ABSTRACT How does the targeting of personal income tax cuts affect the output multiplier? This paper provides quantitative evidence using a heterogeneous‐agent New‐Keynesian model calibrated to match US distributions of income, wealth, marginal tax rates, and marginal propensities to consume. Labor supply is determined by household preferences on the intensive margin and search frictions on the extensive margin. The model evaluates tax cuts for the bottom‐90 (B90%) and top‐10% of the income distribution in national and cross‐region settings, replicating influential empirical research designs. B90 tax cuts generate larger output effects while incentive effects play a central role in transmission.

ABSTRACT This text examines how media contribute to the formation of fiscal hierarchies. Drawing on sociology and anthropology of taxation and using a comprehensive set of data, including media sources, archival materials, and expert interviews, our study analyzes the implementation of personal income tax (PIT) in the early 90s in Poland, to show how media representations shaped public perceptions of taxpaying and how the initial vision of fostering universal fiscal citizenship was gradually eclipsed by practical concerns. In the process of explaining the new fiscal obligation, the media constructed specific categories of taxpayers: the ‘everyman,’ the ‘average taxpayer,’ and the ‘active taxpayer.’ The ‘everyman,’ with minimal agency in tax matters, was largely absent from public discourse. The ‘average taxpayer’ was portrayed as vulnerable and in need of guidance, while the ‘active taxpayer’ was presented as the ideal model of citizen engagement. These fiscal hierarchies had significant implications for how various groups of taxpayers perceived their relationship with the state and their position in the emerging market economy.

Medical and sports services are often provided to the public for a fee, as the necessary services are not always funded by the government. To reduce the financial burden on medical treatment and encourage people to engage in sports, individuals can apply for tax deductions on their personal income tax. These deductions allow individuals to exempt a portion of their income from taxation, equal to the cost of medical treatment or fitness center services paid for themselves or their close relatives. To qualify for this tax benefit, individuals must provide documentary evidence, and the use of electronic services allows for a simplified process of returning excess taxes.

Double Dividends of China's 2018 personal income tax Reform: Personal income growth and household Consumption upgrading

Asymmetric effects of personal income tax changes on economic activity: Increases, cuts, and for whom

The article provides a comprehensive scientific and legal analysis of the legal nature of court fees reimbursed to an individual by court decision, through the lens of their potential taxation under personal income tax and military tax. The relevance of the study is due to the persistent legal uncertainty and contradictory law enforcement practice, where compensatory payments, by their nature, are often classified by tax authorities as taxable income or an «additional benefit» for the taxpayer. The study examines the provisions of the Tax Code of Ukraine regulating the concepts of income, additional benefit, and taxable object, as well as provisions of civil, commercial, and administrative procedural law that define court fees as part of court costs and establish the mechanism for their allocation and reimbursement. It is substantiated that, by its legal nature, a court fee constitutes a compulsory financial loss borne by a person in order to exercise the constitutional right to judicial protection, and its subsequent reimbursement is purely compensatory and aimed at restoring the party’s prior financial position (restitutio in integrum). Special attention is paid to a critical analysis of the positions of the State Tax Service of Ukraine, set out in letters and individual tax consultations, in which reimbursed court fees are included in the general taxable income of an individual. It is demonstrated that such approaches are inconsistent with both the economic essence of income as an increase in assets and the civil law understanding of losses and their compensation, and also create discriminatory consequences depending on the source of reimbursement for legal costs. A significant part of the article is devoted to the analysis of current judicial practice, in particular the legal positions of the Supreme Court, which consistently holds that reimbursement of court costs, including the court fee, is not the income of the taxpayer, since it does not lead to an increase in their property assets, and, therefore, does not form the object of personal income tax and military levy. Based on the results of the study, a scientifically grounded conclusion was formulated regarding the inadmissibility of a fiscal interpretation of amounts reimbursed as court fees as income or an additional benefit. Directions for improving the tax legislation of Ukraine are proposed by clarifying the relevant provisions in order to eliminate their ambiguous interpretation and ensure the principles of legal certainty, fair taxation, and efficient access to justice.

