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1
Абакарова, Р. Ш. "Professional income tax." Voprosy regionalnoj ekonomiki, no. 3(44) (September 15, 2020): 123–29. http://dx.doi.org/10.21499/2078-4023-2020-44-3-123-129.
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В статье раскрываются механизмы налогообложения доходов самозанятых граждан.. Рассмотрен налог на профессиональный доход и влияние данного налога на граждан. Проанализирована ситуация в некоторых зарубежных странах, в которых есть похожий налог, а также сходства и отличия налога на профессиональный доход граждан в Российской Федерации от зарубежных стран. В статье затрагиваются проблемные вопросы самозанятости граждан, проводится анализ возможного перевода и найма сотрудников на новую налоговую систему. Приведены возможные варианты найма сотрудников в лице самозанятых граждан. Введение нового налога на профессиональный доход является попыткой государства создать условия для легального получения доходов самозанятыми, в том числе данная мера должна содействовать частичному решению проблемы теневого сектора экономики. Изучение налога имеет также большое значение для общества в плане распространения информации о новом налоговом режиме, его преимуществах и недостатках. The article reveals the mechanisms for taxing the income of self-employed citizens. The tax on professional income and the impact of this tax on citizens are considered. The situation is analyzed in some foreign countries in which there is a similar tax, as well as the similarities and differences of the tax on professional income of citizens in the Russian Federation from foreign countries. The article touches upon the problematic issues of self-employment of citizens, analyzes the possible transfer and hiring of employees to the new tax system. Possible options for hiring employees in the person of self-employed citizens are given. New tax on professional income is the state’s attempt to create conditions for legal income generation of self-employed, including partial solution to the problem of underground sector of economy. Also study of tax has a great importance to the society in implication information about new tax treatment, it’s advantages and disadvantages.
2
TULAI, Oksana, and Andrii YAMELYNETS. "PERSONAL INCOME TAX: EXPERIENCE OF FOREIGN COUNTRIES." WORLD OF FINANCE, no. 1(58) (2019): 76–86. http://dx.doi.org/10.35774/sf2019.01.076.
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Introduction. In the current conditions of the integration movement of Ukraine to the European Union and the reform of the institutions of state power, the issue of studying foreign experience of the system of taxation of individuals' incomes is actualized. The application of effective practices of other states will contribute to increasing the fiscal role of the personal income tax in Ukraine, reducing social inequality and increasing the welfare of the population. Purpose. The purpose of the article is to find out the features, trends and problems of the functioning of the personal income tax in foreign countries. Results. The article deals with the foreign experience of functioning of the system of personal income taxation. The role and role of PIT in the EU and OECD countries is shown. The proportional and progressive approach to taxation of this tax is considered, their key advantages and disadvantages are determined. An analogy has been made between the European states, the OECD member states and Ukraine. The objective necessity of establishing a non-taxable minimum or partial exemption of citizens' incomes from taxes in the context of support of low-income categories of the population and ensuring social justice is substantiated. Conclusions. It is concluded that in developed countries, the progressive system of taxation of the PIT along with the minimum non-taxable minimum is an effective tool for generating budget revenues and solving social inequalities in society. Instead, third-world states can not use this mechanism in a qualitative way due to significant tax compliance problems. They apply a proportional taxation system for PIT that minimizes tax evasion and international competitiveness.
3
Tetiana Yarotska and Svitlana Fedchuk. "FOREIGN INCOME – PROBLEMS OF DOUBLE TAXATION." International Journal of Innovative Technologies in Economy, no. 8(20) (November 30, 2018): 23–25. http://dx.doi.org/10.31435/rsglobal_ijite/30112018/6210.
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The article highlights implications of foreign income taxation of Ukrainian tax residents. Based on the effective Tax Conventions on Income and on Capital, individuals can claim a credit of tax paid abroad against their Ukrainian tax due. However, the claim must be supported by a specific document prescribed by Ukrainian legislation. In practice, the obtaining of the proper document from foreign tax authorities may be impossible for taxpayers, bringing the double taxation of personal income. Thus, the options of improvement of tax credit mechanism and unification of official confirmation of tax base and tax payment were proposed.
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Dmitro Dema and Iryna Shevchuk. "STATE AND PERSPECTIVES OF PERSONAL INCOME TAXATION." European Cooperation 2, no. 42 (April 30, 2019): 19–34. http://dx.doi.org/10.32070/ec.v2i42.38.
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The article deals with the directions of development and elements of the personal income taxation mechanism. The role of the tax in the regulation of incomes of the population is determined and the state of use of its regulatory capabilities in the modern system of taxation is assessed. The peculiarities of the tax burden assessment are determined and the inconsistencies of the proportional system of the social justice principle are emphasized. The necessity of strengthening the tax regulatory function using the tax burden transfer to the prosperous strata of the population by the progressive taxation tools is substantiated. The necessity of the preferential policy improvement is emphasized by introducing a non-taxable minimum of citizens' income and revision of existing privileges on personal income tax. The foreign experience and trends of individual income tax in foreign countries are considered and summarized. The dynamics of the individual income tax receipt to the consolidated budget of Ukraine is analyzed taking into account its fiscal sense. The factors of increasing fiscal efficiency are considered and the influence of changes in the interbudgetary distribution of the tax on local budget revenues is estimated. The directions of the personal income tax reformation on the basis of improvement of certain elements of the taxation mechanism are proposed.
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Mi, Lee, and Shivani Joshi. "Personal Tax Planning: Foreign Tax Credits for Taxpayers with Cross-Border Employment Income." Canadian Tax Journal/Revue fiscale canadienne 71, no. 1 (April 2023): 285–300. http://dx.doi.org/10.32721/ctj.2023.71.1.ptp.
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Foreign tax credits are an important mechanism to provide relief from double taxation of foreign-source income. With respect to cross-border employment income earned by Canadian taxpayers, there are multiple issues that may create significant complexity and potentially limit the availability of foreign tax credits. In this article, the authors provide an overview of the mechanics of claiming foreign tax credits under the Canadian Income Tax Act and the relevant provisions in certain bilateral income tax treaties. They also review some relevant technical interpretations issued by the Canada Revenue Agency and legislative jurisprudence in Canada with respect to cross-border employment income sourcing and the availability of foreign tax credits on such income.
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Ryndina, Alexandra O., Maria S. Zhverantseva, and Tatiana E. Totikova. "Development of Taxation of Income of Individuals in the Russian Federation Based on Foreign Experience." Izvestiya of Saratov University. New Series. Series Economics. Management. Law 20, no. 4 (2020): 412–21. http://dx.doi.org/10.18500/1994-2540-2020-20-4-412-421.
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Introduction. The issue of reforming the taxation of personal income has not left the agenda in recent decades. The importance of solving this issue is determined by the high economic and social significance of personal income tax and its impact on the labor market and consumption. Theoretical analysis. The article analyzes the statistics of the Federal Tax Service on income tax on physical incomes in the budget system of the country, identifies and substantiates the problems of income taxation in the Russian Federation. Discussion of results. A study of the characteristics of income taxation in the United States, Norway and Sweden revealed the common features and differences in the principles of constructing a system of income taxation in the studied countries and the Russian Federation. The analysis made it possible to substantiate measures to improve the system of income taxation of the Russian Federation based on foreign experience and evaluate the expected effect of some measures.
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Ramadhan, Hendy. "PAJAK PENGHASILAN TERHADAP TENAGA KERJA ASING SEBAGAI SUBYEK HUKUM PAJAK." Media Iuris 1, no. 2 (July 4, 2018): 266. http://dx.doi.org/10.20473/mi.v1i2.8830.
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Foreign workers who work in Indonesia, have rights and obligations that are governed by the laws and regulations applicable in Indonesia, including rules relating to taxation. The foreign workers residing in Indonesia may be subject to tax laws in Indonesia. For the implementatio of legal order in the field of taxation, there is a need to apply the law of income tax on foreign workers who work in Indonesia. This paper discusses the legal basis for the imposition of foreign workers income tax in Indonesia as well as the form of liability for violations of income tax regulation on foreign workers in Indonesia. Based on this paper, foreign worker is one of the subject of income tax in Indonesia and can be subject to domestic tax or foreign tax subject depending on how long they have worked in Indonesia. Whereas in the event of any fraud related to the income tax on foreign worker, in the case the tax deduction is done by the company where the foreign worker is working, then the sanction given to the party who withholds the income tax.
