Corporate Income Research Articles

ANALISIS PENERAPAN PERENCANAAN PAJAK (TAX PLANNING) UNTUK MEMINIMALKAN BEBAN PAJAK PENGHASILAN BADAN PADA CV. XXXL

ABSTRACTThis study aims to: (1) analze the application of tax planning in minimizing the burden of corporate income tax on CV. Bina Mandiri Banua, (2) ind out and analyze whether tax planning (tax planning) that is carried out can minimize corporate income tax compared to before CV. Bina Mandiri Banua’s tax planning. The design of this research is a qualitative research with descriptive method. Data collection was done by interview, observation, and documentation. The result of the study indicate that tax planning carried out by bookkeeping methods, fiscal corrections, gross up methods for PPh 21 and the provision of allowances for food/drink and transportation of employees has a major influence on the magnitude of the corporate income tax burden. The result of the analysis show that tax planning can minimize the corporate income tax burden borne by the company, in 2019 before tax planning Rp. 4.648.909,- after tax planning becomes Rp. 3.224.192,- In 2020, before tax planning, Rp. 20.571.594,- after tax planning becomes Rp. 5.989.722,- In 2021, before tax planning Rp. 10.831.213,- after tax planning to Rp. 2.671.219,-. This shows that the corporate income tax burden has been minimized, seen from the total efficiency of tax savings of Rp. 24,166,582 in the 2019-2021 period.

Corporate income tax competition and efficient tax base equalization

The literature on tax competition argues that the representative tax system (RTS), which is a standard form of tax base equalization, can internalize interregional externalities due to capital mobility. Although this conventional view holds when per unit tax on capital is imposed, it does not hold when corporate income is subject to tax. This paper proposes an efficient tax base equalization system under which each region’s tax base is evaluated by the average factor return of all regions, not by each region’s factor return (as in RTS). By investigating the nature of externalities arising from non-cooperative tax policy, we explain the workings of our “average-return” tax base equalization system.

Eight Months of 2022 for the Consolidated Budgets of the Subjects of the Russian Federation and Prospects for the Budget Triennial

The change in the geopolitical situation and the increase in economic sanctions against the Russian economy in the first eight months of 2022 did not lead to a serious deterioration in the budget results for regional budgets. Receipts of the total amount of revenues of the consolidated budgets of the subjects of the Russian Federation and key tax revenues grew faster than the rate of inflation. There is a gradual deterioration in the situation with the receipt of corporate income tax in regional budgets starting from May of this year. Personal income tax receipts are growing, but mainly due to payments from high-income categories of the population. In the conditions of growing price volatility on world markets, the factor of industry specialization of the region is gaining an increasing influence on the differentiation of regional budget revenues. Changes in tax legislation coming into force from 2023 may result in the redistribution of some of the revenues of regional budgets in favor of the federal budget. There is a tendency to reduce tax revenues in relatively prosperous regions. The planned reduction of federal transfers in real terms and relative to GDP will mainly affect the problem regions — their main recipients. This will inevitably lead to an aggravation of problems with the fulfillment of growing social obligations in all categories of regions.

Efekti poreza na dohodak na stopu nezaposlenosti u Sjedinjenim Američkim Državama

This study investigates the correlation between state income tax and unemployment rates across the United States. Using panel data in 50 states pertaining to the period from 2006 to 2022 with different regression models, the results suggest that the state corporate and personal income tax rates are positively correlated with the state unemployment rate. Specifically, a 1% decrease in the personal income tax rate may lead to a 0.712% decrease in the state unemployment rate, and a 1% decrease in the corporate income tax rate may cause a drop of 0.328% in the state unemployment rate. In addition, the results show that a personal income tax hike is associated with an increase of 1.532% in the state unemployment rate, and a corporate income tax hike may increase the state unemployment rate by 0.78%. The results of this study are relevant in the context of increasing government spending in the US and the world. Policymakers and government officials may not want to abuse the tax policy to fund the budget deficits.

