(2018) Profil économique d'Haïti : Indicateurs Doing Business 2018

[page 1] : A World Bank Group Flagship Report Doing Business 2018 Reforming to Create Jobs a À | A® @ e = ? Comparing Business Regulation @) worio BANK GROUP for Domestic Firms in 190 Economies [page 2] Economy Profile of Haïti 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 Page 2 [page 3] Doing Business 2018 Haiti 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 firms. 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 efficient regulation; offers 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 offers detailed subnational reports, which exhaustively cover business regulation and reform in different 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 first 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 benefited 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 reflected 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, S5MB) Page 3 [page 4] Doing Business 2018 Haiti Ease of Doing Business in . Latin America & DB 2018 Rank Region . 190 1 Haiti Caribbean Income Category Low income 181 . DB 2018 Distance to Frontier (DTF) Population 10,847,334 0 100 GNI Per Capita (US$) 780 38.24 City Covered Port au Prince DB 2018 Distance to Frontier (DTF) 0 100 68.85: Puerto Rico (U.S.) (Rank: 64) 67.27: Jamaica (Rank: 70) 60.93: Dominican Republic (Rank: 99) 58.66: Regional Average (Latin America & Caribbean) 56.28: Guyana (Rank: 126) 38.24: Haïti (Rank: 181) 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 reflected 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 - Haïti 1 28 55 77 82 = É ë 109 125 138 136 147 168 h : [ . : E 189 188 [| 190 LL. Eu LL. + 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 - Haïti 100 80 76.90 55.40 57.55 æ 60 52.49 S 4415 40 33.70 3222 20.00 20 10.00 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:+0.58 Change:+0.12 Change:0.00 Investors Change:-0.89 Borders Change:0.00 Change:0.00 Change:+0.09 Permits Change:0.00 Change:+0.21 Change:0.00 Page 4 [page 5] #» 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 « Pre-registration (for example, name verification required information is readily available and that the entrepreneur will pay or reservation, notarization) no bribes. e Registration in economy’ largest business city The business: * Post-registration (for example, social security - Is a limited liabitity company (or its legal equivalent). If there is more than registration, company seal) one type of limited liability company in the economy, the most common . k among domestic firms is chosen. Information on the most common form is + Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical office. or leave home to register company - Operates in the economy's largest business city and the entire office + 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 five 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 offices and is not a proprietor of real e Procedures fully completed online are recorded estate and the amount of the annual lease for the office space is equivalent as 2 day to 1 times income per capita. e Procedure is considered completed once final - Does not qualify for investment incentives or any special benefits. document is received - Has at least 10 and up to 50 employees one month after the k k . commencement of operations, all of whom are domestic nationals. e No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of income per capita) The owners: Lo : io - Have reached the legal age of majority. If there is no legal age of majority, e Official costs only, no bribes they are assumed to be 30 years old. e_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 Le . . . . authorities. Paidin minimum capital (% of income per capita) - Where the answer differs according to the legal system applicable to the e 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. Page 5 [page 6] Doing Business 2018 Haïti Standardized Company Legal form Société Anonyme Paid-in minimum capital requirement HTG 6,250 City Covered Port au Prince Latin America & OECD high Indicator Haïti Caribbean income Overall Best Performer Procedure - Men (number) 12 84 4.9 1.00 (New Zealand) Time - Men (days) 97 31.7 8.5 0.50 (New Zealand) Cost - Men (% of income per capita) 200.2 37.5 3.1 0.00 (United Kingdom) Procedure - Women (number) 12 8.5 4.9 1.00 (New Zealand) Time - Women (days) 97 31.8 8.5 0.50 (New Zealand) Cost - Women (% of income per capita) 200.2 37.5 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 14.0 2.1 8.7 0.00 (113 Economies) Figure — Starting a Business in Haïti and comparator economies — Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 97.30: Jamaica (Rank: 5) 91.29: Puerto Rico (U.S.) (Rank: 47) 85.55: Guyana (Rank: 92) 83.23: Dominican Republic (Rank: 116) 78.09: Regional Average (Latin America & Caribbean) 33.70: Haïti (Rank: 189) 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. Page 6 [page 7] Doing Business 2018 Haiti Figure — Starting a Business in Haïti —- Procedure, Time and Cost — Time — Cost 80 70 80 e : S 60 À 8 & 50 50 3 2 È ° 0 À Ë Ë HE 40 £ Fr 30 © 1] [] É 20 Le — [| — 20 ê mn e 10 0 e 0 1 2 3 4 5 *6 #7 +8 +9 *10 #11 +12 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 different 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 reflected here, see the summary below. Page 7 [page 8] Doing Business 2018 Haiti Details — Starting a Business in Haiti — Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Prepare the company's articles and memorandum of association 10 days HTG 30,000 Agency : Lawyer The lawyer charges approximately HTG 30,000 for the drafting of the company statutes in the case of a Société Anonyme. Prices can vary depending on the lawyer. 2 Notarize the company deeds and articles of association 7 days HTG 15,000 - HTG Agency : Notary 25,000 The notary public must hand-write and notarize the documents at a fee of between HTG 15,000 and HTG 25,000 depending on the complexity of the service. 3 Deposit the legally required initial capital in the National Bank and 1 day no charge obtain deposit evidence Agency : National Bank The lawyer deposits the legally required initial capital in the National Bank (Banque Nationale de Credit) and obtains proof of deposit. A certified check need to be used to pay in the National Bank, where proof of payment is provided. 4 Register the company with the Tax Authorities (Direction Générale des 1 day included in the Impôts - DGl) notary fees Agency : Tax Authorities (Direction Générale des Impôts - DGl) The notary pays the registration fees at the Tax Office (DGI) and proof of payment is obtained. 5 Registration with the Commercial Registry at the Ministry of Commerce 78 days on average HTG 1,500 for and Industry and obtain the authorization of operations (Droit de registration + HTG fonctionnement) 250 (frais de dossier) Agency : Ministry of Commerce and Industry and Le Moniteur (Journal + HTG 25 (vignette Officiel) bleue) + HTG 20,000 Lawyer submits the dossier for registration at the Ministry of Commerce and er HusIEsEn inte a request for the ‘avis de fonctionnement’. Menieur (10-25 When the Ministry of Commerce has processed the application and Dees) registered the company, it forwards the file to the Moniteur for publication. Firms can begin operations before the publication, as soon as they receive authorization from the Ministry of Commerce. Since May 2009, the company/’s articles of incorporation do not need to be approved by the Prime Minister's office and the Presidency before they can be published in the Official Journal. This process takes about 60 days. The cost depends on the number of pages of the act of constitution: 2 to 9 pages: HTG 5,000 10 to 25 pages: HTG 20,000 26 to x pages: HTG 35,000. Page 8 [page 9] Doing Business 2018 Haiti —6 Obtain the Tax ID number (Numéro d'identification fiscale - NIF) from 15 days HTG 50 (tax ID card) the Tax authorities (DGI), pay fees, and obtain the business license (simultaneous with +2% ofinitial capital (patente) previous +0.3% per share + Agency : Tax Authorities (Direction Générale des Impôts - DGI) procedure) HTG 102 (droit de The company must file a form at the Tax Bureau (DGl) and provide an cronement Ÿ opening balance sheet on which corporate taxes will be based. À 2% tax is k (taxe carte levied on a corporation's initial capital, payable annually. À company must g identite pay the “tax on share” (taxe sur action) of 0.3% per share, which will be professionelle) assessed each year, and a "right of operating" tax (droit de fonctionnement) of HTG 1500 payable annually, and HTG 1500 5 to obtain the professional identity card ("carte d'identite professionelle"). —7 Obtain the Professional ID (Carte d'identité Professionelle) from the 17 days on average cost included in Ministry of Commerce and Industry (simultaneous with procedure 5 Agency : Ministry of Commerce and Industry previous d According to Article 2 of the “Décret du 26 septembre 1960 réglementant Fret) l'exercice de la profession de commercant”, all commercial entities are required to hold a “carte d'identité professionnelle”. After the payment of fees at the DGl and obtaining the business permit ("certificat de patente"), the entrepreneur will obtain the “carte d'identité professionnelle” at the Ministry of Commerce. 