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Samokhvalova, Ksenia Vladimirovna. "Foreign experience in income taxation of companies." Налоги и налогообложение, no. 5 (May 2021): 51–68. http://dx.doi.org/10.7256/2454-065x.2021.5.36750.
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The subject of this research is the rules of corporate income taxation foreign countries existing in foreign countries, the experience of implementation of which is valuable for further development of the Russian legislation. The current state of tax systems is viewed from the perspective of implementation of the baisc tax functions: fiscal and regulatory. The importance of corporate profit taxation in formation of the income base of the budgets of the budgetary system of the Russian Federation justifies special attention to the existing mechanisms for distinguishing tax revenues between budgets of bot different levels and same level. In the context of state regulation of the economy, analysis is conducted on the tax incentive instruments and preferential tax conditions intended for stimulating innovative activity of the companies. The scientific novelty lies in summarizing the experience of foreign countries in corporate income taxation, determining the leading practices, and formulating recommendations for their implementation in Russia. The conducted research reveals the trends in reforming tax legislation of the developed countries aimed at stimulation of entrepreneurial activity. Sustained reduction in corporate income tax rates, shift away from progressive scale, and implementation of new tax incentives contribute to lowering of fiscal burden on businesses and create favorable conditions for the economic development. The author develops recommendations for the improvement of corporate profit taxation in the Russian Federation: 1) For increasing the validity of division of tax revenues between regional budgets, it is suggested to change the procedure for calculating the tax payable by separate banks units. In calculation of the share of taxable profit for each bank unit, it is recommended to take into account labor costs, amount of loans issued and deposits raised. 2) The comparative analysis of the Russian and foreign experience of tax incentives demonstrated the shortage of instruments intended for commercialization of innovations in the Russian Federation, which substantiates the need for implementation of preferential taxation of income from use of the objects of intellectual property.
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Aulia, Riska, Belicia Widhyana Yulia Putri, and Rasji Rasji. "Application of Income Tax on Foreign Workers in Indonesia." QISTINA: Jurnal Multidisiplin Indonesia 2, no. 2 (December 1, 2023): 1043–52. http://dx.doi.org/10.57235/qistina.v2i2.863.
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The presence of foreign workers working in Indonesia creates rights and obligations for the foreign workers themselves. These rights and obligations are regulated by the laws and regulations in force in Indonesia, including rules relating to taxation. Foreign workers who are in Indonesia can become tax law subjects in Indonesia, so that their rights and obligations in the field of taxation apply. In order for legal regulations in the field of taxation to be implemented properly, efforts are needed to apply income tax laws to foreign workers who work in Indonesia. This paper discusses the legal basis for the imposition of income tax for foreign workers in Indonesia and the forms of accountability for violators of income tax arrangements for foreign workers in Indonesia. Based on this writing, foreign workers are a subject of income tax in Indonesia and can be subject to domestic tax or foreign tax subject. The determination is based on how long they have been in Indonesia, because they get income for what they do in Indonesia. Meanwhile, if there is an abuse related to income tax against foreign workers, in this case the tax deduction is carried out by the company where the foreign worker works, then the person who gets the sanction for the occurrence of the fraud is the party who withheld the income tax.
10
Selyukov, Mikhail V. "Personal income tax: development prospects." Siberian Financial School, no. 4 (February 20, 2023): 39–44. http://dx.doi.org/10.34020/1993-4386-2022-4-39-44.
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The article is devoted to personal income tax. During the analysis of scientific publications, the practice of income taxation in foreign countries, the approaches to the establishment of differentiated tax rates depending on the income received are revealed. The author's vision on the application of tax incentives for individuals is presented, and measures to improve the taxation of personal income are proposed.
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Aleksandrova, Elena. "FOREIGN EXPERIENCE OF TAXATION OF CITIZENS INCOME AND POSSIBILITIES OF ITS APPLICATION IN RUSSIA." SOCIETY. INTEGRATION. EDUCATION. Proceedings of the International Scientific Conference 6 (May 20, 2020): 479. http://dx.doi.org/10.17770/sie2020vol6.5064.
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The goal of research is to develop recommendations for improving the mechanism of income taxation in Russia, taking into account the best foreign practices.The framework of studies was the monographic method and the method of comparative analysis of statistics and legislative documents of the financial authorities of Russia and leading foreign countries, as well as methods of modeling and generalization of the results.The necessity of strengthening the social function of income taxation is substantiated. A comparative analysis of modern taxation of personal income in Russia and abroad is carried out. As a result of the research, it was revealed that the main share of this tax is provided by taxing the incomes of the poorest segments of the population, which contradicts the principles of fair taxation.To improve the mechanism of taxation of incomes of Russian citizens, the experience of leading foreign countries in the application of a progressive scale, family taxation, the establishment of a tax-free minimum (allowance) and tax deductions was used. Particular attention is paid to introducing a tax-free minimum into the mechanism for applying standard deductions taking into account the cost of living.
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Guo, Yanfang, Zhiyuan Nian, and Diadama Ismaila. "THE IMPACT OF BALANCING DOMESTIC AND FOREIGN TAX SYSTEMS ON ALLEVIATING TAXPAYERS' INEQUALITY AND ANXIETY." International Journal of Neuropsychopharmacology 25, Supplement_1 (July 1, 2022): A24. http://dx.doi.org/10.1093/ijnp/pyac032.032.
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Abstract Background The economy of China has gotten impressive change in recent years, to which personal income got many times higher than before correspond. Global economy also had a great impact to China. There are more foreigner applied China’s Visa and work or live in China. How could their personal income income be levied, same or different with Chinese? Same or different with previous income tax policy? Personal income tax is the most concern of all natural taxpayers, which is directly related to the amount of personal net income, which impacted the living cost plan. Under the current situation that China strengthens the introduction of returnees who have gotten great achievement in certain business and research field and the tax administration of personnel outside the enterprise, there are now a large number of domestic and overseas taxpayers in group of the natural taxpayers. However, from 1998 to now, due to the personnel income huge gap between domestic and foreigner who were invited to work in China, there have been policy differences between domestic and foreign personnel in China's personal income tax payroll and salary foreign-related tax policies, which has resulted in the psychological inequity of taxpayers and caused the psychological inequity and social anxiety of domestic personnel. Subjects and Methods In this paper, the official tax data is selected, and the case of Appendix 4 in S.D.S.H. [2014] No. 65 document is taken as an example to use specific income data to generate different tax burden differences and impacts on the differences between domestic and foreign taxpayers under the same income, shows the unfair consequence according the present personal income tax policy. Results From these tax differences, it is found that there are still some problems in China's tax policy corresponding to personal income tax wages and salaries, such as tax unfairness caused by repeated deductions, additional deductions and tax exemption items for foreigners, which negatively affect the efficiency of talent policy, etc., and the psychological unfairness and social anxiety to domestic taxpayers are discussed. Conclusions Finally, the policy suggestions to improve the tax policy and link taxpayers' psychological injustice and social anxiety are put forward: According to the new talent policy which induced the high-level experts despite of their nationalities and the change of economic environment in which China’s GDP have been almost the advanced country group and individual income went up higher, China should make the fair tax policy, avoid repeated deductions, cancel additional deductions and tax exemption items for foreigners, and improve the corresponding tax system from the perspectives of improving tax fairness and efficiency, maintaining tax neutrality and simplifying the tax system. The range of data income levels selected in this paper is not comprehensive enough, and there is no specific research on ultra-high income groups.
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Peeters, Bart. "Taxation of Immovable Property Income in Belgium." Nieruchomości@ III, no. III (September 30, 2022): 121–39. http://dx.doi.org/10.5604/01.3001.0015.9852.
