Publication: Small Business Tax Regimes
Date
2016-02
ISSN
Published
2016-02
Author(s)
Coolidge, Jacqueline
Yilmaz, Fatih
Abstract
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.
Citation
“Coolidge, Jacqueline; Yilmaz, Fatih. 2016. Small Business Tax Regimes. Viewpoint;No. 349. © World Bank, Washington, DC. http://hdl.handle.net/10986/24250 License: CC BY 3.0 IGO.”
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