MSME Taxation in Transition Economies : Country Experience on the Costs and Benefits of Introducing Special Tax Regimes
The 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...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/10/25167890/msme-taxation-transition-economies-country-experience-costs-benefits-introducing-special-tax-regimes http://hdl.handle.net/10986/22864 |
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okr-10986-22864 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
NOTARIES TRANSITION ECONOMY LIMITED‐LIABILITY TAX COLLECTION PRODUCT TAXES TAX TREATMENT INDIRECT TAXATION REGRESSIVE TAX PENSION BUSINESS TAX CORPORATE TAX TAX OFFICES TAX COMPLIANCE COSTS TAXABLE INCOME MICRO‐ENTERPRISE INVESTMENT ESTIMATED TAX TAX COLLECTIONS TAX BRACKETS LAND TAX TAX RATE TAX REFORMS TAX RETURNS RETURNS TAX POLICY PROFIT MARGIN TAX COMPLIANCE COSTS TAX WEDGE GUARANTEE INTERNATIONAL FINANCE SHARES TAX MINIMIZATION FLAT TAX VALUE ADDED TAX CASH FLOW EXCHANGE RATE TAX REFORM TAX COMPLIANCE TAX SYSTEMS PUBLIC FINANCE TAX LIABILITY TAX REFORMS TURNOVER TAX TAX ADMINISTRATION MONETARY FUND INVESTMENT ACTIVITIES LAND TAX TAX AVOIDANCE SALES TAX DIRECT TAXATION TAX EVASION PAYMENT OBLIGATIONS INSURANCE LIMITED LIABILITY PROPERTY TAX RULE OF LAW BUSINESS TAX GOODS LIQUIDITY ACCOUNTING GOOD TAX SYSTEMS TAX RATES TAX RETURN MARGINAL TAX RATES TAX ADMINISTRATION FLAT TAX TAX LIABILITIES BENEFICIARIES LOCAL GOVERNMENTS TAX OFFICES TAX REFORM CHECK TAX MINIMIZATION BUDGETS VALUE OF ASSETS TREASURY TAX CODE EXCHANGE PROGRESSIVE TAX TAX SIMPLIFICATION TAXPAYERS DEDUCTIONS TAX SIMPLIFICATION INTEREST MICRO‐ ENTERPRISES SMALL BUSINESS TURNOVER ESTIMATED TAX TAX SYSTEM TURNOVER TAX TAX RETURNS BUSINESS TAXES PERSONAL INCOME VALUE‐ADDED TAX DEVELOPING COUNTRIES TAX REVENUES VALUE‐ADDED TAX REGULATORY FRAMEWORK FLAT RATE INCOME TAX TRANSITION COUNTRIES FINANCE TAX LIABILITIES TAX REVENUE TAXES PRODUCT TAXES TAX LAW INCOME TAX INFLATION RATES INTERNATIONAL BANK TAX RATES INSTRUMENTS TAX REGIME PERSONAL INCOME TAX LIABILITIES PROPERTY SMALL BUSINESSES TAX REVENUES TURNOVER TAXES PROFITS BALANCE SHEET TURNOVER TAXES TAX COLLECTION TAX LAW TRANSACTIONS INTELLECTUAL PROPERTY ADDED TAX TRANSPARENCY LOCAL BUSINESS TRADING PENSION FUND TAX DEDUCTIBLE TAX SYSTEM SINGLE TAX CAPACITY CONSTRAINTS INFLATION TURNOVER TAX VALUE ADDED TAX ENTRY BARRIERS LOCAL MARKET TAX LIABILITY SHARE TAX REGULATION PERSONAL INCOME TAX SHAREHOLDERS TAX WEDGE PROPERTY TAX PENSIONS COMPLIANCE COSTS INCOME TAXES PROFIT MARGINS RETURN TRANSACTION CORPORATE TAX LOCAL GOVERNMENT BUSINESS TAXES BANK POLICY SINGLE TAX REVENUE TAX