Tax Exemption Research Articles

“Impact of Taxation Policies on Small Businesses”

Abstract Taxation policies play a crucial role in shaping the business environment for small enterprises, influencing their growth, profitability, and compliance burden. Small businesses, which form the backbone of the economy, are particularly sensitive to changes in tax structures, as they often operate with limited financial and administrative resources. This study explores the impact of various taxation policies, including direct taxes such as income tax and corporate tax, as well as indirect taxes like the Goods and Services Tax (GST). It examines how tax regulations affect the financial health of small enterprises, their ability to compete in the market, and their long-term sustainability. The research also identifies key challenges faced by small businesses in tax compliance, such as high administrative costs, frequent policy changes, and digital adaptation issues. Through comparative analysis, the study evaluates taxation policies in India alongside global practices, highlighting best practices that can be adopted to create a more business-friendly tax environment. Additionally, case studies illustrate how tax incentives, exemptions, and simplified compliance measures can support small business growth. By providing a comprehensive understanding of taxation policies and their impact, this study offers insights into potential reforms that can reduce the tax burden on small enterprises while ensuring efficient revenue generation for the government. The findings emphasize the need for a balanced approach where taxation policies promote both economic development and regulatory compliance, allowing small businesses to thrive in an increasingly competitive landscape.

Beyond community benefit: Unveiling hospitals' comprehensive efforts to improve community health.

Calls for nonprofit hospitals to clearly make their case for tax exemption are increasing. Most published research on nonprofit hospitals' provision of community benefit relies on data reported in Internal Revenue Service (IRS) Form 990 Schedule H. This study leverages insight from hospital leaders to better understand the types of initiatives, beyond community benefit, that hospitals engage in to benefit their communities. We conducted 17 semi-structured interviews with a total of 34 hospital representatives. Three themes were identified: (1) the current IRS Form 990 Schedule H provides only limited insights into hospitals' investments into communities, (2) health systems engage in a variety of diverse activities that benefit communities and address social determinants of health, and (3) health systems use a variety of communication channels outside of Form 990 and Schedule H to raise awareness about their contributions to community health. These findings suggest that IRS reports alone do not fully illustrate the scope of hospital initiatives to benefit communities. Internal changes in hospital practices and procedures, and external policy levers, may provide a more comprehensive picture of benefits and opportunities for improvement.

Some thoughts on the definitione of „building land” in theValue Added Tax Act – de lege ferenda comments

The article is an attempt to assess the legal definition of building land, the correct interpretation of which hasa direct impact on the possibility of applying the tax exemption on the grounds of VAT. It presents the current approachof both the tax authorities and the administrative court judicature. At the same time, an attempt was madeto present a different approach to understanding the definition in question.

A Study on the New Income Tax System in Comparison to the Old Income Tax System

Taxation must be remained an integral feature in terms of government-wide revenues, fiscal financial investments as well as individuals' saving and investment patterns within а economic system. The key point of introduction of the new income tax regime to Union's Budget 2020 was to provide an option of the current tax system towards a unified tax system with lesser dependencies on exemptions & deductions. Under the new regime lower rates have been introduced but it removed most of the deductions as available earlier under the old regime; thus making significant dilemma either to shift or to remain with old regime, depending on the financial position of the taxpayers. This study, however, goes in detail through old tax versus new tax regime and upon the tax rates and exemptions and deductions and also checks out the total cost implications. The research is based on primary data obtained from 90 respondents with a projection sample of 130 through structured questionnaires. Descriptive and statistical analysis technique such as t-tests, chi-square test, regression analysis has been used to analyze taxpayer preference, savings behavior and compliance under both tax systems. The results show that taxpayers with less investment and deductions support the new tax regime because of its ease, whereas those with large investments in tax-saving vehicles still hold on to the old tax regime. Further, budgetary adjustments in 2024-2025 and 2025-2026 have also changed tax slabs and rebate structures, which affect the choices of taxpayers. The research points out that tax regime choice is influenced significantly by factors other than income levels, including investment behavior, long-term savings, and financial literacy.

Exemption from Tax in India: A Critical analysis of the need for reform and emerging challenges.

This research paper analyzes tax exemptions in India, focusing on the necessity for reform and the challenges that arise. Tax exemption in India is a significant matter that should not be ignored and must be examined thoroughly; it plays a vital role in fostering social welfare, stimulating economic growth, and supporting specific sectors like education, agriculture, and various charitable organizations. However, the abuse of these exemptions has resulted in substantial revenue losses, tax evasion, and unequal treatment among individuals. This paper closely investigates the concept of tax exemption in India and assesses its socio-economic rationale, while also highlighting emerging challenges and advocating for comprehensive reforms. By drawing on both the legal framework and practical realities, this paper proposes recommendations for establishing a more equitable, less biased, and more effective system of tax exemptions to enhance societal well-being.

Assessing the volume and effectiveness of tax support for science and innovation in the Russian Federation: The value added tax case

Subject. The article addresses instruments of tax incentives for science and innovation development. Objectives. The aim is to elaborate recommendations for improving the mechanism of taxation of value added created in the innovation sphere. Methods. We applied general scientific methods of research. Results. The paper identified impracticality of using value-added tax exemptions to reduce the tax burden on economic entities engaged in the innovation sector. The specific features of applying the offset mechanism in calculating value-added tax as an indirect tax lead to a lack of stimulating effect, if the exemption is granted at certain stages of the production cycle. In this case, the taxpayer allocates the "input" value-added tax to the cost of the produced goods, increasing production costs and the selling price of the goods. Conclusions. It appears more acceptable to reduce the tax rate on value-added tax for entities engaged in innovative activities. The greatest effect of introducing a preferential value-added tax rate can be achieved when it is utilized by all participants in the cycle of production and sale of innovative products. It should be ensured that all other elements of the tax remain unchanged.

