Overshadowing the Turmoil Trends: The Swinging Pendulum of SME's Tax Policies

Beca, Maruşa; Cozmei, Cătălina

doi:10.1016/j.sbspro.2013.12.530

Cited by 2 publications

(2 citation statements)

References 2 publications

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“…The struggles to balance to simplicity, equity and e ciency are also evident in the implication of the unstable system, a result from frequent shifting and changing in the presumptive tax system. For example, in Romania, the lump-sum tax has only been applied for 18 months, before it was replaced by a turnover tax (Beca & Serban, 2012;Beca & Cozmei, 2014). In Bulgaria, the processes of extending rates until around 900 rates have only happened for seven years (Pashev, 2006).…”

Section: Balancing Simplicity Equity and E Ciencymentioning

confidence: 99%

“…Beca & Cozmei, 2014), Brazil(Rocha, 2018;Fajnzylber et al, 2011;Monteiro & Assunção, 2012), Chile(Agostini et al, 2018), Congo (Kamba-Kibatshi, 2016) and Georgia(Bruhn & Loeprick, 2016). Even further, evidence from the implementation in Brazil displays the positive effect on the MSMEs' business growth, which is shown from the increase in pro ts, xed assets and employees(Fajnzylber et al, 2011;Conceic ão et al, 2018) and the lower probabilities of extinction or mortality of business (Conceic ão et al, 2018).…”

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confidence: 99%

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Presumptive Tax Regime to Shine Light on the Shadow Economy: A Scoping Study of Policy Design, Action, and Implications

Taufiq

2023

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The study examines the utilisation of presumptive taxation, a popular policy to address the shadow economy. Theoretically, presumptive taxation benefits both small businesses and tax authorities because it reduces compliance and administration costs. Using a scoping review from journals published in 1975-2022, the study found 27 journals of global experiences of the presumptive tax regime and its implications. These journals are then synthesised and analysed to study the policy design and implementation of the presumptive tax in the observed countries. Three main insights are inferred from the scoping study. Firstly, while presumptive tax regime may or may not induce formalisation; it potentially entails unintended consequences as a result of introducing a separate tax system for small businesses. Secondly, designing the presumptive tax regime can be a difficult task to balance simplicity, equity and efficiency, and also the presumptive tax regime likely becomes unstable and costly. Thirdly, the presumptive tax regime might even require more resources in its implementation. Therefore, the study suggests that those findings could inform policymakers about the costs and benefits of the presumptive tax regime in weighing policy options to address the problem of the shadow economy.

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Section: Balancing Simplicity Equity and E Ciencymentioning

confidence: 99%

mentioning

confidence: 99%

Presumptive Tax Regime to Shine Light on the Shadow Economy: A Scoping Study of Policy Design, Action, and Implications

Taufiq

2023

Preprint

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Assessment of the effectiveness of anti-COVID tax support for innovation activities of small and medium-sized enterprises in OECD countries

Shapovalova

Ivanov²,

Tyschenko

et al. 2021

JTR

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The global economy has rebounded from the lows of 2020, but its recovery will depend on innovations. Therefore, it is important to identify the most effective tax support instruments for the innovation activities of small and medium-sized enterprises (SMEs) that are used in the framework of anti-crisis economic policies in the OECD countries. It is suggested that tax incentives are the most effective tax instrument of all; the effectiveness of the profit tax benefit depends on the SME’s profitability; as to the social insurance and pension contribution, there is an allowable minimum of the rate, determined by the level of wages, that will stimulate innovation. To assess the effectiveness of tax support tools, the study used the methods of linear multivariate regression and simulation in Simulink. The source of information for regression analysis was the data published by the World Bank and the Organization for Economic Cooperation and Development (OECD). It was concluded that the most effective measures of tax support are tax incentives, as well as deferred payment of social insurance and pension contributions. The 10% profit tax was shown to be optimal to stimulate innovation provided the company keeps the saved profit for development. For innovative SMEs, the minimum allowable contribution rate for social insurance and pension provision, which stimulates their innovative activities, is 12%. The results of modeling confirmed that the proposed threshold indicators for supporting SMEs’ innovation activity can be an effective tool for overcoming the consequences of the global crisis caused by the COVID-19 pandemic.

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Overshadowing the Turmoil Trends: The Swinging Pendulum of SME's Tax Policies

Cited by 2 publications

References 2 publications

Presumptive Tax Regime to Shine Light on the Shadow Economy: A Scoping Study of Policy Design, Action, and Implications

Presumptive Tax Regime to Shine Light on the Shadow Economy: A Scoping Study of Policy Design, Action, and Implications

Assessment of the effectiveness of anti-COVID tax support for innovation activities of small and medium-sized enterprises in OECD countries

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