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For decades, the Belgian personal income tax distinguished between income from foreign and domestic immovable property. Whereas for foreign immovable property the tax base attended to reflect real market values, income from domestic immovable property was determined on a lump sum basis, deducted from a market value of the immovable property in 1975 and subsequently indexed. As the lump sum estimation was substantially lower, the tax base for domestic immovable property income was reduced and hence investing in foreign immovable property was discouraged. Although already a decade ago the European Commission addressed Belgium on this distinction, it still took three convicting judgments of the European Court of Justice, before Belgium changed its legislation. Instead of leaving aside its outdated historical and heavily criticized lump sum estimation of domestic immovable property, the Belgian tax legislator opted to extend this regime and installed a similar historical evaluation for foreign immovable property referring to 1975. The new regime was installed as of tax year 2021. The following article describes the Belgian approach, explains why it was chosen and criticizes remaining issues and difficulties.
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Kohlhase, Saskia, and Jochen Pierk. "The effect of a worldwide tax system on tax management of foreign subsidiaries." Journal of International Business Studies 51, no. 8 (December 2, 2019): 1312–30. http://dx.doi.org/10.1057/s41267-019-00287-9.
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AbstractUnder a worldwide tax system, firms pay taxes on their domestic income and repatriated foreign income, whereas under a territorial tax system repatriated foreign income is exempt from taxation. We examine whether worldwide tax systems reduce the incentives of multinational corporations to engage in tax management in their foreign subsidiaries. Using two quasi-natural experiments, we show that multinationals lower the effective tax rates in their foreign subsidiaries after countries switch from a worldwide to a territorial tax system. Thus, multinationals subject to a worldwide tax system face competitive disadvantages compared to competitors from countries with a territorial tax system.
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Artemov, Nikolay M., and Karina A. Ponomareva. "Taxation of personal income in the context of issues of social fairness." Law Enforcement Review 4, no. 4 (December 28, 2020): 46–55. http://dx.doi.org/10.24147/2542-1514.2020.4(4).46-55.
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The subject. The leading position of the personal income tax in most countries is due to a number of circumstances. First, it is a personal tax, the object of which is the income actually received by the payer, and not the estimated average income that could be received in specific economic conditions. Second, income tax allows to maximize the implementation of the basic principles of taxation - universality and uniformity. In recent decades, national regimes of personal income taxation regimes have been actively developed both in foreign countries and in Russia. Purpose of the study. The article shows the results of analysis of the framework of personal income taxation in the Russian Federation in the context of the principle of the social fairness. Dealing with selected provisions of the national legislation of European countries and Russia the article shows that elements of progressive taxation can be applied only in particular aspects. The proposals of taxation of rich taxpayers are also brought into light. Methodology. The research was carried out with the application of the formally legal interpretation of legal acts as well as the comparative analysis of Russian and European legal literature. Structural and systemic methods are also the basis of the research, The main results. After studying the European experience of personal income taxation the authors come to the conclusion that some of the ideas described can be transferred to the Russian tax legislation, but this should be done with caution. It is not necessary to introduce a progressive tax system in its pure form in the Russian Federation, but it is worth considering options for switching to a dualistic system. The authors believe that the elements of borrowing foreign experience should be aimed rather at a fair distribution of benefits, for example, through rules that fix tax benefits. Conclusions. The following proposals can be formulated to improve the legal regulation of personal income taxation in the Russian Federation: the distinction between taxation of taxpayers with ultra-high incomes and those with minimal incomes should be based not on the income criterion, but on the expenditure criterion; to establish a non-taxable minimum in the amount of the minimum wage, which will ensure tax fairness for taxpayers with lower-average incomes; to review the criteria of taxation of luxury vehicles, raising the border separating the mass and premium segments of the Russian car market by at least two times - up to 6 million rubles. The best solution would be to abolish the vehicle tax and impose an increased excise tax on fuel and lubricants for personal transport.
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Mulyadi, Martin Surya, Maya Safira Dewi, Yunita Anwar, and Hanggoro Pamungkas. "Indonesian And Australian Tax Policy Implementation In Food And Agriculture Industry." International Journal of Finance & Banking Studies (2147-4486) 3, no. 1 (January 21, 2014): 75–84. http://dx.doi.org/10.20525/ijfbs.v3i2.170.
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Tax policy is one of the most important policy in consideration of investment development in certain industry. Research by Newlon (1987), Swenson (1994) and Hines (1996) concluded that tax rate is one of the most important thing considered by investors in a foreign direct investment. One of tax policy could be used to attract foreign direct investment is income tax incentives. The attractiveness of income tax incentives to a foreign direct investment is as much as the attractiveness to a domestic investment (Anwar and Mulyadi, 2012).
In this paper, we have conducted a study of income tax incentives in food and agriculture industry; where we conduct a thorough study of income tax incentives and corporate performance in Indonesian and Australian food and agriculture industry. Our research show that there is a significant influence of income tax incentives to corporate performance. Based on our study, we conclude that the significant influence of income tax incentives to Indonesian corporate performance somewhat in a higher degree than the Australian peers. We have also concluded that Indonesian government provide a relatively more interesting income tax incentives compare to Australian government. However, an average method of net income –a method applied in Australia– could be considered by Indonesian government to avoid a market price fluctuation in this industry.
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SEMENOVA, G. N. "INDIVIDUAL INCOME TAX ON THE RICH." EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA 4, no. 4 (2021): 45–53. http://dx.doi.org/10.36871/ek.up.p.r.2021.04.04.009.
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The article deals with the taxation of income of individuals with income tax. Income tax rates in different tax periods changed many times were progressive and depended on the size of the total annual income of individuals. Since 2001, with the adoption of the Tax Code of the Russian Federation, a single tax rate on personal income has been established in the amount of 13%. The coronavirus pandemic has impacted busi-ness activities as well as tax revenues. From January 01.01.2021, 15, an additional personal income tax rate of 5% has been established, which will affect the rich whose income will exceed 5 million rubles. The article exam-ines the foreign practice of taxing income of individuals.
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Nasution, Rusman Affandi. "THE ROLE OF TAX ADMINISTRATION AND TAX RATE ON FOREIGN DIRECT INVESTMENT." Jurnal BPPK : Badan Pendidikan dan Pelatihan Keuangan 13, no. 1 (July 27, 2020): 64–82. http://dx.doi.org/10.48108/jurnalbppk.v13i1.483.
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This thesis examines the impact of the tax system in determining FDI inflows in countries around the world from 2010 to 2017. We group the countries into two groups, based on income levels. Our findings suggest that the tax system, which reflects the easiness of tax payment, and the commitment to all tax regulations, plays a significant role in determining FDI inflows in low & middle-income countries. In high-income countries, it is the corporate tax cut that plays the role. The result implies that improved institutional performance in low & middle-income countries is an essential factor to induce FDI inflows.
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Cordis, Adriana, and Chris Kirby. "Income Shifting as an Aspect of Tax Avoidance: Evidence from U.S. Multinational Corporations." Review of Pacific Basin Financial Markets and Policies 21, no. 01 (January 18, 2018): 1850001. http://dx.doi.org/10.1142/s0219091518500017.
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We use jurisdiction-specific effective tax rates (ETRs) to investigate income shifting as an aspect of tax avoidance by U.S. firms. Our central prediction is that tax-based incentives for shifting income, as measured by the spread between domestic and foreign ETRs, should be reflected in the share of pre-tax income earned by U.S. firms in foreign jurisdictions. The data lend substantial support to this prediction. We find robust evidence of a positive correlation between the foreign share of pre-tax income and the ETR spread that is consistent with firms shifting income both into and out of the United States. The evidence also indicates that firms respond asymmetrically to positive and negative ETR spreads. Specifically, the response to a negative spread is stronger than to a positive spread of the same magnitude.
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Kong, Shuhong, Zhenzi Li, and M. Peter van der Hoek. "The Dual Corporate Income Tax in China: The Impact of Unification." Public Finance and Management 8, no. 4 (December 2008): 656–77. http://dx.doi.org/10.1177/152397210800800405.
