contributions paid by the employer. Denmark made registering property easier by introducing DB2013 Denmark electronic submission of property transfer applications at the Doing Business 2017 EUROPEAN UNION (EU) 372 DB year Economy Reform land registry. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Hungary reduced the time to export and import by allowing DB2013 Hungary electronic submission of customs declarations and other documents. Germany strengthened its insolvency process by adopting a DB2013 Germany new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Italy made getting electricity easier and less costly by DB2013 Italy improving the efficiency of the utility Acea Distribuzione and reducing connection fees. The Netherlands made starting a business easier by DB2013 Netherlands eliminating the requirement for a declaration of nonobjection by the Ministry of Justice before incorporation. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop DB2013 Slovak Republic shop for trading licenses, income tax registration and health insurance registration. Poland strengthened its insolvency process by updating guidelines on the information and documents that need to be DB2013 Poland included in the bankruptcy petition and by granting secured creditors the right to take over claims encumbered with financial pledges in case of liquidation. Portugal made resolving insolvency easier by introducing a DB2013 Portugal new insolvency law that expedites liquidation procedures and creates fast-track mechanisms both in and out of court. Doing Business 2017 EUROPEAN UNION (EU) 373 DB year Economy Reform The Slovak Republic improved its insolvency process by redefining the roles and powers of creditors and trustees, DB2013 Slovak Republic strengthening the rights of secured creditors and redefining rules for the conversion of restructuring into a bankruptcy proceeding. Spain temporarily allowed unlimited duration of fixed-term DB2013 Spain contracts. Slovenia strengthened investor protections through a new DB2013 Slovenia law regulating the approval of related-party transactions. Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of DB2013 Slovenia social security contributions and by reducing the corporate income tax rate. Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and DB2013 Spain improving the sharing of information among customs and other agencies. The Netherlands made dealing with construction permits DB2013 Netherlands simpler by merging several approvals and implementing an online application system. Portugal made obtaining construction permits easier by DB2013 Portugal implementing strict time limits to process urban projects and simplifying the associated procedures. Portugal increased the maximum duration of fixed-term DB2013 Portugal contracts and reduced the severance pay applicable in cases of redundancy dismissals. The Slovak Republic increased the maximum duration of fixed-term contracts, eliminated notification requirements to DB2013 Slovak Republic third parties in case of redundancy dismissals and reduced redundancy costs. The United Kingdom increased redundancy costs of the DB2013 United Kingdom severance pay applicable in cases of redundancy dismissals. In Sweden property transfers became more time consuming DB2013 Sweden during implementation of a new information technology system at the land registry. Poland made property registration faster by introducing a new caseload management system for the land and DB2013 Poland mortgage registries and by continuing to digitize the records of the registries. Doing Business 2017 EUROPEAN UNION (EU) 374 DB year Economy Reform Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. The Netherlands strengthened investor protections through a DB2013 Netherlands new law regulating the approval of related-party transactions. The United Kingdom made paying taxes less costly for DB2013 United Kingdom companies by reducing the corporate income tax rate. Poland made paying taxes easier for companies by promoting the use of electronic filing and payment systems —though it DB2013 Poland also made paying taxes more costly by increasing social security contributions. The Slovak Republic made paying taxes easier for companies DB2013 Slovak Republic by implementing electronic filing and payment of social security and health insurance contributions. Portugal made trading across borders easier by implementing DB2013 Portugal an electronic single window for port procedures. The Netherlands made importing easier by introducing a new DB2013 Netherlands web-based system for cargo release at the port terminals in Rotterdam. The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure DB2013 Slovak Republic intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Poland made enforcing contracts easier by amending the civil DB2013 Poland procedure code and appointing more judges to commercial courts. Greece reduced the time required to obtain a construction DB2013 Greece permit by introducing strict time limits for processing permit applications at the municipality. The Czech Republic increased the maximum duration of