Articles on double taxation of smes pdf

Department of accounting, kogi state university, anyigba, nigeria. Causes and effects of the international double taxation. This is generally accomplished through the agreement of each country to limit, in specified situations set out in double tax treaties, its right to tax income earned from its territory by residents of another country. Taxation of smes key issues and policy considerations. The study analyzes the effect of tax incentive on the growth of small and mediumsized enterprises smes in rwanda taking smes in nyarugenge as a case study.

Taxation can have important effects on many parts of the economy, including impacts on firm creation and on the development of small and mediumsized enterprises smes. It presents a typology of different taxation regimes in the digital sector and examines trends in taxation, fiscal policy and the potentially distortive effects of taxation including double taxation, taxation asymmetries and the impact of location. Taxation has both favourable and unfavourable effects on the distribution of income and wealth. Relief for double taxation corporations pay 30% on income. Difficulties like uncertainty and double taxation make parties of ecommerce reluctant and affect development of ecommerce negatively. The target population under study was the 965 licensed smes by limuru. Companies need clear guidelines to avoid double taxation, optimise their tax position and reduce business complexity. Gordon keith the impact of the federal tax system on small business has been a matter of increasing interest and concern to many persons durinj the last few years. The study sought to establish the effect of taxpayer education on voluntary tax compliance, among small and microenterprises smes in mwanza city tanzania. Pdf taxation of smes in oecd and g20 countries researchgate. Factors affecting the performance of small and micro. In both single level taxation and double level taxation, the most important actor is tax rate for smes.

This study is on the effect of multiple taxation on the performance of small and medium scale enterprises. Factors that effect taxation of small and medium sized enterprises smes. First, formal and informal smes constitute 8090 percent of the workforce and over 50 percent of gdp on average in. Taxation undergraduate project topics, research works and materials, largest undergraduate projects repository, research works and materials. Professor of accounting, department of accounting, kogi state university, anyigba, nigeria. Chapter 7 outlines the prerequisites of effective tax reform. However, a full imputation system applies to the taxation of dividends, whereby the tax paid by the company is imputed as a credit to the shareholder receiving the dividend. Solutions of the conventions, model for avoiding the international double taxation, finante provocarile viitorului finance challenges of the future, university of craiova, faculty of economics and business. The impact of taxation on the digital economy global. While many economists would agree with the proposition that high taxes are bad for economic growth, we show that this proposition is not necessarily obvious, either in theory or in the data. If you manufacture a product, you are liable to pay excise duty obviously, if you are not. Relief from double taxation double tax treaties treaty tax rates. The study recommends that there be a friendly tax policy for all start up businesses preferably a tax holiday, or an introduction of a growth limit which can be said to be a level stable enough to sustain tax payment.

The taxation of smes faces several major policy challenges. Multiple taxations, smes performance, smes mortality. Developing an environment conducive to sme growth whilst ensuring tax compliance is a challenge all countries face. A scottish approach to taxation some observations grahame steven lecturer in accounting edinburgh napier university 1. This study adopts a resourcebased view to model how location specificfactors among small and mediumsized enterprises smes in coastal environments in developing economies enable them to sustain clusters and contribute to economic growth. It can occur when income is taxed at both the corporate level and personal level. A steeply progressive taxation system tends to reduce income inequality since the burden of. The issues such as tax loss and tax evasion are crucial in terms of countries. We find that sme tax incentives are a commonly used measure among.

Impact of taxation on small and medium scale businesses in nigeria, banking and finance project materials,get the complete project. Pdf small and medium sized enterprises smes are important for their. According to article 85 of the commercial code each member of the. Call for applications for the selection of members of the expert group platform for tax good governance, aggressive tax planning and double taxation 1. Taxation of smes fiscal policy is one of the main components of macroeconomic policy and its roles have been considered in a double context form. The use of sme tax incentives in the european union zew. The aforementioned causes the growth of the shadow economy in. Qualitative and quantitative research approach was adopted. Contents page antiavoidance schemes 26 income splitting transfer pricing thin capitalisation withholding taxes 27 income exempt 28 administrative procedures 29 furnishing returns on income. Questions submitted to the public and to interested parties. Tax treaty a formal agreement between countries on tax treatment e.

Oecd science, technology and industry working papers. They reason that the substitution effect means that an increase in the tax rate makes it more profitable to underreport income at the margin i. A scottish approach to taxation scottish parliament. According to expert evaluations, between 50 and 80 % of ukraines economy is in the extra legal sector. Home ibfd products journal articles european taxation all articles. Over the years, small and medium scale enterprises have been an avenue of job creation. Furthermore, the processes of production in smes setting are labour intensive and manual. Pdf this paper discusses the implications of tax policy for the growth of entrepreneurship.