8 Obtain special commercial books 2 days HTG 5,000 Agency : Commercial Registry (simultaneous with : : previous The special commercial books are purchased and prepared by an procedure) accountant. 9 Notification of employee registration to the Labor Ministry 1 day no charge Agency : Labor Ministry (simultaneous with . | . . previous Companies must submit a declaration on the hiring of personnel to the he Labor Direction within 8 days of opening. P + Legalize the commercial books 7 days HTG 1,000 10 Agency: Court (simultaneous with : . previous Books are legalized by the Dean of the first instance court (Doyen du rocedure) Tribunal). Each page must be sealed by the Dean of the civil court and the P books must be sealed at the DGl (Direction Generale des impots). — Register for social security (OFATMA) 1 day no charge 11 Agency: Insurance Office (Office d'Assurance Accidents du Travail, Maladie et (Simultaneous with Maternité - OFATMA) previous rocedure The company must register with the Insurance Office for Occupational Injury, P ) Sickness, and Maternity (OFATMA) within 15 days of opening and provide the names of all its employees (up to 6% of monthly salary is contributed by the employer to social security). = Register for Retirement Insurance Office (ONA) 1 day no charge 12° Agency: Retirement Office (Office Nationale d'Assurance - ONA) (simultaneous with revious The company must register with the Retirement Insurance Office (ONA) D ocedure) Within 15 days of opening and provide the name of all its employees. P Q Applies to women only. Page 9 [page 10] Doing Business 2018 Haiti = Takes place simultaneously with previous procedure. Page 10 [page 11] à 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 notifications, 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 certification 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 * Submitting all relevant documents and obtaining about the construction company, the warehouse project and the utility all necessary clearances, licenses, permits and connections are used. certificates The construction company (BuildCo): e 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 e Obtaining utility connections for water and collected for the second largest business city. . sewerage - Is 100% domestically and privately owned; has five owners, none of whom 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 e Does not include time spent gathering warehouse upon its completion. 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 floor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of e 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 k . . warehouse value) = Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as e 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 e Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the «_Liability and insurance regimes (0-2) smallest size available will be installed or built. . . - Will have an average water use of 662 liters (175 gallons) a day and an *_ Professional certifications (0-4) average wastewater flow 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 flow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Page 11 [page 12] Doing Business 2018 Haiti Standardized Warehouse Estimated value of warehouse HTG 2,237,334,.,50 City Covered Port au Prince Latin America & OECD high Indicator Haïti Caribbean income Overall Best Performer Procedures (number) 14 15.7 12.5 7.00 (Denmark) Time (days) 98 191.8 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 21.6 3.2 1.6 0.10 (5 Economies) Building quality control index (0-15) 5.0 8.8 114 15.00 (3 Economies) Figure — Dealing with Construction Permits in Haïti and comparator economies - Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 71.73: Dominican Republic (Rank: 62) 67.22: Jamaica (Rank: 98) 63.59: Regional Average (Latin America & Caribbean) 60.17: Puerto Rico (U.S.) (Rank: 138) 54.66: Guyana (Rank: 163) 44.15: Haïti (Rank: 177) 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. Page 12 [page 13] Doing Business 2018 Haiti Figure — Dealing with Construction Permits in Haïti - Procedure, Time and Cost — Time — Cost 10 e 80 8 — = _ à — — % = — — > — & g 60 6 2 2 re] £ |e L ° | £ œ — S £ = E 40 4 $ £ ë 20 e 2 © 0 _ 0 1 #2 3 4 5 6 7 8 9 10 11 #12 13 14 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 different 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 reflected here, see the summary below. Figure — Dealing with Construction Permits in Haïti and comparator economies — Measure of Quality 14 130 120 12 10.0 o 10 8.8 8 8 ë 6 50 Ê : 40 4 2 0 Haiti Dominican Republic Guyana Jamaica Puerto Rico (U.S.) Latin America & Caribbean Page 13 [page 14] Doing Business 2018 Haiti Details — Dealing with Construction Permits in Haïti —- Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain a Soil Test 18 days USD 2,100 Agency : Private Firm The National Building Code of Haïti provides specifications for the strength of the foundation of buildings to resist seismic activities and shrinkage. Therefore, a soil test is needed to identity the type of soil so that the foundation is solid. 2 Obtain a topographical map 7 days USD 750 Agency: Private land surveyor The National Building Code of Haïti provides information on the importance of having a topographic map of the land so that it can be preserved. 3 Request building permit 30 days HTG 195,090 Agency : Municipality and the Ministry of Public Works The Ministry of Public Works does not issue the building permit, but studies the file and provides technical advice/approval of the plans. The Engineering Department will merely give its advice on the feasibility of the project. The building permit is issued by the Municipality. According to the law, the building permit fee for a commercial warehouse is HTG 75.00 for the length of the building facing the road multiplied by the number of floors. Ifthe building has 2 sides facing the road, then both sides are taken into account and charged accordingly. However, in practice, this is not followed. The Municipality generally charges between HTG 125.00 -- HTG 175.00 per sq. m. Thus, the fee for the Doing Business case study warehouse would be approximately HTG 150.00 x 1,300.6 sq. m. -- this is called “le droit d'alignement." BuildCo must submit the following documents when requesting the permit: * Survey plan and title of ownership (3 copies) * Location plan (3 copies) + Facade plan (3 copies) + Construction (foundation, electricity, plumbing) (3 copies) + Specifications sheet * License of the engineers or Corporate Income Tax (1 copy) - proof that the engineer or the construction company has no outstanding taxes * Letter of Authorization Request (1 copy) 4 Obtainsite inspection by engineer from the Municipality 1 day no charge Agency : Municipality A request is made for a site inspection. The owner or the engineer must be at the site for the inspection. After this inspection and within 15 days, the Municipality will issue a “Bordereau de paiement” to be paid at the tax authority (DGI). If the amount is over HTG 15,000.00, it must be paid by certified check. Page 14 [page 15] Doing Business 2018 Haiti 5 Payfees to the Direction Generale des Impots 15 days no charge Agency : Direction Generale des Impots Payment is made at the DGl and proof of payment is delivered back to the Municipality. The fees for the building permit are recorded in procedure 1. 6 Obtain building permit 1 day no charge Agency : Municipality Once the application has been reviewed by the Mayor, payment of the alignment rights is made and the proof of payment submitted to the Mayor, and if the file meets all the requirements, the City will issue the building permit. 7 Receive inspection to verify the set-out and the foundation 1 day no charge Agency : Municipality By law (art. 1.2.3 of the Building Code) the Municipality must verify the set-out and the foundation. However in reality, this inspection does not take place. 