Special Tax Regimes Research Articles

Preferential Personal Income Tax Regimes in the European Union: A New Form of Permitted (Harmful) Tax Competition?

The aim of this contribution is to examine whether the current normative framework of the European Union is adequately equipped to deal with the potentially harmful effects of the so-called preferential personal income tax regimes (PPITRs). For that purpose, after providing an overview of these special tax measures within the EU landscape, the article analyses whether these regimes could be considered a new form of harmful tax competition under the international soft law instruments developed by the OECD and European Union. It is highlighted that these instruments at present do not cover personal income tax rules, although the effects of PPITRs can be as harmful as those of preferential corporate income tax regimes. With regard to other EU instruments (State aid rules, fundamental freedoms and the fundamental right to equality), it is concluded that they are not adequate to tackle in a systematic way the potential harmful effects of special tax regimes targeting individuals. To remedy this hiatus, a proposal is made to extend the mandate of the EU Code of Conduct and adapt the currently applicable criteria under the Code to enable it to capture harmful PPITRs.

Аналитическая оценка правового регулирования реализации профессиональных услуг средними медицинскими работниками в качестве дополнительного дохода.

In the Russian Federation, the practice of providing medical services at home by specialists with secondary medical education has developed. Despite the fact that there are currently no direct restrictions on entrepreneurial activity in the Russian Federation, the existing legal framework for the sale of professional services by secondary medical workers contains a number of lacunae that contribute to the development of the shadow economy of healthcare. According to expert estimates, the revenues of the shadow market of medical services in 2023 amounted to 215 billion in real terms. At the same time, services provided to patients outside the framework of the legislation of the Russian Federation may be of poor quality due to non-compliance by performers with standards of medical care, failure to comply with sanitary and epidemiological norms and rules, and lack of control by inspection bodies. The purpose of the study is to use international experience to conduct an analytical assessment of the legal regulation of the sale of professional services by secondary medical professionals as an additional income. Methods and materials. The study analyzed the legislation of six countries: the Russian Federation, the Republic of Kazakhstan, the Republic of Uzbekistan, the Federal Republic of Germany, the French Republic and the Kingdom of Belgium on the provision of paid medical services by specialists with secondary medical education. Results. One of the reasons for the growth of the shadow sector, it seems possible to highlight the problem of excessive legal regulation of the commercial activities of nursing staff. In the Russian Federation, the provision of «nursing» medical services refers to licensed activities. At the same time, the development of current legislation on «self-employment» with the addition of «services of secondary medical personnel» to the list of activities will allow legalizing part of the shadow sector of medical services. According to the above comparative legal analysis, nurses in Uzbekistan, Germany, France and Belgium can work in the statuses of «selfemployed», «Freiberufler», «Entreprise individuelle» and «self-employed», respectively. Each of the statuses allows specialists with secondary professional medical education to provide their services within the legal framework, conclude contracts with patients and maintain medical records without excessive licensing rules, which are presented in the Russian Federation or the Republic of Kazakhstan. Conclusion. Thus, both according to expert estimates and according to the results of a comparative legal study, in order to reduce the size of the shadow sector of medical services, in particular, to legalize the provision of nursing care «at home», it seems rational to add the services of specialists with secondary medical education to the list of activities provided by the self-employed in accordance with Federal Law «On conducting an experiment to establish a special tax regime «Tax on professional income».

Інституціональний базис для регулювання ринку логістичних послуг в україні та її регіонах з боку держави

The transformation of the Ukrainian economy towards market relations has brought to light significant imbalances in the logistics sector. A lack of an adequate theoretical framework and a clear state policy in this area has led to several problems. These include insufficient information support of logistics processes, a limited number of large logistics operators, and a need for more research and development in logistics. These factors complicate the optimization of trade flows and reduce the competitiveness of Ukrainian enterprises, making it an urgent matter that requires immediate attention. This publication aims to provide a detailed study of the system architecture and the evolution of forms of state regulation in the logistics sector. The architecture of the state regulation system in logistics provides a structured and comprehensive approach to managing logistics processes at the state level. It includes several main components that interact to ensure the effective functioning of the logistics services market. It is necessary to implement modern approaches to the state regulation of logistics services to ensure the Ukrainian economy’s sustainable development and improve citizens’ quality of life. These approaches can potentially revolutionize the sector, bringing about significant improvements. In particular, the priority task is to create a single digital window platform that will combine all permitting procedures into a single electronic service. At the same time, the government should actively work on harmonizing Ukrainian customs legislation with European standards, which will significantly simplify customs formalities and speed up the movement of goods. Implementing these measures will help increase the competitiveness of Ukrainian businesses and attract foreign investment, paving the way for a brighter future for the Ukrainian logistics sector. It is crucial to ensure close cooperation between the state and business. Regular consultations, transparency of regulatory procedures, and flexibility of legislation are critical factors for attracting investment and stimulating innovation. Introducing special tax regimes, such as corporate tax rebates for companies investing in infrastructure development and support for start-ups and innovative companies, will help modernize the industry and increase efficiency. However, the most significant step is harmonizing Ukrainian legislation with European standards. This is not just a formality but a significant milestone that will facilitate Ukraine’s integration into the European Economic Area, opening new opportunities for the Ukrainian logistics sector and paving the way for its growth and development. Keywords: state regulation, institutionalism, institutional framework, logistics, logistics sector, logistics regulation.

