Abstract

Introduction: tax incentives are an important part of the modern tax system. Despite many years of discussion on the extent to which investment-oriented tax incentives are needed, no clear answer has yet been provided. An important feature of the Russian Federation is the variety and complexity of tax incentives design, which can reduce transparency, as well as prevent a clear understanding of impact mechanism and become a threat to the tax security of the state. This emphasizes the importance and relevance of a detailed analysis into the investment tax incentives design. Objectives: to conduct an analysis and inventory of investment tax incentives in Russia and to develop guidelines for improving the List of Investment Tax Incentives. Such analysis is not yet available in domestic research. Methods: comparative analysis of normative legal documents, collection and analysis of quantitative data, structural analysis, system approach. Results: it was found that all investment tax incentives can be classified according to the presence of a certain investment condition. However, the minimum required capital investment varies considerably from one type of preferential treatment to another and from region to region. At the same time, the limit on the maximum permissible amount of underpayments resulting from investment tax incentives introduction rarely correlates with the volume of investments made, even though the level of tax expenditures produced by investment-oriented tax benefits accounts for a significant proportion of the tax revenues in the Russian Federation budget system. Conclusions: the study revealed the following key features of investment tax incentives: these lead to a reduction in the tax burden of the taxpayer; can be aimed not only at stimulating investment activity, but also used for other economic policy objectives; their application creates tax expenditures for the state.

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