TAX METHODS REGULATING DEVELOPMENT OF SMALL BUSINESS IN DEVELOPED WORLD COUNTRIES

Abstract

Urgency of the research. The system of state support for small business in different countries has its own peculiarities and is aimed at overcoming barriers preventing effective development of small business in particular economic conditions. Target setting. For a more detailed analysis of the impact of various factors on development of small enterprises it is necessary to study the application of tax methods of regulation, which are different in countries with AngloAmerican and Continental accounting models. Analysis of scientific works of foreign and native authors regarding the influence of tax methods of regulation on business development in interconnection with the accounting models, and their impact on development of small business have not been investigated yet, thus necessitating further research. Uninvestigated parts of general matters defining. For analysis of the influence of various factors on small business development it is necessary to investigate tax methods of its regulation, which are different in the countries with AngloAmerican and Continental accounting models. Purpose of the article is to study the application of tax methods of regulation and support for small business in western countries, their interconnection with accounting models (Anglo-American and Continental accounting models) and their impact on development of small business in the country. Main research matter. Peculiarities of state regulation of support for small business in the countries with Continental accounting model facilitate access of small enterprises to the capital and new technologies (allowances, subsidies, soft credits), though in most countries government assistance is based on the principle of self-help (independence of enterprises), creation of equal competitive conditions and temporary nature of support for development of certain sectors or fields of activity. In the countries with Anglo-American accounting model basic part of state support involves financial component, such as provision of low-interest loans and assistance in obtaining government orders. In addition, many countries also establish methods of accelerated depreciation for small business on certain types of equipment, reduced income tax rates, tax credits on favourable terms and others. Conclusion. Thus, countries with Anglo-American system of accounting have the best rating of the simplest tax systems, positively affecting development of small business in the country. The more consistent and understandable tax system is, the larger number of small enterprises can be founded, resulting in steady economic development of the state.