fixed-term contracts and reduced the severance pay DB2013 Czech Republic applicable in cases of redundancy dismissals of employees with one year of service. Greece strengthened investor protections by requiring DB2013 Greece greater immediate and annual disclosure of material related- party transactions. Slovenia strengthened its insolvency process by requiring that DB2013 Slovenia the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ Doing Business 2017 EUROPEAN UNION (EU) 375 DB year Economy Reform committee in a bankruptcy proceeding; prohibiting insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions. Spain strengthened its insolvency process by making workouts easier, offering more protections for refinancing agreements, allowing conversion from reorganization into DB2013 Spain liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Greece enhanced its insolvency process by abolishing the DB2013 Greece conciliation procedure and introducing a new rehabilitation proceeding. The Czech Republic made registering property easier by allowing the cadastral office online access to the commercial DB2013 Czech Republic registry’s database and thus eliminating the need to obtain a paper certificate from the registry before applying for registration at the cadastre. The Czech Republic made paying taxes faster for companies DB2013 Czech Republic by promoting the use of electronic facilities. The Czech Republic reduced the time to export and import by DB2013 Czech Republic allowing electronic submission of customs declarations and other documents. The Czech Republic revised its tax legislation to simplify DB2012 Czech Republic provisions relating to administrative procedures and relationships between tax authorities and taxpayers. Slovenia simplified and streamlined the insolvency process DB2012 Slovenia and strengthened professional requirements for insolvency administrators. DB2012 Greece Greece reduced its corporate income tax rate. The Czech Republic speeded up property registration by DB2012 Czech Republic computerizing its cadastral office, digitizing all its data and introducing electronic communications with notaries. Greece decreased the severance pay applicable in case of DB2012 Greece redundancy dismissals. Greece made starting a business easier by implementing an DB2012 Greece electronic platform that interconnects several government agencies. Doing Business 2017 EUROPEAN UNION (EU) 376 DB year Economy Reform Sweden increased the cost of transferring property between DB2012 Sweden companies. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Poland made trading across borders faster by implementing DB2012 Poland electronic preparation and submission of customs documents. The Slovak Republic improved its credit information system DB2012 Slovak Republic by guaranteeing by law the right of borrowers to inspect their own data. The United Kingdom made dealing with construction permits DB2012 United Kingdom easier by increasing efficiency in the issuance of planning permits. Portugal made dealing with construction permits easier by DB2012 Portugal streamlining its inspection system. United Kingdom increased the severance payment obligation DB2012 United Kingdom applicable in cases of redundancy dismissals. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Slovenia made transferring property easier and less costly by DB2012 Slovenia introducing online procedures and reducing fees. Slovenia made trading across borders faster by introducing DB2012 Slovenia online submission of customs declaration forms. Spain eased the process of starting a business by reducing DB2012 Spain the cost to start a business and decreasing the minimum capital requirement. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Poland amended its bankruptcy and reorganization law to DB2012 Poland simplify court procedures and extend more rights to secured creditors. Portugal made starting a business easier by allowing company founders to choose the amount of minimum capital DB2012 Portugal and make their paid-in capital contribution up to 1 year after the company’s creation, and by eliminating the stamp tax on company’s share capital subscriptions. Doing Business 2017 EUROPEAN UNION (EU) 377 DB year Economy Reform Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for DB2012 Hungary retaining data on defaults and late payments (if repaid) from 5 years to 1 year. Hungary made paying taxes costlier for firms by introducing a DB2012 Hungary sector-specific surtax Finland simplified reporting and payment for the value added DB2012 Finland tax and labor tax. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured DB2012 Lithuania creditors and introduce professional requirements for insolvency administrators. Italy introduced debt restructuring and reorganization procedures as alternatives to bankruptcy proceedings and DB2012 Italy extended further rights to secured creditors during insolvency proceedings. France passed a law that enables debtors to implement a DB2012 France restructuring plan with financial creditors only, without affecting trade creditors. DB2012 Belgium Belgium increased the severance payment obligation. Belgium made property registration quicker for entrepreneurs DB2012 Belgium by setting time limits and implementing its “e-notariat” system. