Tax compliance and SMEs

This chapter considers SMEs and tax compliance. It first considers tax simplification measures reported by OECD and G20 countries in relation to income, value-added, and other taxes. It includes a description of replacement taxes implemented in these countries and a summary of presumptive taxes that apply. It then considers process simplifications which can reduce the compliance burden for SME taxpayers and enhance compliance. The chapter concludes by summarising the impact of simplification measures on the decisions of SME owners, outlining principles to guide the implementation of these measures. Finally, it provides a summary table of simplification measures reported by the 38 countries.