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For many years, foreign funded companies in China enjoyed a relatively low tax rate and a series of preferential policies which were aimed at encouraging foreign direct investment in China. By adopting a new law in 2007, however, the National People's Congress proclaimed the end of the dual corporate-income-tax system. From 2008, the preferential tax treatment of foreign capital will be phased out. as a result, the income tax rate for domestic and foreign funded companies will be unified at the rate of 25%. This paper explores the impact of the dual corporate income tax system on both domestic and foreign funded enterprises and discusses the possible effects of the unification.
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Lavrenteva, Elena, and Aleksandra Brovkina. "Tax aspects of foreign income of Russian seafarers." E3S Web of Conferences 244 (2021): 10016. http://dx.doi.org/10.1051/e3sconf/202124410016.
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The paper discusses the features of taxation of foreign income of individuals. The main object of the study is the income of seafarers working on ships under a foreign flag, the peculiarities of the calculation and taxation of their wages. The statistical data on the level of wages and the structure of expenses of the families of seafarers are given. The methodological approaches to assessing the indirect contribution of seafarers working for foreign shipowners to the revenue side of the state budget through the purchase of goods, works and services on the territory of the Russian Federation have been substantiated. The proposed algorithm includes four stages. The first stage is the determination of the number of seafarers working on foreign ships. The second stage is the determination of the salaries of seafarers working on ships under a foreign flag. The third stage is the substantiation of the expenses of seafarers on the territory of the Russian Federation. The fourth stage is an assessment of the contribution of seafarers to budget revenues through indirect tax revenues from the goods, works and services they purchase. The paper highlights the main global trends in the issues of state regulation of foreign income of seafarers.
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Mulyadi, Martin Surya, Maya Safira Dewi, Yunita Anwar, and Hanggoro Pamungkas. "Indonesian And Australian Tax Policy Implementation In Food And Agriculture Industry." International Journal of Finance & Banking Studies (2147-4486) 3, no. 1 (January 19, 2016): 75. http://dx.doi.org/10.20525/ijfbs.v3i1.170.
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<p>Tax policy is one of the most important policy in consideration of investment development in certain industry. Research by Newlon (1987), Swenson (1994) and Hines (1996) concluded that tax rate is one of the most important thing considered by investors in a foreign direct investment. One of tax policy could be used to attract foreign direct investment is income tax incentives. The attractiveness of income tax incentives to a foreign direct investment is as much as the attractiveness to a domestic investment (Anwar and Mulyadi, 2012). In this paper, we have conducted a study of income tax incentives in food and agriculture industry; where we conduct a thorough study of income tax incentives and corporate performance in Indonesian and Australian food and agriculture industry. Our research show that there is a significant influence of income tax incentives to corporate performance. Based on our study, we conclude that the significant influence of income tax incentives to Indonesian corporate performance somewhat in a higher degree than the Australian peers. We have also concluded that Indonesian government provide a relatively more interesting income tax incentives compare to Australian government. However, an average method of net income –a method applied in Australia– could be considered by Indonesian government to avoid a market price fluctuation in this industry.</p>
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Sanjaya, I. Kadek Yoga, I. N. Darmayasa, and I. N. Mandia. "Income Tax and VAT Review as Evaluation of Tax Obligations." Journal of Applied Sciences in Accounting, Finance and Tax 3, no. 2 (October 30, 2020): 109–16. http://dx.doi.org/10.31940/jasafint.v3i2.2131.
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This research aims to provide a further understanding on the matter of (1) the condition of tax compliance of income tax and VAT on foreign services, (2) contingent liabilities arising after a review of tax obligations. The data used in this research are primary data such as interviews about the general description of the company and tax obligations, while secondary data in the form of general ledgers, commercial financial reports, reported tax return and other tax supporting documents. The method used for this research is qualitative method as a case study. The tax review performed is a review of the income tax article 21, income tax article 23, income tax article 4 paragraph 2, income tax article 26, corporate income tax and VAT on foreign services. The conclusion of this research are (1) the condition of tax compliance on PT BCL was still classified as under comply both in accordance with national and international assessment standards; (2) contingent liabilities arise marked by a discrepancy between the value of the reported tax object and the value of the tax object based on the review until the delay in payment and reporting tax obligations.
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Kravchenko, Olena, and Julia Puhovkina. "National and foreign experience in administering personal income tax." Vìsnik Sumsʹkogo deržavnogo unìversitetu, no. 2 (2023): 32–37. http://dx.doi.org/10.21272/1817-9215.2023.2-04.
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The tax policy of any country is a significant component of the economic sphere, and Ukraine is no exception. The process of integration of the national economy into the global economy, optimization of the tax system, improvement of its elements and instruments is a priority for most politicians and economic experts. They analyze the positive and negative aspects of domestic and foreign experience in managing tax policy. Despite a significant amount of academic research and practical experience, improving the existing tax system remains a pressing issue that requires further systematic, objective and in-depth scientific study. This research aims to examine one of the most important components of tax policy - the personal income tax. For this purpose, we analyzed the share of revenues from this tax in the total tax revenues of the consolidated budget in Ukraine and their dynamics during 2018-2022. It was determined that among the direct tax revenues to the budget of Ukraine, the PIT is the leader, confirming its not only fiscal but also social importance in the country. Countries such as Germany, Denmark, and the United States were chosen as foreign experience. The analysis of foreign experience has shown an example of a progressive system of PIT collection to the budget. The object of this research is the mechanism for regulating the process of collecting personal income tax. The subject of analysis is the legislative framework governing the taxation of personal income, in particular in the context of domestic and foreign practice. For a thorough consideration of this topic, the author used general scientific research methods which contributed to the systematization and generalization of legislative aspects of personal income taxation. The study analyzes foreign experience and compares it with the national approach. The author uses a dialectical approach with a systematic methodology to identify the problems and prospects of the mechanism for collecting personal income tax.
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Kucherkova, S. "Certain aspects of individual income tax." Galic'kij ekonomičnij visnik 73, no. 6 (2021): 16–24. http://dx.doi.org/10.33108/galicianvisnyk_tntu2021.06.016.
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The personal income tax is the main budget-forming tax, which plays a significant role in the redistribution of personal income and ensuring budget adequacy. Due to this tax, the state has the opportunity to influence the level of income and savings of citizens, it is a social regulator. The objective of the paper is to form a mechanism for collecting personal income tax in Ukraine and to study the fiscal efficiency of personal income tax and to determine the main directions of personal income tax reform. The paper considers the mechanism of personal income tax collection, which is based on the Tax Code of Ukraine and the main elements of the taxation system. It is proved that the tax system of Ukraine is characterized by instability, fiscal orientation with a limited and poorly developed regulatory function. The foreign experience of personal income taxation, tax rates and features of taxation is investigated in this paper. In foreign countries, tax rates are progressive. First of all, it should be noted that wages make up most of the income of individuals, and sometimes it is the only source of income. Taking into account the fact that Ukraine does not apply progressive personal income tax rates, this causes social injustice. It is proposed to use the concept of marginal income and not to tax income in the form of wages in the amount of the minimum amount set for each year. One of the important aspects of reforming the tax system of Ukraine is the introduction of a single reporting on personal income tax and a single social contribution filed by tax agent. It is proposed to declare income and disclose information about the property status of all individuals for the previous year. This will help to control and compare the payment of personal income tax with other tax reports and fill the state budget. Establishing a tax culture of taxpayers and their cooperation with fiscal officials requires some time, during which they must actively carry out explanatory work by fiscal officials and implement a system of preventive measures against tax evasion or concealment of income, and then apply a strict system penalties to the payer. According to this system the payer is unprofitable to hide income, as the fine exceeds its size. These measures will not only ensure the implementation of the regulatory but also the fiscal function of the tax.
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Kyj, Larissa S., and George C. Romeo. "Microsoft's Foreign Earnings: Tax Strategy." Issues in Accounting Education 30, no. 4 (June 1, 2015): 297–310. http://dx.doi.org/10.2308/iace-51177.
