Tax Compliance Perceptions and Formalization of Small Businesses in South Africa

This paper is based on large-scale surveys of formal and informal small businesses in South Africa, including questions about their experiences and perceptions about tax compliance, tax morale, and related variables. The survey findings suggest that formalization is more likely to take place in urban areas, involving relatively larger firms, and those who already use proper bookkeeping. Informal firms who said they were likely to register for tax in the near future were more likely than other informal firms to report higher satisfaction with government services, and to believe most businesses pay their taxes. The most-cited advantages of being registered for tax included better access to government services, better access to financing, and better opportunities for growth.

Bibliographic Details

Main Authors:	Coolidge, Jacqueline, Ilic, Domagoj
Language:	English
Published:	2009-07-01
Subjects:	ACCESS TO FINANCING, AUDITS, BALANCE SHEET, BANK POLICY, BUSINESS OPPORTUNITIES, CASH PAYMENTS, COMPLIANCE COST, CURRENCY, ELECTRONIC FINANCE, EXPENDITURES, FACTORS OF PRODUCTION, FINANCIAL HEALTH, FINANCIAL SUPPORT, FOREIGN INVESTMENT, FORMAL SECTOR, INFORMAL ECONOMIES, INFORMAL ECONOMY, INFORMAL SECTOR, INFORMATION SYSTEMS, INTERNATIONAL BANK, INVESTMENT CLIMATE, JOINT-STOCK COMPANIES, JURISDICTIONS, LEVEL OF RISK, LOCAL EXPENDITURES, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, MICRO ENTERPRISES, MICRO-ENTERPRISES, MONEY SUPPLY, NATIONAL TREASURY, PAYMENT METHOD, PERSONAL INCOME, PERSONAL INCOME TAX, PRIMARY SECTOR, PUBLIC ECONOMICS, PUBLIC FINANCE, PUBLIC GOODS, PUBLIC SERVICES, RATE OF RETURN, RED TAPE, RISK MANAGEMENT, SECTOR STRUCTURE, SERVICES SECTOR, SMALL BUSINESS, SMALL BUSINESSES, TAX, TAX ACCOUNTING, TAX ADMINISTRATION, TAX AMNESTY, TAX AUTHORITIES, TAX BURDENS, TAX COMPLIANCE, TAX COMPLIANCE COSTS, TAX EVASION, TAX FORMS, TAX LEGISLATION, TAX OBLIGATION, TAX OBLIGATIONS, TAX OFFICES, TAX POLICY, TAX RATE, TAX RATES, TAX REFUNDS, TAX REGIME, TAX RESEARCH, TAX RETURNS, TAX REVENUES, TAXATION, TAXPAYERS, TELECOMMUNICATIONS, TRANSITION COUNTRIES, TRANSPARENCY, TURNOVER, TURNOVER TAX, VALUE OF ASSETS,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090713114815 https://hdl.handle.net/10986/4183
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