Налоги солидарности как инструмент межрегионального перераспределения рентных доходов в России

Increase in rent relations contributes to the strengthening of interregional income inequality, since business entities appropriate the territorial rent in economically developed regions. Traditional income taxation instruments do not deal with the redistribution of territorial rent. On the contrary, such instruments, as the progressive personal income tax in Russia, can increase interregional inequality. Therefore, the presents study aims to substantiate the possibility of using a solidarity tax for interregional redistribution of rent income and develop the optimal tax model for current conditions. The article describes the solidarity tax from the perspective of rent taxation, determines its key features and methods of levying. To examine interregional income inequality, constituent entities of the Russian Federation were clustered using Ward’s method according to average monthly wages and the share of personal income tax in the regional budget. Each cluster is characterised by similar personal income and tax revenue. The solidarity tax burden will be on the regions of the first four clusters. It is proposed to levy the solidarity tax as a personal income surtax on a progressive scale, depending on the ratio of accrued wage of a taxpayer and the average monthly wage in Russia for the previous year. This approach will contribute to a smooth change in the effective personal income tax rate, as well as to at least 74% increase in subsidies to budgets to compensate for raising the wages of public sector employees. The developed proposals can be applied to improve the tax mechanism of redistribution of rent income. Future research may focus on developing alternative models of solidarity taxes, including for entrepreneurial and corporate income, in the context of the Covid-19 pandemic.

Tax policy reform and universal basic income effectiveness in a currency union: Implications for long-term growth, inequality, and welfare

This paper aims to assess tax policy reforms that can sustain universal basic income programs and foster long-term growth and welfare in a currency union that faces fiscal rule constraints and inequality. To address this ongoing government and economics’ debate, we developed a Dynamic Stochastic General Equilibrium Model of universal basic income enriched with three fiscal policy strategies. Results demonstrate that the effectiveness of universal basic income on long-term growth, inequality, and welfare depends on the type of fiscal policy adopted by government to fund it, notably the trade-off between increasing the tax base or reducing public spending. First, under normal circumstances, universal basic income funded by completely eliminating oil subsidies appears to be the best policy for reducing inequality while increasing growth and welfare. Second, when the currency union faces a crisis, a universal basic income funded by increases in different taxes is more effective in combating stagflation and inequality than a universal basic income funded by total oil subsidy elimination. The welfare analysis confirms that, universal basic income funded by the increase in tax on capital gains and the increase in tax on corporate income is successful in reducing income inequality and consumption inequality and improving households’ living standards, its effects lead to higher welfare gains when the economy faces a crisis rather than the economy in normal times.

Tax Stimulation of Economic Growth in Russia: Problems and Prospects

Economic growth is the most important condition for dynamic socio-economic development of any country. The problems of tax stimulation of economic growth in Russia are of particular relevance due to the fact that its indicators are very unstable, for many years the target values have never been achieved, and the efficiency of the tax instruments involved has been much lower than expected. The purpose of this paper is to study the main problems of tax stimulation of economic growth in Russia in connection with the new industrial revolution and to determine its prospective directions. The research methodology is based on the integrated application of the tools of analysis and synthesis; quantitative economic analysis and analysis of tax buoyancy are used to substantiate the main conclusions. Scientific novelty of the research is associated with the substantiation of conceptual provisions of tax stimulation of economic growth in the Russian Federation, the distinctive feature of which is the focus on the formation of a tax regime favorable to it, with a focus on the possibilities of digitalization. The necessity of transition from stimulation of economic growth through the mechanism of corporate income taxation to tax stimulation encouraging investments and innovations through other, more reliable mechanisms in the conditions of digitalization was substantiated. Application of the results: the Ministry of Finance and the Federal Tax Service can use the results of the study in determining the proactive tax policy in the Russian Federation in terms of tax incentives for economic growth.