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ABSTRACT The high corporate tax rate and the complexity of the U.S. tax code provide U.S. multinationals with the incentives and opportunities to shift income to foreign low-tax jurisdictions. In theory, U.S. corporations are taxed at the statutory rate of 35 percent on their worldwide income, but income earned by an active Controlled Foreign Corporation (CFC) is usually not taxed until it is repatriated to the parent company in the U.S. As a result, trillions of dollars in cash and investments sit in offshore companies, awaiting a repatriation tax holiday. Much of these earnings are held by technology companies. The case looks at Microsoft Corporation, a company with $60.8 billion in unrepatriated earnings as of 2012. The case considers tax havens, nonrepatriation of earnings, cost-sharing arrangements, and transfer pricing and is intended to expose students to the subtleties and complexities of corporate tax strategies. Although the case is set in 2012, the goal of the case is to demonstrate to the students the complex environment in which multinational corporations operate and is independent of any particular tax regime.
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Bergolo, Marcelo, Juliana Londoño-Vélez, and Darío Tortarolo. "Tax progressivity and taxing the rich in developing countries: lessons from Latin America." Oxford Review of Economic Policy 39, no. 3 (August 18, 2023): 530–49. http://dx.doi.org/10.1093/oxrep/grad029.
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Abstract This article discusses the challenges and potential policy choices for levying progressive taxes and taxing the rich in Latin America, a region known for its high-income inequality, limited tax-collection capacity, and low share of taxes collected from personal income and wealth. Factors such as high exemption thresholds, low top marginal tax rates, and limited administrative capacity undermine the redistributive ability and revenue collection of the tax systems in the region. Moreover, the income composition for the top percentiles largely comes from capital, and the effective tax rates they face are often low due to the preferential treatment of capital income and wealth. After discussing the evidence of how the rich in Latin America respond to progressive taxes on income and wealth and changes in enforcement policy, we provide some insights on potential policy choices to tax them effectively. These may include broadening the income tax base by lowering the number of exempt and non-taxable income items and the statutory exemption thresholds, reevaluating preferential tax rates on capital income, monitoring foreign income, addressing the abuse of tax treatment by business earners, and enhancing tax administration capacity. Additionally, wealth taxes may complement the tax system with updates to property registers and scrutiny of foreign assets.
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Lühn, Tim. "Non–Conformity of Section 15 German Foreign Tax Code Concerning the Taxation of Foreign Family Trusts with EC Law?" Intertax 36, Issue 11 (November 1, 2008): 520–22. http://dx.doi.org/10.54648/taxi2008074.
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This article analyzes the EC law conformity of Section 15 German Foreign Tax Code (‘GFTC’), a special regulation concerning the taxation of foreign family trusts according to German domestic tax law. In particular, it reflects on the current infringement proceeding initiated by the European Commission dating 23 July 2007 and the proposed new amendment of Section 15 GFTC by the German annual tax law for 2009 recently introduced by the German government as a consequence of the infringement proceeding. According to the current German legislation, in case a family trust established its registered office or its management in Germany, the settler as well as the beneficiaries must pay tax on benefits deriving from the family trust. However, for tax anti–avoidance reasons, if the family trust is domiciled abroad, the family trust assets as well as the trust income is attributed to the settler and to the beneficiaries and regarded as derived for domestic tax purposes, irrespective of whether and in what amount benefits are actually derived from the family trust. As a matter of fact, Section 15 GFTC lays down that the income of a foreign family trust is taxed (on a yearly basis) even though no income is distributed to the settler or the beneficiaries but maintained within the family trust. Consequently, this income derived according to Section 15 GFTC has to be declared in the annual income tax return and the non–compliance in doing so should be qualified as tax evasion according to Section 370 German Fiscal Code. The importance of Section 15 GFTC was shown just recently, when the global tax evasion scandal was discovered in February 2008 in Germany. The respective tax evasion discovered was based on the non– disclosure of income derived by family trusts located in Liechtenstein according to Section 15 GFTC.
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Warbrick, Colin, Dominic McGoldrick, and Colin Warbrick. "II. Unrecognised States and Liability for Income Tax." International and Comparative Law Quarterly 45, no. 4 (October 1996): 954–60. http://dx.doi.org/10.1017/s0020589300059807.
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The object of this short note is to draw attention to a decision of the Special Commissioners of Inland Revenue (the Commissioners) which deals with the liability for income tax of officials of an unrecognised State.1 Section 321 of the Income and Corporation Taxes Act 1988 (the Taxes Act) provides exemption from liability for income tax for foreign consuls in the United Kingdom and for “an official agent in the United Kingdom for any foreign state, not being … a Commonwealth citizen”. An “official agent” is a person, other than a consul, “who is employed on the staff of any consulate, official department or agency of a foreign state”.
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Adejare, Adegbite Tajudeen, and Olaoye Clement Olatunji. "Analysis of the Impact of Non-Oil Taxation on Foreign Direct Investment and Economic Services in Nigeria." Studia Universitatis „Vasile Goldis” Arad – Economics Series 31, no. 1 (January 29, 2021): 60–83. http://dx.doi.org/10.2478/sues-2021-0004.
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Abstract This study assessed the nonoil taxation effect on foreign direct investment and economic services from 1994 to 2019 in Nigeria. This study further evaluated the causality bearing amid foreign direct investment, economic services, value-added tax, company income tax, capital gain tax, custom and excise duties, and education tax, devotedly hiring Units root, VECM, Johansen co-integration, and Granger causality tests. Outcomes uncovered that value-added tax has a positive significant effect on economic services but a negative influence on foreign direct investment. Furthermore, value-added tax granger- cause foreign direct investment and economic services. It is also exposed that company income tax and capital gain tax possessed short-run and long-run negative significant influence on foreign direct investment but positive influence on economic services. More so, custom and excise duties upsurge economic services and foreign direct investment positively and significantly. Conclusively, taxation has negative significant impacts on foreign direct investment but upsurge economic services positively in Nigeria. It is recommended that since company income tax impacted foreign direct investment negatively both in the long run and short run, the government should lessen company income tax and upsurge capital allowance bestow on foreign direct investment in order to improve and attract foreign direct investment which will perpetually decrease poverty rate in Nigeria. Also, the government should employ taxation to realize more improvement in economic services and minimize all barriers to foreign direct investment attraction such as import duties and other levies to inspire investors.
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UHRYN, Volodymyr. "FISCAL AND SOCIAL DETERMINANTS OF PERSONAL INCOME TAXATION." WORLD OF FINANCE, no. 1(66) (2021): 163–73. http://dx.doi.org/10.35774/sf2021.01.163.
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Introduction. Direct taxes are an important financial regulator of socio-economic processes, they are one of the most important sources of budgeting and an essential tool of state regulation. The personal income tax is the main tax through which social policy is implemented in the developed countries of the world. The advantages of this tax include its social justice and fiscal efficiency, as it is able to make the level of taxation directly dependent on the amount of income of taxpayers. In addition, progressive tax rates and benefits can reduce the tax burden on the poor and increase it on high-income earners. The purpose of the article is to considerate the theoretical and practical aspects of administration of the personal income tax in the conditions of reforming of fiscal policy of Ukraine, systematization of directions of improvement of collecting of the personal income tax to local and state budgets. Methods. Methods of dialectical analysis and synthesis, deduction, induction logical generalization, comparison and formalization are used in the article. Results. The article is devoted to the study of the essence and role of personal income tax administration. Peculiarities of citizens’ income formation as an object of taxation are considered. Monitoring and analysis of indicators of personal income tax to local and state budgets was carried out. The growth rates of nominal revenues of personal income tax and military duty, real and nominal wages are studied. It was found that the main factors reducing the level of fiscal efficiency of personal income tax in Ukraine are the shadowing of incomes and the outflow of labor, including skilled personnel. Ukraine’s tax policy for the last five years is fiscally oriented and does not take into account the social aspect of personal income taxation. As a result of the research, the directions of increasing the efficiency of personal income taxation in Ukraine based on foreign experience are systematized. Prospects. The current model of personal income tax does not sufficiently perform a socioeconomic function, does not provide a socially equitable distribution of income between different segments of the population. In recent years, the fiscal significance of the personal income tax has remained, but the system of personal income taxation requires the application of progressive rates. Therefore, promising areas of future research should be the development and improvement of the mechanism of personal income taxation in the context of ensuring their socio-economic interests.
