Special Tax Regimes Research Articles

Liberalization of Taxation as a Prerequisite to Forming a Pleasure Economy: Special Tax Regimes, Tax Holidays and Family Business Taxation

This research is aimed at identifying the prospects and developing recommendations for the optimisation of liberalisation of taxation as a prerequisite to forming a pleasure economy. The methodologies of this paper include a time-series analysis method (using regression and correlation analysis), as well as a survey method (for the collection of empirical data not available from official statistics). It has been proved that liberalisation of taxation is a prerequisite to forming a pleasure economy. However, the beneficial effect of liberalisation of taxation associated with increased happiness of entrepreneurs may vary; in particular, it can be zero and even adverse. As exemplified by contemporary Russia, an overall reduction of the tax burden on business is the least preferred option for liberalisation of taxation. Being intended to fully cover the entire business, it does not increase happiness of entrepreneurs.

СОВЕРШЕНСТВОВАНИЕ СИСТЕМЫ СПЕЦИАЛЬНЫХ НАЛОГОВЫХ РЕЖИМОВ ДЛЯ СУБЪЕКТОВ МАЛОГО ПРЕДПРИНИМАТЕЛЬСТВА

The article discusses new special tax regimes that are being implemented as an experiment in the taxation system of small businesses and are designed for a ten-year period. We are talking about the “Professional Income Tax” regime for individuals and individual entrepreneurs: its attractiveness exceeded all expectations, covering more than 6 million self-employed. Another regime is an improved version of the simplified taxation system, which provides for zero payments of insurance premiums and exemption from tax reporting and calculations on insurance premiums. The calculations confirming the financial efficiency of the use of the automated simplified taxation system in comparison with the traditional one are presented.

Налоговые инструменты стимулирования развития малого и среднего предпринимательства: исторический аспект и перспективы развития в России

The subject of the study is small and medium-sized entrepreneurship, which provides a solution to the problem of employment, creating a competitive environment, introducing innovations through the use of a set of tax instruments to stimulate the development of small and medium-sized businesses, as well as entrepreneurial initiatives. The purpose of the work is to establish the possibilities of applying special tax regimes to solve a set of tasks set out in the national project "Small and medium-sized entrepreneurship and support for individual entrepreneurial initiative". It is determined that small business will always need comprehensive support from the state. On the basis of a retrospective analysis of special tax regimes, a variety of tax tools for solving established tasks has been revealed. It is revealed that the dynamism of economic life, the use of new information technologies in the field of tax administration require expanding the capabilities of special tax regimes. An initiative has been put forward to expand the application of the zero tax rate for newly registered entrepreneurs within the simplified and patent taxation systems by including the sphere of urban improvement, scientific and technological sphere and ecology. The author's classification of tax instruments according to five criteria is proposed. It is concluded that in order to increase the effectiveness of tax incentives, an important role is played by the introduction of tax preferences for participants of the small business ecosystem, which will not only reduce the cost of their services, but also expand the range of services offered, differentiate the conditions for granting grants, loans, insurance products.

Stress index of the Tax System of the Russian Federation in terms of Tax Revenues

Economic systems are increasingly exposed to external shocks of various nature, which test their resilience. The tax system, which is directly linked to the level of business activity, is one of the first to experience stress, so the ways it reacts to shock are of particular research interest. The 2020–2021 coronavirus pandemic made such studies more acute. The purpose of the paper is to develop and test new approaches in studying the resilience of the tax system in terms of tax revenues by analyzing the dynamics and structure of the tax system stress index in the Russian Federation in pre-pandemic, pandemic and recovery periods. The tax system stress index for tax revenues is calculated as the difference between the moving standard deviation and the moving average growth rate of tax revenues. We have developed a method for decomposing the stress index by source with determining the contribution of each tax to the average growth rate and to the standard deviation of the growth rate. We have also calculated the Russian Federation tax revenue stress index from December 2015 to March 2022 and identified its sources. It was found that the stress indices for almost all taxes (except for excises and state duties) are significantly positively correlated with each other. The main contribution to the growth of the stress index during the crisis and its decline within the recovery period is made by profit tax and a group of taxes on natural rent, which significantly negatively correlate with oil prices. Under the pandemic crisis in Russia, the stress index on revenue form special tax regimes also increased significantly. It was found that the personal income tax has a stabilizing effect on the tax system stress index in the crisis and post-crisis periods. During the pandemic in Russia, the damping role of excises also came to the fore, which is explained by institutional factors and changes in tax rates. The research findings can be advantageous for the authorities to make an impact on the most vulnerable components of the tax system of the Russian Federation in order to increase its resilience to crises.