OBLIGATIONS ASSET VALUE COMPLIANCE COST COMMERCIAL LAWS TAX RATE CORPORATE INCOME TAX TAX LAWS TAX REGIMES TAX REVENUE TAX AUDITS LIABILITY TAX BRACKETS TAX TAX LAWS MARKET TAX POLICY TAXABLE INCOME MARKETS PAYROLL TAXES INCOME TAX TAXATION OPTION FLAT TAXES MICRO ENTERPRISE LABOR MARKET SECURITY PROFIT TAX BASE TAX COMPLIANCE REVENUES ACCOUNTING STANDARDS INDIRECT TAXATION MARKET ECONOMIES TAX BASE TRANSITION ECONOMIES LIQUIDITY PROBLEMS MARGINAL TAX RATES |
| spellingShingle |
NOTARIES TRANSITION ECONOMY LIMITED‐LIABILITY TAX COLLECTION PRODUCT TAXES TAX TREATMENT INDIRECT TAXATION REGRESSIVE TAX PENSION BUSINESS TAX CORPORATE TAX TAX OFFICES TAX COMPLIANCE COSTS TAXABLE INCOME MICRO‐ENTERPRISE INVESTMENT ESTIMATED TAX TAX COLLECTIONS TAX BRACKETS LAND TAX TAX RATE TAX REFORMS TAX RETURNS RETURNS TAX POLICY PROFIT MARGIN TAX COMPLIANCE COSTS TAX WEDGE GUARANTEE INTERNATIONAL FINANCE SHARES TAX MINIMIZATION FLAT TAX VALUE ADDED TAX CASH FLOW EXCHANGE RATE TAX REFORM TAX COMPLIANCE TAX SYSTEMS PUBLIC FINANCE TAX LIABILITY TAX REFORMS TURNOVER TAX TAX ADMINISTRATION MONETARY FUND INVESTMENT ACTIVITIES LAND TAX TAX AVOIDANCE SALES TAX DIRECT TAXATION TAX EVASION PAYMENT OBLIGATIONS INSURANCE LIMITED LIABILITY PROPERTY TAX RULE OF LAW BUSINESS TAX GOODS LIQUIDITY ACCOUNTING GOOD TAX SYSTEMS TAX RATES TAX RETURN MARGINAL TAX RATES TAX ADMINISTRATION FLAT TAX TAX LIABILITIES BENEFICIARIES LOCAL GOVERNMENTS TAX OFFICES TAX REFORM CHECK TAX MINIMIZATION BUDGETS VALUE OF ASSETS TREASURY TAX CODE EXCHANGE PROGRESSIVE TAX TAX SIMPLIFICATION TAXPAYERS DEDUCTIONS TAX SIMPLIFICATION INTEREST MICRO‐ ENTERPRISES SMALL BUSINESS TURNOVER ESTIMATED TAX TAX SYSTEM TURNOVER TAX TAX RETURNS BUSINESS TAXES PERSONAL INCOME VALUE‐ADDED TAX DEVELOPING COUNTRIES TAX REVENUES VALUE‐ADDED TAX REGULATORY FRAMEWORK FLAT RATE INCOME TAX TRANSITION COUNTRIES FINANCE TAX LIABILITIES TAX REVENUE TAXES PRODUCT TAXES TAX LAW INCOME TAX INFLATION RATES INTERNATIONAL BANK TAX RATES INSTRUMENTS TAX REGIME PERSONAL INCOME TAX LIABILITIES PROPERTY SMALL BUSINESSES TAX REVENUES TURNOVER TAXES PROFITS BALANCE SHEET TURNOVER TAXES TAX COLLECTION TAX LAW TRANSACTIONS INTELLECTUAL PROPERTY ADDED TAX TRANSPARENCY LOCAL BUSINESS TRADING PENSION FUND TAX DEDUCTIBLE TAX SYSTEM SINGLE TAX CAPACITY CONSTRAINTS INFLATION TURNOVER TAX VALUE ADDED TAX ENTRY BARRIERS LOCAL MARKET TAX LIABILITY SHARE TAX REGULATION PERSONAL INCOME TAX SHAREHOLDERS TAX WEDGE PROPERTY TAX PENSIONS COMPLIANCE COSTS INCOME TAXES PROFIT MARGINS RETURN TRANSACTION CORPORATE TAX LOCAL GOVERNMENT BUSINESS TAXES BANK POLICY SINGLE TAX REVENUE TAX OBLIGATIONS ASSET VALUE COMPLIANCE