8 Receive inspection for the walls and the quality of materials used 1 day no charge Agency : Municipality By law (art. 1.2.3 of the Building Code) the Municipality must verify the raising of the walls and the quality of the material used for the construction. However in reality, this inspection does not take place. 9 Receive inspection for the verification of the roof slabs 1 day no charge Agency : Municipality By law (art. 1.2.3 of the Building Code) the Municipality must verify the roof slap. However in reality, this inspection does not take place. 10 Receive final inspection 1 day no charge Agency : Municipality By law (art. 1.2.6 of the Building Code) the Municipality must conduct a final inspection and then deliver a certificate of conformity. However, in practice this does not take place. 11 Obtain the occupancy certificate 7 days no charge Agency : Municipality The certificate of occupancy is issued after the final inspection; however in practice it is rarely done. Obtaining the certificate of conformity is the responsibility of the builder. = Request water connection from the National Direction of Potable Water 1 day no charge 12 and Sewage (Direction Nationale de l'Eau Potable et de l'Assainissement- DINEPA) Agency : Offices Régionaux d'Eau Potable et d'Assainissement (OREPA) The water connection is requested directly by the owner, as the contract must be made in the owner's name. Page 15 [page 16] Doing Business 2018 Haiti 13 Receive inspection for water connection and cost estimate 1 day no charge Agency : Offices Régionaux d'Eau Potable et d'Assainissement (OREPA) The customer service center will process the application and forward it to the technical department, which will then inspect the construction site to prepare a cost estimate of the work for the water connection. 14 Obtain water connection from the National Direction of Potable Water 21 days USD 2,166 and Sewage (Direction Nationale de l'Eau Potable et de l'Assainissement- DINEPA) Agency : Offices Régionaux d'Eau Potable et d'Assainissement (OREPA) The cost of connection to the water depends on the width of the pipe used. The size of the pipe in the Doing Business case study is assumed to be 1 inch. Therefore the cost is HTG 6,640 (USD 116). And since a septic tank must be installed, the cost of the installation is also included at USD 2,000. = Takes place simultaneously with previous procedure. Page 16 [page 17] Doing Business 2018 Haiti Details — Dealing with Construction Permits in Haiti - Measure of Quality Answer Score Building quality control index (0-15) 5.0 Quality of building regulations index (0-2) 1.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly specified in the building List of required 0.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents. 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. Quality control after construction index (0-3) 2.0 Is there a final inspection required by law to verify that the building was built in Yes, final 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency; Final inspection is not required by law. Do legally mandated final inspections occur in practice? (0-1) Final inspection 0.0 does not always occur in practice. Liability and insurance regimes index (0-2) 0.0 Which parties (if any) are held liable by law for structural flaws or problems in the No party is held 0.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the law. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural flaws 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 . Page 17 [page 18] Doing Business 2018 Haiti Professional certifications index (0-4) 0.0 What are the qualification 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 qualification requirements for the professional who supervises the University 0.0 construction on the ground? (0-2) degree in engineering, construction or construction management. Page 18 [page 19] Doing Business 2018 Haiti F 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 tariffs index measures reliability of supply, transparency of tariffs 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. e Submitting all relevant documents and obtaining : The warehouse: all necessary clearances and permits . . : no - 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 .Js 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 e Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the first Time required to complete each procedure me . | . (calendar days) - Has two stories with a total surface area of approximately 1,300.6 square y 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). e Each procedure starts on a separate day e Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a k k k LL subscribed capacity of 140-kilo-volt-ampere (KVA) with a power factor of 1, e Reflects the time spent in practice, with little . . k . when 1 KVA = 1 kilowatt (KW). follow-up and no prior contact with officials k k : - 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 e_ Official costs only, no bribes warehouse is located and requires works that involve the crossing of a 10- meter road (such as by excavation or overhead lines) but are all carried out e Value added tax excluded : : : oc 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. tariffs index (0-8) - Does not require work to install the internal wiring of the warehouse. This «Duration and frequency of power outages (0-3) has already been completed up to and including the customer's service . panel or switchboard and the meter base. + Tools to monitor power outages (0-1) e Tools to restore power supply (0-1) The monthly consumption: e Regulatory monitoring of utilities’ performance - Itis 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 e Financial deterrents limiting outages (0-1) on average and that there are no electricity cuts (assumed for simplicity *_Transparency and accessibility of tariffs (0-1) reasons) and the monthly energy consumption is 26,880 kilowatt-hours {KWh}; hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the e Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tariffs effective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for Note: Doing Business measures the price of 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 19 [page 20] Doing Business 2018 Haiti Standardized Connection Price of electricity (US cents per KWh) 26.2 Name of utility Electricité d'Haiti (EdH) City Covered Port au Prince Latin America & OECD high Indicator Haïti Caribbean income Overall Best Performer Procedures (number) 4 5,5 4.7 2 (United Arab Emirates) Time (days) 60 66.0 79.1 10 (United Arab Emirates) Cost (% of income per capita) 3522 927.4 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 0 4.2 74 8.00 (28 Economies) index (0-8) Figure — Getting Electricity in Haïti and comparator economies — Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 76.94: Puerto Rico (U.S.) (Rank: 69) 71.11: Jamaica (Rank: 91) 70.45: Regional Average (Latin America & Caribbean) 64.74: Dominican Republic (Rank: 108) 58.35: Guyana (Rank: 132) 55.40: Haiti (Rank: 138) 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. Page 20 [page 21] Doing Business 2018 Haiti Figure — Getting Electricity in Haïti - Procedure, Time and Cost — Time — Cost 60 2500 50 e 200 % Es g 40 D & 1500 à a È 30 5 œ 8 £ £ F 1000 20 £ 8 ® 500 © 10 0 ———— 0 1 #2 3 4 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 different 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 reflected here, see the summary below. Figure — Getting Electricity in Haiti and comparator economies — Measure of Quality 8 7 7 6 5 e] 4 4 4 42 x 4 ä 2 3 2 1 0 0 Haiti Dominican Republic Guyana Jamaica Puerto Rico (U.S.) Latin America & Caribbean Page 21 [page 22] Doing Business 2018 Haiti Details — Getting Electricity in Haiti —- Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Hire private contractor to apply for connection and await estimate of 10 calendar days USD 400 connection fees Agency: Electricité d'Haïti External works can be carried out by Electricité d'Haïti (EDH) or by a private contractor provided they have obtained the utilitys approval. The final connection however, is always done by the utility. The common approach is to hire a private contractor (a list of these is available at the utility) to save time and because the utility often lacks the necessary material. The client can also either submits the application for connection themselves or ask their contractor to do so on their behalf. * Request of connection can be done in two ways:By letter from the company head + In person at one of the centers or agencies offering the utility's services 2 Receive external site inspection by Electricité d'Haïti (EDH) 1 calendar day HTG 872,752.81 Agency: Electricité d'Haïti The utility then inspects the site and prepares an estimate of the connection fees: * An estimate for the construction of the Low-Voltage of Medium-Voltage line and of the unit substation + An estimate for the construction of the metering system 3 Obtain external works from private contractor 30 calendar days USD 7,500 Agency: Private firm The private contractor discusses with the client about the technical details of the works (capacity, voltage, etc.) and submits the design to the utility for approval. The contractor also prepares an estimate of the fees for the construction of the lines and unit substation. The contractor will also need to write to the utility to obtain approval to work on the network. 