Taxation of SMEs
Key Issues and Policy Considerations
This report covers a broad range of SME taxation issues, including possible effects
of taxation on the creation and growth of SMEs, and considerations arising from a
relatively high compliance burden. Differing income tax and social security contribution
burdens of unincorporated and incorporated SMEs are considered in detail, with analysis
of average statutory tax rates carried out to investigate possible tax distortions
to business creation and business structure decisions of a single worker/owner of
an SME. Various arguments are presented for and against the targeting of tax incentives
at SMEs. Country examples of SME tax incentives and compliance cost reduction measures
are provided in the report.
Published on October 12, 2009
In series:OECD Tax Policy Studiesview more titles