The single tax in Ukraine: reform or repeal

The institution of a simplified taxation system provided for in the tax system of Ukraine is characterized by permanent variability, which is always aimed at achieving an optimal balance between national interests (reduction of the shadow economy sector; attracting funds to budgets; reducing the level of tax administration costs; preventing the use of simplified taxation system in minimization schemes; etc.) and individual interests of taxpayers (reducing the tax burden; promoting the competitiveness of taxpayers; improving the convenience of paying taxes; minimizing the amount of tax reporting; etc.). Since the introduction of the simplified taxation system, it has been significantly transformed and, compared to 1998, is qualitatively better. Despite this, discussions in political and scientific circles about the need to take steps to further modify this special tax regime, up to its complete abolition, do not stop. The article considers the National Revenue Strategy until 2030 approved by the supreme executive body of Ukraine, which defines a medium-term roadmap for reforming tax policy and tax administration in Ukraine. The article outlines the main principles that should be followed in modernizing the national simplified taxation system and considers the goals that the state seeks to achieve through the practical implementation of the approved strategy. The author describes in detail the key measures envisaged by this national strategy for reforming the simplified taxation system, including in the context of Europeanization of the tax system of Ukraine, and points out the uncertainty of certain elements of these measures, which leads to complications in the tax planning process for entities. The author concludes that the approved national strategy, which is aimed at approximating the national tax policy and tax legislation of Ukraine to the provisions of the European Union legislation, provides for depriving legal entities (including agricultural producers) of the right to tax their income with a single tax, and defines measures to tighten the requirements for single tax payers (individual entrepreneurs) and increase their tax burden.

Предпринимательский доход или целевой капитал: спорный вопрос налогообложения товариществ собственников недвижимост

Understanding the meaning and content of legal norms is one of the most important processes carried out in the field of application of legislation on taxes and fees, while legal and technical techniques for expressing certain legislative provisions establishing special tax regimes are of great importance. The uncertain nature of the rules on the formation of endowment capital by non-profit organizations allows the business practices of these partnerships to be brought under preferential tax regimes, although they do not form endowment capital, but they can actively use a pseudo-legal mechanism for tax exemption.

Impact of tax policy on the development of agrarian enterprises and organisations

The purpose of this study was to analyse the role of tax policy in the agricultural sector to determine its impact on innovative development, investment decisions, and competitiveness of enterprises in this area. The study performed a comparative analysis of various aspects of tax regulation, review of taxation instruments, consideration of special tax regimes in such countries as the USA, Germany, France, Spain, Poland, and Kyrgyzstan. The study investigated various aspects of tax regulation that have direct and indirect impact on the functioning of the agricultural sector. The role of tax policy in stimulating investment and development in agriculture by providing tax incentives and subsidies for investment in innovative technologies, process mechanisation, and research was examined. Special tax regimes aimed at supporting agricultural enterprises were analysed, and examples of tax policies in different countries, including the USA, the European Union, China, India, and Kyrgyzstan, were provided. The state of agricultural development in Kyrgyzstan was reviewed, and the main challenges, government support measures, and the main land tax rates across the country were identified. The key point was to develop recommendations for improving the tax system to stimulate agricultural development derived from the synthesis method. This involves the introduction of tax exemptions and investment incentives, differentiation of tax rates depending on segments and regions of agriculture, stakeholder consultations, simplification of tax administration, and attraction of foreign investment through special tax regimes. Concrete examples were also given of large agricultural enterprises in different countries where improved tax policies can contribute to the development and efficiency of their operations

