Doing Business 2018 Kiribati
Economy Pro le of Kiribati
Doing Business 2018 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and
permits safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and
the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework
for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and
selected cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations
applying to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides
quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering
property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving
insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings
of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on
the ease of doing business, it does present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and
over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for
reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business
climate of each economy.
In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent
cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend
reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other
cities in the economy or region and with the 190 economies that Doing Business has ranked.
The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11
indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except
for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan,
Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second
largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The
project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide
an objective basis for understanding and improving the regulatory environment for business around the world. Page 2
for insolvency
Doing Business
Labor market 2018
regulation Kiribati
Flexibility in employment regulation and aspects of job quality
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and
selected cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations
applying to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides
quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering
property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving
insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings
of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on
the ease of doing business, it does present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and
over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for
reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business
climate of each economy.
In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent
cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend
reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other
cities in the economy or region and with the 190 economies that Doing Business has ranked.
The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11
indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except
for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan,
Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second
largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The
project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide
an objective basis for understanding and improving the regulatory environment for business around the world.
The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best
performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s
distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the
frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the
aggregate distance to frontier scores, rounded to two decimals.
More about Doing Business (PDF, 5MB)
Ease of Doing Business in Region East Asia & Pacific DB 2018 Rank
190 1
Kiribati Income Category Lower middle income
157
Population 114,395 DB 2018 Distance to Frontier (DTF)
GNI Per Capita (US$) 2,380 0 100
48.74
City Covered Tarawa
DB 2018 Distance to Frontier (DTF)
0 100
62.70: Regional Average (East Asia & Pacific)
58.13: Solomon Islands (Rank: 116)
55.58: Palau (Rank: 130)
51.45: Marshall Islands (Rank: 149)
48.99: Micronesia, Fed. Sts. (Rank: 155)
Page 3
48.74: Kiribati (Rank: 157)
aggregate distance to frontier scores, rounded to two decimals.
More
Doingabout 2018 (PDF,
Doing Business
Business 5MB)
Kiribati
Ease of Doing Business in Region East Asia & Pacific DB 2018 Rank
190 1
Kiribati Income Category Lower middle income
157
Population 114,395 DB 2018 Distance to Frontier (DTF)
GNI Per Capita (US$) 2,380 0 100
48.74
City Covered Tarawa
DB 2018 Distance to Frontier (DTF)
0 100
62.70: Regional Average (East Asia & Pacific)
58.13: Solomon Islands (Rank: 116)
55.58: Palau (Rank: 130)
51.45: Marshall Islands (Rank: 149)
48.99: Micronesia, Fed. Sts. (Rank: 155)
48.74: Kiribati (Rank: 157)
Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of
the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0
represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Kiribati
1
28
55
82 94
Rank
111
109 121
124 127
136 147 146
163 168 170 168
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Distance to Frontier (DTF) on Doing Business topics - Kiribati
100
77.47
80
71.42
65.72
62.08
60 53.39
DTF
49.12 46.67
41.50
40
20.00
20
0.00
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Change:-2.45 Change:-0.01 Change:0.00 Investors Change:0.00 Borders Change:0.00 Change:0.00
Change:-0.70 Permits Change:0.00 Change:0.00
Change:-0.01
Starting a Business
Page 4
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Change:-2.45 Change:-0.01 Change:0.00 Investors Change:0.00 Borders Change:0.00 Change:0.00
Change:-0.70 Permits Change:0.00 Change:0.00
Doing Business 2018 Kiribati
Change:-0.01
Starting a Business
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized
limited liability company to start up and formally operate in economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically
owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and
employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting
a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned
by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores
obtained for each of the component indicators.
The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and operate a To make the data comparable across economies, several assumptions
company (number) about the business and the procedures are used. It is assumed that any
required information is readily available and that the entrepreneur will pay
Pre-registration (for example, name verification
no bribes.
or reservation, notarization)
Registration in economy’s largest business city The business:
- Is a limited liability company (or its legal equivalent). If there is more than
Post-registration (for example, social security
one type of limited liability company in the economy, the most common
registration, company seal)
among domestic rms is chosen. Information on the most common form is
Obtaining approval from spouse to start business
obtained from incorporation lawyers or the statistical o ce.
or leave home to register company
- Operates in the economy’s largest business city and the entire o ce
Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11
can impact company registration, company economies the data are also collected for the second largest business city.
operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal
identity card entity; and has a start-up capital of 10 times income per capita and has a
Time required to complete each procedure turnover of at least 100 times income per capita.
(calendar days) - Performs general industrial or commercial activities, such as the
production or sale of goods or services to the public. The business does
Does not include time spent gathering not perform foreign trade activities and does not handle products subject
information
to a special tax regime, for example, liquor or tobacco. It does not use
Each procedure starts on a separate day (2 heavily polluting production processes.
procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real
Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent
as ½ day to 1 times income per capita.
Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts.
document is received - Has at least 10 and up to 50 employees one month after the
commencement of operations, all of whom are domestic nationals.
No prior contact with officials
- Has a company deed 10 pages long.
Cost required to complete each procedure (% of
The owners:
income per capita)
- Have reached the legal age of majority. If there is no legal age of majority,
Official costs only, no bribes they are assumed to be 30 years old.
No professional fees unless services required by - Are sane, competent, in good health and have no criminal record.
law or commonly used in practice - Are married and the marriage is monogamous and registered with the
authorities.
Paid-in minimum capital (% of income per capita)
- Where the answer di ers according to the legal system applicable to the
Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there
before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the
incorporation majority of the population.
Standardized Company Page 5
before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the
incorporation majority of the population.
Doing Business 2018 Kiribati
Standardized Company
Legal form Private Limited Liability Company
Paid-in minimum capital requirement AUD 500
City Covered Tarawa
East Asia & OECD high
Indicator Kiribati Pacific income Overall Best Performer
Procedure – Men (number) 7 7.0 4.9 1.00 (New Zealand)
Time – Men (days) 31 22.7 8.5 0.50 (New Zealand)
Cost – Men (% of income per capita) 40.2 18.4 3.1 0.00 (United Kingdom)
Procedure – Women (number) 7 7.0 4.9 1.00 (New Zealand)
Time – Women (days) 31 22.8 8.5 0.50 (New Zealand)
Cost – Women (% of income per capita) 40.2 18.4 3.1 0.00 (United Kingdom)
Paid-in min. capital (% of income per capita) 16.2 15.1 8.7 0.00 (113 Economies)
Figure – Starting a Business in Kiribati and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
88.49: Marshall Islands (Rank: 72)
85.42: Solomon Islands (Rank: 94)
82.32: Regional Average (East Asia & Pacific)
81.96: Palau (Rank: 124)
77.47: Kiribati (Rank: 147)
69.56: Micronesia, Fed. Sts. (Rank: 170)
Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for
starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Starting a Business in Kiribati – Procedure, Time and Cost
Time Cost
30
30
25
25
ost (% of income per capita)
20 20
Time (days)
15 15
10 10
Page 6
starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Doing Business 2018 Kiribati
Figure – Starting a Business in Kiribati – Procedure, Time and Cost
Time Cost
30
30
25
25
Cost (% of income per capita)
20 20
Time (days)
15 15
10 10
5 5
0 0
1 2 3 4 5 6 7
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for
men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.
Details – Starting a Business in Kiribati – Procedure, Time and Cost
No. Procedure Time to Complete Associated Costs
1 Deposit the legally required capital in a bank and obtain deposit 1 day no charge
evidence
Agency : Bank
New companies must deposit share capital in a bank and obtain the receipt
of deposit. There are only two Banks: ANZ Bank (Kiribati) Ltd and
Development Bank of Kiribati where the procedure can be performed.
2 Check the uniqueness of the proposed company name 1 day no charge
Agency : Ministry of Commerce, Industry and Cooperatives
Searches of business names are done manually by the Companies O ce.
The Companies Ordinance (s14 (10)) prescribes the forms of application for
approval and reservation of a business name.
3 Register the company with the Registrar’s O ce 11 days on average AUD 50 for name
Agency : Companies O ce (Ministry of Commerce, Industry and reservation + AUD 50
Cooperatives) for approval of
company name +
The prescribed forms of registration and fees are part of the Companies Act.
incorporation fee
These forms can be obtained from the Registrar. The cost is UD$ 50 for
assessed by the
lodging particulars of the company and AUD$ 50 for the issuance of the
Registrar based on
certi cate of incorporation, as well as, actual incorporation fee assessed
share capital (see
based on share capital. The incorporation fee is calculated pursuant to
section 9 of the Companies Act, according to the following formula: procedure
• Upon the rst $10,000 of the authorized share capital a fee of $3.00 per comments)
$100 of such share (subject to a minimum fee of $250), and
• Upon the next $40,000 of share capital, a fee of $2.00 per $100, and Page 7
• Upon any residue of such share capital, a fee of $0.50 cents per $100.
(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.
Doing Business 2018 Kiribati
Details – Starting a Business in Kiribati – Procedure, Time and Cost
No. Procedure Time to Complete Associated Costs
1 Deposit the legally required capital in a bank and obtain deposit 1 day no charge
evidence
Agency : Bank
New companies must deposit share capital in a bank and obtain the receipt
of deposit. There are only two Banks: ANZ Bank (Kiribati) Ltd and
Development Bank of Kiribati where the procedure can be performed.
2 Check the uniqueness of the proposed company name 1 day no charge
Agency : Ministry of Commerce, Industry and Cooperatives
Searches of business names are done manually by the Companies O ce.
The Companies Ordinance (s14 (10)) prescribes the forms of application for
approval and reservation of a business name.
3 Register the company with the Registrar’s O ce 11 days on average AUD 50 for name
Agency : Companies O ce (Ministry of Commerce, Industry and reservation + AUD 50
Cooperatives) for approval of
company name +
The prescribed forms of registration and fees are part of the Companies Act.
incorporation fee
These forms can be obtained from the Registrar. The cost is UD$ 50 for
assessed by the
lodging particulars of the company and AUD$ 50 for the issuance of the
Registrar based on
certi cate of incorporation, as well as, actual incorporation fee assessed
share capital (see
based on share capital. The incorporation fee is calculated pursuant to
section 9 of the Companies Act, according to the following formula: procedure
• Upon the rst $10,000 of the authorized share capital a fee of $3.00 per comments)
$100 of such share (subject to a minimum fee of $250), and
• Upon the next $40,000 of share capital, a fee of $2.00 per $100, and
• Upon any residue of such share capital, a fee of $0.50 cents per $100.
Provide the maximum fee for a company incorporated before the 1st April
1981 shall be $500.
For a company with start up share capital of AUD 25,645 per Doing Business
case study, the incorporation fee would be AUD 613 (AUD 300 for the rst
$10,000 and AUD 313 for subsequent 15,645). As such, in total the company
would pay AUD 713.
4 Register for taxes 2 days on average no charge
Agency : Ministry for Finance and Economic Planning
Under the Income Tax Act, companies operating locally must register for
taxes.
5 Register with the Kiribati Provident Fund (KPF) 1 day no charge
Agency : Kiribati Provident Fund (KPF)
Companies are required to register with KPF to avoid duplication of numbers
given to each applicant.
6 Apply for a business license from the relevant licensing authority 11 days on average AUD 100-600
Agency : Betio Town Council
The Company must apply for a business license from the relevant licensing
authority (e.g., a council) in each jurisdiction in which business activities are
carried out. The license is renewable annually. A retail business license must
be obtained from the local government. The application process takes about Page 8
Companies are required to register with KPF to avoid duplication of numbers
Doing given to each
Business applicant.
2018 Kiribati
6 Apply for a business license from the relevant licensing authority 11 days on average AUD 100-600
Agency : Betio Town Council
The Company must apply for a business license from the relevant licensing
authority (e.g., a council) in each jurisdiction in which business activities are
carried out. The license is renewable annually. A retail business license must
be obtained from the local government. The application process takes about
a day and about 1 – 2 weeks to obtain the actual license. Three people will be
visiting the business location (the Betio Town Council Clerk, the Mayor and
the Vice Major. In addition to the cost of the license, an executive fee of AUD
90 is charged (AUD 30 per person).
7 Make a company seal 4 days on average AUD 25-30
Agency : Sealmaker
Although doing so is not compulsory, companies customarily make a
company seal by ordering it from a manufacturer in Australia or another
Paci c country. No authorization is required to make a seal.
Applies to women only.
Takes place simultaneously with previous procedure.
