Firms behavior around tax thresholds in Albania during the 2015 anti-informality campaign - Bunching features, persistence and growth implications

Rrumbullaku, Oltion (2021): Firms behavior around tax thresholds in Albania during the 2015 anti-informality campaign - Bunching features, persistence and growth implications. Published in: European Journal of Economics, Law and Social Sciences , Vol. Vol. 5, No. No. 2 (June 2021): pp. 63-72.

Abstract

This article studies the effects of tax thresholds on the behavior of small firms using the tax administration data of the universe of the Albanian firms during and after the anti-informality campaign of the year 2015. The main comparisons are between the year 2014, 2015 and 2016. The features of the firms that did bunch in 2015 were evaluated through a Probit regression. The bunching did persist through the three years in discussion, so it is not a temporary behavior. At the end, the tax threshold does influence in the growth of the firms, especially those firms that have a turnover just under the first threshold.

• Item Type: MPRA Paper
• Language: English
• Keywords: VAT threshold, Value-added tax, bunching, small firms
• Subjects: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H21 - Efficiency ; Optimal Taxation; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H25 - Business Taxes and Subsidies; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H26 - Tax Evasion and Avoidance; H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H32 - Firm

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