4 Request meter installation and final connection from EDH 20 calendar days HTG 250,000 Agency: Electricité d'Haïti Once the works have been completed the client requests meter installation from Electricité d'Haïti (EDH). No inspection of the entire internal wiring is carried out during the process. For capacities below 300 kVA, the utility normally has the meters (and current transformers) in stock. = Takes place simultaneously with previous procedure. Page 22 [page 23] Doing Business 2018 Haiti Details - Getting Electricity in Haiti —- Measure of Quality Answer Reliability of supply and transparency of tariff index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) œ 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) 0 Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No exceed a certain cap? Communication of tariffs and tariff changes (0-1) 1 Are effective tariffs available online? Yes Link to the website, if available online http://www.edh.ht/ta rif.php Are customers notified of a change in tariff ahead of the billing cycle? Yes Note: Ifthe duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index. Ifthe duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. Ifthe minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Page 23 [page 24] Doing Business 2018 Haiti El 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 five 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 e Preregistration procedures (for example, used. checking for liens, notarizing sales agreement, . A The parties (buyer and seller): paying property transfer taxes) . ne | . . . . . - 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 e 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 P P 4 p . - 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 1 considered completed ance 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). À two-story warehouse of 929 square meters (10,000 : . : square feet) is located on the land. The warehouse is 10 years old, is in e 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, e Value Added Tax, Capital Gains Tax andillicit 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 e Reliability of infrastructure index (0-8) monuments of any kind. e Transparency of information index (0-6) - Will not be used for special purposes, and no special permits, such as for e Geographic coverage index (0-8) residential use, industrial plants, waste storage or certain types of «Land dispute resolution index (0-8) agricultural activities, are required. | | . : - Has no occupants, and no other party holds a legal interest in it. + Equal access to property rights index (-2-0) Page 24 [page 25] Doing Business 2018 Haiti Standard Property Transfer Property value HTG 2,237,334.50 City Covered Port au Prince Latin America & OECD high Indicator Haïti Caribbean income Overall Best Performer Procedures (number) 5 7.2 4.6 1.00 (4 Economies) Time (days) 312 63.3 22.3 1.00 (3 Economies) Cost (% of property value) 6.9 5.8 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 2.5 12.0 22.7 29.00 (Singapore) Figure — Registering Property in Haïti and comparator economies — Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 65.67: Dominican Republic (Rank: 79) 57.90: Guyana (Rank: 110) 55.36: Regional Average (Latin America & Caribbean) 53.70: Jamaica (Rank: 128) 47.19: Puerto Rico (U.S.) (Rank: 153) 32.22: Haïti (Rank: 180) 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. Page 25 [page 26] Doing Business 2018 Haiti Figure — Registering Property in Haïti —- Procedure, Time and Cost — Time — Cost 45 300 e 4 250 35 & 3 ci 200 3 2 & 5 £ 25 à & 150 5 Ë 0 2 à = © Èë 100 15 © — ô _ 50 e 0.5 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 different 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 reflected here, see the summary below. Figure — Registering Property in Haïti and comparator economies — Measure of Quality LL 145 - 14.0 14 135 120 12 o 5 10 8 % 8 75 ä 8 6 4 25 2 0 Haiti Dominican Republic Guyana Jamaica Puerto Rico (U.S.) Latin America & Caribbean Page 26 [page 27] Doing Business 2018 Haiti Details — Registering Property in Haïti - Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain authorization to conduct a property survey 60 days no cost Agency : Local Civil Tribunal To conduct the property survey required in Procedure 2, it is necessary to obtain an authorization from the dean of the civil tribunal of the commune where the property is located, and the authorization of the “Commissaire du government”. This is obtained after presenting a complete file that will include the bill of sale of the property as well as the previous survey. 2 Survey of property 3-4 weeks HTG 15,000 Agency : Geometre (simultaneous with . : k procedure 3) A survey of the property is required every 10 years but the notaries request a survey that dates no more than 5 years. The survey in question is done by a public surveyor for a specific commune. Because of the issues related to possession and ownership of real estate in Haiti, most buyers choose to have a survey of the property they are purchasing. AIl persons whose property shares a common border with the property will be invited to witness the survey. Any person present can request a procedure before a judge of peace of the civil tribunal who decides on whether the transaction can proceed or not. His decision is subject to appeal. Page 27 [page 28] Doing Business 2018 Haiti 3 Notary public prepares the sale agreement 2-3 weeks 2% of notary fees Agency : Notary (simultaneous with : . . . . . procedure 2) The titles are deposited with the notary public, who will prepare the bill of sale. By law, notary fees are set to 1%. However, the ASNOP (Notary Association of Port-au-Prince) normally charges 2% of sale price. The notary collects the fees and taxes and directly pays the different State Agencies. The added value tax (VAT) is paid by the seller, but it is held by the notary public until the notary decides to transfer the amount to the “Direction Générale des Impôts” (DGl). VAT is according to the following categories: (i) For the sale of property by a limited liability corporation (Societe Anonyme), the rate is 15% of the sale price (ii) For the sale of land without building or house, the rate is 10%, after applying a discount of 25 % on sale price. (ii) For the sale of any property were construction was built after the land was bought the rate is 2.5% of the sale price. (iv) For the sale of land from an allotment the rate is 4 %. (v) For the sale of any property including land and building were improvements or transformations have been made, the rate is 10% after applying a discount of 50 % on the sale price. (vi) For the sale of building or house built on state land when sailing according to the laws, the rates is 2.5% of the sale price. Page 28 [page 29] 4 Obtain avis de cotisation and pay for registration 1 day Fixed fee (droit fixe) Agency : Bank ofHTG2; . . . . 