Tax methods regulating development of small business in developed world countries

Abstract

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.