COST COMMERCIAL LAWS TAX RATE CORPORATE INCOME TAX TAX LAWS TAX REGIMES TAX REVENUE TAX AUDITS LIABILITY TAX BRACKETS TAX TAX LAWS MARKET TAX POLICY TAXABLE INCOME MARKETS PAYROLL TAXES INCOME TAX TAXATION OPTION FLAT TAXES MICRO ENTERPRISE LABOR MARKET SECURITY PROFIT TAX BASE TAX COMPLIANCE REVENUES ACCOUNTING STANDARDS INDIRECT TAXATION MARKET ECONOMIES TAX BASE TRANSITION ECONOMIES LIQUIDITY PROBLEMS MARGINAL TAX RATES Engelschalk, Michael Loeprick, Jan MSME Taxation in Transition Economies : Country Experience on the Costs and Benefits of Introducing Special Tax Regimes |
| geographic_facet |
Europe and Central Asia Central Asia Eastern Europe |
| relation |
Policy Research Working Paper;No. 7449 |
| description |
The 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. |
| format |
Working Paper |
| author |
Engelschalk, Michael Loeprick, Jan |
| author_facet |
Engelschalk, Michael Loeprick, Jan |
| author_sort |
Engelschalk, Michael |
| title |
MSME Taxation in Transition Economies : Country Experience on the Costs and Benefits of Introducing Special Tax Regimes |
| title_short |
MSME Taxation in Transition Economies : Country Experience on the Costs and Benefits of Introducing Special Tax Regimes |
| title_full |
MSME Taxation in Transition Economies : Country Experience on the Costs and Benefits of Introducing Special Tax Regimes |
| title_fullStr |
MSME Taxation in Transition Economies : Country Experience on the Costs and Benefits of Introducing Special Tax Regimes |
| title_full_unstemmed |
MSME Taxation in Transition Economies : Country Experience on the Costs and Benefits of Introducing Special Tax Regimes |
| title_sort |
msme taxation in transition economies : country experience on the costs and benefits of introducing special tax regimes |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/10/25167890/msme-taxation-transition-economies-country-experience-costs-benefits-introducing-special-tax-regimes http://hdl.handle.net/10986/22864 |
| _version_ |
1764452265461022720 |
| spelling |
okr-10986-228642021-06-14T10:18:43Z MSME Taxation in Transition Economies : Country Experience on the Costs and Benefits of Introducing Special Tax Regimes Engelschalk, Michael Loeprick, Jan NOTARIES TRANSITION ECONOMY LIMITED‐LIABILITY TAX COLLECTION PRODUCT TAXES TAX TREATMENT INDIRECT TAXATION REGRESSIVE TAX PENSION BUSINESS TAX CORPORATE TAX TAX OFFICES TAX COMPLIANCE COSTS TAXABLE INCOME MICRO‐ENTERPRISE INVESTMENT ESTIMATED TAX TAX COLLECTIONS TAX BRACKETS LAND TAX TAX RATE TAX REFORMS TAX RETURNS RETURNS TAX POLICY PROFIT MARGIN TAX COMPLIANCE COSTS TAX WEDGE GUARANTEE INTERNATIONAL