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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 (). 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.

eastern european economics

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