3% of property price In order to submit the sale agreement for registration, an “avis de cotisation” . : : e : (enregistrement); is prepared by the DGI, calculating and writing manually on the side of the 1% of property price sale Act the amount to be paid. The sale act should be handwritten, but the DGl accepts copies written with a PC with the “handwritten” style (for (transcription); transfers between individuals or firms). certificate fee (droit The avis de cotisation is typed with a typewriter on an official form (3 copies). de certificat) HTG 2,5; The top of the form is kept by the notary, and the bottom is left to the DGI. deed fee (droit The fees are the following: d'ecriture) HTG 6; {i) Montant principal: Droit fixe: HTG 2 ; droit d'enregistrement: 3% of sale supplementary tax: price; droit de transcription: 1% of sale price; droit d'ecriture: HTG 6 per each HTG 1 + 1% of the group of 25 lines (or fraction) cost of (ii) droit de certificat: HTG 2.5 enregistrement and (ii) taxe suplementaire: 1% of the amount paid in droit d'enregistrement and transcription (Taxe droit de transcription + 1 gourde supplementaire); (iv) droit special ad-valorem: 0.2% of the fees and taxes paid to the Tax 0.2% of the fees and Authority (DGl) taxes paid to the Tax (v) droit proportionnel du timbre: 0.2% of the property value + HTG 1 Authority (DGI) (droit special ad-valorem); Once the avis is prepared, the notary pays the amount at the BRH (Banque 0.2% of the property de la Republique d'Haïti) in the DGI, and the Avis de cotisation is signed by value + HTG 1 (droit the bank. proportionnel du timbre) 5 Thesale agreement is recorded and transcribed at the Tax Authority 6-9 months already paid in (DGi) previous Procedure Agency : Direction Générale des impôts The 3% + 1% fee is set in article 142 of the « loi du 28 septembre 1977 sur l'enregistrement et la conservation fonciere ». The notary has received the funds for the procedure before and does the follow up. À one-month frame is established by law for the notary to transfer said funds collected on behalf of the state to the Direction Generale des Impots. With the avis de cotisation signed by the bank, the notary can submit the dossier to be recorded at the records office of the Direction Generale des Impots. The registrar will write with a pen on the Acte de vente: the Number of the avis de cotisation and the date of payment. The notary keeps the original of the avis de cotisation. The transfer is then registered by hand in a book (“Repertoire d'entrée”). The sale act is later sent to the Bureau de Transciption, where employees copy by hand the sale act into books. Once the sale act has been copied, it is returned to the notary. Local branches of the DGl in the country (“bureaux deconcentres”) send the information to the central office for registration. = Takes place simultaneously with previous procedure. Page 29 [page 30] Doing Business 2018 Haiti Details — Registering Property in Haïti - Measure of Quality Answer Score Quality of the land administration index (0-30) 2.5 Reliability of infrastructure index (0-8) 0.0 What is the institution in charge of immovable property registration? Tax Authority (Direction Générale des Impôts) 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: National Cadastre Office (Office National du Cadastre) 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 Separate 0.0 cadastral or mapping agency kept in a single database, in different but linked databases databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use No 0.0 the same identification 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: Page 30 [page 31] Doing Business 2018 Haiti 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 specific time frame- and if so, how does it communicate the service standard? Link for online access: Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available official statistics tracking the number of transactions atthe 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 specific time frame—and if so, how does it communicate the service standard? Link for online access: Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0-8) 0.0 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 No 0.0 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) 3.5 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 No 0.0 guarantee? Page 31 [page 32] Doing Business 2018 Haiti Is there a specific 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 certified 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)? If yes, who is responsible for checking the legality of the documents? Notary; interested Parties. Does the legal system require verification 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? Notary. 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 The Civil Court property worth 50 times gross national income (GNI) per capita and located in the (Tribunal de 1ère largest business city, what court would be in charge of the case in the first instance? instance de la commune }) How long does it take on average to obtain a decision from the first-instance court for Between 2and3 1.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the first 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 Page 32 [page 33] Doing Business 2018 Haiti EN Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness 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 through rights of borrowers and lenders with respect to secured transactions through 2 sets of indicators. The depth of credit information index collateral laws (0-10) l - . Le measures rules and practices affecting 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 «Scope and accessibility of credit information rte and ne facilitate entnee Fe each sono ne me mes distributed by credit bureaus and credit whe er a unitary secured transactions sys em exists. Then two case registries (0-8) scenarios, case À and case B, are used to determine how a nonpossessory 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 e Number of individuals and firms listed in credit only case À 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 À, 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. Page 33 [page 34] Doing Business 2018 Haiti Latin America & OECD high Indicator Haïti Caribbean income Overall Best Performer Strength of legal rights index (0-12) 2 5.3 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 0 4.8 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 1.5 14.0 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 0.0 43.1 63.7 100.00 (23 Economies) Figure — Getting Credit in Haïti and comparator economies — Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.00: Puerto Rico (U.S.) (Rank: 6) 80.00: Jamaica (Rank: 20) 50.94: Regional Average (Latin America & Caribbean) 50.00: Guyana (Rank: 90) 45.00: Dominican Republic (Rank: 105) 10.00: Haïti (Rank: 177) 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 Haïti and comparator economies 12 11 10 9 2 8 ë x 6 53 ä D £ 4 3 2 2 1 0 Haiti Dominican Republic Guyana Jamaica Puerto Rico (U.S.) Latin America & Caribbean Page 34 [page 35] Doing Business 2018 Haiti Details — Legal Rights in Haïti Strength of legal rights index (0-12) 2 Does an integrated or unified 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 No requiring a specific 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 specific 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 unified 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 first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No procedure? Are secured creditors paid first (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 No 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 Haïti and comparator economies 10 8 8 7 7 7 2 oO 6 8 4.8 ë D 4 £ 2 0 0 Haïti Dominican Republic Guyana Jamaica Puerto Rico (U.S.) Latin America & Caribbean Page 35 [page 36] Doing Business 2018 Haiti Details — Credit Information in Haïti 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 O. Coverage Credit bureau Credit registry Number of individuals 0 96,060 Number of firms 0 5,413 Total 0 101,473 Percentage of adult population 0.0 15 Page 36 [page 37] Doing Business 2018 Haiti "#'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 e 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): e_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 officer (CEO) who may *_Ease of shareholder suits index (0-10): Access to legally act on behalf of Buyer where permitted, even if this is not specifically . ne required by law. internal corporate documents; Evidence u . . . . : ; : . - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal k expenses system) on which 60% of the shareholder-elected members have been . . Le. 