How do small firms respond to tax schedule discontinuities?: Evidence from South African tax registers

Wian Boonzaaier, Jarkko Harju, Tuomas Matikka and Jukka Pirttilä

No wp-2016-36, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: In this paper we study the effects of various tax schedule discontinuities on the behavior of small firms using high-quality and population-wide tax register data from South Africa. We use the bunching method to analyse how these discontinuities affect the firm-size distribution. We first examine how the value-added tax threshold affects the sales distribution of firms. We also study the effects of two separate corporate income tax rate kinks. We find sizable bunching at each of these thresholds.

Keywords: Corporate governance; Small business; Taxation; Tax bunching (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

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Related works:
Journal Article: How do small firms respond to tax schedule discontinuities? Evidence from South African tax registers (2019)
Working Paper: How do Small Firms Respond to Tax Schedule Discontinuities? Evidence from South African Tax Registers (2018)
Working Paper: How do small firms respond to tax schedule discontinuities? Evidence from South African tax registers (2017)
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