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits,
submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In
addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of
building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more
information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions
about the construction company, the warehouse project and the utility
Submitting all relevant documents and obtaining
connections are used.
all necessary clearances, licenses, permits and
certificates The construction company (BuildCo):
Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the
receiving all necessary inspections economy’s largest business city. For 11 economies the data are also
collected for the second largest business city.
Obtaining utility connections for water and
- Is 100% domestically and privately owned; has ve owners, none of whom
sewerage
is a legal entity. Has a licensed architect and a licensed engineer, both
Registering and selling the warehouse after its
registered with the local association of architects or engineers. BuildCo is
completion
not assumed to have any other employees who are technical or licensed
Time required to complete each procedure experts, such as geological or topographical experts.
(calendar days) - Owns the land on which the warehouse will be built and will sell the
warehouse upon its completion.
Does not include time spent gathering
information
The warehouse:
Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or
though procedures that can be fully completed
stationery.
online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of
Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will
document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of
No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned
by BuildCo, and the warehouse is valued at 50 times income per capita.
Cost required to complete each procedure (% of Page 9
- Will have complete architectural and technical plans prepared by a
Applies to women only.
Takes place simultaneously with previous procedure.
Doing Business 2018 Kiribati
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits,
submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In
addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of
building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more
information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions
about the construction company, the warehouse project and the utility
Submitting all relevant documents and obtaining
connections are used.
all necessary clearances, licenses, permits and
certificates The construction company (BuildCo):
Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the
receiving all necessary inspections economy’s largest business city. For 11 economies the data are also
collected for the second largest business city.
Obtaining utility connections for water and
- Is 100% domestically and privately owned; has ve owners, none of whom
sewerage
is a legal entity. Has a licensed architect and a licensed engineer, both
Registering and selling the warehouse after its
registered with the local association of architects or engineers. BuildCo is
completion
not assumed to have any other employees who are technical or licensed
Time required to complete each procedure experts, such as geological or topographical experts.
(calendar days) - Owns the land on which the warehouse will be built and will sell the
warehouse upon its completion.
Does not include time spent gathering
information
The warehouse:
Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or
though procedures that can be fully completed
stationery.
online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of
Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will
document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of
No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned
by BuildCo, and the warehouse is valued at 50 times income per capita.
Cost required to complete each procedure (% of
- Will have complete architectural and technical plans prepared by a
warehouse value)
licensed architect. If preparation of the plans requires such steps as
Official costs only, no bribes obtaining further documentation or getting prior approvals from external
Building quality control index (0-15) agencies, these are counted as procedures.
- Will take 30 weeks to construct (excluding all delays due to administrative
Sum of the scores of six component indices: and regulatory requirements).
Quality of building regulations (0-2)
The water and sewerage connections:
Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer
Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole
Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the
smallest size available will be installed or built.
Liability and insurance regimes (0-2)
- Will have an average water use of 662 liters (175 gallons) a day and an
Professional certifications (0-4)
average wastewater ow of 568 liters (150 gallons) a day. Will have a peak
water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of
1,136 liters (300 gallons) a day.
- Will have a constant level of water demand and wastewater ow
throughout the year; will be 1 inch in diameter for the water connection
and 4 inches in diameter for the sewerage connection.
Standardized Warehouse Page 10
and 4 inches in diameter for the sewerage connection.
Doing Business 2018 Kiribati
Standardized Warehouse
Estimated value of warehouse AUD 154,365.00
City Covered Tarawa
East Asia & OECD high
Indicator Kiribati Pacific income Overall Best Performer
Procedures (number) 15 15.2 12.5 7.00 (Denmark)
Time (days) 150 138.2 154.6 27.5 (Korea, Rep.)
Cost (% of warehouse value) 0.3 2.2 1.6 0.10 (5 Economies)
Building quality control index (0-15) 6.0 8.9 11.4 15.00 (3 Economies)
Figure – Dealing with Construction Permits in Kiribati and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
72.74: Solomon Islands (Rank: 57)
70.93: Marshall Islands (Rank: 71)
69.60: Regional Average (East Asia & Pacific)
68.38: Palau (Rank: 85)
65.72: Kiribati (Rank: 111)
61.05: Micronesia, Fed. Sts. (Rank: 137)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier
scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the
component indicators.
Figure – Dealing with Construction Permits in Kiribati – Procedure, Time and Cost
Time Cost
0.3
140
0.25
120
Cost (% of warehouse value)
100 0.2
Time (days)
80
0.15
60
0.1
40
0.05
20
0 0
1 2 3 4 *5 *6 *7 *8 9 10 11 12 13 14 15
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Page 11
component indicators.
Doing Business 2018 Kiribati
Figure – Dealing with Construction Permits in Kiribati – Procedure, Time and Cost
Time Cost
0.3
140
0.25
120
Cost (% of warehouse value)
100 0.2
Time (days)
80
0.15
60
0.1
40
0.05
20
0 0
1 2 3 4 *5 *6 *7 *8 9 10 11 12 13 14 15
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for
men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.
Figure – Dealing with Construction Permits in Kiribati and comparator economies – Measure of Quality
10
8.9
9
8 7.5
7.0
7
6.0
Index score
6
5
4
3
2
1.0
1 0.0
0
Kiribati Marshall Islands Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Details – Dealing with Construction Permits in Kiribati – Procedure, Time and Cost
No. Procedure Time to Complete Associated Costs
1 Apply for land use sublease at the Land Management Department 1 day no charge
Agency : Land Management Department
Land in South Tarawa is leased to the government for 90 years. The type of
warehouse featured in the Doing Business case study is most likely to be
built in South Tarawa's Betio, Bikenibeu, or Bairiki areas, where land must be
subleased from the government.
BuildCo writes an expression of interest for a sublease to the Land
Management Department (LMD) at the Ministry of Environment, Land and
Agriculture Development (MELAD). LMD will then inspect the site and
determine any constraints and opportunities for land use.
Page 12
Kiribati Marshall Islands Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Doing Business 2018 Kiribati
Details – Dealing with Construction Permits in Kiribati – Procedure, Time and Cost
No. Procedure Time to Complete Associated Costs
1 Apply for land use sublease at the Land Management Department 1 day no charge
Agency : Land Management Department
Land in South Tarawa is leased to the government for 90 years. The type of
warehouse featured in the Doing Business case study is most likely to be
built in South Tarawa's Betio, Bikenibeu, or Bairiki areas, where land must be
subleased from the government.
BuildCo writes an expression of interest for a sublease to the Land
Management Department (LMD) at the Ministry of Environment, Land and
Agriculture Development (MELAD). LMD will then inspect the site and
determine any constraints and opportunities for land use.
2 Receive inspection from the Land Management Department 1 day no charge
Agency : Land Management Department
The application form outlines all requirements for the submission of
construction plans.
3 Request and obtain approval from the Public Utility Board (PUB) 7 days AUD 1
Agency : Public Utility Board
BuildCo must submit the site plan and location to PUB so it can visit the site
and con rm that there is no danger to underground electricity cables and
water pipes and the plot is safe to excavate. PUB must then stamp BuildCo's
building permit application.
4 Obtain land use sublease approval from the Sublease Advisory 90 days no charge
Allocation Committee (SAAC)
Agency : Sublease Advisory Allocation Committee
The Sublease Advisory Allocation Committee (SAAC) must approve the
sublease. Meetings of SAAC are chaired by the Secretary of MELAD and are
supposed to take place once a month.
Once approved by SAAC, the request is submitted to the Cabinet of Ministers
for approval. The nal document is then signed by the Minister.
5 Request and obtain environmental license 15 days AUD 10
Agency : Environment and Conservation Department
According to the Environmental Act 2007, BuildCo must obtain an
environmental license to determine whether its activities will have an
environmental impact. BuildCo must complete an environment license
application form and le it, along with the site plan, zoning certi cate, and
proof of ownership, with the Environment and Conservation Department
(ECD) of MELAD. ECD will prepare a report and determine whether a full
Environmental Impact Assessment (EIA) is required. However, the type of
warehouse featured in the Doing Business case study would most likely not
require a full EIA.
6 Request approval from the Public Works Department 1 day no charge
Agency : Public Works Department
BuildCo must submit the following documents:
• Site plan Page 13
warehouse featured in the Doing Business case study would most likely not
Doing require EIA.
a full2018
Business Kiribati
6 Request approval from the Public Works Department 1 day no charge
Agency : Public Works Department
BuildCo must submit the following documents:
• Site plan
• Building layout plan
• Building views
• Building sectional views
• Building details (such as footing, doors and windows)
• Plumbing
• Elevation
The application must be accompanied by plans certi ed by a quali ed
engineer. In practice, the same architects or engineers who prepare the
plans are also responsible for approving them. The plans are returned with a
list of building conditions. Several departments will be approving the plans.
Since the plans are completed by an employee at the Public Work
Department, approval of the plans does not take a long time. Also, it is done
in parallel with obtaining all the other clearances, as there is no need to
provide those clearances to the Ministry to obtain the approval of the plans.
7 Receive inspection from the Public Works Department before 1 day no charge
construction begins
Agency : Public Works Department
According to the Environmental Act, the Environment Minister’s consent is
required for all commercial developments. The application must be
accompanied by the environmental impact assessment. The time to obtain
the consent varies from weeks to several months.
8 Obtain approval from the Public Works Department 14 days no charge
Agency : Public Works Department
9 Request and receive approval from the Local Land Planning Board and 30 days AUD 386
pay the building permit fee
Agency : Local Land Planning Board
The Local Land Planning Board reviews all submitted documents and
assesses whether:
• The site is free for development
• The development is in line with a detailed land use plan
• All clearances from relevant authorities have been collected
The Board is supposed to meet once a month. Another possibility is to call
an immediate meeting, which means that BuildCo must pay for the time and
transportation of all 18 members of the Board. The normal cost is 0.25% of
the project value.
10 Receive site setout inspection from the Public Works Department 1 day no charge
Agency : Public Works Department
According to the Second Schedule of the Building Act 2006, there are four
phased at which any building must be inspected and work cannot proceed
further if each inspection does not take place.
11 Receive completion of the structural framework and before the 1 day no charge
placement of any internal lining inspection
Agency : Public Works Department Page 14
phased at which any building must be inspected and work cannot proceed
Doing further if each
Business inspection
2018 does not take place.
Kiribati
11 Receive completion of the structural framework and before the 1 day no charge
placement of any internal lining inspection
Agency : Public Works Department
12 Receive completion of water supply piping, waste lines, septic tanks and 1 day no charge
soakways and electrical conduits prior to concealment inspection
Agency : Public Works Department
13 Receive completion of placement of form work, and placement of steel 1 day no charge
reinforcing
Agency : Ministry of Public Works
According to Schedule II of the Building Act 2006, an inspection for the
completion of placement of form work, and placement of steel reinforcing
must be conducted prior to continuation of work
14 Receive nal inspection and obtain certi cate of occupancy 7 days no charge
Agency : Public Works Department
According to Article 12 of the Building Act, after a construction is completed,
the owner must request a certi cate of occupancy.
15 Request and obtain water and sewage connection from Public Works 10 days AUD 30
Department
Agency : Public Works Department
As there is no sewage system, a septic tank is installed.
Takes place simultaneously with previous procedure.
Details – Dealing with Construction Permits in Kiribati – Measure of Quality
Answer Score
Building quality control index (0-15) 6.0
Quality of building regulations index (0-2) 1.5
How accessible are building laws and regulations in your economy? (0-1) Free of charge; 0.5
Not easily
accessible.
Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals;
Available only on
request.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.
Quality control during construction index (0-3) 1.0 Page 15
Takes place simultaneously with previous procedure.
Doing Business 2018 Kiribati
Details – Dealing with Construction Permits in Kiribati – Measure of Quality
Answer Score
Building quality control index (0-15) 6.0
Quality of building regulations index (0-2) 1.5
How accessible are building laws and regulations in your economy? (0-1) Free of charge; 0.5
Not easily
accessible.
Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals;
Available only on
request.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.
Quality control during construction index (0-3) 1.0
What types of inspections (if any) are required by law to be carried out during Inspections at 1.0
construction? (0-2) various phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0
inspections are
not always done
in practice
during
construction;
Mandatory
inspections are
done most of the
time during
construction.
Quality control after construction index (0-3) 2.0
Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0
accordance with the approved plans and regulations? (0-2) inspection is
done by
government
agency.
Do legally mandated nal inspections occur in practice? (0-1) Final inspection 0.0
does not always
occur in practice;
Final inspection
occurs most of
the time.