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Solomka, Yana. "Taxation of income of individuals: foreign practice." University Economic Bulletin, no. 46 (September 1, 2020): 153–60. http://dx.doi.org/10.31470/2306-546x-2020-46-153-160.
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Relevance of research topic. At present, many of the problems that foreign countries have to solve in connection with transformation processes and affecting the financial stability of their economies are similar in nature to the problems that exist in Ukraine. Therefore, the study of foreign practice of taxation of personal income is extremely relevant. Formulation of the problem. The system of taxation of personal income in each country is a significant regulator of the relationship between the state and citizens - taxpayers. On the one hand, it provides the financial base of the state, and on the other hand, it acts as the main instrument for the implementation of its economic doctrine. Therefore, by setting the size of taxation of income of individuals, the state seeks to ensure a stable income base and influence the amount of citizens' savings in order to the optimally implement the development strategy. Analysis of recent research and publications. Theoretical principles of taxation have been developed in the works of such prominent scientists as A. Wagner, D. Keynes, A. Laffer, D. Mill, F. Nitti, D. Ricardo, and A. Smith. The study of taxation of individuals in Ukraine and other countries is carried out in the works of such domestic scientists as: V. Andrushchenko, L. Barannyk, O. Vasylyk, V. Melnyk, S. Onyshko, A. Sokolovska, L. Tarangul, V. Fedosov, L. Shablysta, S. Yuriy, I. Yakushchyk and others. Selection of unexplored parts of the general problem. Ukraine lacks experience in effective taxation of personal income. Therefore, it is advisable to deepen the study of the issues of identifying elements of the positive experience of foreign countries that have some success in this matter, and to determine whether they can be applied in the practice of taxation in Ukraine. Setting the task, the purpose of the study. The aim of the work is to identify the leading foreign experience in the taxation of personal income, systematize its positive elements, as well as develop proposals for the possibility of their implementation in Ukraine. Methodology for conducting research. Methods of system-structural analysis and synthesis, dialectical and methods of generalization, grouping, comparison and other methods became a methodological basis of the article. Presentation of the main material (results of work). The article analyzes the experience of foreign countries in the field of personal income taxation, presents the author's understanding of the possibility of its implementation in domestic tax practice. Methods of personal income taxation in different countries of the world are considered. The field of application of results. The research results can be used in the practice of taxation in the process of its improvement. Conclusions according to the article. The experience of foreign countries in the taxation of personal income is rich in useful examples. The analysis showed that the lowest income tax rates are characteristic of countries with lower economic development rates and usually without the use of progressive taxation. High - inherent in the developed due to the presence of a progressive scale of taxation, which makes it possible to transfer the tax burden of the less well-off strata of the population to more well off. Improving the system of taxation of personal income, Ukraine should take into account the fact that all foreign countries, in order to achieve greater interest of citizens in paying taxes, to establish greater social justice, differentiate their approach to tax collection depending on the amount of their income. This is a successfully proven mechanism for combating tax evasion and, accordingly, filling the budget.
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Fan, Xiwen, and Douglas Wilson. "Tax Evasion and the Optimal Tax Treatment of Foreign-Source Income." Asia-Pacific Journal of Accounting & Economics 15, no. 3 (December 2008): 205–22. http://dx.doi.org/10.1080/16081625.2008.9720820.
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Peeters, Bart. "Kieback: When Schumacker Emigrates . . ." EC Tax Review 25, Issue 2 (April 1, 2016): 58–69. http://dx.doi.org/10.54648/ecta2016007.
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When taxing a non-residents income, a source state does not have to grant tax correctives on account of civil status or family responsibilities, applicable for its own residents, unless the income is the almost exclusive taxable income of the non-resident. This socalled Schumacker-principle, although dating from 1995, still raises questions. This article critically analyses the judgment of the Court of Justice in the Kieback-case, where the Court had to decide about its application for the deduction of costs, linked to a foreign immovable property, in case of a non-resident earning all his taxable income during a part of a tax year in the source state and then moving to a third state. The court insisted that the Schumacker-principle can include costs which, according to the tax legislation of the source state, are in particular linked to foreign income, the possibility of discrimination has to be considered exclusively from a tax perspective, but the comparison can be made taking into account an entire tax year. Based on these premises the Court concluded that the foreign negative income did not have to be taken into account in the source state.
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Yumaev, M. M. "An Old song in a New Way: About the Progression in the Personal Income Tax." Finance: Theory and Practice 27, no. 5 (October 23, 2023): 140–49. http://dx.doi.org/10.26794/2587-5671-2023-27-5-140-149.
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The issues of choosing between proportional and progressive taxation of personal income and assessment of the principle of fair taxation in relation to these methods accompany the centuries-old history of world tax policy, which is the relevance of the research, being the subject of discussions of Russian and foreign scientists. The purpose of the study is to develop the idea of taxation of income of the population in Russia, taking into account the principle of fair taxation. The theoretical objectives of the study include an analysis of the validity of the method of taxation chosen, as well as an analysis of the progressive method of taxation, which allows for a fair redistribution of income through the progression of rates and an adequate system of tax deductions. The practical objectives of the study are to study the influence of income taxation methods on the formation of budget revenues and incomes of the population, to assess the “shadow” fiscal potential of income, to determine the level of demand and significance of tax deductions. As a result of the research, it has been scientifically proven that proportional taxation and weak progression discredit the principle of vertical equity, lead to a hidden progression in the withdrawal of income, have no obvious positive effect on capital outflow and, in combination with insurance premiums, affect the size of the potential tax base. The practical significance of the study is to develop concrete proposals for the methodological development of personal income tax through differentiated tax deductions, tax mechanisms for strengthening the institution of family and marriage, and the expansion of the tax base.
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Sujarwati, Amalia Indah, and Riatu Mariatul Qibthiyyah. "Corporate Income Tax Rate and Foreign Direct Investment: A Cross-Country Empirical Study." Economics and Finance in Indonesia 66, no. 1 (June 25, 2020): 25. http://dx.doi.org/10.47291/efi.v66i1.679.
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This study aims to explore the impact of Corporate Income Tax Rate (CITR) on Foreign Direct Investment (FDI), specified based on income levels of countries. Using an unbalanced fixed-effect method of 112 countries over the period of 2003–2017, our finding shows that CITR has no significant impact on FDI. Corporate Income Tax (CIT) is levied on all firms, and as CIT is generally more complex than other types of taxes, its influences on FDI are in question. Excluding tax havens from the sample, our findings show that CITR has a weak significance only in the lower-middle-income and low-income countries.
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Nunung Nuryani, Tumpal J.R. Sitinjak, and Zhafirah Lavinia. "THE IMPACT OF CORPORATE INCOME TAX AND TAX HOLIDAY POLICY ON DIRECT FOREIGN INVESTMENT IN INDONESIA." International Journal of Social Science 1, no. 6 (April 6, 2022): 1009–16. http://dx.doi.org/10.53625/ijss.v1i6.1930.
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Foreign investment has an important influence on a country's economy, it is also considered to be more resilient to crises because investors generally have a long-term perspective when investing in a country. However, the economic crisis in Indonesia caused the inflow of foreign direct investment to experience a drastic decline which led to a slowdown in economic growth in Indonesia. To increase interest in foreign investment in Indonesia again, it is necessary to have an incentive policy in order to attract foreign investors. Therefore, this study aims to examine whether the corporate income tax rate set by the government and the tax holiday policy determine foreign direct investment. Based on purposive sampling, a sample of 38 foreign direct investment inflows from 1981-2018 was obtained. The results show that the corporate income tax rate has a significant negative effect on foreign direct investment, but the tax holiday is not proven to have an effect on foreign direct investment. The results of this study indicate that in determining tax rules and policies, especially corporate income tax rates, it is necessary to consider the interests of foreign investors in order to attract more foreign direct investment to Indonesia.