The sustainability of public finance in times of endogenous and exogenous shocks results from the ability of public authorities and local self-government bodies to adapt to the changes caused by their impact, and to accumulate sufficient budgetary resources for further expenditure according to the budget schedule, including debt servicing and repayment, without excessive debt accumulation and increased insolvency risks. An important role in this process is played by the combination of tax, transfer (grant), and debt instruments for the formation of budgetary resources. The purpose of the article is to show the dynamics and structure of the State Budget revenues in Ukraine as a tool ensuring the sustainability of public finances, based on assessment of the elasticity of budget revenues and major revenue-forming taxes to GDP, and the correlation between budget revenues and economic dynamics. The analysis covers the period 2021-2026. The econometric approach (log-linear econometric models) was used to assess the sensitivity of cumulative budget income, value-added tax, corporate income tax, and personal income tax to changes in GDP. A significant differentiation of tax responsiveness was revealed, reflecting the different role of taxes in shaping the revenue base and in the functioning of automatic fiscal stabilizers. The results demonstrate the elastic nature of state budget revenues and the structural differentiation of tax responsiveness, which is important in forecasting budget revenues and shaping fiscal policy in the conditions of macroeconomic instability. The results demonstrate the State Budget revenues are a critical factor for the resilience of public finance, and their elasticity assessment is an important tool in enhancing the efficiency of fiscal policy and budget forecasting in times of macroeconomic instability.

Subject. The process of transforming personal income taxation at the current stage of development of the Russian tax system. Objectives. To identify the prerequisites that triggered the need for a fundamental revision of personal income tax (PIT) calculation rules — which had not previously been considered problematic; to determine the directions along which the process of their modification proceeded and the economic reasons behind these choices; and to assess the fiscal effect of the decisions adopted over the period 2021–2024. Methods. The study employed general scientific research methods, as well as methods of statistical data processing. Results. It has been proven that the transition to a progressive tax scale, the revision of taxation rules for interest income on bank deposits, and the abolition of bond-related tax preferences constitute interconnected systemic decisions. These measures are firmly embedded in the economic context and represent a continuation of the tax policy course aimed at centralizing tax revenues. Conclusions. The revision of the foundations of personal income taxation in Russia is driven by the need to stabilize public finances under conditions of a federal budget deficit and to balance its revenue side with rising expenditures – without harming regional budgets. The measures adopted have demonstrated high budgetary efficiency.

Government revenue is a major concern and it relies heavily on taxation because it helps in financing of government services, development of infrastructure, and social welfare programs that are essential sources of stability to the economy. The purpose of the research was to evaluate the current status of personal income tax compliance (PITC), measure the links and influences of taxpayer attitude, tax expertise, and social norms with fines and penalties on the compliance. The research methodology applied was the quantitative research design that gathers the primary data in the form of a structured questionnaires given to 316 individual taxpayers in Kawasoti Municipality by means of purposive sampling. The analysis of data were made through descriptive statistics, correlation and regression analysis through SPSS. Some of the major findings indicate that the attitude of taxpayer, knowledge of tax and fines and penalty strongly and positively influence the determination of personal income tax. This implies that optimistic views towards taxpayers, good familiarity to the tax laws, and effective enforcement tools promote compliance. On the opposite, the effect of social norms in this situation was evaluated as having no statistical significance in determining compliance. According to the study, the focus should be on taxpayer education that would lead to positive attitudes, enforcement of penalties and augmenting of the rates of compliance to generate more revenue and facilitate equitable resource allocation by the policymakers.

This article examines the demand- and revenue-side effects of GST rate reductions in India by focussing on interstate heterogeneity in consumption behaviour. It estimates State-specific marginal propensities to consume and derives corresponding consumption multipliers. The results show substantial variation across States and a statistically significant inverse relationship between MPC and per capita income, implying asymmetric consumption and revenue responses to uniform tax changes. Linking these estimates to GST outcomes indicates that States with higher MPCs tend to exhibit greater GST buoyancy. Evidence from structural break tests on national consumption further contextualises the findings, highlighting limits of uniform GST rate rationalisation. These results suggest that the growth and revenue implications of GST rationalisation and personal income tax concessions are likely to differ across states, with lower-income states benefiting more from consumption-led multiplier effects.

The study is devoted to the analysis of cryptocurrency staking as a specific type of activity associated with the creation of new digital currency, as well as to the examination of the possibility and necessity of subjecting income derived from such activity to corporate income tax and personal income tax. The paper addresses issues relating to the emergence of income as a result of staking, the moment of recognition of such income (at the stage of receipt or upon disposal of the digital currency), the deductibility of expenses, the specific features of the taxation of liquid staking, and the imposition of withholding tax at source. An analysis of Russian legislation, academic research, and the technical and other characteristics of staking has led to the conclusion that it is necessary to: tax income arising from staking; provide statutory definitions of the concepts of «staking» and «staking pool»; and introduce into the Tax Code of the Russian Federation special provisions governing the tax consequences of transactions involving digital currencies obtained through staking.