FINANCE SHARES TAX MINIMIZATION FLAT TAX VALUE ADDED TAX CASH FLOW EXCHANGE RATE TAX REFORM TAX COMPLIANCE TAX SYSTEMS PUBLIC FINANCE TAX LIABILITY TAX REFORMS TURNOVER TAX TAX ADMINISTRATION MONETARY FUND INVESTMENT ACTIVITIES LAND TAX TAX AVOIDANCE SALES TAX DIRECT TAXATION TAX EVASION PAYMENT OBLIGATIONS INSURANCE LIMITED LIABILITY PROPERTY TAX RULE OF LAW BUSINESS TAX GOODS LIQUIDITY ACCOUNTING GOOD TAX SYSTEMS TAX RATES TAX RETURN MARGINAL TAX RATES TAX ADMINISTRATION FLAT TAX TAX LIABILITIES BENEFICIARIES LOCAL GOVERNMENTS TAX OFFICES TAX REFORM CHECK TAX MINIMIZATION BUDGETS VALUE OF ASSETS TREASURY TAX CODE EXCHANGE PROGRESSIVE TAX TAX SIMPLIFICATION TAXPAYERS DEDUCTIONS TAX SIMPLIFICATION INTEREST MICRO‐ ENTERPRISES SMALL BUSINESS TURNOVER ESTIMATED TAX TAX SYSTEM TURNOVER TAX TAX RETURNS BUSINESS TAXES PERSONAL INCOME VALUE‐ADDED TAX DEVELOPING COUNTRIES TAX REVENUES VALUE‐ADDED TAX REGULATORY FRAMEWORK FLAT RATE INCOME TAX TRANSITION COUNTRIES FINANCE TAX LIABILITIES TAX REVENUE TAXES PRODUCT TAXES TAX LAW INCOME TAX INFLATION RATES INTERNATIONAL BANK TAX RATES INSTRUMENTS TAX REGIME PERSONAL INCOME TAX LIABILITIES PROPERTY SMALL BUSINESSES TAX REVENUES TURNOVER TAXES PROFITS BALANCE SHEET TURNOVER TAXES TAX COLLECTION TAX LAW TRANSACTIONS INTELLECTUAL PROPERTY ADDED TAX TRANSPARENCY LOCAL BUSINESS TRADING PENSION FUND TAX DEDUCTIBLE TAX SYSTEM SINGLE TAX CAPACITY CONSTRAINTS INFLATION TURNOVER TAX VALUE ADDED TAX ENTRY BARRIERS LOCAL MARKET TAX LIABILITY SHARE TAX REGULATION PERSONAL INCOME TAX SHAREHOLDERS TAX WEDGE PROPERTY TAX PENSIONS COMPLIANCE COSTS INCOME TAXES PROFIT MARGINS RETURN TRANSACTION CORPORATE TAX LOCAL GOVERNMENT BUSINESS TAXES BANK POLICY SINGLE TAX REVENUE TAX OBLIGATIONS ASSET VALUE COMPLIANCE COST COMMERCIAL LAWS TAX RATE CORPORATE INCOME TAX TAX LAWS TAX REGIMES TAX REVENUE TAX AUDITS LIABILITY TAX BRACKETS TAX TAX LAWS MARKET TAX POLICY TAXABLE INCOME MARKETS PAYROLL TAXES INCOME TAX TAXATION OPTION FLAT TAXES MICRO ENTERPRISE LABOR MARKET SECURITY PROFIT TAX BASE TAX COMPLIANCE REVENUES ACCOUNTING STANDARDS INDIRECT TAXATION MARKET ECONOMIES TAX BASE TRANSITION ECONOMIES LIQUIDITY PROBLEMS MARGINAL TAX RATES The 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. 2015-11-05T16:29:44Z 2015-11-05T16:29:44Z 2015-10 Working Paper http://documents.worldbank.org/curated/en/2015/10/25167890/msme-taxation-transition-economies-country-experience-costs-benefits-introducing-special-tax-regimes http://hdl.handle.net/10986/22864 English en_US Policy Research Working Paper;No. 7449 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Central Asia Eastern Europe |