Проблематика характера взаимной связи налогов и специальных налоговых режимов: к вопросу определения правовой природы и сущности

The need to improve existing and develop new special tax regimes determines the need to study the issues of the legal nature and essence of such, their correlation and (or) connection with other tax and legal phenomena (primarily taxes). The aim of this article is to determine the nature of the mutual relationship between taxes and special tax regimes (including addressing the issue of the correctness and scientific permissibility of direct comparison of general, special, and preferential tax regimes). The research was conducted relying on the formal-legal method supplemented by the systemic method. The lack of unified normative and doctrinal positions highlights the pressing need for further scholarly inquiry into this subject matter. Moreover, the author’s assertion regarding the inadmissibility of equating taxes and special tax regimes is compellingly substantiated, emphasizing the distinctiveness of the latter as a tax and legal phenomenon of higher organizational complexity. Special tax regimes, as elucidated, transcend mere tax obligations or mandatory payments, warranting careful consideration and refinement in future tax policy and legal frameworks. This nuanced understanding is essential for fostering effective governance and equitable taxation practices in modern societies.

Реформирование пенсионной системы для плательщиков налога на профессиональный доход: региональная платформа

The difficulties that arose after the entry into force of the Federal Law “On conducting an experiment to estab-lish a special tax regime “Tax on professional income”” dated November 27, 2018 No. 422-FZ require a com-prehensive study and modification of the legislative framework. Many citizens who pay tax on professional in-come do not make contributions to the pension insurance system, which is one of the reasons for the high sub-sidy dependence of the Social Fund of Russia on the federal budget. According to the authors, it is necessary to develop a way to attract citizens to participate in the pension insurance program. The article considers an ex-ample of a possible solution to this issue: the introduction of tax deduction for taxpayers of tax on professional income in part of the tax paid, and assesses its impact on the regional budgets of the constituent entities of the Russian Federation.

IT SECTOR TAXATION IN UKRAINE: FEATURES AND CURRENT TRENDS

IT SECTOR TAXATION IN UKRAINE: FEATURES AND CURRENT TRENDS

The Brazilian Tax Reform: Potential Impacts to the Financial Sector

The Brazilian tax system, known for its complexity, underwent a major change with the approval of Constitutional Amendment Proposal 45 (PEC 45), which was converted into Constitutional Amendment 132 (EC 132) on 20 December 2023. EC 132 aims to simplify the existing tax framework by consolidating five taxes into two – the CBS (contribuição sobre bens e serviços) and IBS (imposto sobre bens e serviços). However, the changes brought by the new system pose challenges, especially for the financial sector, which has, until now, benefited from special tax regimes given the uniqueness of financial transactions, not properly framed by the goals of the most typical VATs. This paper explores the current Brazilian tax system, EC 132’s changes, and their potential impact on the financial sector, focusing on the levy of VATs on financial transactions. Considering that alternatives for the VAT taxation were discussed, the National Congress, as the party responsible for regulating the new tax regime of financial institutions, still has the responsibility of bringing a balanced approach to the issue, noticing the corresponding complexities of the application of the VAT on margin transactions and the broader economic implications, especially to the cost of credit in Brazil.

The Future of Special Individual Income Tax Regimes for Inward Expatriates in the European Union

This article aims to elaborate on the possible future development of individual income tax regimes for inward expatriates (inpatriate tax regimes), including the challenges that such regimes pose and possible solutions from the perspective of EU law.

The Accounting Reflection of the Investment’s Tax Benefits

Purpose: The central objective is therefore to explain the tax benefits for investment and their reflection in the rendering of accounts, by understanding the broad concept of tax benefits, understanding the diversity that exists, with a particular focus on effectively demonstrating their applicability.
 
 Theoretical Framework: In view of the Portuguese economic context, the government has systematically created new programs and adopted tax measures aimed at granting tax benefits to promote the growth and economic development of companies. According to Teixeira (2008), the legislator establishes tax benefits with the aim of protecting the environment, encouraging savings, fostering employment and vocational training, preserving culture and cultural heritage, making incentives in tax systems crucial. In Portugal there are various types of tax benefits, such as income tax, tax deductions, investment tax and others. There are around 600 tax benefits that you can take advantage of if you consider all the conditions for their use.
 
 Design/Methodology/Approach: In this research, the tax benefit being analyzed will be investment, due to its importance in the business world and the complexity associated with it, making it an important instrument in terms of promoting competitiveness, supporting investment and, consequently, the economy of countries.
 