Structural Impacts of the Tax System on Economic Growth in the Republic of Armenia

Interactions between types of taxes that form the basis of the tax system of the Republic of Armenia and the Gross value added were analyzed in the article. The main objective of the analysis was to observe the behavioral impacts of different types of taxes: corporate income tax, personal income tax, value added tax and excise tax on the growth of the country's GDP according to their functional significance, the main trends and the most typical aspects of these processes were revealed. In this context, it is very important to identify the amount of financial resources the state collects from the economy and allocates to the state treasury in the form of taxes and fees, as well as the distribution of the tax burden on economic sectors, households and others participating in economic processes. In order to find out the nature of the observed relationships and the directions of influence, the ARDL (autoregressive distributed lag) model was used, the use of which allowed to distinguish both short-term and long-term interrelations between observed indicators. As a result of the given analysis, the positive impacts of indirect taxes and the negative impacts of direct taxes on the economic growth were identified and quantified. Nevertheless, the short and long-term impacts of personal income tax on the economic growth is controversial and ambiguous.

Inadequacies in the implementation of the law on tax administration for enterprise’s related-party transactions

Related-party transactions are transactions arising between parties having related-party relationship during their production and business processes. Although related-party transactions are legal themselves, they may create conflicts of interest or lead to other illegal situations, so regulatory agencies often scrutinize them carefully. Tax administration for enterprise’s related-party transactions should be stricter than those of enterprises that only have independent transactions, as the implementation of related transactions has the ability to transfer revenues and profits for the purpose of reducing corporation income tax obligation. Within this article, the author focuses on discussing the provisions of law and the inadequacies in practising law enforcement on tax administration for enterprises having related-party transactions based on the analysis of point d, clause 2, Article 5 of Decree No. 132/2020/NĐ-CP (hereinafter referred to as “Decree 132”). Accordingly, the main inadequacies are examined in the identification of the related-party in the loan transaction between the borrowing enterprise and the credit institution, and in the Identification of the related-party when the borrowing enterprise does not”have medium and long-term debts. Corresponding to each inadequacy are the main solutions, including excluding the related-party relationship when the lending enterprise is an independent credit institution from the borrowing enterprise, adjusting the ratio of loan capital to equity ownership and other related solutions.

Экономико-аналитический подход к оценке налоговых рисков отсутствия фактического права на доход

The subject of the study is the identification by the tax authorities of the dependence of the jurisdiction of the location of the parent companies of Russian organizations on the amount of additional charges for corporate income tax withheld at source in Russia, while controlling the actual right to income (FPA) of a foreign organization. The purpose of the work is to develop proposals for tax risk management in determining the FPA. The article, in conjunction with the analysis of the dynamics of foreign direct investment from Russia, analyzes information on changes in the amounts of corporate income tax paid when paying passive income to foreign recipients, as well as data on the amount of additional tax when monitoring the status of the FPA. As a result of the analysis of court decisions on the basis of the "geography" of the beneficial owners of income from the Russian source, the relationship between the jurisdiction of registration of parent companies of taxpayers and the average amount of additional corporate income tax due to non-compliance with the status of the FPA was established. It is concluded that in the overwhelming majority of tax disputes on the status of the FPA, foreign companies – recipients of income were recognized by the courts as conduit companies created to take advantage of registration in low-tax jurisdictions and abuse the provisions of international tax treaties. It was revealed that over the past seven years, the reason for the outflow of capital from the country was the desire of taxpayers to reduce the effective tax rate by withdrawing profits to low-tax jurisdictions, in which large firms prefer Singapore for structuring cash flows in most cases.

Giersch’s “Volcano” Model and its Application for the Analysis of Regional Disparities in Russia

Relevance. Considerable regional disparities in Russia pose a threat to the country’s economic security, which makes the task of identifying and supporting underperforming regions especially urgent. Research objective. The purpose of the study is to identify the struggling regions by using the "volcano" model. This model has not been previously used in studies on economic space features, which determines the novelty of the proposed research. We are also going to describe the possible ways to support these regions. Data and methods. The study uses correlation analysis to investigate the dependence of GRP of 85 Russian regions on the degree of their remoteness from the ‘vent’ region – the Khanty-Mansi Autonomous Area–Yugra. The analysis was carried out on the basis of cross-sectional data for 2018-2020. The study relies on the data on GRP provided by the Federal State Statistics Service (Rosstat). Results. The results of this study showed that, according to H.Giersch’s methodology, the Khanty-Mansi Autonomous Area-Yugra is the "vent" of the "volcano". By applying this methodology, we have also identified 13 struggling regions. An effective measure to support these regions is to transfer the federal component of the corporate income tax and VAT revenues to their budgets. Meanwhile, the volume of transfers provided to them from the federal budget should remain unchanged. Our calculations show that this measure can create a significant increase in GRP of the Russian regions at the aggregate level, exceeding considerably the losses of the federal budget. Conclusions. The study has shown that the ‘volcano’ models is better suited for the analysis of such countries as Russia, because it makes the research less time-consuming in comparison with the growth poles theory. The results of this study can be used by policy-makers developing the state fiscal policy.