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 differ from extent of director liability and ease of Li . default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate e 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 e 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 five- from undue board control and entrenchment member board. e_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 ofits stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller's unused fleet of trucks to *_Extent of shareholder governance index (0-10): expand Buyers distribution of its food products, a proposal to which Buyer . agrees. The price is equal to 10% of Buyer's assets and is higher than the Simple average of the extent of shareholders : . market value. rights, extent of ownership and control and . . Lo - The proposed transaction is part of the company's ordinary course of extent of corporate transparency indices . | . . LL ., business and is not outside the authority of the company. e Strength of minority investor protection index - Buyer enters into the transaction. AIl 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. Page 37 [page 38] Doing Business 2018 Haiti Latin America & OECD high Indicator Haïti Caribbean income Overall Best Performer Extent of conflict of interest regulation index (0- 3 5.3 64 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 1 4.1 6.4 9.00 (Kazakhstan) Figure — Protecting Minority Investors in Haïti and comparator economies — Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 55.00: Jamaica (Rank: 81) 51.67: Dominican Republic (Rank: 96) 51.67: Guyana (Rank: 96) 50.00: Puerto Rico (U.S.) (Rank: 108) 47.24: Regional Average (Latin America & Caribbean) 20.00: Haiti (Rank: 188) 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 conflict of interest regulation index and the extent of shareholder governance index. Figure — Protecting Minority Investors in Haïti and comparator economies — Measure of Quality Haïti 0 [a 4 Dominican Republic ER 8 Guyana [2] 8 Jamaica : Puerto Rico (U.S.) [2] 8 OECD high income [ s2 | 74 Latin America & Caribbean | 34 65 0 5 10 15 20 25 30 35 40 Sub-Indicator Score — Extent of corporate transparency index (0-10) == Extent of director liability index (0-10) == Extent of disclosure index (0-10) Extent of ownership and control index (0-10) — Extent of shareholder rights index (0-10) Ease of shareholder suits index (0-10) Page 38 [page 39] Doing Business 2018 Haiti Details — Protecting Minority Investors in Haïti —- Measure of Quality Answer Score Extent of conflict of interest regulation index (0-10) 3 Extent of disclosure index (0-10) 2 Which corporate body is legally sufficient to approve the Buyer-Seller transaction? (0-3) Shareholdersor 1.0 board of directors including interested parties Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his conflict of interest to the board of directors? (0-2) Existence of a 1.0 conflict without any specifics Must Buyer disclose the transaction in published periodic filings (annual reports)? (0-2) No disclosure 0.0 obligation 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) 3 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 Not liable 0.0 caused to Buyer? (0-2) 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 profits made from the transaction upon a successful claim by Yes 1.0 shareholders? (0-1) Is Mr. James disqualified or fined 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) 4 Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction documents? (0-1) Page 39 [page 40] Doing Business 2018 Haiti Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3) Documentsthat 2.0 directly prove specific facts in the plaintiffs claim Can the plaintiff request categories of documents from the defendant without Yes 1.0 identifying specific ones? (0-1) Can the plaintiff directly question the defendant and witnesses at trial? (0-2) No 0.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plaintiffs recover their legal expenses from the company? (0-2) Atthe discretion 0.0 of the court Extent of shareholder governance index (0-10) 1 Extent of shareholder rights index (0-10) 2 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? No 0.0 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 affected No 0.0 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 No 0.0 member? Assuming that Buyer is a limited company, must a member first offer 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) 1 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 No 0.0 end of their term? Page 40 [page 41] Doing Business 2018 Haiti Must the board of directors include a separate audit committee exclusively comprising No 0.0 board members? Must a potential acquirer make a tender offer 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 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 offer to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute profits within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 0 Must Buyer disclose direct and indirect beneficial 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? No 0.0 Can shareholders representing 5% of Buyer's share capital put items on the general No 0.0 meeting agenda? Must Buyer's annual financial 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 financial statements be No 0.0 audited by an external auditor? Page 41 [page 42] Doing Business 2018 Haiti [5] 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-filing processes: VAT refund and tax audit. The data shows where postfiling processes and practices work efficiently and what drives the differences 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 postfiling 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 filing and payment) the administrative burden of paying taxes, contributions and dealing with «Total number of taxes and contributions paid, postfiling processes. Information is also compiled on frequency of filing . : . and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, k | n k H . with the requirements of postfiling 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 majortaxes 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 e Collecting information, computing tax payable and contributions recorded are paid in the second year of operation e_ 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 profit 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 e Profit or corporate income tax re : . . . . . 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 e 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 Postfiling 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 e Time to receive a VAT refund notified the tax authority. The value of the underpaid income tax liability is e_ Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits «Time to complete a corporate income tax audit corrected information after the deadline for submitting the annual tax return, but within the tax assessment period. Page 42 [page 43] Doing Business 2018 Haiti Latin America & OECD high Indicator Haiti Caribbean income Overall Best Performer Payments (number per year) 47 28.0 10.9 3 (Hong Kong SAR, China) Time (hours per year) 184 332.1 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 42.8 46.6 40.1 18.47% (32 Economies) Postfiling index (0-100) 48.17 47.50 83.45 99.38 (Estonia) Figure — Paying Taxes in Haïti and comparator economies — Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 65.67: Jamaica (Rank: 122) 65.08: Guyana (Rank: 123) 60.16: Regional Average (Latin America & Caribbean) 57.55: Haiti (Rank: 147) 57.45: Dominican Republic (Rank: 149) 52.42: Puerto Rico (U.S.) (Rank: 161) 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 postfiling 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 defined as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. AÏl economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Page 43 [page 44] Doing Business 2018 Haiti Figure — Paying Taxes in Haïti and comparator economies — Measure of Quality 60 54.24 50 48.17 47.50 2 40 8 Y 30 5 19.68 = 20 13.76 10.71 10 0 Haiti Dominican Republic Guyana Jamaica Puerto Rico (U.S.) Latin America & Caribbean Details —- Paying Taxes in Haiti Total tax and Payments Noteson Time Statutory tax contribution rate Notes Tax or mandatory contribution (number) Payments (hours) rate Tax base (% of profit) onTTR Corporate income tax 4 40 30% taxable 21.26 profits Business license 1 0.4% turnover 7.07 Employee social security 0 jointly 6% gross 6.77 not contribution salaries included Social security contributions 12 72 6% gross 6.77 salaries Payroll tax 12 2% gross 3.38 salaries Health insurance contributions 1 3% gross 2.26 salaries Capital gains tax 1 15% capital 0.76 gain Local tax: Fonds de Gestion et de 1 1% taxable 0.71 Developpement des Collectivites profits Territoriales Property tax 1 15% annual 0.49 rental value Vehicle tax 1 varies between size of 0.08 HTG 1000 and engine HTG 5000 Value added tax (VAT) 12 72 10% value 0.00 not added included Page 44 [page 45] Doing Business 2018 Haiti Fuel tax 1 included 0.00 small in the amount fuel price Totals 47 184 42.8 Details — Paying Taxes in Haiti - Tax by Type Taxes by type Answer Profit tax (% of profit) 22.7 Labor tax and contributions (% of profit) 12.4 Other taxes (% of profit) 7.6 Details — Paying Taxes in Haïti - Measure of Quality Answer Score Postfiling index (0-100) 48.17 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? No Restrictions on VAT refund process Input tax on capital purchase is irrecoverable Percentage of cases exposed to a VAT audit (%) Not applicable Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) No VAT refund 0 per case study scenario Time to