 Findings: It was possible to conclude that, except for the BFCIP, all the benefits are processed via IRC tax’s deduction and can’t be combined with other benefits of the same nature, except for RFAI and DLRR, which can be combined with each other if the limits aren’t exceeded.
 
 Research, Practical & Social Implications: This information can be used by any interested entitie to improve current conditions, optimize and enhance the usage of tax benefits for investment.
 
 Originality/Value: Tax benefits are a hot topic in the business world and beyond, given that they are a special tax regime that allows companies to have a tax advantage or relief compared to the normal one, helping them to have a lower financial impact by bearing less tax.

The Accounting Reflection of the Investment’s Tax Benefits

Purpose: The central objective is therefore to explain the tax benefits for investment and their reflection in the rendering of accounts, by understanding the broad concept of tax benefits, understanding the diversity that exists, with a particular focus on effectively demonstrating their applicability.
 
 Theoretical Framework: In view of the Portuguese economic context, the government has systematically created new programs and adopted tax measures aimed at granting tax benefits to promote the growth and economic development of companies. According to Teixeira (2008), the legislator establishes tax benefits with the aim of protecting the environment, encouraging savings, fostering employment and vocational training, preserving culture and cultural heritage, making incentives in tax systems crucial. In Portugal there are various types of tax benefits, such as income tax, tax deductions, investment tax and others. There are around 600 tax benefits that you can take advantage of if you consider all the conditions for their use.
 
 Design/Methodology/Approach: In this research, the tax benefit being analyzed will be investment, due to its importance in the business world and the complexity associated with it, making it an important instrument in terms of promoting competitiveness, supporting investment and, consequently, the economy of countries.
 
 Findings: It was possible to conclude that, except for the BFCIP, all the benefits are processed via IRC tax’s deduction and can’t be combined with other benefits of the same nature, except for RFAI and DLRR, which can be combined with each other if the limits aren’t exceeded.
 
 Research, Practical & Social Implications: This information can be used by any interested entitie to improve current conditions, optimize and enhance the usage of tax benefits for investment.
 
 Originality/Value: Tax benefits are a hot topic in the business world and beyond, given that they are a special tax regime that allows companies to have a tax advantage or relief compared to the normal one, helping them to have a lower financial impact by bearing less tax.

О НЕОБХОДИМОСТИ МОДЕРНИЗАЦИИ СПЕЦИАЛЬНЫХ НАЛОГОВЫХ РЕЖИМОВ

The article analyzes the special tax regimes applied in Russia to support small businesses. Special attention is paid to the simplified taxation system (STS) and its role in budget formation. It was found that the STS plays a key role in budget formation, and entrepreneurs who are in the upper limits of the STS thresholds make a significant contribution to the budget. Other special tax regimes for entrepreneurship were also analyzed and the question of their expediency was raised.

The tax on professional income as a threat to economic security

The object of the study is the social relations that developed after the introduction of the tax on professional income. Not only the legal relations regulated by Federal Law No. 422-FZ dated November 27, 2018 "On conducting an experiment to establish a special tax regime "Tax on professional income" are being studied, but also the employment relations of persons who have switched to this special tax regime. The author examines in detail such aspects of the topic as: the dynamics of the number of self-employed, the structure of self-employment, the ratio of self-employment and traditional forms of employment, the socio-economic consequences of the experiment, the importance of the tax on professional income for the economic security of Russian society. Thus, the subject of the study is the socially significant consequences of conducting a tax experiment, the influence of specific legal norms on the whole set of public relations is studied. The methodological basis of the research is dialectical materialism. The object of research is considered comprehensively and in connection with other phenomena of social matter. General scientific and special research methods are used to collect, process, generalize, analyze and interpret the material: induction, deduction, document analysis. The novelty of the research is determined by a number of aspects. Firstly, the social relations caused by the introduction of a tax on professional income are analyzed comprehensively in all their diversity, not limited, as is often the case, to the fiscal component. Secondly, current empirical data are being investigated not only by tax authorities, but also by other government agencies and public organizations. Thirdly, for the first time, the socio-economic essence of the tax on professional income is exposed, and its significant disadvantages are shown on specific empirical data. Taken together, these circumstances allow us to formulate a conclusion about the impact of the tax regime in question on a key element of the country's economic security. The author formulated a hypothesis about the possibility of overcoming existing problems and justified the need to change existing approaches to regulating public relations in the field of self-employment.

