The Impact of Tax Policy, System, and Administration on Small and Medium-Sized Enterprises in the Republic of Serbia: A Statistical Analysis of the Situation

ABSTRACT

The aim of this paper is to research the impact of the tax system on SMEs inSerbia. A quantitative survey research was conducted, containing research questions referring to tax environment impact, its factors and incentives on growth. The sampling was purposive, and it consisted of responsible people in SMEs ($n=117$). The main attitude of our respondents and the conclusion of the research is that the level of tax bureaucracy, as well as unprofessional tax administration created an unstimulating tax environment for SMEs. Not only did this environment make no impact on gray economy and corruption reduction but also supported them.

KEYWORDS:

• gray economy
• Serbia
• small and medium-sized enterprises
• tax administration
• tax policy
• tax system

JEL Classification:

• D73
• E62
• H25

Disclosure Statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This research received no external funding.

Notes on contributors

Slobodan Adžić

Dr. Slobodan Adžić is a full professor at the University Union – Nikola Tesla, Faculty of Management FAM in Serbia. He formerly worked as an assistant professor at the Arab Open University in Kuwait and as a lecturer at the University of Hafr Al Batin in Saudi Arabia. He holds a BSc (Hons) in economics from the University of Belgrade in Serbia, an MBA from Lancaster University in the United Kingdom, and a Ph.D. in leadership from Megatrend University in Serbia.

Olgica Nestorović

Dr. Olgica Nestorović is an assistant professor at the Faculty of Economics and Finance of the University Union – Nikola Tesla in Belgrade. She graduated from the Faculty of Economics, University of Belgrade (1996). She received her master's degree at the same faculty (2010), and her doctorate (2015) at the Faculty of Economics of the University of Kragujevac.

Nebojša Zakić

Dr. Nebojša Zakić is a full professor and the rector of Union University - Nikola Tesla in Belgrade. He graduated from the Faculty of Civil Engineering at the University of Belgrade (1988). He received his master's degree (2001) and his doctorate (2007) at the Faculty of Organizational Sciences, University of Belgrade.

Dušan Aničić

Dr. Dušan Aničić is an associate professor at the Faculty of Economics and Finance, University Union – Nikola Tesla in Belgrade, where he is engaged in undergraduate and master’s studies. He obtained his bachelor’s and master’s diplomas at the Faculty of Economics, University of Belgrade, and defended his doctoral dissertation at the Faculty of Construction Management, University Union – Nikola Tesla.

Aleksandra Penjišević

Dr. Aleksandra Penjišević is an assistant professor at the University Union – Nikola Tesla, Faculty of Management FAM, Serbia. She graduated from the Faculty of Mathematics of the University of Belgrade, Republic of Serbia (2008), she received her master's degree from the Faculty of Economics of the University of Tourism and Management, Skopje, Republic of North Macedonia (2013), and her doctorate from A.D. Tsenov Academy of Economics, Svishtov, Faculty of Management and Marketing, Republic of Bulgaria (2020).