Mathematical modeling of tax regimes for small businesses and its practical applications

Abstract

This paper is the first to present mathematical models of tax regimes with regard to a company's organizational form and compatibility conditions of business characteristics with the tax regime. It explains the weak points of the tax burden indicator based on the sales proceeds and proposes more relevant indicators. The models can be used in research and practical business operations. At the macroeconomic level, the models can serve as a government policy tool of institutional and taxation design, development of alternative tax regime, and their comparative analysis.