Page 16
Liability and insurance regimes index (0-2) 0.5
government
Doing Business 2018 Kiribati agency.
Do legally mandated nal inspections occur in practice? (0-1) Final inspection 0.0
does not always
occur in practice;
Final inspection
occurs most of
the time.
Liability and insurance regimes index (0-2) 0.5
Which parties (if any) are held liable by law for structural aws or problems in the Construction 0.5
building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) company; Owner
or investor.
Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0
possible structural aws or problems in the building once it is in use (Latent Defect required by law
Liability Insurance or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certi cations index (0-4) 0.0
What are the quali cation requirements for the professional responsible for verifying University 0.0
that the architectural plans or drawings are in compliance with existing building degree in
regulations? (0-2) architecture or
engineering.
What are the quali cation requirements for the professional who supervises the University 0.0
construction on the ground? (0-2) degree in
engineering,
construction or
construction
management.
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply,
transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June
2017. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are
(number) used.
Submitting all relevant documents and obtaining
The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
Completing all required notifications and
- Is located in the economy’s largest business city. For 11 economies the
receiving all necessary inspections
data are also collected for the second largest business city.
Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is
purchasing material for these works in an area with no physical constraints. For example, the property is not
Concluding any necessary supply contract and near a railway.
obtaining final supply - Is a new construction and is being connected to electricity for the rst
time.
Time required to complete each procedure
- Has two stories with a total surface area of approximately 1,300.6 square
(calendar days)
meters (14,000 square feet). The plot of land on which it is built is 929
Is at least 1 calendar day square meters (10,000 square feet).
Page 17
Each procedure starts on a separate day
construction
management.
Doing Business 2018 Kiribati
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply,
transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June
2017. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are
(number) used.
Submitting all relevant documents and obtaining
The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
Completing all required notifications and
- Is located in the economy’s largest business city. For 11 economies the
receiving all necessary inspections
data are also collected for the second largest business city.
Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is
purchasing material for these works in an area with no physical constraints. For example, the property is not
Concluding any necessary supply contract and near a railway.
obtaining final supply - Is a new construction and is being connected to electricity for the rst
time.
Time required to complete each procedure
- Has two stories with a total surface area of approximately 1,300.6 square
(calendar days)
meters (14,000 square feet). The plot of land on which it is built is 929
Is at least 1 calendar day square meters (10,000 square feet).
Each procedure starts on a separate day
Does not include time spent gathering The electricity connection:
information - Is a permanent one with a three-phase, four-wire Y connection with a
subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1,
Reflects the time spent in practice, with little
when 1 kVA = 1 kilowatt (kW).
follow-up and no prior contact with officials
- Has a length of 150 meters. The connection is to either the low- or
Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or
income per capita) underground, whichever is more common in the area where the
warehouse is located and requires works that involve the crossing of a 10-
Official costs only, no bribes
meter road (such as by excavation or overhead lines) but are all carried out
Value added tax excluded
on public land. There is no crossing of other owners’ private property
The reliability of supply and transparency of because the warehouse has access to a road.
tari s index (0-8) - 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
Duration and frequency of power outages (0–3)
panel or switchboard and the meter base.
Tools to monitor power outages (0–1)
Tools to restore power supply (0–1) The monthly consumption:
Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00
(0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity
Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity
reasons) and the monthly energy consumption is 26,880 kilowatt-hours
Transparency and accessibility of tariffs (0–1)
(kWh); hourly consumption is 112 kWh.
Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the
Price based on monthly bill for commercial cheapest supplier.
warehouse in case study - Tari s e ective in March of the current year are used for calculation of
the price of electricity for the warehouse. Although March has 31 days, for
* N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used.
electricity, but it is not included in the distance to
frontier score nor the ranking on the ease of getting
electricity.
Page 18
Standardized Connection
frontier score nor the ranking on the ease of getting
electricity.
Doing Business 2018 Kiribati
Standardized Connection
Price of electricity (US cents per kWh) 42.4
Name of utility Public Utilities Board
City Covered Tarawa
East Asia & OECD high
Indicator Kiribati Pacific income Overall Best Performer
Procedures (number) 6 4.5 4.7 2 (United Arab
Emirates)
Time (days) 97 71.6 79.1 10 (United Arab
Emirates)
Cost (% of income per capita) 4022.3 712.0 63.0 0.00 (Japan)
Reliability of supply and transparency of tariff 0 3.7 7.4 8.00 (28 Economies)
index (0-8)
Figure – Getting Electricity in Kiribati and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
72.23: Regional Average (East Asia & Pacific)
64.48: Micronesia, Fed. Sts. (Rank: 109)
63.10: Solomon Islands (Rank: 113)
59.26: Marshall Islands (Rank: 126)
54.84: Palau (Rank: 140)
41.50: Kiribati (Rank: 168)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for
getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Getting Electricity in Kiribati – Procedure, Time and Cost
Time Cost
4500
4000
80
Cost (% of income per capita)
3500
3000
60
Time (days)
2500
2000
40
1500
20 1000
Page 19
500
getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Doing Business 2018 Kiribati
Figure – Getting Electricity in Kiribati – Procedure, Time and Cost
Time Cost
4500
4000
80
Cost (% of income per capita)
3500
3000
60
Time (days)
2500
2000
40
1500
20 1000
500
0 0
1 2 *3 4 5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for
men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.
Figure – Getting Electricity in Kiribati and comparator economies – Measure of Quality
4 3.7
3.5
3
Index score
2.5
2
1.5
1
0.5
0 0 0 0 0
0
Kiribati Marshall Islands Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Details – Getting Electricity in Kiribati – Procedure, Time and Cost
No. Procedure Time to Complete Associated Costs
1 Submit application to Public Utilities Board and await approval 16 calendar days AUD 1,500
Agency : Public Utilities Board
Either an electrician doing the internal wiring or an applicant (Business
owner) submits an application for a connection.
The applicant may have to submit the application before construction work
for the building starts. The application should include details of the wiring
schedules, details of circuits, main switch board and sub switchboards,
details of circuit breakers and their outgoing circuits and other information
relevant for the supply. Credentials of Electrical Supervisor (person who is in
charge of electrical wiring) would be also required when submitting the
Page 20
application.
Kiribati Marshall Islands Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Doing Business 2018 Kiribati
Details – Getting Electricity in Kiribati – Procedure, Time and Cost
No. Procedure Time to Complete Associated Costs
1 Submit application to Public Utilities Board and await approval 16 calendar days AUD 1,500
Agency : Public Utilities Board
Either an electrician doing the internal wiring or an applicant (Business
owner) submits an application for a connection.
The applicant may have to submit the application before construction work
for the building starts. The application should include details of the wiring
schedules, details of circuits, main switch board and sub switchboards,
details of circuit breakers and their outgoing circuits and other information
relevant for the supply. Credentials of Electrical Supervisor (person who is in
charge of electrical wiring) would be also required when submitting the
application.
Where a substation site selected by the applicant and the utility agrees to its
location remote from the street alignment boundary, the cost of all the
utility high and medium voltage within the site may be charged to the owner
of the premises.
There is no practice of signing a supply contract. Once electricity is owing a
customer is paying a xed fee for consumption and there is no need to sign
a supply contract.
2 Await purchase of substation and accessories by contractor 30 calendar days AUD 0
Agency : Electrical Contractor
In case installation of a transformer is required either the customer and his
electrical contractor or the utility can order the transformer with the
speci cations given by the PUB.
3 Obtain excavation permit 19 calendar days AUD 679
Agency : Ministry of Works for Public Roads and at High Way Authority
To excavate the road rst an electrician collects a form at the Ministry of
Communication Transport & Tourism Development. The electrician will
complete the form providing the location where the excavation will be done.
The Highway Authority at the Ministry of Communications, Transport and
Tourism Development will authorize the work. Meetings to look into
excavation permit applications happen only when there are 20 applications
for a new connection. The applicant can schedule a special meeting, for a fee
to issue his excavation permit. Several other agencies must sign on the
excavation permit (Water, Electricity, Telecom and Police department).
This form must be deposited at the Ministry of Works with a map of the exact
work. An engineer will do a site visit to determine what kind of works are
involved. In addition, a police approval is required to temporarily close the
road as well as a police presence to control tra c ow during the trench
digging and lling.
4 Await completion of external works by Public Utilities Board 45 calendar days AUD 122,000
Agency : Public Utilities Board
If a transformer is required then by law PUB are required to supply such Page 21
Doing Business 2018 Kiribati
4 Await completion of external works by Public Utilities Board 45 calendar days AUD 122,000
Agency : Public Utilities Board
If a transformer is required then by law PUB are required to supply such
equipment. They must also provide cabling, meters and other equipment
that may be required to connect the power. However, in practice the
customer provides the necessary material. The applicant’s contractor is
responsible for the work from the transformer to the warehouse.
5 Await inspection of external works and internal wiring 3 calendar days AUD 0
Agency : Public Utilities Board
At the completion of the work, the completion form ( lled by the electrician
or Supervisor) is submitted to the utility. Before a connection to supply is
made, all equipment shall be capable of complying to the tests set out in
AS/NZS 3000 and furthermore the installation shall satisfy to AS/NZS
30007:2007:
The contractor should forward the results of these tests to the utility.
Only basic tests of the internal wiring are performed by the utility. The basic
test includes a visual inspection and overall insulation resistance etc, using
basic equipment.
6 Obtain meter installation by Public Utilities Board and then electricity 3 calendar days AUD 0
ow
Agency : Public Utilities Board
The meter is installed after the inspection. A meter is installed by the utility
at a time convenient for the applicant. After receiving a noti cation that the
building is ready to be hooked up and test results for the building are given
to the utility. In the utility there is a separate unit which deals only with nal
electricity connections.
The electricity starts owing immediately provided that everything is in
order.
Takes place simultaneously with previous procedure.
Details – Getting Electricity in Kiribati – Measure of Quality
Answer
Reliability of supply and transparency of tari index (0-8) 0
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) ..
System average interruption frequency index (SAIFI) ..
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A
Mechanisms for monitoring outages (0-1) 0
Does the distribution utility use automated tools to monitor outages? No
Mechanisms for restoring service (0-1) 0
Page 22
Does the distribution utility use automated tools to restore service? No
Takes place simultaneously with previous procedure.
Doing Business 2018 Kiribati
Details – Getting Electricity in Kiribati – Measure of Quality
Answer
Reliability of supply and transparency of tari index (0-8) 0
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) ..
System average interruption frequency index (SAIFI) ..
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A
Mechanisms for monitoring outages (0-1) 0
Does the distribution utility use automated tools to monitor outages? No
Mechanisms for restoring service (0-1) 0
Does the distribution utility use automated tools to restore service? No
Regulatory monitoring (0-1) 0
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on No
reliability of supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes
exceed a certain cap?
Communication of tari s and tari changes (0-1) 0
Are e ective tari s available online? No
Link to the website, if available online n.a
Are customers noti ed of a change in tari ahead of the billing cycle? No
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency
of tari index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who
wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the
quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of
infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The
most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on immovable Page 23
To make the data comparable across economies, several assumptions
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Doing Business 2018 Kiribati
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who
wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the
quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of
infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The
most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions
property (number) about the parties to the transaction, the property and the procedures are
used.
Preregistration procedures (for example,
checking for liens, notarizing sales agreement,
The parties (buyer and seller):
paying property transfer taxes)
- Are limited liability companies (or the legal equivalent).
Registration procedures in the economy's largest
- Are located in the periurban area of the economy’s largest business city.
business citya.
For 11 economies the data are also collected for the second largest
Postregistration procedures (for example, filling business city.
title with municipality) - Are 100% domestically and privately owned.
Time required to complete each procedure - Have 50 employees each, all of whom are nationals.
(calendar days) - Perform general commercial activities.
Does not include time spent gathering
information The property (fully owned by the seller):
- Has a value of 50 times income per capita, which equals the sale price.
Each procedure starts on a separate day - though
- Is fully owned by the seller.
procedures that can be fully completed online
- Has no mortgages attached and has been under the same ownership for
are an exception to this rule
the past 10 years.
Procedure is considered completed once final
- Is registered in the land registry or cadastre, or both, and is free of title
document is received disputes.
No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required.
Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters
property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000
square feet) is located on the land. The warehouse is 10 years old, is in
Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety
duties and taxes). standards, building codes and legal requirements. The property,
Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety.
payments are excluded - Will not be subject to renovations or additional construction following the
Quality of land administration index (0-30) purchase.
- Has no trees, natural water sources, natural reserves or historical
Reliability of infrastructure index (0-8) monuments of any kind.
Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for
Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of
agricultural activities, are required.
Land dispute resolution index (0–8)
- Has no occupants, and no other party holds a legal interest in it.
Equal access to property rights index (-2–0)
Standard Property Transfer
Property value AUD 154,365.00
City Covered Tarawa
Page 24
East Asia & OECD high
Doing Business 2018 Kiribati
Standard Property Transfer
Property value AUD 154,365.00
City Covered Tarawa
East Asia & OECD high
Indicator Kiribati Pacific income Overall Best Performer
Procedures (number) 5 5.5 4.6 1.00 (4 Economies)
Time (days) 513 74.5 22.3 1.00 (3 Economies)
Cost (% of property value) 0.0 4.3 4.2 0.00 (5 Economies)
Quality of the land administration index (0-30) 9.0 15.8 22.7 29.00 (Singapore)
Figure – Registering Property in Kiribati and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
75.16: Palau (Rank: 43)
57.21: Regional Average (East Asia & Pacific)
49.12: Kiribati (Rank: 146)
47.37: Solomon Islands (Rank: 152)
0.00: Micronesia, Fed. Sts. (Rank: 187)
0.00: Marshall Islands (Rank: 187)
Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for
registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Registering Property in Kiribati – Procedure, Time and Cost
Time Cost
0.025
500
400 0.02
Cost (% of property value)
Time (days)
300 0.015
200 0.01
100 0.005
0 0
1 2 3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Page 25
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for
registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Doing Business 2018 Kiribati
Figure – Registering Property in Kiribati – Procedure, Time and Cost
Time Cost
0.025
500
400 0.02
Cost (% of property value)
Time (days)
300 0.015
200 0.01
100 0.005
0 0
1 2 3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for
men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.
Figure – Registering Property in Kiribati and comparator economies – Measure of Quality
18
15.8
16
14 12.5
12 11.0
Index score
10 9.0
8
6
4
2
0
no practice no practice
Kiribati Marshall Islands Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Details – Registering Property in Kiribati – Procedure, Time and Cost
No. Procedure Time to Complete Associated Costs
1 Acquire proof of previous ownership at the Land Information 1 day no cost
Department
Agency : Land Information Department (Ministry of Environment, Land and
Agriculture Development)
The buyer will search the title to see if the seller is the rightful owner of this
property.
2 Property is surveyed and any changes made on the property are 31 days AUD 30
recorded
Agency : Survey and Mapping Technical Department
If the land is freehold, and was not rented to the government, this formality Page 26
Kiribati Marshall Islands Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Doing Business 2018 Kiribati
Details – Registering Property in Kiribati – Procedure, Time and Cost
No. Procedure Time to Complete Associated Costs
1 Acquire proof of previous ownership at the Land Information 1 day no cost
Department
Agency : Land Information Department (Ministry of Environment, Land and
Agriculture Development)
The buyer will search the title to see if the seller is the rightful owner of this
property.
2 Property is surveyed and any changes made on the property are 31 days AUD 30
recorded
Agency : Survey and Mapping Technical Department
If the land is freehold, and was not rented to the government, this formality
of sub-leasing from the government is not necessary. But in the case of sub-
leased land, then this land is given back to the government and then it is
sub-leased again to the new owner. In this case, the applicant has to lodge
an application with the Land Plannning Department within Land
Management Division and ll out the required form and follow the
procedure stated in the form. Then the Sublease Allocation Advisory
Committee (SAAC) will have to go through the application and decide. Then
submitted for Cabinet's nal approval and return to Land Manangement
Division for nal actions.
3 Both parties appear at the Magistrate Court to endorse the transfer 4 -6 weeks (for the AUD 3 the court
Agency : Magistrates' Court document to be summon + AUD 5 the
transferred to the land boundary
There is a waiting period between each phase of the process: the application
court and to
is led, the decision is made, appeals are allowed, then nal review of the
schedule a hearing)
case, and nally the name of the new owner is inscribed.
+ 90 days for
appeals
4 Magistrate court reviews case to endorse transfer 365 days no cost
Agency : Magistrates' Court
If after the wait period there were no appeals to the transfer then there is a
nal review of the case and the transfer is endorsed. There are still a lot of
land disputes in Kiribati as land belongs to families rather than an individual.
If all owners have not agreed and sign on the sale agreement, then disputes
will arise. Land disputes are varied but in general, most fall into two main
categories, being either a registration of land, claiming an interest in the land
from an ancestor (ownership) or a boundary determination dispute. Often,
after these proceedings have been nalized, and a judgment given, the
dispute may continue as a result of either a party entitled to be summoned,
not being summoned to the original proceedings to be heard on the
question of ownership, a party arguing that there was no entitlement for
another party to have the land registered in their name or to be heard, or
simply that the boundary outlined by the Magistrate was inconsistent with
the original boundary.
5 Magistrate Court issues a certi cate of ownership 1 day AUD 5
Agency : Land Information Department (Ministry of Environment, Land and
Agriculture Development)
The Magistrates' Court provides court minutes and updates of the new
Page 27
registered owners after the nal decisions made by the Magistrates. Then
simply that the boundary outlined by the Magistrate was inconsistent with
Doing the original boundary.
Business 2018 Kiribati
5 Magistrate Court issues a certi cate of ownership 1 day AUD 5
Agency : Land Information Department (Ministry of Environment, Land and
Agriculture Development)
The Magistrates' Court provides court minutes and updates of the new
registered owners after the nal decisions made by the Magistrates. Then
the Land Management Division updates the Kiribati Land Information &
Management System by entering the information about the new registered
landowner and issues the certi cate of ownership.
Takes place simultaneously with previous procedure.
Details – Registering Property in Kiribati – Measure of Quality
Answer Score
Quality of the land administration index (0-30) 9.0
Reliability of infrastructure index (0-8) 2.0
What is the institution in charge of immovable property registration? Land
Management
Division
In what format are the majority of title or deed records kept in the largest business city Paper 0.0
—in a paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0
restrictions and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Survey and
Mapping
Technical
Department
In what format are the majority of maps of land plots kept in the largest business city— Paper 0.0
in a paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing No 0.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the Di erent 1.0
cadastral or mapping agency kept in a single database, in di erent but linked databases databases but
or in separate databases? linked
Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0
the same identi cation number for properties?
Transparency of information index (0–6) 0.0
Who is able to obtain information on land ownership at the agency in charge of Only 0.0
immovable property registration in the largest business city? intermediaries
and interested
parties
Is the list of documents that are required to complete any type of property transaction Yes, in person 0.0
made publicly available–and if so, how?
Link for online access:
Page 28
Takes place simultaneously with previous procedure.
Doing Business 2018 Kiribati
Details – Registering Property in Kiribati – Measure of Quality
Answer Score
Quality of the land administration index (0-30) 9.0
Reliability of infrastructure index (0-8) 2.0
What is the institution in charge of immovable property registration? Land
Management
Division
In what format are the majority of title or deed records kept in the largest business city Paper 0.0
—in a paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0
restrictions and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Survey and
Mapping
Technical
Department
In what format are the majority of maps of land plots kept in the largest business city— Paper 0.0
in a paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing No 0.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the Di erent 1.0
cadastral or mapping agency kept in a single database, in di erent but linked databases databases but
or in separate databases? linked
Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0
the same identi cation number for properties?
Transparency of information index (0–6) 0.0
Who is able to obtain information on land ownership at the agency in charge of Only 0.0
immovable property registration in the largest business city? intermediaries
and interested
parties
Is the list of documents that are required to complete any type of property transaction Yes, in person 0.0
made publicly available–and if so, how?
Link for online access:
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, in person 0.0
immovable property registration in the largest business city made publicly available–
and if so, how?
Link for online access:
Does the agency in charge of immovable property registration commit to delivering a No 0.0
legally binding document that proves property ownership within a speci c time frame–
and if so, how does it communicate the service standard?
Link for online access:
Page 29
legally binding document that proves property ownership within a speci c time frame–
and if
Doing so, how does
Business 2018 Kiribati the service standard?
it communicate
Link for online access:
Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Contact information:
Are there publicly available o cial statistics tracking the number of transactions at the No 0.0
immovable property registration agency?
Number of property transfers in the largest business city in 2015:
Who is able to consult maps of land plots in the largest business city? Only 0.0
intermediaries
and interested
parties
Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, in person 0.0
—and if so, how?
Link for online access:
Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0
speci c time frame—and if so, how does it communicate the service standard?
Link for online access:
Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0
occurred at the cadastral or mapping agency?
Contact information:
Geographic coverage index (0–8) 2.0
Are all privately held land plots in the economy formally registered at the immovable No 0.0
property registry?
Are all privately held land plots in the largest business city formally registered at the Yes 2.0
immovable property registry?
Are all privately held land plots in the economy mapped? No 0.0
Are all privately held land plots in the largest business city mapped? No 0.0
Land dispute resolution index (0–8) 6.0
Does the law require that all property sale transactions be registered at the immovable Yes 1.5
property registry to make them opposable to third parties?
Is the system of immovable property registration subject to a state or private Yes 0.5
guarantee?
Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information
certi ed by the immovable property registry?
Does the legal system require a control of legality of the documents necessary for a Yes 0.5
property transaction (e.g., checking the compliance of contracts with requirements of
the law)?
Page 30
If yes, who is responsible for checking the legality of the documents? Registrar.
engaged in good faith in a property transaction based on erroneous information
ed by the immovable
certi Business
Doing property registry?
2018 Kiribati
Does the legal system require a control of legality of the documents necessary for a Yes 0.5
property transaction (e.g., checking the compliance of contracts with requirements of
the law)?
If yes, who is responsible for checking the legality of the documents? Registrar.
Does the legal system require veri cation of the identity of the parties to a property Yes 0.5
transaction?
If yes, who is responsible for verifying the identity of the parties? Registrar.
Is there a national database to verify the accuracy of identity documents? No 0.0
For a standard land dispute between two local businesses over tenure rights of a Kiribati
property worth 50 times gross national income (GNI) per capita and located in the Magistrates'
largest business city, what court would be in charge of the case in the rst instance? Court
How long does it take on average to obtain a decision from the rst-instance court for Less than a year 3.0
such a case (without appeal)?
Are there any statistics on the number of land disputes in the rst instance? No 0.0
Number of land disputes in the largest business city in 2015:
Equal access to property rights index (-2–0) -1.0
Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
Do married men and married women have equal ownership rights to property? No -1.0
Getting Credit
This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy
laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the
methodology for more information.
What the indicators measure Case study assumptions
Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal
rights of borrowers and lenders with respect to secured transactions
Rights of borrowers and lenders through
through 2 sets of indicators. The depth of credit information index
collateral laws (0-10)
measures rules and practices a ecting the coverage, scope and
Protection of secured creditors’ rights through
accessibility of credit information available through a credit registry or a
bankruptcy laws (0-2)
credit bureau. The strength of legal rights index measures the degree to
Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and
lenders and thus facilitate lending. For each economy it is first determined
Scope and accessibility of credit information
whether a unitary secured transactions system exists. Then two case
distributed by credit bureaus and credit
scenarios, case A and case B, are used to determine how a nonpossessory
registries (0-8)
Page 31
Do married men and married women have equal ownership rights to property? No -1.0
Doing Business 2018 Kiribati
Getting Credit
This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy
laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the
methodology for more information.
What the indicators measure Case study assumptions
Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal
rights of borrowers and lenders with respect to secured transactions
Rights of borrowers and lenders through
through 2 sets of indicators. The depth of credit information index
collateral laws (0-10)
measures rules and practices a ecting the coverage, scope and
Protection of secured creditors’ rights through
accessibility of credit information available through a credit registry or a
bankruptcy laws (0-2)
credit bureau. The strength of legal rights index measures the degree to
Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and
lenders and thus facilitate lending. For each economy it is first determined
Scope and accessibility of credit information
whether a unitary secured transactions system exists. Then two case
distributed by credit bureaus and credit
scenarios, case A and case B, are used to determine how a nonpossessory
registries (0-8)
security interest is created, publicized and enforced according to the law.
Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if
Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a
credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank.
Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow
Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set
registry as a percentage of adult population of legal provisions relating to the use of movable collateral.
Several assumptions about the secured borrower (ABC) and lender
(BizBank) are used:
- ABC is a domestic limited liability company (or its legal equivalent).
- ABC has up to 50 employees.
- ABC has its headquarters and only base of operations in the economy’s
largest business city. For 11 economies the data are also collected for the
second largest business city.
- Both ABC and BizBank are 100% domestically owned.
