How to Tax Small Businesses in the Informal Economy: A Comparative Analysis of Presumptive Income Tax Designs

Journal
Memon, N.
International
Bulletin for International Taxation 2010 (Volume 64), No. 5
PriceUSD 45

This article examines the use of presumptive income taxation (PIT) for small businesses in the informal sector and compares common PIT regimes in addressing the causes of informality. The article’s findings suggest that PITs in general, and asset-based PITs in particular, should be used to tax the informal sector.