Presumptive tax regimes, also known as simplified tax regimes, simplify the tax compliance
process for micro and small businesses. By reducing tax compliance costs and levying
lower tax rates compared to the standard tax system, these regimes aim at encouraging
business formalisation and compliance. They are particularly useful in situations
where actual taxable income is difficult to quantify as a taxpayer’s tax base is determined
using alternative indicators. Although these regimes exist in many tax systems, they
vary greatly in their design. This OECD working paper provides an analytical framework
for characterising and comparing these regimes. It also highlights key design aspects
that deserve further consideration and lists a series of best practices on the design
and administration of these regimes.
Available from February 14, 2023Also available in: French