The case scenarios also involve assumptions. In case A, as collateral for the
loan, ABC grants BizBank a nonpossessory security interest in one category
of movable assets, for example, its machinery or its inventory. ABC wants
to keep both possession and ownership of the collateral. In economies
where the law does not allow nonpossessory security interests in movable
property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or
a similar substitute for nonpossessory security interests).
In case B, ABC grants BizBank a business charge, enterprise charge, floating
charge or any charge that gives BizBank a security interest over ABC’s
combined movable assets (or as much of ABC’s movable assets as
possible). ABC keeps ownership and possession of the assets.
East Asia & OECD high
Indicator Kiribati Pacific income Overall Best Performer
Strength of legal rights index (0-12) 4 7.2 6.0 12.00 (4 Economies)
Depth of credit information index (0-8) 0 4.2 6.6 8.00 (34 Economies)
Page 32
Credit registry coverage (% of adults) 0.0 16.0 18.3 100.00 (3 Economies)
possible). ABC keeps ownership and possession of the assets.
Doing Business 2018 Kiribati
East Asia & OECD high
Indicator Kiribati Pacific income Overall Best Performer
Strength of legal rights index (0-12) 4 7.2 6.0 12.00 (4 Economies)
Depth of credit information index (0-8) 0 4.2 6.6 8.00 (34 Economies)
Credit registry coverage (% of adults) 0.0 16.0 18.3 100.00 (3 Economies)
Credit bureau coverage (% of adults) 0.0 22.3 63.7 100.00 (23 Economies)
Figure – Getting Credit in Kiribati and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
57.00: Regional Average (East Asia & Pacific)
50.00: Micronesia, Fed. Sts. (Rank: 90)
50.00: Marshall Islands (Rank: 90)
50.00: Palau (Rank: 90)
50.00: Solomon Islands (Rank: 90)
20.00: Kiribati (Rank: 170)
Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting
credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit
information index.
Figure – Legal Rights in Kiribati and comparator economies
12
10 10 10 10
10
8 7.2
Index score
6
4
4
2
0
Kiribati Marshall Islands Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Details – Legal Rights in Kiribati
Strength of legal rights index (0-12) 4
Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No
enforcement of functional equivalents to security interests in movable assets exist in the economy?
Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes
requiring a speci c description of collateral? Page 33
Kiribati Marshall Islands Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Doing Business 2018 Kiribati
Details – Legal Rights in Kiribati
Strength of legal rights index (0-12) 4
Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No
enforcement of functional equivalents to security interests in movable assets exist in the economy?
Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes
requiring a speci c description of collateral?
Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes
a speci c description of collateral?
May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds Yes
or replacements of the original assets?
Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and No
obligations be secured between parties; and can the collateral agreement include a maximum amount for which the
assets are encumbered?
Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically No
and by asset type, with an electronic database indexed by debtor's name?
Does a notice-based collateral registry exist in which all functional equivalents can be registered? No
Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No
performed online by any interested third party?
Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No
procedure?
Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? No
Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No
reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the
stay and/or sets a time limit for it?
Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes
allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured
creditor to keep the asset in satisfaction of the debt?
Figure – Credit Information in Kiribati and comparator economies
6
4.2
4
Index score
2
0 0 0 0 0
0
Kiribati Marshall Islands Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Details – Credit Information in Kiribati Page 34
0 0 0 0 0
0
Kiribati
Doing Business 2018 Marshall Islands
Kiribati Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Details – Credit Information in Kiribati
Credit Credit
Depth of credit information index (0-8) bureau registry Score
Are data on both firms and individuals distributed? No No 0
Are both positive and negative credit data distributed? No No 0
Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0
distributed?
Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more No No 0
than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0
for this component.)
Are data on loan amounts below 1% of income per capita distributed? No No 0
By law, do borrowers have the right to access their data in the credit bureau or credit registry? No No 0
Can banks and financial institutions access borrowers’ credit information online (for example, No No 0
through an online platform, a system-to-system connection or both)?
Are bureau or registry credit scores offered as a value-added service to help banks and financial No No 0
institutions assess the creditworthiness of borrowers?
Score ("yes" to either public bureau or private registry) 0
Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. 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.
Coverage Credit bureau Credit registry
Number of individuals 0 0
Number of firms 0 0
Total 0 0
Percentage of adult population 0.0 0.0
Protecting Minority Investors
This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their
personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk
of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more
information.
What the indicators measure Case study assumptions
Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several
approval requirements for related-party assumptions about the business and the transaction.
transactions; Disclosure requirements for
related-party transactions The business (Buyer):
Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important
minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that
directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it
is assumed that Buyer is a large private company with multiple
Page 35
transactions; Available legal remedies (damages,
Percentage of adult population 0.0 0.0
Doing Business 2018 Kiribati
Protecting Minority Investors
This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their
personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk
of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more
information.
What the indicators measure Case study assumptions
Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several
approval requirements for related-party assumptions about the business and the transaction.
transactions; Disclosure requirements for
related-party transactions The business (Buyer):
Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important
minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that
directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it
transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple
disgorgement of profits, fines, imprisonment, shareholders.
rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may
legally act on behalf of Buyer where permitted, even if this is not speci cally
Ease of shareholder suits index (0–10): Access to
required by law.
internal corporate documents; Evidence
- Has a supervisory board (applicable to economies with a two-tier board
obtainable during trial and allocation of legal
system) on which 60% of the shareholder-elected members have been
expenses
appointed by Mr. James, who is Buyer’s controlling shareholder and a
Extent of conflict of interest regulation index
member of Buyer’s board of directors.
(0–10): Simple average of the extent of disclosure,
- Has not adopted any bylaws or articles of association that di er from
extent of director liability and ease of
default minimum standards and does not follow any nonmandatory codes,
shareholder indices
principles, recommendations or guidelines relating to corporate
Extent of shareholder rights index (0-10): governance.
Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network.
decisions
Extent of ownership and control index (0-10): The transaction involves the following details:
Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve-
from undue board control and entrenchment member board.
Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of
Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores.
compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to
expand Buyer’s distribution of its food products, a proposal to which Buyer
Extent of shareholder governance index (0–10):
agrees. The price is equal to 10% of Buyer’s assets and is higher than the
Simple average of the extent of shareholders
market value.
rights, extent of ownership and control and
- The proposed transaction is part of the company’s ordinary course of
extent of corporate transparency indices
business and is not outside the authority of the company.
Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained,
(0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not
interest regulation and extent of shareholder
fraudulent).
governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James
and the other parties that approved the transaction.
East Asia & OECD high
Indicator Kiribati Pacific income Overall Best Performer
Extent of conflict of interest regulation index (0- 6.3 5.7 6.4 9.3 (New Zealand)
10)
Extent of shareholder governance index (0-10) 3 4.8 6.4 Page 36
9.00 (Kazakhstan)
and the other parties that approved the transaction.
Doing Business 2018 Kiribati
East Asia & OECD high
Indicator Kiribati Pacific income Overall Best Performer
Extent of conflict of interest regulation index (0- 6.3 5.7 6.4 9.3 (New Zealand)
10)
Extent of shareholder governance index (0-10) 3 4.8 6.4 9.00 (Kazakhstan)
Figure – Protecting Minority Investors in Kiribati and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
52.33: Regional Average (East Asia & Pacific)
50.00: Solomon Islands (Rank: 108)
46.67: Kiribati (Rank: 124)
26.67: Marshall Islands (Rank: 177)
26.67: Palau (Rank: 177)
25.00: Micronesia, Fed. Sts. (Rank: 183)
Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier
scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of
con ict of interest regulation index and the extent of shareholder governance index.
Figure – Protecting Minority Investors in Kiribati and comparator economies – Measure of Quality
Kiribati 2 5 6 2 5 8
Marshall Islands 2 0 2 1 3 8
Micronesia, Fed. Sts. 0 2 5 8
Palau 2 0 2 5 7
Solomon Islands 1 7 3 3 7 9
OECD high income 7.3 5.6 6.5 5.2 6.3 7.4
East Asia & Pacific 5.6 4.6 6.2 3.9 5.3 6.1
0 5 10 15 20 25 30 35 40
Sub-Indicator Score
Extent of corporate transparency index (010) Extent of director liability index (010) Extent of disclosure index (010)
Extent of ownership and control index (010) Extent of shareholder rights index (010) Ease of shareholder suits index (010)
Details – Protecting Minority Investors in Kiribati – Measure of Quality
Answer Score Page 37
Extent of ownership and control index (010) Extent of shareholder rights index (010) Ease of shareholder suits index (010)
Doing Business 2018 Kiribati
Details – Protecting Minority Investors in Kiribati – Measure of Quality
Answer Score
Extent of con ict of interest regulation index (0-10) 6.3
Extent of disclosure index (0-10) 6
Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0
directors
excluding
interested
members
Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0
Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0
all material facts
Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0
the transaction
and on the
con ict of
interest
Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0
2) obligation
Extent of director liability index (0-10) 5
Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0
for the damage the transaction caused to Buyer? (0-1)
Can shareholders hold the interested director liable for the damage the transaction Liable if unfair or 2.0
caused to Buyer? (0-2) prejudicial
Can shareholders hold the other directors liable for the damage the transaction caused Not liable 0.0
to Buyer (0-2)
Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0
shareholders? (0-1)
Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0
shareholders? (0-1)
Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0
shareholders? (0-1)
Can a court void the transaction upon a successful claim by shareholders? (0-2) Only in case of 0.0
fraud or bad
faith
Ease of shareholder suits index (0-10) 8
Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0
transaction documents? (0-1)
Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0
document
Page 38
Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0
transaction
Doing 2018 (0-1)
documents?
Business Kiribati
Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0
document
Can the plainti request categories of documents from the defendant without Yes 1.0
identifying speci c ones? (0-1)
Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0
Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0
Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0
Extent of shareholder governance index (0-10) 3
Extent of shareholder rights index (0-10) 5
Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0
Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0
shareholders?
Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0
Do shareholders automatically receive preemption rights every time Buyer issues new No 0.0
shares?
Must shareholders approve the election and dismissal of the external auditor? No 0.0
Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0
shares approve?
Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0
member approval?
Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0
meeting of members?
Assuming that Buyer is a limited company, must all members consent to add a new Yes 1.0
member?
Assuming that Buyer is a limited company, must a member rst o er to sell their No 0.0
interest to the existing members before they can sell to non-members?
Extent of ownership and control index (0-10) 2
Is it forbidden to appoint the same individual as CEO and chair of the board of No 0.0
directors?
Must the board of directors include independent and nonexecutive board members? No 0.0
Can shareholders remove members of the board of directors without cause before the Yes 1.0
end of their term?
Must the board of directors include a separate audit committee exclusively comprising No 0.0
board members?
Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% No 0.0
of Buyer?
Must Buyer pay declared dividends within a maximum period set by law? No 0.0
Page 39
Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% No 0.0
of Buyer?
Doing Business 2018 Kiribati
Must Buyer pay declared dividends within a maximum period set by law? No 0.0
Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0
Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve Yes 1.0
disagreements among members?
Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0
o er to all shareholders upon acquiring 50% of Buyer?
Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0
maximum period set by law?
Extent of corporate transparency index (0-10) 2
Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? No 0.0
Must Buyer disclose information about board members’ primary employment and No 0.0
directorships in other companies?
Must Buyer disclose the compensation of individual managers? No 0.0
Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0
Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0
meeting agenda?
Must Buyer's annual nancial statements be audited by an external auditor? No 0.0
Must Buyer disclose its audit reports to the public? No 0.0
Assuming that Buyer is a limited company, must members meet at least once a year? No 0.0
Assuming that Buyer is a limited company, can members representing 5% put items on No 0.0
the meeting agenda?
Assuming that Buyer is a limited company, must Buyer's annual nancial statements be No 0.0
audited by an external auditor?
Paying Taxes
This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well
as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project
was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016).
Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an
economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data
shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost
across economies.
The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes.
See the methodology for more information.
What the indicators measure Case study assumptions
Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory
2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures
joint ling and payment) the administrative burden of paying taxes, contributions and dealing with
Page 40
post ling processes. Information is also compiled on frequency of ling
Assuming that Buyer is a limited company, must Buyer's annual nancial statements be No 0.0
audited by an external auditor?
Doing Business 2018 Kiribati
Paying Taxes
This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well
as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project
was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016).
Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an
economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data
shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost
across economies.
The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes.
See the methodology for more information.
