Domestic Tax Research Articles

Features of overtime work payment by medical organizations

The problem of rationing the volume of labor activity is one of the urgent for medical workers. Questions regarding the duration of working hours for doctors of various specialties cause difficulties for both the workers themselves and for economists and accountants. One of the greatest difficulties from the point of view of domestic labor and tax legislation is caused by the aspects of registration and accounting in the calculation and reporting documentation of work performed in excess of the normal number of working hours, which is very common in the field of medicine — it is impossible to accurately schedule the time of work of medical personnel with each patient. This article discusses the specifics of recording and processing overtime work in the healthcare sector in compliance with accounting requirements and principles. In accordance with Article 99 of the Labor Code of the Russian Federation, key legal norms, organizational aspects, and methods of registration of overtime hours worked by employees of medical organizations are outlined and analyzed. On specific theoretical provisions and practical examples, the authors explore the processes of personnel and accounting for overtime work and specifics, proposing possible ways to regulate the process of accounting and tariffication of employees in accordance with the accounting policy of medical organizations.

Effects of the Global Minimum Tax on Income Tax Incentive Framework in Indonesia

In this article, the authors analyse Indonesia’s tax incentives to lure investments and its commitment to adopt the GMT. Such adoption could potentially reduce a company’s effective tax rate to under 15%, possibly diverting revenue from Indonesia to other jurisdictions. The article suggests that the GMT’s introduction in Indonesia will influence various tax incentives, primarily those based on income, including tax holidays, tax allowances, super tax deductions, discounted rates and regional development incentives. Post-GMT, the government plans to introduce the qualified domestic minimum top-up tax to safeguard national revenue during GMT’s roll-out and the qualified refundable tax credit to maintain Indonesia’s competitive investment environment following GMT’s implementation.

Fiscal revenue mobilization and digitally traded products: Taxing at the border or behind it?

The unprecedented growth of trade in digitized products has been underpinned by the World Trade Organization (WTO) moratorium on customs duties on electronic transmission, which effectively guarantees the tariff-free nature of this trade. Some countries fear that the current rules inefficiently constrain their policy space and hurt their revenue potential, and have argued for scrapping the moratorium. We examine the optimal role for domestic and border tax instruments in this context. We show that, independently of the future trajectory of trade in digitized products, broad-based nondiscriminatory value-added taxes are preferrable to tariffs both from an economic efficiency and from a revenue standpoint. These taxes are also easier to implement and administer. In this context, the moratorium is a valuable commitment device which can help to effectively channel developing countries’ tax reform efforts in a more efficient direction. This transition would require further investment by the global community in modernizing the tax and customs infrastructure of developing countries to adequately meet revenue needs in the digital era.

Is TCR effective in reducing tax avoidance in Indonesia?

Thin capitalization is a tax avoidance technique using funding sources that prioritize debt over capital. Thin capitalization can be used as a technique to avoid taxes because there is a difference in treatment between debt and capital as a source of funding in tax regulations. Thin capitalization rule (TCR) is domestic tax system to reduce thin capitalization. This study aims to examine the effect of implementing thin capitalization rules on reducing tax avoidance in Indonesia. This study is a quantitative study. The data used are secondary data obtained from multinational companies listed on the IDX from 2013 to 2020 by excluding companies that are excluded from PMK-169: bank companies, financing institutions, insurance, reinsurance, operating in the oil and gas mining sector, companies whose entire income is subject to final tax, and infrastructure. The data analysis method used in this study is regression using the eviews 12.0 program. The results show that the implementation of thin capitalization rule (TCR) does not reduce tax avoidance. These results provide empirical evidence that the government need to consider using thin capitalization rule with the interest to Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) rule mechanism rather than the Debt-to-Equity Ratio (DER) rule mechanism and arm’s length rule mechanism.

