A Proposed Accounting Framework for Tax Accounting for Sustainable Development Activities in SMEs

Abstract

The chapter deals with determining the nature of sustainable development activities and their role in improving the performance of SMEs in the proposed accounting framework that works to clarify how to achieve tax accounting for the services and products provided by these projects. Without being exposed to the occurrence of the so-called tax pressure on their financial performance, which may hinder their development in the near future and increase their economic and financial value compared to other similar institutions operating in SMEs, and according to the latest statistic in 2021 received from the Central Agency for Mobilization and Statistics, SMEs in Egypt have about two million establishments in the private sector, in addition to what was reported by the Central Agency for Statistics. The need for an accounting framework comes with clear features of tax accounting for SMEs, as it will positively affect the performance of these projects by encouraging their continuity. The state should reduce unemployment and increase the informal economy.

The Impact of Tax Legislative Disruptions on the Increase of Informal Economic Activities in Egypt

“…The third result section 3.3, namely, Towards Formalizing Informal Economies: Key Considerations for Tax Integration in Egypt emphasizes the importance of integrating informal activities into the formal economy through taxes to enhance tax revenue collection and achieve tax fairness in Egypt (Mohamed & Osman, 2023). However, achieving this goal requires serious consideration of several factors (Tawakol, 2023).…”