Research of the effectiveness of the system of legal regulation of tax relations for operations with cryptocurrency currently in force

The article deals with the national practicies of direct and indirect taxation of income from cryptoassets in some countries of the world, including Russia, France, Italy, USA, Great Britain, etc. The authors study various approaches to the concept of cryptocurrency for the purposes of fiscal management: macroeconomic, cost, accounting, legal and institutional approaches. According to the authors position cryptocurrencies for tax reasons should be treated as a property and means of payment. Therefore, any income in cryptocurrencies received by taxpayers should be subject to personal income tax or corporate income tax, respectively. The recognition of cryptocurrencies as a means of payment (that is, private money) leads to the need to exempt taxpayers from paying value added tax in cases where cryptocurrencies perform these monetary functions in transactions performed by taxpayers, in particular, they perform the function of a means of payment. Payment of taxes on income of taxpayers received in cryptocurrencies can be carried out both in cryptocurrencies and in national (fiat) currencies. It is permissible to establish a tax declaration of transactions for cryptocurrency. The foundations of the legal regime of taxation of digital currencies in the Russian Federation have been formed. The problems of introducing effective taxation of cryptocurrency transactions in the Russian Federation are identified, as well as changes to tax legislation are proposed, in particular, clarification of the range of objects that can be classified as “digital currency”, synchronization with the law on digital financial assets, determining the tax base and implementing tax control of transactions with cryptocurrency. As the study showed, the approaches to indirect taxation are the most unified. Tax regulation is a potential incentive to reduce the speculative interest of participants in transactions with cryptocurrencies and increase the transparency of taxation of cryptocurrencies.

Corporate Income Tax Preferences as a Tool to Stimulate Innovation

The level of economic growth in Russia at the moment is largely determined by such factors as the number of scientific achievements and the general level of technology development in the country. The Russian Federation does not lag behind in terms of scientific and technological achievements, and it can be said with confidence that at the moment the country has a sufficient number of innovative developments. However, among the weaknesses it should be noted the sector of tax incentives for innovation, which in Russia is developing at a relatively slow pace. In this regard, the purpose of this study is to identify and develop practical recommendations on the issue of stimulating innovation through the application of corporate income tax preferences. The subject of the study is corporate income tax preferences as one of the tools to encourage organizations to invest in innovation and digital development. The main conclusion of the study is that corporate income tax preferences currently do not play such a significant role in stimulating innovative organizations and innovative projects. In order to increase the effectiveness of stimulating innovative enterprises with the help of income tax preferences, it is necessary to pay attention to the problematic aspects indicated in the article, which are often the cause of tax disputes. In addition, this article indicates possible directions for solving these problematic issues, which in the future can generally improve the state of the tax system of the Russian Federation.