What the indicators measure Case study assumptions
Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory
2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures
joint ling and payment) the administrative burden of paying taxes, contributions and dealing with
post ling processes. Information is also compiled on frequency of ling
Total number of taxes and contributions paid,
and payments, time taken to comply with tax laws, time taken to comply
including consumption taxes (value added tax,
with the requirements of post ling processes and time waiting.
sales tax or goods and service tax)
Method and frequency of filing and payment To make data comparable across economies, several assumptions are
used:
Time required to comply with 3 major taxes
- TaxpayerCo is a medium-size business that started operations on January
(hours per year)
1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes
Collecting information, computing tax payable and contributions recorded are paid in the second year of operation
Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at
all levels of government.
Arranging payment or withholding
Preparing separate tax accounting books, if The VAT refund process:
required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the
Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally
all taxes) spread per month (1,050 times income per capita divided by 12) and cost
of goods sold are equally expensed per month (875 times income per
Profit or corporate income tax
capita divided by 12). The machinery seller is registered for VAT and excess
Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive
employer months if the VAT rate is the same for inputs, sales and the machine and
Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT
Dividend, capital gains, financial transactions in June 2016.
taxes The corporate income tax audit process:
Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect
Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible)
leads to an incorrect income tax return and a corporate income
Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily
Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is
Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits
corrected information after the deadline for submitting the annual tax
Time to complete a corporate income tax audit
return, but within the tax assessment period.
East Asia & OECD high
Indicator Kiribati Pacific income Overall Best Performer
Payments (number per year) 11 21.8 10.9 3 (Hong Kong SAR,
China)
Page 41
return, but within the tax assessment period.
Doing Business 2018 Kiribati
East Asia & OECD high
Indicator Kiribati Pacific income Overall Best Performer
Payments (number per year) 11 21.8 10.9 3 (Hong Kong SAR,
China)
Time (hours per year) 168 189.2 160.7 55 (Luxembourg)
Total tax and contribution rate (% of profit) 32.7 33.6 40.1 18.47% (32 Economies)
Postfiling index (0-100) 26.68 56.55 83.45 99.38 (Estonia)
Figure – Paying Taxes in Kiribati and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
83.81: Solomon Islands (Rank: 37)
73.45: Marshall Islands (Rank: 83)
72.42: Regional Average (East Asia & Pacific)
71.42: Kiribati (Rank: 94)
69.22: Palau (Rank: 107)
68.78: Micronesia, Fed. Sts. (Rank: 110)
Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of
paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators –
number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of
the component indicators, the total tax rate. 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 de ned 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.
Figure – Paying Taxes in Kiribati and comparator economies – Measure of Quality
120
100.00
100
80
Index score
56.55
60
40
26.68
20
0
Kiribati Marshall Islands Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Details – Paying Taxes in Kiribati
Tax or mandatory Payments Notes on Time Statutory Tax Total tax and contribution Notes
contribution (number) Payments (hours) tax rate base rate (% of profit) on TTR
Corporate income tax 5 48 20-35% taxable 24.27 Page 42
profit
Doing Business 2018 Kiribati
Figure – Paying Taxes in Kiribati and comparator economies – Measure of Quality
120
100.00
100
80
Index score
56.55
60
40
26.68
20
0
Kiribati Marshall Islands Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Details – Paying Taxes in Kiribati
Tax or mandatory Payments Notes on Time Statutory Tax Total tax and contribution Notes
contribution (number) Payments (hours) tax rate base rate (% of profit) on TTR
Corporate income tax 5 48 20-35% taxable 24.27
profit
Employer paid - Social 2 72 7.5% gross 8.46
security contribution salaries
Employee paid - Social 0 jointly 7.5% gross 0.00 withheld
security contribution salaries
VAT 4 48 12.5% added 0.00 not
value included
Totals 11 168 32.7
Details – Paying Taxes in Kiribati – Tax by Type
Taxes by type Answer
Profit tax (% of profit) 24.3
Labor tax and contributions (% of profit) 8.5
Other taxes (% of profit) 0.0
Details – Paying Taxes in Kiribati – Measure of Quality
Answer Score
Post ling index (0-100) 26.68
VAT refunds
Does VAT exist? Yes
Does a VAT refund process exist per the case study? Yes
Page 43
Restrictions on VAT refund process Carry forward for
VAT exist? 2018
DoesBusiness
Doing Kiribati Yes
Does a VAT refund process exist per the case study? Yes
Restrictions on VAT refund process Carry forward for
6 months
Percentage of cases exposed to a VAT audit (%) 0% - 24%
Is there a mandatory carry forward period? Yes
Time to comply with VAT refund (hours) 88.0 0
Time to obtain a VAT refund (weeks) 34.6 39.3
Corporate income tax audits
Does corporate income tax exist? Yes
Percentage of cases exposed to a corporate income tax audit (%) 50% - 74%
Time to comply with a corporate income tax audit (hours) 83.0 0
Time to complete a corporate income tax audit (weeks) 10.4 67.41
Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named
corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.
The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with
a corporate income tax audit and time to complete a corporate income tax audit.
N/A = Not applicable.
Trading across Borders
Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business
measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border
compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent
round of data collection for the project was completed in June 2017. See the methodology for more information.
Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research
questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems.
With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic
platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing
business. The new dataset on EDI and SW systems is available here.
What the indicators measure Case study assumptions
Documentary compliance To make the data comparable across economies, a few assumptions are
made about the traded goods and the transactions:
Obtaining, preparing and submitting documents
during transport, clearance, inspections and port
Time: Time is measured in hours, and 1 day is 24 hours (for example, 22
or border handling in origin economy
days are recorded as 22×24=528 hours). If customs clearance takes 7.5
Obtaining, preparing and submitting documents
hours, the data are recorded as is. Alternatively, suppose documents are
required by destination economy and any transit
submitted to a customs agency at 8:00a.m., are processed overnight and
economies
can be picked up at 8:00a.m. the next day. The time for customs clearance
Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24
practice, including electronic submissions of hours.
information
Page 44
Border compliance Cost: Insurance cost and informal payments for which no receipt is issued
a corporate income tax audit and time to complete a corporate income tax audit.
N/A = Not applicable.
Doing Business 2018 Kiribati
Trading across Borders
Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business
measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border
compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent
round of data collection for the project was completed in June 2017. See the methodology for more information.
Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research
questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems.
With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic
platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing
business. The new dataset on EDI and SW systems is available here.
What the indicators measure Case study assumptions
Documentary compliance To make the data comparable across economies, a few assumptions are
made about the traded goods and the transactions:
Obtaining, preparing and submitting documents
during transport, clearance, inspections and port
Time: Time is measured in hours, and 1 day is 24 hours (for example, 22
or border handling in origin economy
days are recorded as 22×24=528 hours). If customs clearance takes 7.5
Obtaining, preparing and submitting documents
hours, the data are recorded as is. Alternatively, suppose documents are
required by destination economy and any transit
submitted to a customs agency at 8:00a.m., are processed overnight and
economies
can be picked up at 8:00a.m. the next day. The time for customs clearance
Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24
practice, including electronic submissions of hours.
information
Border compliance 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.
Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on
Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire.
than 20% of shipments) Contributors are private sector experts in international trade logistics and
Handling and inspections that take place at the are informed about exchange rates.
economy’s port or border
Assumptions of the case study: - For all 190 economies covered by Doing
Domestic transport
Business, it is assumed a shipment is in a warehouse in the largest
Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the
warehouse or port/border largest business city of the importing economy. - It is assumed each
Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708)
Traffic delays and road police checks while from its natural import partner—the economy from which it imports the
shipment is en route largest value (price times quantity) of auto parts. It is assumed each
economy exports the product of its comparative advantage (de ned by the
largest export value) to its natural export partner—the economy that is the
largest purchaser of this product. Shipment value is assumed to be
$50,000. - The mode of transport is the one most widely used for the
chosen export or import product and the trading partner, as is the
seaport, or land border crossing. - All electronic information submissions
requested by any government agency in connection with the shipment are
considered to be documents obtained, prepared and submitted during the
export or import process. - A port or border is a place (seaport, airport or
land border crossing) where merchandise can enter or leave an economy. -
Relevant government agencies include customs, port authorities, road
police, border guards, standardization agencies, ministries or departments
of agriculture or industry, national security agencies and any other
government authorities.
Page 45
of agriculture or industry, national security agencies and any other
Doing Business 2018 Kiribati government authorities.
East Asia & OECD high
Indicator Kiribati Pacific income Overall Best Performer
Time to export: Border compliance (hours) 72 55.9 12.7 0 (17 Economies)
Cost to export: Border compliance (USD) 420 387.5 149.9 0.00 (19 Economies)
Time to export: Documentary compliance 24 68.2 2.4 1.0 (25 Economies)
(hours)
Cost to export: Documentary compliance (USD) 310 112.1 35.4 0.00 (19 Economies)
Time to import: Border compliance (hours) 96 70.5 8.7 0.00 (21 Economies)
Cost to import: Border compliance (USD) 685 431.0 111.6 0.00 (27 Economies)
Time to import: Documentary compliance 48 65.6 3.5 1.0 (30 Economies)
(hours)
Cost to import: Documentary compliance (USD) 120 111.4 25.6 0.00 (30 Economies)
Figure – Trading across Borders in Kiribati and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
84.00: Micronesia, Fed. Sts. (Rank: 58)
80.59: Marshall Islands (Rank: 67)
69.97: Regional Average (East Asia & Pacific)
62.08: Kiribati (Rank: 127)
60.98: Palau (Rank: 133)
53.45: Solomon Islands (Rank: 156)
Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for
trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for
documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking).
Figure – Trading across Borders in Kiribati – Time and Cost
Time Cost
120 800
685
96 700
100
600
80 72
Time (hours)
Cost (USD)
500
420
60 400
310 48
300
40
24 200
120
20
100
0 0
Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary CompliancePage 46
Doing Business 2018 Kiribati
Figure – Trading across Borders in Kiribati – Time and Cost
Time Cost
120 800
685
96 700
100
600
80 72
Time (hours)
Cost (USD)
500
420
60 400
310 48
300
40
24 200
120
20
100
0 0
Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance
Details – Trading across Borders in Kiribati
Characteristics Export Import
Product HS 03 : Fish & crustacean, mollusc & other aquatic HS 8708: Parts and accessories of motor
invertebrate vehicles
Trade partner Thailand Australia
Border Betio port Betio port
Distance (km) 6 6
Domestic transport time 1 1
(hours)
Domestic transport cost 200 200
(USD)
Details – Trading across Borders in Kiribati – Components of Border Compliance
Time to Complete Associated Costs
(hours) (USD)
Export: Clearance and inspections required by customs authorities 24.0 110.0
Export: Clearance and inspections required by agencies other than customs 0.0 0.0
Export: Port or border handling 72.0 310.0
Import: Clearance and inspections required by customs authorities 24.0 210.0
Import: Clearance and inspections required by agencies other than customs 0.0 0.0
Import: Port or border handling 96.0 475.0
Details – Trading across Borders in Kiribati – Trade Documents
Export Import
Page 47
(USD)
Doing Business 2018 Kiribati
Details – Trading across Borders in Kiribati – Components of Border Compliance
Time to Complete Associated Costs
(hours) (USD)
Export: Clearance and inspections required by customs authorities 24.0 110.0
Export: Clearance and inspections required by agencies other than customs 0.0 0.0
Export: Port or border handling 72.0 310.0
Import: Clearance and inspections required by customs authorities 24.0 210.0
Import: Clearance and inspections required by agencies other than customs 0.0 0.0
Import: Port or border handling 96.0 475.0
Details – Trading across Borders in Kiribati – Trade Documents
Export Import
Bill of lading Bill of lading
Commercial invoice Commercial invoice
Packing list Packing list
Customs Export Declaration Customs import declaration
SOLAS certificate Import license
SOLAS certificate
Enforcing Contracts
The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance
court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that
promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the
methodology for more information.
What the indicators measure Case study assumptions
Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract
courts (calendar days) between 2 domestic businesses. The case study assumes that the court
hears an expert on the quality of the goods in dispute. This distinguishes
Time to file and serve the case
the case from simple debt enforcement.
Time for trial and to obtain the judgment
To make the data comparable across economies, Doing Business uses
Time to enforce the judgment
several assumptions about the case:
Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller
courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11
Attorney fees economies the data are also collected for the second largest business city.
- The buyer orders custom-made goods, then fails to pay.
Court fees
- The value of the dispute is 200% of the income per capita or the
Enforcement fees
equivalent in local currency of USD 5,000, whichever is greater.
Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction Page 48
over
SOLAS certificate
Doing Business 2018 Kiribati
Enforcing Contracts
The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance
court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that
promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the
methodology for more information.
