Small Business Tax Regimes

Small Business Tax Regimes

Simplified tax regimes for micro and small enterprises in developing countries are intended to facilitate voluntary tax compliance. However, survey evidence suggests that small business taxation based on simplified bookkeeping or turnover is sometimes perceived as too complex for microenterprises in countries with high illiteracy levels. Very simple fixed tax regimes not requiring any books or records tend to be overly popular but prone to abuse. System reforms will require more precise tailoring of the simplified regimes to their target beneficiaries, coupled with strong compliance management to detect and deter abuse. The overall objective of simplified taxation for micro and small enterprises (MSEs) in developing countries is generally to facilitate voluntary tax compliance and remove obstacles in moving toward business formalization and growth.

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Bibliographic Details
Main Authors: Coolidge, Jacqueline, Yilmaz, Fatih
Format: Brief biblioteca
Language:English
en_US
Published: World Bank, Washington, DC 2016-02
Subjects:RESOURCES, TURNOVER TAX, TAX RESEARCH, TRANSACTION, LIABILITY, BUSINESS EXPENSES, GOOD, ACCOUNTING, PROFIT MARGINS, ADDED TAX, EXPENSES, INTERNATIONAL TRADE, SMALL ENTERPRISES, TAX BURDENS, COMPLIANCE COSTS, TURNOVER, TAX COMPLIANCE COSTS, SALES, INCOME, RETURNS, TAX REGIMES, DEVELOPING COUNTRIES, TRANSITION COUNTRIES, INCOMES, TAX SIMPLIFICATION, TAX COMPLIANCE, TAX RATES, DISTRIBUTION, COST, TAX LIABILITY, MARKET, TAX, FIXED RATES, INCOME TAX, BENEFICIARIES, REPORTING, BANK ACCOUNTS, ADMINISTRATION, RISK FACTORS, AUDITS, ENFORCEMENT, TAXPAYER, BOOKKEEPING, TAXATION, CENTRAL BANK, SINGLE TAXES, TRADE, SMALL BUSINESS, COMMUNICATIONS, INTERNATIONAL FINANCE, TAX ACCOUNTING, PUBLIC POLICY, BUSINESS, INVESTMENT, TAX AUDITS, TAX SYSTEM, POVERTY, FINANCE CORPORATION, TAXPAYERS, TAX REGIME, BUSINESS TAX, TAX ADMINISTRATION, OPTIONS, REVENUE, TAX POLICY, PROFIT, ACCOUNTING RULES, ACCOUNTS, CRITERIA, TAX BASE, AUDIT, TAX RETURNS, COMPLIANCE COST, SMALL BUSINESSES, ACCOUNT, FINANCE, TAXES, COMPETITION, MICROENTERPRISES,
Online Access:http://documents.worldbank.org/curated/en/2016/04/26159239/small-business-tax-regimes
https://hdl.handle.net/10986/24250
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Summary:Simplified tax regimes for micro and small enterprises in developing countries are intended to facilitate voluntary tax compliance. However, survey evidence suggests that small business taxation based on simplified bookkeeping or turnover is sometimes perceived as too complex for microenterprises in countries with high illiteracy levels. Very simple fixed tax regimes not requiring any books or records tend to be overly popular but prone to abuse. System reforms will require more precise tailoring of the simplified regimes to their target beneficiaries, coupled with strong compliance management to detect and deter abuse. The overall objective of simplified taxation for micro and small enterprises (MSEs) in developing countries is generally to facilitate voluntary tax compliance and remove obstacles in moving toward business formalization and growth.

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