A Comparative Analysis of Tax Systems in Russia and Germany

Abstract

Effective construction of the tax system, which policy is a powerful tool for managing the economy, is of particular importance in the contemporary market conditions. The paper focuses on the analysis of the tax systems of Russia and Germany, their principles of formation, and structure of construction in general, discusses ways of improving and prospects for the development of the Russian tax system with the use of foreign experience. The purpose of this paper is to study the structure and principles of the formation of the tax system in Germany and Russia, as well as assess their functioning. Statistical information of financial authorities for 2016–2018, electronic resources of tax authorities, and information and legal portals were used for the analysis. The work applied the methods of a systematic approach, economic, and statistical analysis. The principles of building tax systems, basic tax rates, procedures for calculating individual taxes, the procedure for calculating tax payments, and their distribution between budgets of different levels for each country are analyzed in detail. A comparative analysis revealed both similarities and differences between the Russian and German tax systems. The results of a comparative analysis of the tax systems of Germany and Russia can be further used to study the features of the tax systems of Russia and Germany and improve the tax system of the Russian Federation.