The Costs of Tax Compliance in Armenia
The report represents the main results of IFC's 2010 survey of private sector companies and individual entrepreneurs in Armenia. Its findings evaluate the cost of compliance with tax legislation and supervisory bodies to fulfill tax liabilitie...
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| Language: | English en_US |
| Published: |
International Finance Corporation, Yerevan
2017
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| Online Access: | http://documents.worldbank.org/curated/en/198001493181859600/Report-the-costs-of-tax-compliance-in-Armenia http://hdl.handle.net/10986/26559 |
| Summary: | The report represents the main results
of IFC's 2010 survey of private sector companies and
individual entrepreneurs in Armenia. Its findings evaluate
the cost of compliance with tax legislation and supervisory
bodies to fulfill tax liabilities by legal entities
(companies) and individual entrepreneurs in 2009. The survey
report examines the cost of tax compliance in terms of time
and money. The number of man hours spent working on tax
compliance can also be expressed in terms of money, as the
cost to businesses includes staff wages as well as any lost
productivity. Thus, from the business' perspective, the
time required to comply with tax regulation is an additional
cost associated with paying taxes. The study shows that tax
compliance in Armenia is a burden on private businesses,
especially for small companies and individual entrepreneurs,
which spend an additional 10 percent of income on tax
administration. Despite the fact that most survey
respondents reported that the quantity of taxes is the main
concern for Armenian businesses (39), other characteristics
of the tax system - such as tax inspections, corruption
associated with paying taxes, tax accounting procedures, tax
reports and frequency of filing - are also worrisome for a
lot of taxpayers. Therefore, the survey focused on
assessment costs of tax compliance and particularly on those
that are the costliest and problematic for Armenian
business, such as maintaining book of registration of
revenues, tax inspections and book of shipment of inventory holdings. |
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