ДЕЙСТВИТЕЛЬНОЕ НАЛОГОВОЕ ОБЯЗАТЕЛЬСТВО ОРГАНИЗАЦИИ ПО НАЛОГУ НА ПРИБЫЛЬ: ПРОБЛЕМЫ ТЕОРИИ И ПРАКТИКИ

The subject of the study is the mechanism used by tax authorities to charge income tax to organizations. The relevance of the study is due to the systematic incomplete accounting by the tax authorities in the implementation of tax control of expenses incurred by organizations that overestimate their financial results, leading to the economically unjustified and excessively high direct taxation in all types of economic activity. The purpose of the study is to form a direction for improving the mechanism for calculating corporate income tax used by tax authorities in the implementation of tax control and changing tax practices. The study used an analysis of the legal and regulatory framework, tax practice and economic publications on the mechanism of calculating corporate income tax by tax authorities. The result of the study is the conclusion that in the Russian tax systemwhen exercising tax control there is a constant presence of incomplete accounting by tax authorities of expenses incurred by organizations. Such an approach on the part of the state entails an artificial overestimation of profits and economically unjustified excessively high direct taxation. The practice of tax control contradicts the theory of taxation, the conclusions made in economics, the name and economic essence of the income tax. Changes in the practice of profit taxation should exclude arbitrary manipulation with expenses of organizations for tax authorities. The conclusion is made about the need to change the practice of taxation, the importance of the formation by the tax authorities of the actual tax obligations of organizations for income tax based on the actual profit received using the calculation method for the full determination and accounting of all expenses incurred by the taxpayer

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Abstract. The article examines the state of small and medium-sized businesses in the years of the COVID-19 pandemic and after the beginning of the full-scale invasion of Russia on the territory of Ukraine. The main directions of Ukraine's state programs for the stabilization and development of the economy under the influence of the COVID-19 pandemic, as well as state measures to support small and medium-sized businesses, were analyzed. In the article, we noted that today small and medium-sized businesses are affected differently by military operations, depending on their geographic location. It was found that, in general, the regions of Ukraine can be divided into four categories: "partially occupied regions" (a zone of hostilities), "front-line regions" (at risk of invasion), "support regions" (play a decisive role in the logistics of defense and humanitarian goods) and "safe regions" (regions that are conditionally safe for business activity and have a minimal risk of invasion) We also considered the urgent needs of small and medium-sized businesses and the key problems that stand in the way of their effective functioning during the period of martial law. A number of state support measures, which are already in place to improve the functioning of SMEs, were singled out. We have also proposed a number of initiatives that can be implemented alongside government programs to stabilize economic activity. After conducting research, we came to the conclusion that in the conditions of the financial crisis caused by the pandemic and military actions, it is important to set priorities for certain regions, sectors and types of activities that have strategic and different importance for the region or the state as a whole. In our opinion, the most significant for Ukraine are the introduction of the following measures: ? extension of the period of cancellation of strict tax payment conditions for a certain period; ? postponement of tax payment deadlines and remaining tax payments in case of failure to pay on time; ? suspension of utility payments for SMEs in dangerous areas; ? to develop a system of state insurance of enterprise property in case of damage or loss due to enemy shelling; ? reduction by 50% or cancellation for at least 6 months of the EES with retention of all jobs at the employer; ? reduction or cancellation of the corporate income tax for at least 6 months with full resumption of activity; ? additional tax benefits that will quickly restore and accelerate the pace of economic development; ? creation of favorable conditions for enterprises developing their business on the Internet. Key words: small and medium-sized business, economy, COVID-19, pandemic, martial law, state support, relocated enterprises, front-line enterprises.

ANALISIS PAJAK PENGHASILAN BADAN TERUTANG YANG DIUKUR BERDASARKAN PENJUALAN BERSIH DAN BIAYA OPERASIONAL

This research aims to prove empirically the effect of net sales and operating expenses on Outstanding Corporate Income Tax. The independent variables used in the study were net sales and operating expenses while the dependent variables were owed Corporate Income Tax. This research was conducted in food and beverage sector companies listed on the Indonesia Stock Exchange (IDX) in 2016 - 2020. The research method used is descriptive quantitative. The type of data used is secondary data in the form of financial statements published by food and beverage companies listed on the Indonesia Stock Exchange (IDX) in 2016 - 2020. Samples are collected using the purposive sampling method. The number of companies used as research samples as many as 9 companies with a research period of 5 (five)years, so that as many as 45 samples were obtained. Processing data by using Eviews version 10 for windows by collecting related data then calculating net sales, operating expenses and Income Tax of owed Entities and analyzing descriptivek statisti,panel data model test, panel data regression model, classical assumption test,panel data regression analysis test, T statistical test, F statistics test, and coefficient of determination (R2). The results of the F test of net sales and operating expenses simultaneously affect pajak penghasilan badan terutang. The results of the T test variable net sales and operating expenses partially affect the Outstanding Corporate Income Tax.