Pdf taxation, smes and entrepreneurship researchgate. From kluwer law international eucotax series on european. For these reasons, we believe that consideration of evasion, avoidance, and administration is essential to the positive and normative analysis of. Chapters 8 and 9 discuss sme tax noncompliance and ways to reduce the compliance burden. This can result in the double taxation of us citizens abroad since their host or foreign country also tax them. For instance, double taxation of distributed corporate profits can discourage. Chapter 10 discusses the issue of favourable tax treatment of smes and chapter 11 considers the negative impacts of sme taxes. The determinants of individual income tax compliance. Background by commission decision 1c20198864, the commission has set up a group of experts. Taxation of small and medium enterprises by a thesis. Norway also is a member of the world trade organization and the oecd.

In this study, the role of taxation problems on the development of. The role of taxation problems on the development of e. Effect of multiple taxation on the performance of small. It concludes by presenting lessons learned, best practices and recommendations for fiscal policy. Why it is essential for smes to go for book keeping bookkeeping may seem a burden at the growing phase of business, but it is essential in order to manage the daily functions of a business which keeps the business running successfully. Whether taxes reduce or increase income inequality depends on the nature of taxes. According to bird 2014, presumptive tax arises when self assessments cannot be relied upon and administrative assessments are imposed instead. Announcement on the agreement between the government of. November 1, 2011 this book discusses the effect of taxes on the growth of small and medium enterprises smes in. Norways economy is, to a large extent, based on international trade. Establishing the factors affecting the growth of small and mediumsized enterprises in algeria. One of the major objectives of tax treaties has been the avoidance of international double taxation.

Many developing countries are now refocusing on taxation to reduce overdependency on aid or one source of revenue for development. Allingham and sandmo liken these two terms to a positive income effect and a negative substitution effect. A new trustbased relationship between businesses and the tax authorities 5 an assessment of tax compliance by a trusted third party will provide businesses with upstream certainty concerning their returns by checking a number of points against a predrafted. Islamic finance articles financemaltas latest updates.

The impact of taxation on small business duke university. We have, based on various sources including international tax literature, articles and lectures, identified a number of issues where double nontaxation could occur. Fixing the sme tax issue is critical to fixing the business climate in general. The only exemptions are for the sale and lease of residential properties, the importation and local supply of investment precious metals and the provision of most financial services. The study presented in this paper analyzes the factors influencing the growth rate of small and mediumsized enterprises smes in algeria and explores the extent to which their success or failure depends on the wider. Rich in natural resources, including petroleum and natural gas, the country exports raw. In botswana for example, in an effort to widen the tax base, the income tax amendment act of 2011was passed benza, 20. An essay on the effects of taxation on the corporate. The act makes it compulsory for every person with taxable income in excess of p36. Locations of small and medium enterprises smes play a crucial role in determining their survival. Employment, innovation, tax influence, managerial skill, growth potential. The study employed a descriptive research design to achieve the objectives. Double taxation is a tax principle referring to income taxes paid twice on the same source of income.

Barriers to the development of small and medium business in ukraine 1998 7. Chapter 6 discusses the problem facing sme taxation. Over the years, small and medium scale enterprises have been an avenue of job creation and the empowerment of nigerias citizen, providing about 50% of all jobs in nigeria and also for local capital formation. Another challenge of taxation is those who try not to pay tax through evading or avoidance. Download impact of gst on startups smes file in pdf format. Engaging and involving sme taxpayers and stakeholders. Did you know that double taxation for americans abroad is when you have to pay taxes twice on the same bucket of income. For instance, double taxation of distributed corporate profits can discourage incorporation of small firms while it can also favour debt over equity financing, the latter most required by smes. In order for smes sectors to grow, the level of taxation set must be friendly and not stifle the running of the business. Specifically, the study establishes the level of taxpayer education among smes, the level of voluntary tax compliance among the smes and the effect of taxpayer education on the level of.

The population includes 49000 smes from agricultural, industrial, services and tourism sectors operating in nyarugenge district. Establishing the factors affecting the growth of small and. Download undergraduate projects topics and materials accounting, economics, education. On 03 september 2019, the general department of taxation of the ministry of economy and finance issued an announcement on the agreement between the government of the kingdom of cambodia and the government of malaysia for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidancedta. Factors that effect taxation of small and medium sized. Effects of multiple taxation on the performance of small. A study of small and medium plastic manufacturing enterprises in nairobi province, kenya janesther gathigia author book description publication date. Holtzeakin 1995 argues as to whether there is an economic case for the preferential tax treatment of smes. Findings revealed that multiple taxation has negative effect on smes survival and the relationship between smes size and its ability to pay taxes is significant. This study is on the effects of multiple taxation on the performance of small and medium scale enterprises smes. Malta offers a highly efficient fiscal regime which avoids double taxation on taxed company profits distributed as dividends. We therefore recommends that government should come up with a uniform tax policies that will favour the development of smes in nigeria and government should put into. Over the years, small and medium scale enterprises smes have been an avenue of job creation and the empowerment of nigerian citizens, providing about 50% of all jobs in nigeria and also for local capital formation. An essay on the effects of taxation on the corporate financial policy george contos, internal revenue service the taxation of corporate profits in the united states has been one of the most widely discussed issues in the area of public finance.