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Lusch, Stephen J., and James Stekelberg. "State Tax Haven Legislation and Corporate Income Tax Revenues." Public Finance Review 48, no. 3 (April 9, 2020): 354–83. http://dx.doi.org/10.1177/1091142120914280.
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In response to the rise of foreign tax haven usage by multinational corporations, several US states have enacted laws that require income from affiliated entities operating in tax haven jurisdictions to be included on the firm’s state income tax return. We examine the revenue effects of this legislation. Employing a variety of alternative empirical approaches including a difference-in-differences specification, state and year fixed effects regressions, and a synthetic control methodology, our results provide consistent evidence of a positive association between the enactment of tax haven legislation and state corporate income tax revenues in all enacting states except West Virginia. Our study contributes to the state tax policy literature and the literature on tax havens. Moreover, given that states continue to consider implementing, changing, or repealing tax haven legislation, our results inform this current policy debate.
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Klassen, Kenneth J., Stacie K. Laplante, and Carla Carnaghan. "A Model of Multinational Income Shifting and an Application to Tax Planning with E-Commerce." Journal of the American Taxation Association 36, no. 2 (May 1, 2014): 27–53. http://dx.doi.org/10.2308/atax-50817.
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ABSTRACT: This manuscript develops an investment model that incorporates the joint consideration of income shifting by multinational parents to or from a foreign subsidiary and the decision to repatriate or reinvest foreign earnings. The model demonstrates that, while there is always an incentive to shift income into the U.S. from high-foreign-tax-rate subsidiaries, income shifting out of the U.S. to low-tax-rate countries occurs only under certain conditions. The model explicitly shows how the firms' required rate of return for foreign investments affects both repatriation and income shifting decisions. We show how the model can be used to refine extant research. We then apply it to a novel setting—using e-commerce for tax planning. We find firms in manufacturing industries with high levels of e-commerce have economically significant lower cash effective tax rates. This effect is magnified for firms that are less likely to have taxable repatriations. JEL Classifications: G38, H25, H32, M41.
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Semenova, Galina N. "INCOME TAX AS A TOOL TO STIMULATE INNOVATIVE AND INVESTMENT ACTIVITY IN RUSSIA." EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA 5/2, no. 137 (2023): 235–43. http://dx.doi.org/10.36871/ek.up.p.r.2023.05.02.035.
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In modern conditions, income tax is becoming an increasingly important tool for regulating the Russian economy. The tax policy in the field of corporate income taxation should stimulate the development of innovation and investment activity, which is a key factor in increasing the competitiveness of the national economy and ensuring its sustainable growth. First of all, it should be noted that income tax directly affects the financial capabilities of enterprises for innovation and investment activities. Lower income tax rates, especially for small and medium-sized enterprises, can stimulate their investment and innovation activity, as this will allow them to allocate more funds for these purposes. In addition, the income tax can also help attract foreign investment in the Russian economy. High income tax rates may discourage potential investors, while lowering income tax rates and creating tax incentives for investors may attract additional investment.
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Гасиева, З. П., and Д. Э. Макоева. "World experience in applying personal income tax." Экономика и предпринимательство, no. 7(120) (July 9, 2020): 293–96. http://dx.doi.org/10.34925/eip.2020.120.7.058.
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В большинстве экономически развитых стран мира основой формирования государственного бюджета является налог на доходы физических лиц. В статье приведены направления совершенствования подоходного налогообложения в России, основываясь на зарубежном опыте, в том числе возможности введения прогрессивной системы налогообложения. In most economically developed countries of the world, the basis for the formation of the state budget is the tax on personal income. The article gives directions for improving income taxation in Russia, based on foreign experience, including the possibility of introducing a progressive taxation system.
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Plakhtii, Tetiana, Lidiia Fedoryshyna, and Olena Tomchuk. "SOCIO-ECONOMIC COMPONENT OF PREFERENTIAL TAXATION OF INDIVIDUAL INCOME." Baltic Journal of Economic Studies 5, no. 2 (May 13, 2019): 171. http://dx.doi.org/10.30525/2256-0742/2019-5-2-171-175.
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The purpose of the article is to study the socio-economic component of the preferential taxation of individuals. It is shown that the Tax Social Benefit is the ability of the taxpayer to reduce the calculated total monthly taxable income in the form of wages. Methodology. The object of taxation is determined according to the status of the payer. So, for a resident – is: the total monthly (annual) taxable income; income from the source of their origin, which are finally taxed when they are charged (payment, provision), and foreign incomes – income (profit) received from sources outside. The object of taxation of a non-resident is: the total monthly (annual) taxable income from the source of its origin and income from the source of their origin in Ukraine, which are finally taxed during their calculation (payment, provision). Results. The basis of taxation is the total taxable income – any taxable income accrued (paid, provided) in favour of the taxpayer during the reporting tax period. Imagine the structure of the aggregate resources of households, which in the overwhelming majority are subject to tax. Individual Income Tax is fiscally significant for budgets of all levels, since after the distribution through the budget system the lion’s share remains at the disposal of local budgets Practical implications. Although Ukraine is a market economy country, in our opinion, observance of these recommendations will have only a positive effect both on activating the regulatory function of the Individual Income Tax and on the level of income differentiation of the population as a result. Value/ originality. In view of a large number of studies of domestic scientists on this issue, it is necessary to systematize tax deductions from Individual Income Tax in accordance with the concept of tax expenditures, taking into account the specifics of tax legislation. The established indicators for the tax social benefit are calculated according to the following algorithm: the maximum amount for the application of the tax social benefit: the subsistence minimum for an able-bodied person on January 1 of the reporting tax year, multiplied by 1.4 and rounded to the nearest 10 hryvnias. The size of the tax social benefit is equal to 50% of the subsistence minimum for an able-bodied person (per month), established by law on January 1 of the reporting tax year.
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Artemov, N. M., and К. A. Ponomareva. "Elements of progressive personal income taxation in the context of the principle of forward and backward links." Law Enforcement Review 5, no. 1 (April 17, 2021): 68–79. http://dx.doi.org/10.52468/2542-1514.2021.5(1).68-79.
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The idea of progressive tax scale in Russia received a fundamentally new development in 2020. The leading position of the personal income tax in most countries is due to a number of circumstances. First, it is a personal tax, the object of which is the income actually received by the payer, and not the estimated average income that could be received in specific economic conditions. Second, income tax allows to maximize the implementation of the basic principles of taxation – universality and uniformity. In recent decades, national regimes of personal income taxation regimes have been actively developed both in foreign countries and in Russia. Purpose of the study. The article considers the elements of progressive taxation of personal income in the context of the principle of direct and inverse relations. Dealing with selected provisions of the national legislation of European countries and Russia the article shows that elements of progressive taxation can be applied only in particular aspects. The proposals of taxation of rich taxpayers are also brought into light. Methodology. The research was carried out with the application of the formally legal interpretation of legal acts as well as the comparative analysis of Russian and European legal literature. Structural and systemic methods are also the basis of the research, The main results. The establishment of a classical progressive system in the Russian Federation will encourage a change in the model of behavior of both persons who have the opportunity to increase their income, but do not intend to do so due to a decrease in the nominal increase in wages, and persons who previously declared income in full, but if the tax model changes, they will apply personal income tax evasion schemes. In addition, the results of a comparative analysis of the experience of the EU Member States show the ineffectiveness of the progressive income tax scale as a tool to combat social inequality. The comparison provided in the research also examines the problems of proportional and progressive taxation in the context of the principle of equity. In the context of the practice of applying progressive taxation, the experience of foreign countries is studied. Based on foreign experience, it can be concluded that the introduction of family taxation would require a fundamental change in the basis of income taxation in the Russian Federation, as well as would entail discrimination of taxpayers in terms of registered and civil marriage and abuse in order to extract tax benefits. The authors conclude that a more appropriate option for taking into account family circumstances is the widespread use of tax deductions. Since Russian legislation does not establish poverty criteria, personal income tax is levied even on income in the amount of the subsistence minimum. This also does not correspond to the principle of social justice, because in the absence of such criteria, poverty cannot be considered a basis for tax exemption. Thus, the establishment of a classical progressive system in the Russian Federation will encourage a change in the model of behavior of both persons who have the opportunity to increase their income, but do not intend to do so due to a decrease in the nominal increase in wages, and persons who previously declared income in full, but if the tax model changes, they will apply personal income tax evasion schemes. We believe that in the context of the principle of equity, the essence of progressive taxation is not the establishment of several tax rates and is not determined by the number of tax deductions that can be granted only to a small number of persons, including wealthy taxpayers, but that it reflects the ability of a person to pay tax. In our opinion, this ability should be guaranteed by the exemption from taxation of the minimum amount of income (minimum wage). Сonclusions. According to the results of the study, it is concluded that the establishment of a classical progressive system in the Russian Federation will encourage a change in the behavior model of both persons who have the opportunity to increase their income, but do not intend to do so due to a decrease in the nominal increase in wages, and persons who previously declared income in full, but if the tax model changes, they will use personal income tax evasion schemes. In addition, the results of a comparative analysis of the experience of the EU member States show the ineffectiveness of the progressive income tax scale as a tool to combat social inequality. It is proposed to apply only elements of progressive taxation when reforming the Russian tax regime for individuals, namely, to establish a nontaxable minimum in the amount of the minimum wage, which will ensure tax fairness for taxpayers with lower-average incomes.