Turnover-Based Corporate Income Taxation and Corporate Risk-Taking

Turnover-Based Corporate Income Taxation and Corporate Risk-Taking

ОРГАНИЗАЦИЯ И СОВЕРШЕНСТВОВАНИЕ НАЛОГОВОГО УЧЕТА ДОХОДОВ И РАСХОДОВ МЕТОДОМ НАЧИСЛЕНИЯ НА ПРИМЕРЕ КОММЕРЧЕСКОЙ ОРГАНИЗАЦИИ

A well-organized tax accounting of income and expenses carries the goal of correctly calculating the financial results of the organization and further reliably determining the amounts to be paid to the budget. That is why the organization must constantly improve the tax accounting system, focusing on the current legislation, the needs of accounting services and modern technologies. The purpose of this work is to study the procedure for organizing tax accounting of income and expenses by accrual method, to develop measures aimed at improving the tax accounting of a commercial organization. The subject of the study is the process of tax accounting in terms of the formation of the tax base for income tax. The object of the study is the activity of a commercial organization for the organization and maintenance of tax accounting of income and expenses by accrual method. Special attention at the moment should also be paid to the innovations provided for by the Tax Code of the Russian Federation in terms of filling out and submitting a tax return on corporate income tax. In the scientific work, the tax registers of accounting for income and expenses related to sales, as well as non-operating income and expenses, have been studied. The calculation and analysis of the efficiency of taxation of profits and costs were carried out. the main coefficients – indicators of the tax burden. The problems of tax accounting related to a specific commercial organization are analyzed, as well as measures to overcome them are proposed. Additional registers have been developed that should be introduced into the accounting process of an economic entity

FDI and Tax Policy: Evidence from Indonesia

Foreign Direct Investment (FDI) is an investment from one country into another country. The purpose of this research is to determine the factors that affect the FDI inward in Indonesia. The research object used is the condition of FDI in Indonesia within 50 years from 1970 until 2019 with quantitative research methods. Data analysis was performed using the multiple linear regression and using software statistic E-views. The results shows that Tax Treaty has positive significant effect on FDI. Tax Incentive have no effect on FDI. Corporate Income Tax Rate has negative significant effect on FDI. Furthermore, GDP per Capita and Inflation Rate have no effect on FDI. Trade Openness have no effect on FDI. This indicates that double taxation avoidance agreements are legalized and active between Indonesia and other countries, enlarging the number of foreign direct investment entering Indonesia. The lower the corporate income tax rate imposed in Indonesia, enlarging the Foreign Direct Investment inward in Indonesia.

Risk-Oriented Approach to State Control over the Taxation of Profit of Or-ganizations Based on the Delphi Method

The relevance of the article is due to the fact that the collection of corporate in-come tax is a source of tax risks, consisting in the failure to fill the revenue base of the budget, which threatens the real sovereignty of the state, expressed in independence in foreign affairs and the supremacy of state power in regulat-ing domestic policy, especially in the conditions of economic sanctions against the Russian Federation. The subject of the study is the mechanism for managing the tax risks of the state on corporate income tax through the use of the Delphi method. The objectives of the work are to develop and implement a risk—based approach to state con-trol over the collection of corporate income tax. The results of a study are pre-sented, during which experts in the field of taxation assessed in four rounds the most characteristic violations of the legislation of the Russian Federation on corporate income tax based on the probability of risk occurrence and the de-gree of its impact on the timely and full transfer of tax to the budget. Based on the data obtained, a "traffic light" of risks of typical violations of the legisla-tion of the Russian Federation on corporate income tax was developed for the first time, demonstrating the degree of their influence and the probability of occurrence. Proposals have been formed to improve the regulatory and legal regulation of corporate income tax and tax risk management in the Russian Federation. The conclusion is made about the need for the widespread introduc-tion of a risk-based approach to state control over the collection of corporate income tax based on the Delphi method.