The paper provides the author’s analysis and assessment of the legal nature of monetary compensation for the delayed payment of wages and other payments due to an employee as a wage guarantee and as a means of ensuring the employer’s performance of its obligation. The author critically evaluates the legislator’s position regarding the application to this institution of the legal construct of the employer’s strict (nofault) liability. Particular attention is paid to the intersectoral links between the Tax Code of the Russian Federation and the Labor Code of the Russian Federation from the perspective of the terminological ambiguity of labor law terms and concepts (compensation, compensatory payments) used in the Tax Code of the Russian Federation for the purposes of taxing the monetary compensation in question. The paper also defines the areas of legal uncertainty. The problems are examined through the lens of subsidiary intersectoral regulation on the basis of a generalization of judicial practice and the official positions of the Ministry of Finance of Russia and the Federal Tax Service. The paper concludes that monetary compensation for delayed payment of wages does not constitute income (in the sense of an economic benefit) and should not be qualified as an object of personal income taxation. As a solution the author proposes to overcome and eliminate legal uncertainty and to optimize intersectoral links by introducing amendments to the Labor Code of the Russian Federation (Articles 164, 129, and 130) with regard to the definition of compensation and compensatory payments and wage guarantees, as well as to the Tax Code of the Russian Federation (paragraph 1 of Article 217; paragraph 1 of Article 422) concerning the procedure for exemption from personal income tax and insurance contributions of compensation for delayed payment of wages and other payments.

This article examines the issue of increasing local budget revenues as a necessary condition for improving the efficiency of municipalities in the Russian Federation. In most municipalities in our country, their own tax and non-tax revenues constitute a small portion of local budget revenues, which is explained by the relatively high degree of centralization of the domestic financial system. Local taxes and the standard deductions from the corresponding federal and regional taxes received by lower-level budgets cannot ensure the complete self-sufficiency of local self-government. Moreover, existing financial resources are sufficient, at best, only to "plug holes," while the issue of a development budget remains unaddressed. There is an urgent need to reformat the entire system of financial support for the competence of municipal government, which requires a fundamentally different methodological approach. The subject of this scientific study necessitated an examination of current federal legislation, as well as the practice of its application, in order to identify a set of problems in the context of the effective financial support for the implementation of local self-government powers. Furthermore, scientific works by Russian and foreign authors touching on various aspects of the problem under consideration are analyzed. The methodological basis for the study included logical, formal-legal, comparative-legal, analytical, and systemic approaches. Clearly, municipalities should have their own comprehensive tax and non-tax sources of local budget revenue. This includes increasing (or establishing) the standards for deducting certain federal taxes (personal income tax, corporate tax, etc.); making such taxes as the mineral extraction tax, etc., local. It is also necessary to develop differentiated standards and methods for calculating the amount of subsidies to equalize the budgetary capacity of municipalities, taking into account their type, population size, climate, remoteness, and transportation accessibility.

ABSTRACT Using China’s 2018 personal income tax (PIT) reform as a quasi-natural experiment, this study examines how workforce-level PIT cuts affect corporate risk-taking. We analyse a sample of Chinese A-share listed firms from 2013 to 2022, comprising 29,312 firm-year observations, and employ a difference-in-differences design with continuous treatment intensity based on firms’ exposure to PIT reductions. The results indicate that firms experiencing larger PIT reductions exhibit higher earnings volatility, consistent with increased corporate risk-taking. Mechanism analyses suggest that the effect of PIT reductions operates through channels related to internal liquidity and labour cost rigidity, while there is little evidence that managerial PIT savings drive the results. This effect is more pronounced among firms with higher labour intensity, better corporate governance, and stronger employee bargaining power. We further find that firms increase their capital expenditures and operating leverage following PIT cuts, suggesting that higher risk-taking is reflected in both investment and operating decisions. Overall, the findings suggest that workforce-level PIT relief increases corporate risk-taking by easing labour-related financial constraints and cost-adjustment frictions. These results provide new evidence on the firm-level effects of personal income tax reforms.

ABSTRACT This study analyzes the income redistribution effects of Russia’s flat tax reform using the 2000–2019 Russian Longitudinal Monitoring Survey – Higher School of Economics (RLMS-HSE) database and the MT index decomposition method. We find that Russia’s flat tax reform has a very limited impact on narrowing the income gap among residents. A step-by-step decomposition of the overall effects for the income redistribution reveals that both the tax rate structure and the personal income tax deduction policies under Russian flat tax system are unfavorable for achieving an equitable income redistribution. The trend in tax share changes across different income groups reveals that, in the early stages of the reform, Russia’s flat tax system increases the tax burden on middle-income groups while reducing it for high-income group; in the later stages, the tax burden on low-income groups rises, while that on high-income group continues to decrease, further confirming that the flat tax reform in Russia has been unfavorable in reducing the level of income inequality among residents.