TAXATION SYSTEMS OF UKRAINE AND POLAND: COMMON AND DIFFERENT FEATURES

The article provides a comprehensive study of the common and distinctive features of the taxation system in Ukraine and Poland, focusing on indirect taxes, namely: value added tax (VAT), excise tax, and customs duties. Peculiarities of taxation of the main direct taxes: personal income tax (PIT) and corporate income tax (CIT) have been studied. The purpose of the study is to determine the common and distinctive features of the construction of the tax systems of Ukraine and Poland, the functioning of the main budget-forming taxes, their rates, the conditions for applying tax benefits, as well as the possibility of implementing foreign experience in order to improve the domestic taxation system. The research methodology included a comparative analysis of legislative acts, statistical data and practical aspects of the functioning of the tax systems of Ukraine and Poland. The results of the study showed that although both countries apply similar types of indirect taxes, there are significant differences in rates and approaches to their administration. It was found that the VAT rate in Poland is 23%, while in Ukraine it is 20%, and a progressive scale of personal income taxation is applied at rates from 17% to 32%, in Ukraine there is a fixed rate of 18%, with respect to the tax on profit of enterprises, in Poland the standard rate is 19%, while in Ukraine it is 18%. The authors of the article also found that the Polish tax system is more stable and predictable, which contributes to a better investment climate and economic growth. In Ukraine, tax legislation is characterized by frequent changes and complexity of administration, which creates additional challenges for business. The findings of the study emphasize the importance of reforming the tax system of Ukraine in order to increase its transparency, stability and efficiency. In particular, it is recommended to simplify tax administration procedures taking into account Poland experience and harmonize tax legislation to European standards.

Green investments: a modern tool for sustainable development of tourism (on the example of the Autonomous Republic of Adjara)

The article discusses the impact of green investments on the sustainable development of tourism in the Autonomous Republic of Adjara and the creation of an eco-friendly, diverse tourist product. Data from various sources were studied and analyzed using the method of qualitative literature review, on the basis of which it was determined that the approach of making green investments in the world is becoming more and more relevant and responds to the challenges facing humanity globally - the creation of an eco-friendly environment, especially where people go for recreation and health. The article explains the global practice of green investments and their use, the findings reflected in the international scientific literature. Within the framework of the article, qualitative research was carried out using international literature, world practice, the Ministry of Finance and Economy of the Autonomous Republic of Adjara, A study of the activities, strategic plans and investment policies of the Department of Tourism and Resorts of Adjara, NNLE Tourism Products Development Agency on the positive impact of green investments. By evaluating the statistical data and using the comparative-analytical method, it was determined that there is a scarcity of green investments in the Autonomous Republic of Adjara, from the point of view of the tourist product, services are mainly provided using natural resources. By generalizing the results of the research, recommendations are created that will help the Autonomous Republic of Adjara to create a variety of tourist products and reduce the impact on the environment in the wake of mass tourism. In addition, this will allow the region to establish the status of a 4season tourist destination in international target countries. The possibility of implementing the presented recommendations requires additional research, both of the environmental study and of the domestic tax policy. The article will be interesting for specialists who work in the field of state policy research and implementation of innovative governance systems and mechanisms, as well as for students.

The Legitimacy of Tax Law in Europe and the United States: Comparing Decision-Making Processes in Domestic Tax Law

This article examines the tax legislation decision-making processes in European countries and the United States, noting similarities and differences in legislative initiative, constitutional review and citizen participation. These aspects of the legislative processes and other characteristics are analysed to assess their effect on the legitimacy of the tax system.

Asymmetric Double Tax Treaties: Relief Method and Tax Sparing for Foreign Direct Investment in Developing Countries

This paper focuses on asymmetric tax treaties and investigates from an empirical perspective the impact of OECD member states’ double tax relief method and of treaty tax-sparing provisions on investments in developing countries, while considering network effects. Our results suggest that having a treaty between the OECD member state and the developing country, which improves the investor's conditions in terms of tax burden, by changing the unilateral tax relief method, increases FDI to the developing country. The positive effect prevails when investigated within investments made through the direct route from residence to source. Results suggest that OECD member states offer tax-sparing provisions mostly to less-developed economies, which already receive very low FDI. Finally, we extend the investigation to an analysis of the impact of residence countries’ tax relief methods on source countries’ domestic tax policy. Our results suggest that developing countries set higher CIT rates when the OECD member state relieves double taxation through the exemption method, as compared to when it offers a foreign tax credit.

