Tax Policy and Small and Medium-size Enterprise
A new tax policy study by the OECD explores impediments to small and medium-size enterprises (SMEs) posed by the cost of tax compliance. The report, Taxation of SMEs: Key Issues and Policy Considerations, examines a range of tax issues affecting SMEs, including the possible influence of taxation on SME creation, business structure and growth.
The study covers differing income tax and social security contribution burdens on unincorporated and incorporated SMEs, and analyzes possible tax distortions to business decisions.
The report also presents various arguments in favor of and against tax incentives for SMEs, as well as examples of incentives structures in various countries. The study found that certain basic tax provisions with uniform application to firms of all sizes may result in a relatively high tax burden on SMEs, possibly creating impediments to SME creation and growth.
For more information about this report and to obtain a copy, click here.