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Rhein, Jonathan. "Selected US Tax Developments: Canadian Residents Who Are US Citizens May Be Able To Credit Canadian Taxes Against the US Net Investment Income Tax." Canadian Tax Journal/Revue fiscale canadienne 71, no. 4 (2022): 1171–76. http://dx.doi.org/10.32721/ctj.2023.71.4.ustd.
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The US net investment income tax (NIIT, colloquially referred to as the "Obamacare tax" or "Medicare tax") is a 3.8 percent tax on worldwide investment income of US citizens and residents, and applies to interest, dividends, royalties, and other types of investment income. Although US domestic law does not permit a foreign tax credit to be applied against the NIIT, the US Court of Federal Claims recently held that the US-France tax treaty requires the United States to allow a foreign tax credit against the NIIT. While this case may be helpful for US citizens who are residents of other countries that have tax treaties with the United States that include provisions similar to the provision at issue in the case, residents of Canada who are US citizens may have a harder time making the argument that the US-Canada tax treaty requires the United States to allow a foreign tax credit against the NIIT.
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Fiszer, Janusz. "Poland: Taxation of foreign investment and income tax treaties." Intertax 19, Issue 4 (April 1, 1991): 221–29. http://dx.doi.org/10.54648/taxi1991034.
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Acker, Daniella, David J. Ashton, and Sue Green. "Tax, Corporate Behaviour and the Foreign Income Dividend Scheme." Journal of Business Finance Accounting 24, no. 1 (January 1997): 125–43. http://dx.doi.org/10.1111/1468-5957.00098.
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De Simone, Lisa, Jingjing (Jing) Huang, and Linda K. Krull. "R&D and the Rising Foreign Profitability of U.S. Multinational Corporations." Accounting Review 95, no. 3 (October 17, 2019): 177–204. http://dx.doi.org/10.2308/accr-52620.
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ABSTRACT We investigate how R&D contributes to rising foreign profitability in U.S. multinational corporations through wage and tax incentives. Our results suggest that wage savings increase foreign profit margins derived from foreign R&D, while tax incentives increase foreign profit margins derived from domestic R&D. By exploring their relative importance, we find that wage savings are more important than tax incentives in explaining foreign profit margins when the wage discount substantially exceeds tax incentives, and vice versa. Cross-sectional tests show that firms respond more to foreign R&D wage savings when they have access to local human talent, but less as the cost of conducting foreign R&D increases. Firms respond less to tax incentives to shift income derived from domestic R&D as transfer pricing risk increases. Our evidence sheds light on the importance of R&D-related income shifting that potentially separates the location of economic activity from the location of income. JEL Classifications: H25; H26.
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Huu, Tan Nguyen, and Thuong Nguyen Thu. "PERSONAL INCOME TAX POLICY TOWARD SUSTAINABILITY AND FAIRNESS." International Journal of Social Science and Economic Research 08, no. 10 (2023): 3029–40. http://dx.doi.org/10.46609/ijsser.2023.v08i10.001.
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Tax-benefit microsimulation models can be utilized to address a range of policy questions. In Vietnam, the personal income tax system has seven tax brackets, but its current progressive taxation has been deemed unreasonable due to its numerous steps with narrow intervals, resulting in abrupt tax step jumps. To improve the competitiveness of the economy in attracting foreign experts and skilled workers and incentivize labor efforts, we have proposed three scenarios for personal income tax brackets in Vietnam. The results indicate that a change in tax brackets, which involves increasing tax revenue and reducing inequality, is the more favorable option. However, changing the base tax deduction and additional tax deduction per dependent did not lead to desirable outcomes. These findings emphasize the importance of designing tax policies that achieve multiple objectives and are tailored to the specific circumstances of the situation.
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Oleksich, Zh, N. Ovcharova, and M. Horodetska. "WORLD EXPERIENCE OF INDIVIDUAL INCOME TAXATION AND REALITIES OF TAXATION IN UKRAINE." Vìsnik Sumsʹkogo deržavnogo unìversitetu 2022, no. 4 (2022): 15–24. http://dx.doi.org/10.21272/1817-9215.2022.4-2.
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Currently many of the problems that foreign countries have to solve in relation to the transformation processes which affect the financial stability of their economies are similar in nature to the problems that exist in Ukraine. Therefore, studies of foreign practices of personal income taxation are extremely relevant. The article analyzes the experience of foreign countries in the field of personal income taxation and presents the author's views on the possibility of its implementation in domestic tax practice. Methods of personal income taxation in different countries of the world are considered. The experience of foreign countries in the taxation of personal income is rich in positive examples. The analysis showed that the lowest income tax rates are characteristic of countries with lower rates of economic development and usually without the use of progressive taxation. High - inherent in the developed due to the presence of a progressive scale of taxation, which allows you to shift the tax burden from the poorer to the more affluent. Therefore, one of the priority areas in the development of tax policy in Ukraine should be its gradual socialization, which focuses not only on the fiscal function of the tax, which leads to increased tax revenues to the budget of Ukraine, but also the social function of the tax aimed at universal values. The main direction of further improvement of the domestic legal framework in this area should be to reduce the tax burden on socially vulnerable groups and increase the responsibility of taxpayers for tax evasion. One of the priority areas in the development of tax policy in Ukraine should be its gradual socialization, which focuses not only on the fiscal function of the tax, which leads to increased tax revenues to the budget of Ukraine, but also the social function of the tax aimed at universal values. The practice of taxation of individuals in foreign countries cannot be an absolute basis for copying taxation in Ukraine.
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Słapczyński, Tomasz. "CHARACTERISTICS OF CORPORATION TAX IN POLAND AND STATISTICAL ANALYSIS OF STATE TAX REVENUES." Roczniki Administracji i Prawa 1, no. XIX (June 30, 2019): 195–212. http://dx.doi.org/10.5604/01.3001.0013.3592.
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Corporate income tax was introduced in Poland along with the establishment of a free market economy. This is a income tax that does not take into account the minimum tax-free and does not differentiate tax entities. Corporate income tax in Poland has undergone a number of important transformations, especially after the accession of Poland to the European Union. Tax rates have been systematically reduced since the early 1990s. Corporate income tax should be particularly convenient for entrepreneurs, and should not act destructively because the number of entrepreneurs in the state determines the level of economic and industrial development. This is even more important since, after Poland’s accession to the European Union, the transfer of the company to another country belonging to the community is no more a problem. The attractive income tax also attracts foreign investors for whom the aspect related to easy accounting is one of the key. The aim of the work is to bring the issue of Polish corporate income tax. It tries to address issues related to tax management in an enterprise, with the application of discounts and exemptions by entrepreneurs and also issues related to state income from corporate income tax and the income lost by the use of relief and dismissals.