Despite globalisation, individual countries remain as complex as ever and companies doing business internationally face a different set of challenges at every turn – this is the picture painted by a report on global financial complexity published this month, which found that China is the most complex jurisdiction, while the Cayman Islands is the least complex. The Financial Complexity Index 2018, produced by the TMF Group, also defined countries according to specific competencies and found: China is most complex for reporting; South Africa and Germany are most complex for compliance; Venezuela has the most complex tax system; while Mexico's bookkeeping system poses the greatest challenges for corporates. The study also found that the US is least complex globally for reporting and five of the most complex countries in the world are in Latin America.

Some of the trend identified in the study include:

• Many countries are working out their reaction to the OECD’s Base Erosion and Profit Shifting (BEPS) project, meaning transparency in ultimate beneficial owners (UBOs) and transfer pricing are the subject of regulation impacting on business operations.
• The Common Reporting Standard (CRS) – designed to allow automatic exchange of information between jurisdictions by financial institutions – has also begun to make an impact.
• Many countries are passing reforms to simplify their economies not only to attract investment, but to ensure the country ticks the compliance box for these global movements.
• Turkey has taken steps to simplify its economy and is not longer the most complex country to do business – that spot is now taken by China.
• France enters the top 10 this year – although the new administration is moving to simplify the country’s complex tax and reporting system. It's not the only European country in the top 10 – Italy is at number 4.
• The UAE has introduced value added tax (VAT), altering its tax-free haven status and adding a new layer of complexity for businesses.
• Brazil is the second most complex country and Latin American nations make up half of the top 10 – but plans for digitisation of compliance processes should reduce complexity in the long term in the region.