The subject of this study is the examination of changes in fiscal policy following the implementation of the „Polish Deal” program. Specifically, the analysis focuses on the impact of the modifications introduced in the methodology of calculating the Personal Income Tax (PIT) on the extent to which this tax contributes to a more equitable distribution of household income. The aim of the study is to demonstrate, by means of simple and comprehensible calculations suitable for didactic purposes, a quantitative assessment of the redistributive function of PIT before and after the implementation of the „Polish Deal” program. The motivation for this work stems from the observation that, to date, scientific and didactic literature has provided only limited comparative analyses of the redistributive role of PIT within the Polish tax system. Our research relies on the well-established measure of income inequality, the Gini coefficient. Two statistical approaches to its calculation, most frequently cited in the literature, are applied. To reinforce the conclusions and as an independent tool of rapid assessment, regression analysis using the ordinary least squares (OLS) method is also conducted. The findings indicate that the PIT system has fulfilled its redistributive function both prior to and after the „Polish Deal” program. Nevertheless, certain differences favoring the new calculation method are identified. These are reflected in the trajectory of improvements in the Gini coefficient and in the diagnostic indicators of the regression models.

The objective of this study is to identify the tax instruments of the Russian tax system that exhibit the greatest fiscal and socioeconomic efficiency. Using the TOPSIS-entropy multicriteria analysis method, statistical data on tax instruments of the Russian tax system was analyzed. The analysis revealed that the tax on the use of natural resources, with an integral indicator of 0.641, exhibits the greatest fiscal efficiency. Tax instruments with the greatest tax potential were identified, including the personal property tax, which has a significant tax base. The analysis showed that the parameters of the Russian tax system largely implement the regulatory function of taxes and ensure greater economic efficiency than social efficiency. The tax on the use of natural resources has the highest integral indicator of socioeconomic efficiency (0.858), reflecting greater tax support and the creation of the most favorable tax conditions for the resource-extracting industries. This is confirmed by the values of the integrated economic efficiency indicator for corporate income tax (0.132), simplified tax system tax (0.090), and the unified agricultural tax (0.073). The study showed that taxes that should largely fulfill social functions, such as personal income tax (0.088) and personal property tax (0.063), fail to do so. The study proposed a tax function imbalance coefficient, which showed that the greatest disproportions in the implementation of fiscal and socio-economic functions are found in personal income tax (0.383) and personal property tax (0.366).

One of the sources of revenue in personal income tax is property rights. The scope of this source of revenue is further specified in Article 18 of the Personal Income Tax Act, although this is not an exhaustive list. The concept of property rights is not defined in either civil or tax law, therefore, when making interpretations, reference should be made to the body of legal doctrine, particularly civil law doctrine. Only property rights, which are a form of subjective rights in the civil law sense, can be a source of revenue in personal income tax. Only such property rights can generate tax revenue, understood as an increase in property. However, entity rights arising from public law relationships, such as various tax reliefs, cannot be considered revenue within the meaning of the Personal Income Tax Act.

This technical assistance report responds to the Republic of Serbia’s request for a comprehensive framework to report tax expenditures across the personal income tax (PIT), corporate income tax (CIT), and value-added tax (VAT). It defines benchmark tax systems for these three major taxes, outlines methodologies for estimating associated tax expenditures, and provides preliminary results. The analysis shows that VAT-related tax expenditures represent the largest fiscal cost, followed by PIT and CIT. VAT benefits are disproportionately captured by higher-consumption households, while CIT benefits are heavily concentrated among a small number of large firms. The report recommends institutionalizing regular tax expenditure reporting, improving data governance and inter-agency coordination, and strengthening capacity for microsimulation modeling to support ongoing fiscal analysis and enhance transparency.

This technical assistance report responds to Cambodia’s Ministry of Economy and Finance request to support the development of a comprehensive framework for assessing tax expenditures. The report finds that Cambodia’s tax expenditures are widespread, costly, and largely unreported, with preliminary estimates pointing to sizeable fiscal cost. The assessment covers four major taxes—Personal Income Tax, Business Income Tax, Value Added Tax, and Specific Taxes (excises)—and recommends establishing clear benchmark tax systems, improving data quality, and institutionalizing regular tax expenditure reporting integrated into the budget process. The report emphasizes prioritizing capacity building, developing microsimulation models, and focusing evaluation efforts on the costliest tax expenditures to enhance transparency, fiscal discipline, and revenue mobilization.