Taxation of agricultural sector in Ukraine

Effective development of the agricultural sector of the Ukrainian economy is possible only under the condition of stability and optimal tax legislation. Transparent and equal conditions for all entities in the industry will allow the agro-industrial complex to become a highly efficient and competitive sector. The article addresses the research and analysis of transformational changes in the taxation of agricultural producers in Ukraine during 2015-2017 and their fiscal manifestations. Special tax regimes for agricultural producers until 2015 are analyzed. The positive and negative consequences of the implementation of tax reforms are studied, in particular, the results of the introduction of a separate group of individual taxpayers for the taxation of agricultural enterprises are considered, and the dynamics of the volume of its receipts to local budgets are analyzed. The main problems that arose in the agrarian sector as a result of the reform carried out by the state regarding the value-added tax (VAT) levying on agricultural enterprises are highlighted, and the impact of this reform on the profitability of these enterprises is revealed. The volumes of VAT revenues and amounts of budget compensation for agricultural enterprises are analyzed. Since the support of the agrarian sector belongs to the strategic priorities of the development of the national economy, the main aspects of further reforms in the system of taxation of agricultural enterprises are outlined. It will contribute to their activities’ efficiency growth, improvement of the financial condition, and development of agricultural production in Ukraine. The authors highlight the advantages and disadvantages of implemented tax reforms, including in the context of increasing/decreasing the tax burden on the sector during 2011-2021. Conclusions are made regarding the validity of the 2015 tax reform in the conditions of fiscal transformation.

Selection of special tax regimes for individual entrepreneurs

Selection of special tax regimes for individual entrepreneurs

Results of the experiment with a special tax regime for the self-employed

Results of the experiment with a special tax regime for the self-employed

ПОДАТКОВІ ІНСТРУМЕНТИ ФІНАНСОВОГО ПІДТРИМКИ МАЛОГО БІЗНЕСУ В РОСІЇ

This article is devoted to the study of the topic of tax levers for regulating the activities of small businesses in Russia. Tax aspects of business are included in the scope of financial support from the state for legal entities and individual entrepreneurs. The aim of the study is to analyze the tax instruments through which the state provides financial support to small businesses. The subject of the research is the measures of state financial support for small businesses in terms of taxation. In the course of the research, such methods were applied as: comparative, statistical, descriptive, analysis and synthesis. Research hypothesis. Identification of the optimal tax instruments for financial support of small business will allow the subjects of this sphere of the economy to function effectively without causing a conflict of interest between entrepreneurship and the state in paying taxes to the budget. Presentation of the main material. Small business entities in the Russian Federation have the right to state support in the form of financial, property, information, and consulting assistance. Financial assistance, as the most significant, consists in the provision of government subsidies, preferential types of loans, tax holidays, special tax regimes, simplified accounting procedures, etc. Tax instruments of financial support are of key importance for business entities, as they allow regulating the tax burden depending on the types of activities, the scale of the organization, the amount of income and many other factors. For Russian business entities, there are 5 taxation regimes, of which one is general and four special (preferential), tax holidays for small businesses and tax incentives for types of taxes. Originality and practical significance of the research. A comparative analysis of special tax regimes showed that the profitability of a particular tax regime is determined by the goals of the business, the scale and scope of activity. Conclusions and prospects for further use. The use of special tax regimes helps to optimize tax payments, and tax incentives reduce the tax burden of business entities. However, in the current conditions of the spread of the pandemic, increased attention from the state to small businesses is required in order to regulate the possible loss of profitability due to the introduction of restrictive measures, and, as a result, a decrease in the population's ability to pay, which, in turn, will negatively affect the replenishment of the country's budget with tax payments.

Самозанятость населения Московского региона: социологическое измерение

Modern society is undergoing numerous changes affecting all spheres of human life. Transformation occurs at all levels, from status-role positions to culture and political power. At the same time, the labor market is also transforming. Working conditions and forms are rapidly changing. This is how self-employment arises, and with it a new special tax regime for self-employed citizens, designed to rectify the situation and “pull out” workers alienated from the traditional labor market from the informal sector of the economy into the formal one. The article analyzes the social and psychological indicators of the self-employed. The opinions of residents of the Moscow region about the success of the period of work as self-employed are analyzed, satisfaction with their work and the size of the earned funds are analyzed, self-identification of the self-employed is characterized in terms of the realization of their potential. In addition, in order to identify additional, previously alienated from the traditional labor market, potential representatives of the working-age population, the level of personal computer skills has been analyzed.