obtain a VAT refund (weeks) No VAT refund 0 per case study scenario Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax audit (hours) 5.5 92.66 Page 45 [page 46] Doing Business 2018 Haiti Time to complete a corporate income tax audit (weeks) No tax audit per 100 case study scenario Notes: Names of taxes have been standardized. For instance income tax, profit 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 postfiling 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. Page 46 [page 47] Bi 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 tariffs) 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 * Obtaining, preparing and submitting documents made about the traded goods and the transactions: during transport, clearance, inspections and port . . . . . or border handling in origin economy Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as 22x24=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 e 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 . : : ei : Business, it is assumed a shipment is in a warehouse in the largest e 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 e 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 (defined 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. - À 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 47 [page 48] Doing Business 2018 Haiti Latin America & OECD high Indicator Haïti Caribbean income Overall Best Performer Time to export: Border compliance (hours) 28 62.5 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 368 526.5 149.9 0.00 (19 Economies) Time to export: Documentary compliance 22 53.3 24 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 48 110.4 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 83 64.4 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 563 684.0 111.6 0.00 (27 Economies) Time to import: Documentary compliance 28 79.9 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 150 119.5 25.6 0.00 (30 Economies) Figure -— Trading across Borders in Haiti and comparator economies — Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 83.51: Dominican Republic (Rank: 59) 81.86: Puerto Rico (U.S.) (Rank: 64) 76.90: Haiti (Rank: 77) 68.71: Regional Average (Latin America & Caribbean) 61.54: Jamaica (Rank: 130) 59.33: Guyana (Rank: 142) 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). Page 48 [page 49] Doing Business 2018 Haiti Figure — Trading across Borders in Haïti —- Time and Cost — Time — Cost 90 8 563 600 80 500 70 z 60 368 400 ë 50 2 £ 300 2 g 40 ÿ Ê 30 28 D 28 150 200 © 2 100 10 L 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details - Trading across Borders in Haïti Characteristics Export Import Product HS 61 : Articles of apparel and clothing accessories, HS 8708: Parts and accessories of knitted or crocheted motor vehicles Trade partner United States United States Border Port-au-Prince port Port-au-Prince port Distance (km) 8 8 Domestic transporttime 1 1 (hours) Domestic transport cost 300 300 (USD) Page 49 [page 50] Details — Trading across Borders in Haiti - Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 3.8 100.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 24.0 267.5 Import: Clearance and inspections required by customs authorities 36.0 245.0 Import: Clearance and inspections required by agencies other than customs 30.0 0.0 Import: Port or border handling 52.0 317.5 Details - Trading across Borders in Haiti —- Trade Documents Export Import Export declaration Bill of lading Bill of lading Certificate of origin Commercial invoice Commercial invoice Export authorization Import declaration Packing list Packing list Quitus Quitus Certificate of origin SGS Attestation of Verification SOLAS certificate SGS Pre-Import Declaration SOLAS certificate Page 50 [page 51] Doing Business 2018 Haiti Ps : ir Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency 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 Time to file and serve the case hears an expert on the quality of the goods in dispute. This distinguishes . k . the case from simple debt enforcement. e Time for trial and to obtain the judgment . : To make the data comparable across economies, Doing Business uses e Time to enforce the judgment . several assumptions about the case: Cost required to enforce a contract throughthe _ 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 e Attorney fees economies the data are also collected for the second largest business city. * Court fees - The buyer orders custom-made goods, then fails to pay. | - 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 k commercial cases worth 200% of income per capita or $5,000. e Court structure and proceedings (-1-5) . k - 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. e Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. e Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer's movable assets. Standardized Case Claim value HTG 246,295.00 Court name Port-au-Prince District Court, Commercial Section City Covered Port au Prince Latin America & OECD high Indicator Haiti Caribbean income Overall Best Performer Time (days) 530 767.1 577.8 164.00 (Singapore) Cost (% of claim value) 42.6 31.4 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 7.0 84 11.0 15.50 (Australia) Page 51 [page 52] Doing Business 2018 Haiti Figure — Enforcing Contracts in Haïti and comparator economies — Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 57.87: Guyana (Rank: 93) 54.41: Puerto Rico (U.S.) (Rank: 113) 53.13: Regional Average (Latin America & Caribbean) 52.49: Haiti (Rank: 125) 51.87: Jamaica (Rank: 127) 48.71: Dominican Republic (Rank: 136) 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 Haïti - Time and Cost — Time — Cost 900 60 800 50.2 767.1 700 426 5 3 409 M 630 2 590 & 600 581 530 550 577.8 40 E & 314 302 £ & Z 500 27.0 . 30 % # 400 215 5 F 300 20 200 d 10 © 100 0 0 Dominican Republic Guyana Haïti Jamaica Latin America & OECDhighincome Puerto Rico (U.S.) Caribbean Page 52 [page 53] Doing Business 2018 Haiti Figure — Enforcing Contracts in Haïti and comparator economies — Measure of Quality Haïti 45 Dominican Republic 3 Guyana 4 Jamaica 4.5 Puerto Rico (U.S.) 3 OECD high income 36 Latin America & Caribbean 35 0 2 4 6 8 10 12 Sub-Indicator Score — Alternative dispute resolution (0-3) — Case management (0-6) — Court automation (0-4) Court structure and proceedings (-1-5) Details — Enforcing Contracts in Haïti Indicator Time (days) 530 Filing and service 30 Trial and judgment 320 Enforcement of judgment 180 Cost (% of claim value) 42.6 Attorney fees 20 Court fees 12.6 Enforcement fees 10 Quality of judicial processes index (0-18) 7.0 Court structure and proceedings (-1-5) 4.5 Case management (0-6) 0.5 Court automation (0-4) 0.0 Alternative dispute resolution (0-3) 2.0 Page 53 [page 54] Details — Enforcing Contracts in Haïti — Measure of Quality Answer Score Quality of judicial processes index (0-18) 7.0 Court structure and proceedings (-1-5) 4.5 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 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) 0.5 1. Time standards 0.5 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? No 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? na. 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) 0.0 1. Can the initial complaint be filed electronically through a dedicated platform within No 0.0 the competent court? Page 54 [page 55] Doing Business 2018 Haiti 2. Is it possible to carry out service of process electronically for claims filed 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 0.0 4.a Are judgments rendered in commercial cases at all levels made available to the No general public through publication in official gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme No court level made available to the general public through publication in official gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.0 1. Arbitration 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 0.5 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or No consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e.. No if mediation or conciliation is successful, a refund of court filing fees, income tax credits or the like)? Page 55 [page 56] Doing Business 2018 Haiti 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 e Measured in calendar years d 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 financial difficulties. + Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent e Court fees in local currency of USD 200,000, whichever is greater. . Le - The hotel has a loan from a domestic bank, secured by a mortgage over e 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. e Assessors’ and auctioneers' fees . . k