What the indicators measure Case study assumptions
Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract
courts (calendar days) between 2 domestic businesses. The case study assumes that the court
hears an expert on the quality of the goods in dispute. This distinguishes
Time to file and serve the case
the case from simple debt enforcement.
Time for trial and to obtain the judgment
To make the data comparable across economies, Doing Business uses
Time to enforce the judgment
several assumptions about the case:
Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller
courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11
Attorney fees economies the data are also collected for the second largest business city.
- The buyer orders custom-made goods, then fails to pay.
Court fees
- The value of the dispute is 200% of the income per capita or the
Enforcement fees
equivalent in local currency of USD 5,000, whichever is greater.
Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over
commercial cases worth 200% of income per capita or $5,000.
Court structure and proceedings (-1-5)
- The seller requests a pretrial attachment to secure the claim.
Case management (0-6) - The dispute on the quality of the goods requires an expert opinion.
Court automation (0-4) - The judge decides in favor of the seller; there is no appeal.
Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s
movable assets.
Standardized Case
Claim value AUD 7,692.00
Court name Tarawa Magistrate's Court
City Covered Tarawa
East Asia & OECD high
Indicator Kiribati Pacific income Overall Best Performer
Time (days) 660 565.7 577.8 164.00 (Singapore)
Cost (% of claim value) 25.8 47.3 21.5 9.00 (Iceland)
Quality of judicial processes index (0-18) 6.0 7.9 11.0 15.50 (Australia)
Figure – Enforcing Contracts in Kiribati and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
55.93: Marshall Islands (Rank: 99)
53.39: Kiribati (Rank: 121)
53.09: Regional Average (East Asia & Pacific) Page 49
of judicial processes
Quality Business
Doing index (0-18)
2018 Kiribati 6.0 7.9 11.0 15.50 (Australia)
Figure – Enforcing Contracts in Kiribati and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
55.93: Marshall Islands (Rank: 99)
53.39: Kiribati (Rank: 121)
53.09: Regional Average (East Asia & Pacific)
52.21: Palau (Rank: 126)
43.49: Solomon Islands (Rank: 156)
29.39: Micronesia, Fed. Sts. (Rank: 183)
Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for
enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Enforcing Contracts in Kiribati – Time and Cost
Time Cost
1000 90
885 78.9
810 80
Cost (% of claim value)
800 66.0 70
660
616 60
Time (days)
565.7 577.8
600 47.3 497 50
35.3 40
400 32.1
25.8 30
21.5
200 20
10
0 0
East Asia & Kiribati Marshall Islands Micronesia, Fed. Sts. OECD high income Palau Solomon Islands
Pacific
Figure – Enforcing Contracts in Kiribati and comparator economies – Measure of Quality
Kiribati 1.5 1 0.5 3
Marshall Islands 2.5 2 0.5 3
Micronesia, Fed. Sts. 2 1 0.5 1
Palau 1 1.5 3.5 3.5
Solomon Islands 2.5 1.5 2 3
OECD high income 2.5 2.9 2 3.6
East Asia & Pacific 2.2 2 1.3 3
0 2 4 6 8 10
Page 50
12
East Asia & Kiribati Marshall Islands Micronesia, Fed. Sts. OECD high income Palau Solomon Islands
Pacific
Doing Business 2018 Kiribati
Figure – Enforcing Contracts in Kiribati and comparator economies – Measure of Quality
Kiribati 1.5 1 0.5 3
Marshall Islands 2.5 2 0.5 3
Micronesia, Fed. Sts. 2 1 0.5 1
Palau 1 1.5 3.5 3.5
Solomon Islands 2.5 1.5 2 3
OECD high income 2.5 2.9 2 3.6
East Asia & Pacific 2.2 2 1.3 3
0 2 4 6 8 10 12
Sub-Indicator Score
Alternative dispute resolution (03) Case management (06) Court automation (04) Court structure and proceedings (15)
Details – Enforcing Contracts in Kiribati
Indicator
Time (days) 660
Filing and service 20
Trial and judgment 100
Enforcement of judgment 540
Cost (% of claim value) 25.8
Attorney fees 24.3
Court fees 1.5
Enforcement fees 0
Quality of judicial processes index (0-18) 6.0
Court structure and proceedings (-1-5) 3.0
Case management (0-6) 1.0
Court automation (0-4) 0.5
Alternative dispute resolution (0-3) 1.5
Details – Enforcing Contracts in Kiribati – Measure of Quality
Page 51
Alternative dispute resolution (0-3) 1.5
Doing Business 2018 Kiribati
Details – Enforcing Contracts in Kiribati – Measure of Quality
Answer Score
Quality of judicial processes index (0-18) 6.0
Court structure and proceedings (-1-5) 3.0
1. Is there a court or division of a court dedicated solely to hearing commercial cases? No 0.0
2. Small claims court 1.5
2.a. Is there a small claims court or a fast-track procedure for small claims? Yes
2.b. If yes, is self-representation allowed? Yes
3. Is pretrial attachment available? Yes 1.0
4. Are new cases assigned randomly to judges? Yes, but manual 0.5
5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0
Case management (0-6) 1.0
1. Time standards 1.0
1.a. Are there laws setting overall time standards for key court events in a civil case? Yes
1.b. If yes, are the time standards set for at least three court events? Yes
1.c. Are these time standards respected in more than 50% of cases? Yes
2. Adjournments 0.0
2.a. Does the law regulate the maximum number of adjournments that can be No
granted?
2.b. Are adjournments limited to unforeseen and exceptional circumstances? No
2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a.
3. Can two of the following four reports be generated about the competent court: (i) No 0.0
time to disposition report; (ii) clearance rate report; (iii) age of pending cases report;
and (iv) single case progress report?
4. Is a pretrial conference among the case management techniques used before the No 0.0
competent court?
5. Are there any electronic case management tools in place within the competent court No 0.0
for use by judges?
6. Are there any electronic case management tools in place within the competent court No 0.0
for use by lawyers?
Court automation (0-4) 0.5
1. Can the initial complaint be led electronically through a dedicated platform within No 0.0
the competent court?
2. Is it possible to carry out service of process electronically for claims led before the No 0.0
competent court?
Page 52
1. Can the initial complaint be led electronically through a dedicated platform within No 0.0
Businesscourt?
the competent
Doing 2018 Kiribati
2. Is it possible to carry out service of process electronically for claims led before the No 0.0
competent court?
3. Can court fees be paid electronically within the competent court? No 0.0
4. Publication of judgments 0.5
4.a Are judgments rendered in commercial cases at all levels made available to the No
general public through publication in o cial gazettes, in newspapers or on the
internet or court website?
4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes
court level made available to the general public through publication in o cial
gazettes, in newspapers or on the internet or court website?
Alternative dispute resolution (0-3) 1.5
1. Arbitration 1.5
1.a. Is domestic commercial arbitration governed by a consolidated law or Yes
consolidated chapter or section of the applicable code of civil procedure
encompassing substantially all its aspects?
1.b. Are there any commercial disputes—aside from those that deal with public No
order or public policy—that cannot be submitted to arbitration?
1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes
2. Mediation/Conciliation 0.0
2.a. Is voluntary mediation or conciliation available? No
2.b. Are mediation, conciliation or both governed by a consolidated law or n.a.
consolidated chapter or section of the applicable code of civil procedure
encompassing substantially all their aspects?
2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., n.a.
if mediation or conciliation is successful, a refund of court ling fees, income tax
credits or the like)?
Resolving Insolvency
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.
The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Time required to recover debt (years) To make the data on the time, cost and outcome comparable across
economies, several assumptions about the business and the case are
Measured in calendar years
used:
Appeals and requests for extension are included
- A hotel located in the largest city (or cities) has 201 employees and 50
Cost required to recover debt (% of debtor’s estate)
suppliers. The hotel experiences nancial di culties. Page 53
Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent
if mediation or conciliation is successful, a refund of court ling fees, income tax
credits or the like)?
Doing Business 2018 Kiribati
Resolving Insolvency
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.
The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Time required to recover debt (years) To make the data on the time, cost and outcome comparable across
economies, several assumptions about the business and the case are
Measured in calendar years
used:
Appeals and requests for extension are included
- A hotel located in the largest city (or cities) has 201 employees and 50
Cost required to recover debt (% of debtor’s estate)
suppliers. The hotel experiences nancial di culties.
Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent
Court fees in local currency of USD 200,000, whichever is greater.
- The hotel has a loan from a domestic bank, secured by a mortgage over
Fees of insolvency administrators
the hotel’s real estate. The hotel cannot pay back the loan, but makes
Lawyers’ fees
enough money to operate otherwise.
Assessors’ and auctioneers’ fees
In addition, Doing Business evaluates the adequacy and integrity of the
Other related fees existing legal framework applicable to liquidation and reorganization
Outcome proceedings through the strength of insolvency framework index. The
index tests whether economies adopted internationally accepted good
Whether business continues operating as a going
practices in four areas: commencement of proceedings, management of
concern or business assets are sold piecemeal
debtor’s assets, reorganization proceedings and creditor participation.
Recovery rate for creditors
Measures the cents on the dollar recovered by
secured creditors
Outcome for the business (survival or not)
determines the maximum value that can be
recovered
Official costs of the insolvency proceedings are
deducted
Depreciation of furniture is taken into account
Present value of debt recovered
Strength of insolvency framework index (0- 16)
Sum of the scores of four component indices:
Commencement of proceedings index (0-3)
Management of debtor’s assets index (0-6)
Reorganization proceedings index (0-3)
Creditor participation index (0-4)
East Asia & OECD high
Indicator Kiribati Pacific income Overall Best Performer
Recovery rate (cents on the dollar) 0.0 35.4 71.2 93.1 (Norway)
Time (years) no practice 2.6 1.7 0.4 (Ireland)
Page 54
Cost (% of estate) no practice 20.6 9.1 1.00 (Norway)
Creditor participation index (0-4)
Doing Business 2018 Kiribati
East Asia & OECD high
Indicator Kiribati Pacific income Overall Best Performer
Recovery rate (cents on the dollar) 0.0 35.4 71.2 93.1 (Norway)
Time (years) no practice 2.6 1.7 0.4 (Ireland)
Cost (% of estate) no practice 20.6 9.1 1.00 (Norway)
Outcome (0 as piecemeal sale and 1 as going 0 .. .. ..
concern)
Strength of insolvency framework index (0-16) 0.0 7.0 12.1 15.00 (6 Economies)
Figure – Resolving Insolvency in Kiribati and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
9.19: Marshall Islands (Rank: 167)
40.78: Regional Average (East Asia & Pacific)
37.67: Micronesia, Fed. Sts. (Rank: 119)
31.95: Solomon Islands (Rank: 143)
16.38: Palau (Rank: 166)
0.00: Kiribati (Rank: 168)
Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for
resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of
insolvency framework index.
Figure – Resolving Insolvency in Kiribati – Time and Cost
Time Cost
6 38.0 38.0 38.0 40
5.3
35
5
30
Cost (% of estate)
Time (years)
4
22.5 25
20.6
3 2.6 20
2.0 2.0 15
2 1.7
9.1
1.0 10
1
5
0 0
East Asia & no practice Marshall Islands Micronesia, Fed. Sts. OECD high income Palau Solomon Islands
Pacific Kiribati
Figure – Resolving Insolvency in Kiribati and comparator economies – Measure of Quality
Kiribati 0 2 2 0
Page 55
Marshall Islands 0
East Asia & no practice Marshall Islands Micronesia, Fed. Sts. OECD high income Palau Solomon Islands
Pacific Kiribati
Doing Business 2018 Kiribati
Figure – Resolving Insolvency in Kiribati and comparator economies – Measure of Quality
Kiribati 0 2 2 0
Marshall Islands 0
Micronesia, Fed. Sts. 6 2.5 0 3
Palau 0
Solomon Islands 3 2 1 0
OECD high income 5.4 2.8 2.3 1.9
East Asia & Pacific 3.7 2.3 1.2 1
0 2 4 6 8 10 12 14
Sub-Indicator Score
Management of debtor's assets index (06) Commencement of proceedings index (03) Creditor participation index (04)
Reorganization proceedings index (03)
Figure – Resolving Insolvency in Kiribati and comparator economies – Recovery Rate
Recovery Rate (cents on the dollar)
40
35.4
35
30.4
30
24.5
25
20 17.1
15
10
5 3.2
0.0
0
Kiribati Marshall Islands Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Details – Resolving Insolvency in Kiribati
Indicator Answer Explanation
Proceeding No Practice According to the research conducted by the team, there were no foreclosure, liquidation or
reorganization proceedings filed in the country in the last 12 months. Due to this
circumstance, it is not possible to assess the time, the cost or the outcome associated with
the insolvency scenario described in the case study.