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Doing Business 2017 EUROPEAN UNION (EU) 378 DB year Economy Reform Austria passed a new law that simplifies restructuring DB2012 Austria proceedings and gives preferential consideration to the interests of the debtors. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. Cyprus strengthened investor protections by requiring DB2012 Cyprus greater corporate disclosure to the board of directors, to the public and in the annual report. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Denmark introduced new rules on company reorganization, DB2012 Denmark which led to the elimination of the suspension-of-payments regime. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. Belgium made trading across borders faster by improving its DB2012 Belgium risk-based profiling system for imports. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. In Estonia a municipal sales tax introduced in Tallinn made DB2012 Estonia paying taxes costlier for firms, though a later parliamentary measure abolished local sales taxes effective January 1, 2012. Belgium introduced a new law that will promote and facilitate DB2011 Belgium the survival of viable businesses experiencing financial difficulties. Amendments to Estonia’s recent insolvency law increased the DB2011 Estonia chances that viable businesses will survive insolvency by Doing Business 2017 EUROPEAN UNION (EU) 379 DB year Economy Reform improving procedures and changing the qualification requirements for insolvency administrators. Hungary implemented a time limit for the issuance of DB2011 Hungary building permits. Luxembourg eased business start-up by speeding up the DB2011 Luxembourg delivery of the business license. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial DB2011 Germany registry and eliminating the need to publish an announcement in a newspaper. Italy made starting a business easier by enhancing an online DB2011 Italy registration system. Hungary reduced the property registration fee by 6% of the DB2011 Hungary property value. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. DB2011 Lithuania Lithuania reduced corporate tax rates. DB2011 Hungary Hungary simplified taxes and tax bases. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Estonia increased the unemployment insurance contribution DB2011 Estonia rate. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Estonia improved access to credit by amending the Code of DB2011 Estonia Enforcement Procedure and allowing out-of-court enforcement of collateral by secured creditors. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court Doing Business 2017 EUROPEAN UNION (EU) 380 DB year Economy Reform registries electronically through the notary public. Denmark eased business start-up by reducing the minimum capital requirement for limited liability companies from DB2011 Denmark 125,000 Danish kroner ($22,850) to 80,000 Danish kroner ($14,620). Estonia made dealing with construction permits more DB2011 Estonia complex by increasing the time for obtaining design criteria from the municipality. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Estonia eliminated the applicable priority rules for dismissals as well as the obligation to notify and obtain the approval of a third party in case of redundancy dismissals. It also removed DB2011 Estonia restrictions on night work and reduced notice period and severance payment applicable in case of redundancy dismissals. Computerization of Denmark’s land registry cut the number DB2011 Denmark of procedures required to register property by half. Austria made it easier to transfer property by requiring online DB2011 Austria submission of all applications to register property transfers. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Belgium’s capital city, Brussels, made it more difficult to DB2011 Belgium transfer property by requiring a clean-soil certificate. Amendments to Hungary’s bankruptcy law encourage DB2011 Hungary insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. Latvia introduced a mechanism for out-of-court settlement of DB2011 Latvia insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Doing Business 2017 EUROPEAN UNION (EU) 381 DB year Economy Reform Sweden cut the minimum capital requirement for limited DB2011 Sweden liability companies by half, making it easier to start a business. Portugal made it easier dealing with construction permits by DB2011 Portugal implementing the 95 day time limit for the approval of project designs. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Spain reduced the notice period applicable in case of DB2011 Spain redundancy dismissals. Greater computerization in Slovenia’s land registry reduced DB2011 Slovenia delays in property registration by 75%. Spain amended its regulations governing insolvency DB2011 Spain proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Spain streamlined the documentation for imports by DB2011 Spain including tax-related information on its single administrative document. Slovenia abolished its payroll tax and reduced its corporate DB2011 Slovenia income tax rate. Slovenia made starting a business easier through DB2011 Slovenia improvements to its one-stop shop that allowed more online services. Poland reduced the maximum duration of fixed-term DB2011 Poland contracts. DB2011 Portugal Portugal approved a new Labor Code. Slovak Republic reduced the maximum duration of fixed-term DB2011 Slovak Republic contracts. Sweden strengthened investor protections by requiring DB2011 Sweden greater corporate disclosure and regulating the approval of transactions between interested parties. Sweden made registering property easier by eliminating the DB2011 Sweden requirement to obtain a preemption waiver from the municipality Poland eased property registration by computerizing its land DB2011 Poland registry. Portugal established a one-stop shop for property DB2011 Portugal registration. Doing Business 2017 EUROPEAN UNION (EU) 382 DB year Economy Reform Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. Portugal introduced a new social security code and lowered DB2011 Portugal corporate tax rates. The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed DB2011 Netherlands small entities to use their annual accounts as the basis for computing their corporate income tax. DB2011 Sweden Sweden reduced profit and payroll tax rates The United Kingdom improved the process for enforcing DB2011 United Kingdom contracts by modernizing civil procedures in the commercial court. Amendments to the United Kingdom’s insolvency rules streamline bankruptcy procedures, favor the sale of the firm DB2011 United Kingdom as a whole and improve the calculation of administrators’ fees. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Greece made transferring property more costly by increasing DB2011 Greece the transfer tax from 1% of the property value to 10%. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in DB2011 Czech Republic insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy. The Czech Republic simplified its labor tax processes and DB2011 Czech Republic reduced employer contribution rates for social security. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 EUROPEAN UNION (EU) 383 DISTANCE TO FRONTIER AND EASE OF DOING BUSINESS RANKING Doing Business presents results for two aggregate even though it is no longer at the frontier in a measures: the distance to frontier score and the ease of subsequent year. doing business ranking, which is based on the distance For scores such as those on the strength of legal rights to frontier score. The ease of doing business ranking index or the quality of land administration index, the compares economies with one another; the distance to frontier is set at the highest possible value. For the total frontier score benchmarks economies with respect to tax rate, consistent with the use of a threshold in regulatory best practice, showing the absolute distance calculating the rankings on this indicator, the frontier is to the best performance on each Doing Business defined as the total tax rate at the 15th percentile of the indicator. When compared across years, the distance to overall distribution for all years included in the analysis frontier score shows how much the regulatory up to and including Doing Business 2015. For the time to environment for local entrepreneurs in an economy has pay taxes the frontier is defined as the lowest time changed over time in absolute terms, while the ease of recorded among all economies that levy the three major doing business ranking can show only how much the taxes: profit tax, labor taxes and mandatory regulatory environment has changed relative to that in contributions, and value added tax (VAT) or sales tax. For other economies. the different times to trade across borders, the frontier is defined as 1 hour even though in many economies the Distance to Frontier time is less than that. The distance to frontier score captures the gap between In the same formulation, to mitigate the effects of an economy’s performance and a measure of best extreme outliers in the distributions of the rescaled data practice across the entire sample of 36 indicators for 10 for most component indicators (very few economies Doing Business topics (the labor market regulation need 700 days to complete the procedures to start a indicators are excluded). For starting a business, for business, but many need 9 days), the worst performance example, the former Yugoslav Republic of Macedonia is calculated after the removal of outliers. The definition and New Zealand have the smallest number of of outliers is based on the distribution for each procedures required (1), and New Zealand the shortest component indicator. To simplify the process two rules time to fulfill them (0.5 days). Slovenia has the lowest were defined: the 95th percentile is used for the cost (0.0), and Australia, Colombia and 103 other indicators with the most dispersed distributions economies have no paid-in minimum capital (including