Новый взгляд на старую тему (источники денег для муниципалитетов)

The article is devoted to some aspects of card games, and the evolution of casinos in modern Russia. It is shown that in connection with criminalization and other negative phenomena, the gambling business was equated with “alcoholization of the population”. The problem of criminalization could not be solved, since casinos and slot machines migrated largely underground. The internet has become another loophole. In the mid-2000s, the loss of income from casinos to the state budget was a drop in the ocean. After 15 years, the situation has changed. Budget deficits of municipalities have become almost the norm, many subjects of the Federation have become chronic debtors. New non-trivial sources of state and municipal revenues are required. If, taking into account the pros and cons, it turns out to be possible to legalize the gambling business in the country, it should be based on new principles. Among them, locations far from cities, in regional centers, strict state control, a special (but not stifling) tax regime, no credits to players, and wide scale restrictions.

ПРОТИДІЯ ЗЛОВЖИВАННЮ У ПОДАТКОВИХ ВІДНОСИНАХ ЯК ЗАХИСНИЙ МЕХАНІЗМ СПРАВЕДЛИВОГО ОПОДАТКУВАННЯ

The issue of counteraction to misfeasance in taxation as a defense mechanism of tax fairness is researched in the paper. The main objective of the state tax policy is determined that consists of the creation of a mechanism capable of counteracting misfeasance in taxation. It has been established that the state authorities should define clear, available and proper mechanisms that prevent misfeasance of taxation which violate the principles of taxation fairness. It is stated that the main security feature of fair taxation is monitoring and auditing activities, which considered as efficient measures. It was determined that completely new; previously unknown concepts and institutions related to counteracting misfeasance in taxation were introduced into the national tax legislation. The system for on-site inspections was also revised and the concept of the planned monitoring system was developed, which defines the criteria for tax risks, according to which audits are carried out and taxpayers are selected the field tax audits are planned for. These measures are aimed not only at increasing the effectiveness of monitoring work, but also at protection and promotion of conscientious taxpayers’ rights. The application of a simplified taxation system is indicated, as experience of reality shows, it allows not only to achieve a legal reduction in the tax burden, but also to use a special tax regime for illegal minimization of the tax burden on business. It is established that a key for increasing the efficiency of counteraction to misfeasance in taxation by taxpayers is the development of a tax monitoring methodology capable of identifying tax risk zones that indicate the use of taxpayers' schemes for their payment evasion. It is determined that the misfeasance by taxpayer has negative impact on national tax system. Such activity definitely violates the concept of taxation fairness as it is aimed at creating an illegal reduction in the tax burden. A number of measures have been identified in the Tax Code of Ukraine that can increase the effectiveness of counteraction to misfeasance in taxation.

Issues of Application of Amended Provisions of the Tax Code of the Russian Federation concerning the Patent System of Taxation

The paper examines changes in legislation on the patent system of taxation that have taken place since January 1, 2021, and that allow raising the question of constitutionality of this special taxation regime as a whole. The legislator has excluded restrictions for regional legislative bodies that establish the maximum amount of the potential income of an individual entrepreneur, and through it the amount of tax under the patent taxation system. Thus, the federal legislator actually got rid of the real restrictions on the powers of regional legislative bodies that regulate the patent taxation system. At the same time, the Constitutional Court of the Russian Federation since the 1990s repeatedly expressed legal positions, according to which the absence of such restrictions is unacceptable. The author makes suggestions on possible ways to solve the problem. It is possible that the Constitutional Court of the Russian Federation could recognize the exclusion of restrictions by the federal legislator as unconstitutional. However, taking into account the previous experience, it is possible that there will be no reaction on the part of the interested parties to the essentially unconstitutional changes introduced into the legislation.

СПРОЩЕНА СИСТЕМА ОПОДАТКУВАННЯ, ОБЛІКУ ТА ЗВІТНОСТІ СУБЄКТІВ МАЛОГО ПІДПРИЄМНИЦТВА: СУЧАСНИЙ СТАН ТА ОСОБЛИВОСТІ ОПОДАТКУВАННЯ