Проблемы формирования налоговой культуры в России

This article addresses the issues surrounding the formation of the domestic tax culture in Russia. These issues are largely attributed to the state of “cultural tax shock” experienced by the Russian population in the post-perestroika period. However, even in Soviet times and earlier, a characteristic feature of Russian mentality known as “tax nihilism” was observed. The current state of tax culture can be characterized in two aspects: by examining the level of tax literacy among the population and taxpayers’ trust in tax authorities. Particular attention should be paid to youth in the formation of tax culture due to their detachment from the consequences of the societal transformation processes at the end of the last century. The article analyzes ways to increase the level of tax literacy among Russian schoolchildren. However, the problem of tax literacy among Russian students persists, coupled with the increasing prevalence of secondary employment among them. Measures to enhance public trust in tax authorities are also considered. The article emphasizes the role of developing the theoretical basis of tax culture, which requires attention not only to developments in traditional fields of law and economics but also in social research on fiscal sociology and the philosophy of taxation. In conclusion, the formation of tax culture in Russia faces multifaceted challenges stemming from historical legacies, societal perceptions, and educational gaps. By addressing these issues holistically, Russia can progress towards cultivating a more informed and cooperative tax culture among its populace.

Could the EU carbon border adjustment mechanism promote climate mitigation? An economy-wide analysis

Due to concerns about carbon leakage and sectoral competitiveness, the European Union (EU) proposed implementing the carbon border adjustment mechanism (CBAM). The effectiveness and potential negative consequences of CBAM have aroused extensive discussion. From the perspective of the economy-wide analysis, this study uses a global computable general equilibrium model to explore the rationality of CBAM from the aspects of socioeconomic impact and the effects of promoting climate mitigation. Furthermore, the potential alternative mechanism of CBAM is proposed. The results show that CBAM can reduce the EU's gross domestic product (GDP) loss; however, the GDP loss in all other regions increases. Moreover, CBAM raises household welfare losses in most regions, including the EU. Second, although CBAM can reduce the marginal abatement cost in eight regions, it comes at the cost of greater economic losses. Furthermore, the economic and household welfare cost of raising emissions reduction targets in regions like the USA and Japan is substantially higher than the impact of passively accepting the CBAM; therefore, CBAM's ability to drive ambitious emission reduction initiatives may be limited. Finally, for the potential alternative mechanism, from the perspective of reducing economic cost and household welfare losses, the EU could implement domestic tax cuts in the short-term and promote global unified carbon pricing in the long-term.

The tax revenue implication of trade liberalisation in sub‐Saharan Africa: Some new evidence

AbstractDespite the advent of trade liberalisation, trade taxes still remain a key source of tax revenues in sub‐Saharan Africa. Further trade reforms in the form of the African Continental Free Trade Area could, however, hinder output growth in the region if these reforms lead to a decline in total tax revenues. Motivated by this conundrum, this paper investigates the impact of trade liberalisation on tax revenues across a panel of sub‐Saharan African countries. The results indicate that trade liberalisation is associated with an increase in total tax revenues. Also, the reduction of import and export duties significantly increases and decreases domestic and trade tax revenues, respectively. In addition, greater urbanisation is associated with an increase in total tax revenues, while inflation decreases tax revenues.

Evaluating taxation’s dual impact on business and social development: A case study of the Cape Coast metropolis in Ghana

Tax revenue is an important public asset that contributes significantly to a nation’s economic development. The primary function of every government is to make provision in terms of infrastructure facilities, development, and better living conditions for its people. Due to the government’s limited resources, it is necessary to impose taxes on all residents and businesses to strengthen its financial situation because it is impossible for it to carry out this large task in an effective manner. Governments have always passed numerous tax laws, and they have been amended to withstand the test of time. Therefore, this study’s goal is to determine whether taxes have an impact on economic development in the Cape Coast Metropolis in Ghana. The study used the quantitative approach, survey technique, and questionnaire for the data collection process. A sample size of 115 respondents comprising the staff of the domestic tax revenue division’s workforce and owners of registered SMEs were engaged in the study. The data was analyzed using the SPSS version 26. The results indicated that the majority of the staff of Ghana Revenue Authority (GRA) considered payment of tax as beneficial to the state while few of the staff did not consider payment of tax as beneficial to the state. In addition, the study outcomes show that respondents are aware of the extent to which tax revenue can be used by the government for economic development. Furthermore, the researchers recommended that the head of GRA create a strong regulatory framework to monitor how tax money is used for economic growth. They should also make an effort to ensure that the tax revenue generated will be wisely used for the growth of the metropolis. This will make taxpayers appreciate the need to pay their taxes because they know they will benefit from it in the end in the form of social and economic developments.

