The design of presumptive tax regimes in selected countries
Presumptive tax regimes (also known as simplified tax regimes) intend to reduce tax
compliance costs for micro and small businesses (and enforcement costs for the tax
administration) while levying a lower tax burden as compared to the standard tax system.
This working paper compiles detailed information on the presumptive tax regimes existing
in a selection of OECD and non-OECD countries, identifies common practices adopted
across the countries examined and provides multiple examples of best practices observed
in these regimes. These examples can serve as guidance to policy makers and tax administrations
to strengthen particular features of the presumptive tax regimes implemented in their
jurisdictions. Lastly, the paper highlights the main challenges generally observed
in the presumptive tax regimes under study, which might undermine the role of these
regimes in incentivising business formalisation and strengthening tax compliance over
time.
Available from March 19, 2024
In series:OECD Taxation Working Papersview more titles