minimum capital, number of payments to pay requirement (table 14.1 in the Doing Business 2017 taxes, and the time and cost indicators), and the 99th report). percentile is used for number of procedures. No outlier is Calculation of the distance to frontier score removed for component indicators bound by definition Calculating the distance to frontier score for each or construction, including legal index scores (such as the depth of credit information index, extent of conflict of economy involves two main steps. In the first step interest regulation index and strength of insolvency individual component indicators are normalized to a common unit where each of the 36 component framework index) and the recovery rate (figure 14.1). indicators y (except for the total tax rate) is rescaled In the second step for calculating the distance to frontier using the linear transformation (worst − y)/(worst − score, the scores obtained for individual indicators for frontier). In this formulation the frontier represents the each economy are aggregated through simple averaging best performance on the indicator across all economies into one distance to frontier score, first for each topic since 2005 or the third year in which data for the and then across all 10 topics: starting a business, dealing indicator were collected. Both the best performance and with construction permits, getting electricity, registering the worst performance are established every five years property, getting credit, protecting minority investors, based on the Doing Business data for the year in which paying taxes, trading across borders, enforcing contracts they are established, and remain at that level for the five and resolving insolvency. More complex aggregation years regardless of any changes in data in interim years. methods—such as principal components and Thus an economy may set the frontier for an indicator unobserved components—yield a ranking nearly Doing Business 2017 EUROPEAN UNION (EU) 384 identical to the simple average used by Doing Business3. than it would have had before (line D is bigger than line Thus Doing Business uses the simplest method: C in figure 14.2 of the Doing Business 2017 report). weighting all topics equally and, within each topic, giving The nonlinear transformation is not based on any equal weight to each of the topic components 4. economic theory of an “optimal tax rate” that minimizes An economy’s distance to frontier score is indicated on a distortions or maximizes efficiency in an economy’s scale from 0 to 100, where 0 represents the worst overall tax system. Instead, it is mainly empirical in performance and 100 the frontier. All distance to frontier nature. The nonlinear transformation along with the calculations are based on a maximum of five decimals. threshold reduces the bias in the indicator toward However, indicator ranking calculations and the ease of economies that do not need to levy significant taxes on doing business ranking calculations are based on two companies like the Doing Business standardized case decimals. study company because they raise public revenue in other ways—for example, through taxes on foreign The difference between an economy’s distance to companies, through taxes on sectors other than frontier score in any previous year and its score in 2015 manufacturing or from natural resources (all of which are illustrates the extent to which the economy has closed outside the scope of the methodology). In addition, it the gap to the regulatory frontier over time. And in any acknowledges the need of economies to collect taxes given year the score measures how far an economy is from firms. from the best performance at that time. Calculation of scores for economies with 2 cities Treatment of the total tax rate covered The total tax rate component of the paying taxes For each of the 11 economies in which Doing Business indicator set enters the distance to frontier calculation in collects data for the second largest business city as well a different way than any other indicator. The distance to as the largest one, the distance to frontier score is frontier score obtained for the total tax rate is calculated as the population-weighted average of the transformed in a nonlinear fashion before it enters the distance to frontier scores for these two cities (table distance to frontier score for paying taxes. As a result of 13.1). This is done for the aggregate score, the scores for the nonlinear transformation, an increase in the total tax each topic and the scores for all the component rate has a smaller impact on the distance to frontier indicators for each topic. score for the total tax rate—and therefore on the distance to frontier score for paying taxes—for economies with a below-average total tax rate than it would have had before this approach was adopted in Doing Business 2015 (line B is smaller than line A in figure 14.2 of the Doing Business 2017 report). And for economies with an extreme total tax rate (a rate that is very high relative to the average), an increase has a greater impact on both these distance to frontier scores 3 See Djankov, Manraj and others (2005). Principal components and unobserved components methods yield a ranking nearly identical to that from the simple average method because both these methods assign roughly equal weights to the topics, since the pairwise correlations among indicators do not differ much. An alternative to the simple average method is to give different weights to the topics, depending on which are considered of more or less importance in the context of a specific economy. 