Urgency and Impact of Green Taxes Implementation in Encouraging Green Business Post Covid-19

This study aims to examine the urgency, impact and strategy of Green Taxes in encouraging Green Business after the Covid-19 pandemic. This study uses a qualitative approach with a comparative descriptive type of research, in which the application of Green Taxes in various countries for the purpose of encouraging Green Business is compared to the conditions in Indonesia. The results of the research show that environmental damage due to industrial activities that occur in Indonesia can harm the country because, coupled with the COVID-19 pandemic, the end of which is not yet known, it will increase the state’s health spending. It. Many countries have successfully implemented Green Taxes and changed their business patterns to be environmentally friendly, although the negative impact of the green tax implementation, i.e. a decrease in net profit in the business sector, can result in layoffs and a decrease in tax revenue in several sectors. The application of Green Taxes in Indonesia is still at the level of the domestic tax function, which can be seen in the increasing target and realization of Green Taxes each year. The government must be more assertive in enforcing Green Taxes and be transparent in the use of the funds. Supervision in the implementation of the green tax policies must also be improved so that the expected goals can be achieved.

Analisis Pemotongan, Penyetoran dan Pelaporan Pajak Penghasilan Pasal 23 pada PT. Wijaya Karya Beton Tbk PPB Sumatera Utara

One of the income taxes is Income Tax Article 23. In Income Tax Article 23 there is a process of withholding, depositing and reporting where if an error occurs in the process it can result in a shortfall in the amount of tax that should be deposited into the state treasury. Article 23 Income Tax Withholders are parties who pay income, namely government bodies, domestic corporate tax subjects, activity organizers, permanent establishments and other overseas representatives. This research was conducted at PT. Wijaya Karya Beton Tbk PPB. The aim of this research is to analyze the deduction, deposit and reporting of Income Tax Article 23 at PT. Wijaya Karya Beton Tbk PPB North Sumatra. The analytical method used is the descriptive method. Based on the research results, PT. Wijaya Karya Beton has implemented Article 23 Income Tax deductions and reporting in accordance with applicable tax regulations but PT. Wijaya Karya Beton TBK PPb North Sumatra in the implementation of income tax payment article 23 there are still things that are not on time, namely exceeding the deposit limit specified in Law Number 36 of 2008 concerning income tax article 23. In this research it can be concluded that PT. Wijaya Karya Beton has carried out its obligations properly in carrying out deductions and reporting Income Tax Article 23 and it is best that in carrying out the payment of income tax article 23 not exceed the deposit limit specified in Law Number 36 of 2008 concerning income tax article 23.

EXAMINE THE EFFECTS OF GOODS AND SERVICES TAX (GST) AND ITS COMPLIANCE: REFERENCE TO SIERRA LEONE

This study analyzes the effects of (GST) and how it is being implemented in Sierra Leone. GST replaces previous taxes, including domestic sales tax, import sales tax, entertainment tax, hotel room tax, restaurant tax, food tax etc. The objectives of this study are to know the effect of GST on the Sierra Leone Economy, to know if GST implementation will lead to an increase in prices of goods and services; to assess GST compliance rate in Sierra Leone; and to know the reasons for GST implementation in Sierra Leone. The data collection method used both primary and secondary sources the study's participants were 89 employees of NRA and business owners in Sierra Leone 2021 to 2023. Questions were analyzed using SPSS in the form of descriptive analysis, chart, and correlation coefficient. The results showed that GST implementation has positive effects on Sierra Leone Economy. The introduction of GST is to boost revenue and promote economic growth in Sierra Leone. GST introduction in Sierra Leone has resulted in increased prices of goods and services. It is recommended that the NRA should provide tax education and awareness and provide availability and accessibility of technological infrastructure for GST implementation in the country.