Анотація. Розглянуто і досліджено сучасний стан й особливості сплати податків суб’єктами бізнес-підприємцями, які застосовують спрощену систему оподаткування, обліку та звітності в Україні як особливого податкового режиму, що впроваджений для зниження податкового тиску й стимулювання і мотивування розвитку вітчизняного бізнесу. Розглянуто два аспекти управління оподаткуванням в контексті регулювання розвитку малих і середніх підприємств та основну нормативно-правову і законодавчу базу з обраної тематики дослідження. Установлено, що в сучасному податковому світі існує чотири групи платників єдиного податку згідно із спрощеною системою оподаткування, обліку та звітності в Україні. Окреслено основні економічні засади ведення обліку доходів підприємців, що застосовують спрощену систему оподаткування, обліку та звітності, терміни сплати податків і порядок подання фінансової звітності 2021 року. Проаналізовано рентабельність операційної діяльності та діяльності підприємств за видами економічної діяльності 2020 року, що застосовують спрощену систему оподаткування, обліку та звітності й податкові надходження сум єдиного податку та податку на прибуток до державного бюджету протягом 2015—2020 років. Охарактеризовані головні переваги і недоліки в застосуванні спрощеної системи оподаткування, обліку та звітності в Україні, які притаманні досліджуваній системі оподаткування в сучасному вітчизняному інтеграційному конкурентному економічному просторі. За результатами проведеного дослідження зроблено висновки про необхідність удосконалення спрощеної системи оподаткування, обліку та звітності за рахунок усунення недоліків унаслідок внесення податкових змін у законодавство, що регулює сферу спрощеної системи оподаткування, наприклад через зменшення відсоткової ставки єдиного соціального внеску. Ключові слова: підприємство, оподаткування, облік, звітність, єдиний податок, фізична особа. Формул: 0; рис.: 0; табл.: 4; бібл.: 12.

The Commission's Burden of Proof in Respect of Fiscal State Aid Following the ECJ Decision in the Spanish Sports Clubs Case

The ECJ, in European Commission v. Fútbol Club Barcelona (Case C-362/19 P), ruled that the special tax regime for certain Spanish sports clubs constitutes State aid, annulling the previous decision of the General Court of the European Union and endorsing the European Commission's decision. In this case, the burden of proof that falls on the Commission in State aid procedures in tax matters was particularly contentious. This article provides commentary on the decision.

LEGALIZATION OF INVESTMENTS IN DIGITAL CURRENCY: FEATURES OF TAX REGULATION IN RUSSIA

The article was prepared based on the results of the study, the subject of which are legislative short stories in connection with the entry into force of the Federal Law “On Digital Financial Assets, Digital Currency and on Amending Certain Legislative Acts of the Russian Federation”. Using a very extensive methodological basis (a general scientific dialectical method of cognition, analysis, synthesis, comparative legal, formal methods), the author analyzes the content and essence of digital currencies (cryptocurrencies) and the principles of taxation of income received from operations with them. Prospects for the use of digital financial assets on the Russian economy are noted. In the work, the author summarizes the current state of tax regulation of cryptocurrency operations both in the general tax system and in special tax regimes. It is noted that the obligation of crypto investors to determine the tax base and pay income tax arises only at the time of conversion of cryptocurrency into a ruble bank account, into electronic fiat money. It is indicated that certain categories of citizens in the Russian Federation are prohibited from acquiring digital financial assets and digital currency. The scientific novelty of the study is that it identifies the most problematic tax aspects and solutions for them. The author emphasizes that despite the legalization of cryptocurrency turnover, in Russia there is a trend towards strict state regulation and control of the turnover of digital currencies.

Tax Regimes in the USA: The Review and the Effect on Small Businesses

Subject. The article discusses the development of small businesses in the USA though supporting measures. Objectives. We suggest how small businesses should be supported and developed by analyzing the relevant practices in the USA. We also identify and analyze factors and conditions that contribute to the development of small businesses through supportive measures taken in the USA. Methods. We use the methods of analysis, synthesis and logic research through the creative data approach. Results. In this article we analyze the specifics of tax treatment of business and small business, first of all, in Foreign Trade Zones and in the USA as a whole. We reveal special tax regimes in the USA, referring to the business environment of SME in Russia just for the sake of comparison. Having analyzed relevant positive practices in the USA, we suggest how small businesses should be supported and developed in Russia, which is the novelty of this study. Conclusions and Relevance. We conclude that the apparatus the USA uses to bring its small business sector to the international market and expand its operations, helps businessmen increase their profit and sales, get more free from seasonal fluctuations and turbulence in the domestic market and receive real financial aid. Supporting the small business, the State should prioritize ensuring sufficient jobs for the people, including the creation of additional ones.

