Engelschalk, MichaelLoeprick, Jan2015-11-052015-11-052015-10https://hdl.handle.net/10986/22864The paper analyzes the design of simplified small business tax regimes in Eastern Europe and Central Asia and the impact of such regimes on small business tax compliance. Although many approaches for tax simplification exist, a general trend in the region is to offer small businesses the option to be taxed based on their turnover instead of net income. The study finds that many of the regimes in place are overly simplistic and neither take into account fairness considerations nor do they facilitate business growth and migration into the standard tax regime. Although revenue generation is not a main objective of such regimes, low revenue performance and the risk of system abuse by larger businesses should be issues of concern. More attention should therefore be devoted to improving the design of simplified regimes and monitoring their application. This will require in particular a more profound analysis of the economic situation and the tax compliance challenges in the small business segment and increased efforts to improve the quality of bookkeeping.en-USCC BY 3.0 IGONOTARIESTRANSITION ECONOMYLIMITED‐LIABILITYTAX COLLECTIONPRODUCT TAXESTAX TREATMENTINDIRECT TAXATIONREGRESSIVE TAXPENSIONBUSINESS TAXCORPORATE TAXTAX OFFICESTAX COMPLIANCE COSTSTAXABLE INCOMEMICRO‐ENTERPRISEINVESTMENTESTIMATED TAXTAX COLLECTIONSTAX BRACKETSLAND TAXTAX RATETAX REFORMSTAX RETURNSRETURNSTAX POLICYPROFIT MARGINTAX COMPLIANCE COSTSTAX WEDGEGUARANTEEINTERNATIONAL FINANCESHARESTAX MINIMIZATIONFLAT TAXVALUE ADDED TAXCASH FLOWEXCHANGE RATETAX REFORMTAX COMPLIANCETAX SYSTEMSPUBLIC FINANCETAX LIABILITYTAX REFORMSTURNOVER TAXTAX ADMINISTRATIONMONETARY FUNDINVESTMENT ACTIVITIESLAND TAXTAX AVOIDANCESALES TAXDIRECT TAXATIONTAX EVASIONPAYMENT OBLIGATIONSINSURANCELIMITED LIABILITYPROPERTY TAXRULE OF LAWBUSINESS TAXGOODSLIQUIDITYACCOUNTINGGOODTAX SYSTEMSTAX RATESTAX RETURNMARGINAL TAX RATESTAX ADMINISTRATIONFLAT TAXTAX LIABILITIESBENEFICIARIESLOCAL GOVERNMENTSTAX OFFICESTAX REFORMCHECKTAX MINIMIZATIONBUDGETSVALUE OF ASSETSTREASURYTAX CODEEXCHANGEPROGRESSIVE TAXTAX SIMPLIFICATIONTAXPAYERSDEDUCTIONSTAX SIMPLIFICATIONINTERESTMICRO‐ ENTERPRISESSMALL BUSINESSTURNOVERESTIMATED TAXTAX SYSTEMTURNOVER TAXTAX RETURNSBUSINESS TAXESPERSONAL INCOMEVALUE‐ADDED TAXDEVELOPING COUNTRIESTAX REVENUESVALUE‐ADDED TAXREGULATORY FRAMEWORKFLAT RATE INCOME TAXTRANSITION COUNTRIESFINANCETAX LIABILITIESTAX REVENUETAXESPRODUCT TAXESTAX LAWINCOME TAXINFLATION RATESINTERNATIONAL BANKTAX RATESINSTRUMENTSTAX REGIMEPERSONAL INCOME TAXLIABILITIESPROPERTYSMALL BUSINESSESTAX REVENUESTURNOVER TAXESPROFITSBALANCE SHEETTURNOVER TAXESTAX COLLECTIONTAX LAWTRANSACTIONSINTELLECTUAL PROPERTYADDED TAXTRANSPARENCYLOCAL BUSINESSTRADINGPENSION FUNDTAX DEDUCTIBLETAX SYSTEMSINGLE TAXCAPACITY CONSTRAINTSINFLATIONTURNOVER TAXVALUE ADDED TAXENTRY BARRIERSLOCAL MARKETTAX LIABILITYSHARETAX REGULATIONPERSONAL INCOME TAXSHAREHOLDERSTAX WEDGEPROPERTY TAXPENSIONSCOMPLIANCE COSTSINCOME TAXESPROFIT MARGINSRETURNTRANSACTIONCORPORATE TAXLOCAL GOVERNMENTBUSINESS TAXESBANK POLICYSINGLE TAXREVENUETAX OBLIGATIONSASSET VALUECOMPLIANCE COSTCOMMERCIAL LAWSTAX RATECORPORATE INCOME TAXTAX LAWSTAX REGIMESTAX REVENUETAX AUDITSLIABILITYTAX BRACKETSTAXTAX LAWSMARKETTAX POLICYTAXABLE INCOMEMARKETSPAYROLL TAXESINCOME TAXTAXATIONOPTIONFLAT TAXESMICRO ENTERPRISELABOR MARKETSECURITYPROFITTAX BASETAX COMPLIANCEREVENUESACCOUNTING STANDARDSINDIRECT TAXATIONMARKET ECONOMIESTAX BASETRANSITION ECONOMIESLIQUIDITY PROBLEMSMARGINAL TAX RATESWorking PaperWorld Bank10.1596/1813-9450-7449