4 For getting credit, indicators are weighted proportionally, according to their contribution to the total score, with a weight of 60% assigned to the strength of legal rights index and 40% to the depth of credit information index. Indicators for all other topics are assigned equal weights Doing Business 2017 EUROPEAN UNION (EU) 385 Table 13.1 Weights used in calculating the distance to implemented regulatory reforms making it easier to do frontier scores for economies with 2 cities covered business in 3 or more of the 10 topics included in this year’s aggregate distance to frontier score. Changes Economy City Weight (%) making it more difficult to do business are subtracted Dhaka 78 Bangladesh from the total number of those making it easier to do Chittagong 22 São Paulo 61 business. Twenty-four economies meet this criterion: Brazil Armenia; Azerbaijan; Benin; Costa Rica; Côte d’Ivoire; Rio de Janeiro 39 Shanghai 55 Cyprus; Hong Kong SAR, China; Indonesia; Jamaica; China Beijing 45 Kazakhstan; Kenya; Lithuania; Madagascar; Mauritania; Mumbai 47 Morocco; Romania; the Russian Federation; Rwanda; India Delhi 53 Senegal; Togo; Uganda; the United Arab Emirates; Jakarta 78 Uzbekistan; and Vietnam. Second, Doing Business sorts Indonesia Surabaya 22 these economies on the increase in their distance to Tokyo 65 Japan frontier score from the previous year using comparable Osaka 35 data. Mexico City 83 Mexico Monterrey 17 Selecting the economies that implemented regulatory Lagos 77 reforms in at least three topics and had the biggest Nigeria Kano 23 improvements in their distance to frontier scores is Karachi 65 intended to highlight economies with ongoing, broad- Pakistan Lahore 35 based reform programs. The improvement in the Moscow 70 Russian Federation distance to frontier score is used to identify the top St. Petersburg 30 New York 60 improvers because this allows a focus on the absolute United States improvement—in contrast with the relative improvement Los Angeles 40 Source: United Nations, Department of Economic and Social shown by a change in rankings—that economies have Affairs, Population Division, World Urbanization Prospects, made in their regulatory environment for business. 2014 Revision. http://esa.un.org/unpd/wup/CD- ROM/Default.aspx. Ease of Doing Business ranking Economies that improved the most across 3 or more The ease of doing business ranking ranges from 1 to 190. Doing Business topics in 2014/15 The ranking of economies is determined by sorting the Doing Business 2017 uses a simple method to calculate aggregate distance to frontier scores, rounded to 2 decimals. which economies improved the ease of doing business the most. First, it selects the economies that in 2014/15 Doing Business 2017 EUROPEAN UNION (EU) 386 RESOURCES ON THE DOING BUSINESS WEBSITE Current features Law library News on the Doing Business project Online collection of business laws and regulations http://www.doingbusiness.org relating to business http://www.doingbusiness.org/law-library Rankings How economies rank—from 1 to 190 Contributors http://www.doingbusiness.org/rankings More than 12,500 specialists in 190 economies who participate in Doing Business Data http://www.doingbusiness.org/contributors/doing- All the data for 190 economies—topic rankings, business indicator values, lists of regulatory procedures and details underlying indicators Entrepreneurship data http://www.doingbusiness.org/data Data on business density (number of newly registered companies per 1,000 working-age Reports people) for 136 economies Access to Doing Business reports as well as http://www.doingbusiness.org/data/exploretopics/ent subnational and regional reports, case studies and repreneurship customized economy and regional profiles http://www.doingbusiness.org/reports Distance to frontier Data benchmarking 190 economies to the frontier Methodology in regulatory practice and a distance to frontier The methodologies and research papers underlying calculator Doing Business http://www.doingbusiness.org/data/distance-to- http://www.doingbusiness.org/methodology frontier Research Information on good practices Abstracts of papers on Doing Business topics and Showing where the many good practices identified related policy issues by Doing Business have been adopted http://www.doingbusiness.org/research http://www.doingbusiness.org/data/good-practice Doing Business reforms Short summaries of DB2017 business regulation reforms and lists of reforms since DB2008 http://www.doingbusiness.org/reforms Historical data Customized data sets since DB2004 http://www.doingbusiness.org/custom-query Doing Business 2017 EUROPEAN UNION (EU) 387