Experience of EU and world countries in applying simplified tax systems for micro and small businesses

• Published in: Problems of Theory and Methodology of Accounting, Control and Analysis no. 3(59); pp. 50 - 56
• Main Authors: Travin, V.V., Gudziuk, E.O.
• Format: Journal Article
• Language: English
• Published: 24.12.2024
• ISSN: 1994-1749
• DOI: 10.26642/pbo-2024-3(59)-50-56

The article examines the experience of applying simplified tax systems in the countries of the European Union and the world for micro and small businesses. The emphasis is on the peculiarities of the functioning of such systems in different economic conditions and regulatory frameworks. The key aspects of simplified taxation regimes are analyzed, in particular tax rates, accounting requirements, marginal incomes for being in these systems, as well as restrictions on types of activity. Special attention is paid to stimulating entrepreneurial activity, reducing the administrative burden and increasing the level of de-shadowing of the economy. Examples of such systems in Bulgaria, Italy, Romania, Georgia and Montenegro are considered, comparing their mechanisms and impact on the development of small businesses. In particular, the issues of fixed taxes, VAT exemption, restrictions on hiring employees and simplification of accounting reporting are analyzed. It is concluded that the introduction of effective simplified tax systems contributes to the creation of favorable conditions for the development of small business, which is one of the key factors of economic growth. The article also considers recommendations for improving the simplified tax system in Ukraine, taking into account the best practices of European countries. The author emphasizes the need to adapt world experience to national characteristics, which will ensure effective support for small business, reduce the tax burden and increase the level of transparency of entrepreneurial activity.