EXAMINE THE EFFECTS OF GOODS AND SERVICES TAX (GST) AND ITS COMPLIANCE: REFERENCE TO SIERRA LEONE

This study analyzes the effects of (GST) and how it is being implemented in Sierra Leone. GST replaces previous taxes, including domestic sales tax, import sales tax, entertainment tax, hotel room tax, restaurant tax, food tax etc. The objectives of this study are to know the effect of GST on the Sierra Leone Economy, to know if GST implementation will lead to an increase in prices of goods and services; to assess GST compliance rate in Sierra Leone; and to know the reasons for GST implementation in Sierra Leone. The data collection method used both primary and secondary sources the study's participants were 89 employees of NRA and business owners in Sierra Leone 2021 to 2023. Questions were analyzed using SPSS in the form of descriptive analysis, chart, and correlation coefficient. The results showed that GST implementation has positive effects on Sierra Leone Economy. The introduction of GST is to boost revenue and promote economic growth in Sierra Leone. GST introduction in Sierra Leone has resulted in increased prices of goods and services. It is recommended that the NRA should provide tax education and awareness and provide availability and accessibility of technological infrastructure for GST implementation in the country.

International investment agreements and the global minimum tax: of treaty troubles and investment incentives

Abstract Statutory and effective tax rates have witnessed a marked decline over the past decades, prompting international tax policymakers to grapple with the challenge of tax competition. The latest tool in this struggle is the global minimum tax (GMT). This paper examines the intersection between the GMT and International Investment Agreements (IIAs). It first briefly explains the operation of the GMT and reviews how IIAs address domestic tax measures. It goes on to argue that multinational enterprises (MNEs) affected by the GMT are unlikely to file large numbers of investor-State dispute settlement cases to challenge its implementation. Instead, MNEs will leverage IIAs in seeking to replace corporate income tax incentives captured by the minimum tax with alternative economic benefits. Given how income-tax-based investment incentives are administered in practice, many MNEs could plausibly argue that the withdrawal or undermining of these incentives through top-up taxes violates IIA protection standards. The paper concludes by outlining the potential motivations and options for MNEs seeking to replace tax incentives and the implications for the ongoing global effort to address tax challenges. Ultimately, the GMT’s design means that the race to the bottom is likely to shift elsewhere.

Keeping Mobile Firms at Home: The Role of Public Enterprise

Abstract We show that the presence of a public firm can deter private firms from relocating to foreign countries in response to high domestic taxation. We also examine partially privatized public firms showing that the higher the exogenous domestic profit tax, the larger the public ownership share needs to be to deter private firm mobility. We illustrate that deterring mobility increases domestic welfare.

Managing government debt

To construct a stochastic version of [R. J. Barro, J. Polit. Econ. 87, 940-971 (1979)] normative model of tax rates and debt/GDP dynamics, we add risks and markets for trading them along lines suggested by [K. J. Arrow, Rev. Econ. Stud. 31, 91-96 (1964)] and [R. J. Shiller, Creating Institutions for Managing Society's Largest Economic Risks (OUP, Oxford, 1994)]. These modifications preserve Barro's prescriptions that a government should keep its debt-gross domestic product (GDP) ratio and tax rate constant over time and also prescribe that the government insure its primary surplus risk by selling or buying the same number of shares of a Shiller macro security each period.

Sustainable sides of taxation: An international law approach

This article explores from an international law perspective how taxation can be used by states as an instrument to address the mutually reinforcing themes of sustainability and human rights, and to sustain a civilisation. In doing so, the article discusses how far the maximisation of financial resources through a domestic tax system is necessary for the attainment of the United Nations Sustainable Development Goals. It further discusses whether tax avoidance by multinational enterprises is an infringement of the human rights obligations undertaken by states under the International Covenant on Economic, Social and Cultural Rights.