k k In addition, Doing Business evaluates the adequacy and integrity of the e Other related fees se: ; sde Lou existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The k . . k index tests whether economies adopted internationally accepted good + Whether business continues operating as a going : : : | k practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal LL . : Re debtor's assets, reorganization proceedings and creditor participation. Recovery rate for creditors e Measures the cents on the dollar recovered by secured creditors e Outcome for the business (survival or not) determines the maximum value that can be recovered e Official costs of the insolvency proceedings are deducted e Depreciation of furniture is taken into account + Present value of debt recovered Strength of insolvency framework index (0- 16) e Sum of the scores of four component indices: e Commencement of proceedings index (0-3) + Management of debtor's assets index (0-6) + Reorganization proceedings index (0-3) e Creditor participation index (0-4) Page 56 [page 57] Doing Business 2018 Haiti Latin America & OECD high Indicator Haïti Caribbean income Overall Best Performer Recovery rate (cents on the dollar) 0.0 30.8 71.2 93.1 (Norway) Time (years) no practice 2.9 1.7 0.4 (Ireland) Cost (% of estate) no practice 16.8 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 7.2 12.1 15.00 (6 Economies) Figure — Resolving Insolvency in Haïti and comparator economies — Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 84.20: Puerto Rico (U.S.) (Rank: 9) 69.31: Jamaica (Rank: 35) 38.95: Regional Average (Latin America & Caribbean) 37.59: Dominican Republic (Rank: 121) 22.38: Guyana (Rank: 162) 0.00: Haiti (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 Haïti - Time and Cost — Time — Cost 4 38.0 40 35 3.5 30 35 3 “285 29 30 _ 25 # Ê 25 25 ÿ £ 2 180 168 17 20 5 E 15 15 = F 11 11.0 à 1 91 10 À 0.5 5 0 0 Dominican Republic Guyana no practice Jamaica Latin America & OECD highincome Puerto Rico (U.S.) Haiti Caribbean Page 57 [page 58] Doing Business 2018 Haiti Figure — Resolving Insolvency in Haïti and comparator economies — Measure of Quality Haïti 0 Dominican Republic 105 Guyana Jamaica | 1 | OECD high income | 1 | Latin America & Caribbean Los ( 2 4 6 8 10 12 14 16 Sub-Indicator Score — Management of debtor's assets index (0-6) == Commencement of proceedings index (0-3) == Creditor participation index (0-4) Reorganization proceedings index (0-3) Figure — Resolving Insolvency in Haiti and comparator economies — Recovery Rate 5 80 3 69.4 T 70 649 o 5 60 [= © 50 # C & * 308 2 30 Fc] Ë » 184 89 > 10 8 00 & 0 Haiti Dominican Republic Guyana Jamaica Puerto Rico (U.S.) Latin America & Caribbean Page 58 [page 59] Doing Business 2018 Haiti Details - Resolving Insolvency in Haïti 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) Page 59 [page 60] Doing Business 2018 Haiti Details —- Resolving Insolvency in Haïti - 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? file for liquidation only Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (b) Yes, but a 0.5 creditor may file 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) 1.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Page 60 [page 61] Doing Business 2018 Haiti 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? the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Page 61 [page 62] <2 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 fixed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of fixed-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 Working hours work experience. {i) maximum number of working days allowed per “IS a fulktime employee. . . week: (i) premiums for work: at night, on a weekly - Is not a member of the labor union, unless membership is mandatory. 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. Redundancy rules “Has 60 employees. : .: : {i) whether redundancy can be basis for terminating - Is subject to collective bargaining agreements if such agreements cover workers: (ii) whether employer needs to notify more than 50% of the food retail sector and they apply even to firms that and/or get approval from third party to terminate 1 are not party to them. - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant | . . | workers: (iii) whether law requires employer to benefits than those mandated by law, regulation or (if applicable) collective ; ; : 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 five fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Page 62 [page 63] Details - Labor Market Regulation in Haiti Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single fixed-term contract (months) No limit Maximum length of fixed-term contracts, including renewals (months) No Limit Minimum wage applicable to the worker assumed in the case study (US$/month) 154.1 Ratio of minimum wage to value added per worker 1.5 Maximum length of probationary period (months) 0.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 50.0 Premium for work on weekly rest day (% of hourly pay) 50.0 Premium for overtime work (% of hourly pay) 50.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 13.0 Paid annual leave for a worker with 5 years of tenure (working days) 13.0 Paid annual leave for a worker with 10 years of tenure (working days) 13.0 Paid annual leave (average for workers with 1,5 and 10 years of tenure, in working days) 13.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party notification if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party notification if nine workers are dismissed? No Third-party approval if nine workers are dismissed? No Page 63 [page 64] Retraining or reassignment obligation before redundancy? No 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 4.3 Notice period for redundancy dismissal for a worker with 5 years of tenure 8.7 Notice period for redundancy dismissal for a worker with 10 years of tenure 17.3 Notice period for redundancy dismissal (average for workers with 1,5 and 10 years of tenure) 10.1 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? No Gender nondiscrimination in hiring? No Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 42.0 Receive 100% of wages on maternity leave? Yes 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 Page 64 [page 65] Doing Business 2018 Haiti Business Reforms in Haïti In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the different 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 Haiti implemented since Doing Business 2008. = Doing Business reform making it easier to do business. x = Change making it more difficult to do business. DB2018 x Paying Taxes: Haïti made paying taxes costlier by increasing the rate for the business license tax. DB2017 + Trading across Borders: Haiti made trading across borders easier by improving port infrastructure and improving the SYDONIA electronic data interchange system by allowing the submission of supporting documents online. DB2012 x Dealing with Construction Permits: Haiti made dealing with construction permits costlier by increasing the fees to obtain a building permit. DB2011 Starting a Business: Haiti eased business start-up by eliminating the review by the president's or the prime minister's office of the incorporation act submitted for publication. DB2010 + Getting Credit: Haiti strengthened its secured transactions system through a new law broadening the range of assets that can be used as collateral, allowing future and after-acquired property to be used as collateral and automatically extending security interests to the products, proceeds and replacements of the original asset. + Trading across Borders: Haiti speeded up the clearance of goods through customs by implementing the ASYCUDA system and introducing 24-hour operations at the port. DB2009 + Trading across Borders: Haiti reduced the time for exporting by implementing a risk-based inspection system. DB2008 Registering Property: Haiti made registering property simpler by streamlining the process at the tax authority. Page 65 [page 66] Doing Business 2018 Haiti Doing Business 2018 is the 15th in a series of annual reports investigatingthe regulations that enhance business activity and those that constrain it. The report provides quantitative indicators covering 11 areas of the business environment in 190 economies. The goal of the Doing Business series is to provide objective data for use by governments in designing sound business regulatory policies and to encourage research on the important dimensions of the regulatory environment for firms. ul l || I! ISBN 978-1-4648-1146-3 Il | ]| | | ll 917814641811463 SKU 211146 ) woruo BANK GROUP www.doingbusiness.org Page 66