Outcome piecemeal sale According to the research conducted by the team, there were no foreclosure, liquidation or
reorganization proceedings filed in the country in the last 12 months. Due to this
circumstance, it is not possible to assess the time, the cost or the outcome associated with
the insolvency scenario described in the case study.
Time (in years) No Practice According to the research conducted by the team, there were no foreclosure, liquidation or
reorganization proceedings filed in the country in the last 12 months. Due to this
Page 56
circumstance, it is not possible to assess the time, the cost or the outcome associated with
Kiribati Marshall Islands Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Doing Business 2018 Kiribati
Details – Resolving Insolvency in Kiribati
Indicator Answer Explanation
Proceeding No Practice According to the research conducted by the team, there were no foreclosure, liquidation or
reorganization proceedings filed in the country in the last 12 months. Due to this
circumstance, it is not possible to assess the time, the cost or the outcome associated with
the insolvency scenario described in the case study.
Outcome piecemeal sale According to the research conducted by the team, there were no foreclosure, liquidation or
reorganization proceedings filed in the country in the last 12 months. Due to this
circumstance, it is not possible to assess the time, the cost or the outcome associated with
the insolvency scenario described in the case study.
Time (in years) No Practice According to the research conducted by the team, there were no foreclosure, liquidation or
reorganization proceedings filed in the country in the last 12 months. Due to this
circumstance, it is not possible to assess the time, the cost or the outcome associated with
the insolvency scenario described in the case study.
Cost (% of No Practice According to the research conducted by the team, there were no foreclosure, liquidation or
estate) reorganization proceedings filed in the country in the last 12 months. Due to this
circumstance, it is not possible to assess the time, the cost or the outcome associated with
the insolvency scenario described in the case study.
Recovery rate (cents on the 0.0
dollar)
Details – Resolving Insolvency in Kiribati – Measure of Quality
Answer Score
Strength of insolvency framework index (0-16) 0.0
Commencement of proceedings index (0-3) 2.0
What procedures are available to a DEBTOR when commencing insolvency (b) Debtor may 0.5
proceedings? le for
liquidation only
Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5
creditor may le
for liquidation
only
What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0
insolvency framework? generally unable
to pay its debts
as they mature
Management of debtor's assets index (0-6) 0.0
Does the insolvency framework allow the continuation of contracts supplying essential No 0.0
goods and services to the debtor?
Does the insolvency framework allow the rejection by the debtor of overly burdensome No 0.0
contracts?
Page 57
Does the insolvency framework allow avoidance of preferential transactions? No 0.0
dollar)
Doing Business 2018 Kiribati
Details – Resolving Insolvency in Kiribati – Measure of Quality
Answer Score
Strength of insolvency framework index (0-16) 0.0
Commencement of proceedings index (0-3) 2.0
What procedures are available to a DEBTOR when commencing insolvency (b) Debtor may 0.5
proceedings? le for
liquidation only
Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5
creditor may le
for liquidation
only
What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0
insolvency framework? generally unable
to pay its debts
as they mature
Management of debtor's assets index (0-6) 0.0
Does the insolvency framework allow the continuation of contracts supplying essential No 0.0
goods and services to the debtor?
Does the insolvency framework allow the rejection by the debtor of overly burdensome No 0.0
contracts?
Does the insolvency framework allow avoidance of preferential transactions? No 0.0
Does the insolvency framework allow avoidance of undervalued transactions? No 0.0
Does the insolvency framework provide for the possibility of the debtor obtaining credit No 0.0
after commencement of insolvency proceedings?
Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0
assigned to post-
commencement
creditors
Reorganization proceedings index (0-3) 0.0
Which creditors vote on the proposed reorganization plan? N/A 0.0
Does the insolvency framework require that dissenting creditors in reorganization No 0.0
receive at least as much as what they would obtain in a liquidation?
Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0
plan, does each class vote separately and are creditors in the same class treated
equally?
Creditor participation index (0-4) 2.0
Does the insolvency framework require approval by the creditors for selection or Yes 1.0
appointment of the insolvency representative?
Does the insolvency framework require approval by the creditors for sale of substantial No 0.0
assets of the debtor? Page 58
Does the insolvency framework require approval by the creditors for selection or Yes 1.0
appointment
Doing Business of the
2018insolvency representative?
Kiribati
Does the insolvency framework require approval by the creditors for sale of substantial No 0.0
assets of the debtor?
Does the insolvency framework provide that a creditor has the right to request No 0.0
information from the insolvency representative?
Does the insolvency framework provide that a creditor has the right to object to Yes 1.0
decisions accepting or rejecting creditors' claims?
Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization),
the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as
“no practice”.
Labor Market Regulation
Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of
economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing
business. Detailed data collected on labor market regulation are available on the Doing Business website
(http://www.doingbusiness.org/data/exploretopics/labor-market-regulation).
The most recent round of data collection was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Hiring To make the data comparable across economies, several assumptions
(i) whether xed-term contracts are prohibited for about the worker and the business are used.
permanent tasks; (ii) maximum cumulative duration
of xed-term contracts; (iii) length of the The worker:
probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of
work experience.
Working hours
- Is a full-time employee.
(i) maximum number of working days allowed per
- Is not a member of the labor union, unless membership is mandatory.
week; (ii) premiums for work: at night, on a weekly
rest day and overtime; (iii) whether there are The business:
restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy).
day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest
and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second
as men; (v) length of paid annual leave. largest business city.
- Has 60 employees.
Redundancy rules
- Is subject to collective bargaining agreements if such agreements cover
(i) whether redundancy can be basis for terminating
more than 50% of the food retail sector and they apply even to rms that
workers; (ii) whether employer needs to notify
are not party to them.
and/or get approval from third party to terminate 1
- Abides by every law and regulation but does not grant workers more
redundant worker and a group of 9 redundant
bene ts than those mandated by law, regulation or (if applicable) collective
workers; (iii) whether law requires employer to
bargaining agreements.
reassign or retrain a worker before making worker
redundant; (iv) whether priority rules apply for
redundancies and reemployment.
Redundancy cost
(i) notice period for redundancy dismissal; (ii)
severance payments due when terminating a
redundant worker.
Job quality
(i) whether law mandates equal remuneration for
work of equal value and nondiscrimination based on
gender in hiring; (ii) whether law mandates paid or
unpaid maternity leave; (iii) length of paid maternity Page 59
leave; (iv) whether employees on maternity leave
the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as
“no practice”.
Doing Business 2018 Kiribati
Labor Market Regulation
Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of
economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing
business. Detailed data collected on labor market regulation are available on the Doing Business website
(http://www.doingbusiness.org/data/exploretopics/labor-market-regulation).
The most recent round of data collection was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Hiring To make the data comparable across economies, several assumptions
(i) whether xed-term contracts are prohibited for about the worker and the business are used.
permanent tasks; (ii) maximum cumulative duration
of xed-term contracts; (iii) length of the The worker:
probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of
work experience.
Working hours
- Is a full-time employee.
(i) maximum number of working days allowed per
- Is not a member of the labor union, unless membership is mandatory.
week; (ii) premiums for work: at night, on a weekly
rest day and overtime; (iii) whether there are The business:
restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy).
day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest
and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second
as men; (v) length of paid annual leave. largest business city.
- Has 60 employees.
Redundancy rules
- Is subject to collective bargaining agreements if such agreements cover
(i) whether redundancy can be basis for terminating
more than 50% of the food retail sector and they apply even to rms that
workers; (ii) whether employer needs to notify
are not party to them.
and/or get approval from third party to terminate 1
- Abides by every law and regulation but does not grant workers more
redundant worker and a group of 9 redundant
bene ts than those mandated by law, regulation or (if applicable) collective
workers; (iii) whether law requires employer to
bargaining agreements.
reassign or retrain a worker before making worker
redundant; (iv) whether priority rules apply for
redundancies and reemployment.
Redundancy cost
(i) notice period for redundancy dismissal; (ii)
severance payments due when terminating a
redundant worker.
Job quality
(i) whether law mandates equal remuneration for
work of equal value and nondiscrimination based on
gender in hiring; (ii) whether law mandates paid or
unpaid maternity leave; (iii) length of paid maternity
leave; (iv) whether employees on maternity leave
receive 100% of wages; (v) availability of ve fully paid
days of sick leave a year; (vi) eligibility requirements
for unemployment protection.
Details – Labor Market Regulation in Kiribati
Answer
Hiring
Page 60
Fixed-term contracts prohibited for permanent tasks? No
days of sick leave a year; (vi) eligibility requirements
for unemployment protection.
Doing Business 2018 Kiribati
Details – Labor Market Regulation in Kiribati
Answer
Hiring
Fixed-term contracts prohibited for permanent tasks? No
Maximum length of a single xed-term contract (months) No limit
Maximum length of xed-term contracts, including renewals (months) No limit
Minimum wage applicable to the worker assumed in the case study (US$/month) 173.7
Ratio of minimum wage to value added per worker 0.5
Maximum length of probationary period (months) n.a.
Working hours
Standard workday 8.0
Maximum number of working days per week 5.0
Premium for night work (% of hourly pay) 0.0
Premium for work on weekly rest day (% of hourly pay) 0.0
Premium for overtime work (% of hourly pay) 0.0
Restrictions on night work? Yes
Whether nonpregnant and nonnursing women can work the same night hours as men Yes
Restrictions on weekly holiday? No
Restrictions on overtime work? Yes
Paid annual leave for a worker with 1 year of tenure (working days) 30.0
Paid annual leave for a worker with 5 years of tenure (working days) 30.0
Paid annual leave for a worker with 10 years of tenure (working days) 30.0
Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 30.0
Redundancy rules
Dismissal due to redundancy allowed by law? Yes
Third-party noti cation if one worker is dismissed? Yes
Third-party approval if one worker is dismissed? No
Third-party noti cation if nine workers are dismissed? Yes
Third-party approval if nine workers are dismissed? No
Retraining or reassignment obligation before redundancy? Yes
Page 61
Third-party
Doing approval
Business 2018 if nine workers are dismissed?
Kiribati No
Retraining or reassignment obligation before redundancy? Yes
Priority rules for redundancies? No
Priority rules for reemployment? No
Redundancy cost
Notice period for redundancy dismissal for a worker with 1 year of tenure 3.0
Notice period for redundancy dismissal for a worker with 5 years of tenure 4.0
Notice period for redundancy dismissal for a worker with 10 years of tenure 4.0
Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 3.7
Severance pay for redundancy dismissal for a worker with 1 year of tenure 0.0
Severance pay for redundancy dismissal for a worker with 5 years of tenure 0.0
Severance pay for redundancy dismissal for a worker with 10 years of tenure 0.0
Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 0.0
Job quality
Equal remuneration for work of equal value? Yes
Gender nondiscrimination in hiring? Yes
Paid or unpaid maternity leave mandated by law? Yes
Minimum length of maternity leave (calendar days)? 84.0
Receive 100% of wages on maternity leave? No
Five fully paid days of sick leave a year? Yes
Unemployment protection after one year of employment? No
Minimum contribution period for unemployment protection (months)? n.a.
Business Reforms in Kiribati
In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing
Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms
inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Kiribati
implemented since Doing Business 2008.
= Doing Business reform making it easier to do business. = Change making it more di cult to do business.
DB2018
Labor Market Regulation: Kiribati introduced a mandatory minimum wage, provided speci c rules on working hours, introduced
annual paid leave and streamlined redundancy rules.
DB2015
Paying Taxes: Kiribati made paying taxes more complicated for companies by introducing VAT.
Page 62
Minimum contribution period for unemployment protection (months)? n.a.
Doing Business 2018 Kiribati
Business Reforms in Kiribati
In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing
Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms
inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Kiribati
implemented since Doing Business 2008.
= Doing Business reform making it easier to do business. = Change making it more di cult to do business.
DB2018
Labor Market Regulation: Kiribati introduced a mandatory minimum wage, provided speci c rules on working hours, introduced
annual paid leave and streamlined redundancy rules.
DB2015
Paying Taxes: Kiribati made paying taxes more complicated for companies by introducing VAT.
Page 63
DB2015
Paying
Doing 2018made
Taxes: Kiribati
Business paying taxes more complicated for companies by introducing VAT.
Kiribati
Page 64