ПРАВОВЕ РЕГУЛЮВАННЯ ОПОДАТКУВАННЯ СІЛЬСЬКОГОСПОДАРСЬКОЇ ДІЯЛЬНОСТІ В КРАЇНАХ ЄС

An analysis of the legal regulation of agricultural taxation in the EU member sates on the example of Poland, Czech Republic and Austria was made. A number of tax benefits for agricultural producers, which are contained in the legislation of the above countries, have been identified: reduction of income tax on farms; real estate tax benefits; discounts on tax on fuel; absence of taxes on property inherited or agricultural land and buildings, the ownership of which is acquired on the basis of a gift agreement; reduction of contributions under a special social insurance scheme. The urgency of the issue of providing tax benefits for agricultural producers in Ukraine, introduction of a special tax regime, which would contribute to the formation of a balanced structure of agro-industrial production was highlighted. It was noted that implementation of the experience of EU member states in the field of taxation of agricultural activities in domestic agricultural sector of the economy is extremely important and requires changes to legislation. Tax burden affects the profits of agricultural producers and is one of the key factors influencing the development of the agricultural sector in the country, the competitiveness of small and medium-sized socially oriented agricultural businesses, and reflects the priorities of agricultural activities. Therefore, the legal regulation of agricultural production is one of the key issues on the agenda. Ukraine needs to reform the system of taxation of agricultural production in order to form a balanced structure of agro-industrial production on the model of European countries.

REGIME DE TRIBUTAÇÃO ESPECIAL DAS LOJAS FRANCAS DE FRONTEIRA

The purpose of this article is to demonstrate the innovation brought by Law No. 12,723 / 2012, which added Article 16-A to Decree-Law 1.455/1976, providing for the possibility of installing duty-free stores in the border twin cities, specifically those identified by the Ministry of National Integration. Still, the work deals with the Special Taxation Regime and the possibility of tax exemption, analyzes the main laws that address the theme and, discreetly, highlights positive and negative points resulting from the establishment of Free Shops in these locations. The methodology is based on exploratory, descriptive and bibliographic methods. The implantation proves to be an economic evolution to the Brazilian border municipalities, but it still presents uncertainties.

Interpretation of certain aspects of criminal restriction of competition

The subject of this research is the norms of antimonopoly legislation aimed at prevention and suppression of cartels, the norms of tax legislation that define the income and establish special tax regime for professional income, the norms of the Chapter 22 of the Criminal Code of the Russian Federation, the draft federal law on amendments to the Article 178 of the Criminal Code of the Russian Federation, and practical implementation of the Article 178 of the Criminal Code of the Russian Federation. The goal of this research is to examine the concept of income derived by the cartel; establish whether self-employed citizens can be the subject of an offence under this category, and clarify the criminal responsibility of the parties to the cartel agreement. The novelty consists in the fact that this article is first to examine the question of attributing the individuals conducting business activity under the special “Professional Income Tax” regime (self-employed citizens) to economic entities (i.e., parties to the cartel agreement). The effective legislation indicates that self-employed citizens do not belong to this group, as they are not state registered. A substantiation is made that a conscious neglect or an indifference to such socially dangerous consequence as income unfeasible: the cartel agreement is aimed at derivation of sizeable income. A consciously indifferent attitude is possible only towards such socially dangerous consequence as infliction of considerable damage. The field of application of acquired results is the activity of law enforcement agencies.

Impact of the 2020 Pandemic on Revenue from Various Taxes in the Russian Regions

The article investigates the impact of the 2020 pandemic on tax revenues of Russian regions at the stages of their collection and allocation to regional budgets. To exclude the influence of the seasonal component and uneven receipts of various taxes to the budget, the moving annual tax revenues were calculated with a shift of one month. Based on these data for 2013-March 2020, linear time regressions were built and decomposed into 8 taxes and tax groups. These regressions were used to predict non-pandemic tax revenues for different regions in April-December 2020. The impact of the pandemic on the regional tax losses (gains) and their decomposition by sources was calculated through the deviation of the actual revenues from their predicted non-pandemic values on an accrual basis until the end of 2020. We found that the pandemic had led to losses of 13.9 % of total tax revenues in the country and 6.2 % of regional budgets’ own tax revenues. The mining regions are the most affected by the pandemic. On the contrary, in some Far Eastern regions, there is an abnormal increase in tax collections. The largest contribution to the decrease in tax revenues at the consolidated and federal levels was made by the MET receipts; they fell sharply due to lower prices and volumes of oil and gas. However, the negative effect of this decrease at the federal level was dampened by stabilizing VAT receipts. Excise taxes played a positive role in mitigating pandemic risks. The tax distribution system has shown its equalizing function when allocating tax revenues to sub-federal budgets. The largest negative contribution to the change in regional tax revenues during the 2020 pandemic was made by the corporate income tax, while the negative impact of property taxes and special tax regimes turned out to be less significant. Personal income tax has proven to be the main damper of tax revenues at the regional level. The results obtained are applicable to the management of the state fiscal revenues during pandemic crises