О новых индивидуальных формах хозяйствования: самозанятые в аграрной сфере экономики

A comparative analysis of the legislation regarding the establishment of a special tax regime for the category of “self-employed” in the agricultural sector of the economy with the current law for owners of personal subsidiary plots (LPH) was carried out. The dynamics of the development of small forms of economic activity, including labor activity in the entrepreneurial sphere and within the framework of production of products for own use, are considered. The main groups of tax payers for “professional activities” are identified, and a formula is proposed for determining the “greed-stinginess” coefficient of self-employed people in agricultural production.

Mobility Responses to Special Tax Regimes for the Super-Rich: Evidence from Switzerland

Mobility Responses to Special Tax Regimes for the Super-Rich: Evidence from Switzerland

ПРАВОВЕ ЗАБЕЗПЕЧЕННЯ ДЕРЖАВНОЇ ПІДТРИМКИ ПТАХІВНИЦТВА В УКРАЇНІ: ІСТОРИЧНІ АСПЕКТИ ТА СУЧАСНИЙ СТАН

The purpose of the article is to study the historical aspects and analyse the current state of legalsupport for poultry farming in Ukraine.Methods. The research methodology consists of general and special methods of scientificknowledge, including historical and legal, comparative and legal, systemic and structural,analysis, synthesis and others, which allow for a consistent approach to the disclosure of the goal,to study and compare the positions of scientists, and the provisions of the legal acts of Ukraineregulating state support for poultry farming in our country.Results. The article shows that after the collapse of the Soviet Union and the economic crisis,the poultry industry has significantly declined, which has led to a reduction in the number ofpoultry and a decrease in the production of eggs and poultry meat. At the same time, most of thepoultry enterprises of the former collective and state farms became unprofitable, leading to theirbankruptcy.It is noted that the beginning of the recovery of the poultry industry was the reform of collectiveagricultural enterprises and the creation of private enterprises on their basis, as well as theintroduction of budgetary programmes to support domestic agricultural producers and the use ofpreferential taxation in the field of agriculture.The author notes that the programme of financial support for agricultural enterprises through themechanism of cheaper loans, which provided funds from the state budget to partially compensatethe interest rate on loans taken by agricultural enterprises from banks for the purchase of poultry,eggs for hatching, feed, spare parts for the repair of agricultural machinery and equipment, etc.,was of great importance for the development of poultry farming.It is argued that a significant upgrade of the material and technical base of poultry enterpriseswas facilitated by the budget programme for partial compensation in the amount of 30 per cent ofthe cost of complex domestic agricultural machinery purchased by them. It is proved that the poultry enterprises enjoying a preferential taxation regime in the form ofpayment of a fixed agricultural tax and the introduction of a special taxation regime for thepayment of value added tax stimulated the development of the poultry industry as a whole.It is established that today, poultry enterprises are deprived of any support due to the lack offunding for government budget programmes and the cancellation of preferential taxation, whichhas negatively affected the development of poultry farming.Conclusions. Proposals for the restoration of the poultry industry have been formulated, whichwill contribute to the development and competitiveness of this industry and which could beenshrined in the draft New Agricultural Policy, which is part of the Recovery Plan of Ukraine.

О подведомственности споров с участием самозанятых

With the enactment of the Federal Law of November 27, 2018 № 422-FZ “On the Experiment to Establish a Special Tax Regime «Tax on Professional Income»” in Russian law, a new subject of business relations has arisen — a taxpayer of tax on professional income, which is accepted in the doctrine call self-employed. In connection with the active development of the activities of the selfemployed, questions have arisen related to the jurisdiction of entrepreneurial and other civil law disputes involving this category of entrepreneurs. The doctrine is currently discussing whether disputes involving the self-employed should be included in the jurisdiction of arbitration courts and how this may affect the effective resolution of disputes. In this article, we will consider the points of view of scientists on this problem, as well as present our arguments for the jurisdiction of disputes involving the self-employed in arbitration courts.

On the issue of subsidized tax regime

Subject. This article discusses special tax regimes as well as the new subsidized tax regime. Objectives. The article aims to determine the content of the subsidized tax regime. Methods. For the study, I used the methods of analysis, synthesis, and analogy. Results. The article highlights the advantages and disadvantages of the subsidized tax regime, reveals its peculiarities, and presents the tools and elements of subsidizing the subsidized tax regime. Relevance. The content of the new subsidized tax regime can be used by the authorities when developing measures to stimulate small and medium-sized businesses.