Impact of Recent Income Tax Reforms on Indian Taxpayers Analysis of changes in tax slabs, deductions, and exemptions in recent budgets.

Direct taxes play a key role in the economy. They influence money choices for individuals and the entire country. This study takes a closer look at how direct taxes are set up, how well they work, and what kind of impact they have. We can make direct tax policies better. Let's look at our tax systems, check out new laws, and learn from other countries' successes. The goal is to get more people to pay their taxes fairly, and to keep the economy sustainable. We use different methods to do this, like looking at data and checking how well policies work. The study highlights major issues. People often avoid taxes. The tax system is slow and inefficient. Also, online businesses create tricky situations. What we learned shows that we need tax policies that can change with the times. They need to bring in money for the government but also give people reasons to work and invest. This approach helps the government stay financially healthy and treat taxpayers fairly. This study adds to the conversation about how to make tax policies better. It helps lawmakers, economists, and financial experts improve direct tax systems. Key words: Tax Compliance ,Behavioral Economics ,Effective Tax Rate ,Regime Switching ,Deduction Optimization ,Progressive Taxation,Fiscal Sustainability,Informal Sector

Incidence of Corporate Income Tax (CIT) Exemption

Background: Tax incentives are widely used among developed and developing economies to promote and attract economic activity in their jurisdictions and can be introduced for a range of reasons (OECD, 2022). However, "those who pay tax do not necessarily bear the cost” (Martin & Mayneris, 2022). Similarly, the government that grants a tax exemption does not necessarily bear the cost of this tax exemption. Based on this point, the main question of this research is: what is the incidence of corporate income tax (CIT) exemption?Objective: This paper focuses on tax incidence, looking for the "real" loser or winner of corporate income tax (CIT) exemption.Method: The paper applies both tabular or graphical methods of analysis and fixed-effects panel models. An initial sample of two hypothetical identical firms is used. A second sample of 20 indebted firms with taxable earnings in France is used for the period from 2017 to 2021. The hypothesis of non-gratuity of cost and revenue is used.Results: We find that, in reality, corporate income tax (CIT) exemption results in the firm subject to CIT being the "real" loser and the firm exempt from CIT being the "real" winner; the tax incidence cancels out at government level.Conclusion: Any tax incentive on investment, financing or company profits is simply a diversion of profits from the company not eligible for the tax incentive to the company eligible for the tax incentive, the two companies being identical and belonging to the same class of financial and operating risk.

Impact of Taxation, Inflation and Interest on Foreign Direct Investment (An Empirical Study of Pakistan)

Foreign Direct investment plays a vital role in economy’s growth, especially in developing countries. It helps in growing industrial sector, healthcare, education and creates employment. The goal of any country is to attract FDIs; to do so, law and policymakers reframe their tax policies, grants tax incentives and exemptions in taxable components. Also, authorities try to ensure economic growth and maintain monetary policy stable to attract FDIs. This study analyzed the determinants of Foreign Direct Investment (FDI) net inflows by examining key economic factors, including corporate tax rate, direct tax rate, inflation rate, and interest rate. The analysis was conducted using descriptive statistics, covariance and correlation tests & regression analysis providing comprehensive insights into the relationships between these variables. Time series data is used spanning over 2005 to 2024. The data was obtained from the following sources i.e. World Development Indicator (WDI), Economic Survey of Pakistan and Academic Journals. The study concludes that variables have less dependency upon each other. That shows that there are other strong factors that affect FDI inflows in Pakistan. In this regard, further studies are suggested by using other variables such political stability, trade openness, infrastructure development, exchange rate fluctuations and economic growth.

244 Community perspectives on hospital accountability to equity

Objectives/Goals: Our objective is to examine patient and community perspectives on hospital actions that signify accountability to healthcare equity; part of our overall goal is to identify equity measure concepts representative of community perspectives and priorities for future hospital accountability programs. Methods/Study Population: We conducted a qualitative thematic analysis of secondary data – 32 focus group transcripts from our hospital’s Community Health Needs Assessment (CHNA). A tri-annual CHNA is required of nonprofit hospitals to maintain tax exemption. Diverse participants were recruited from our hospital’s large catchment area. Coding focused on responses to 6 pertinent questions. We adapted the National Committee for Quality Assurance, “Health Equity Measurement Framework for Medicaid Accountability” which consists of 5 domains (access, clinical, experience, structure, and social) to guide the development of our a priori coding tree and subsequent analysis. Two coders double-coded 25% of transcripts. The multidisciplinary research team, including community partners, met iteratively to extract and refine themes. Results/Anticipated Results: We organized our analysis by our conceptual framework’s 5 measurement domains. The “access” and “experience” domains were the most salient for participants. We defined “access” by four sub-domains: financial access, physical access, communication access, and navigability; and “experience” by two subdomains: inclusivity and accomodation. Beyond discussing concepts within these measurement domains, participants debated the “scope” of the hospital’s role with regard to healthcare equity. While some did not think “it was the hospitals” responsibility to give people access to good jobs or fair pay, education…, “other participants felt that healthcare involves not just addressing peoples’ physical health but. their housing… because how can someone take care of their health when they are homeless?” Discussion/Significance of Impact: When asked about hospital accountability to healthcare equity, “access” and “experiences” of care are the most salient measurement domains for patients and communities. The “scope” of the hospital’s role is debated. Policy and health system leaders can apply these perspectives to equity measurement initiatives.

Azerbaijan is becoming a green energy hub in the region

As in many parts of the world, the use of environmentally friendly “green” energy sources is increasing in Azerbaijan. Azerbaijan’s significant potential for renewable energy sources enables the implementation of large-scale projects in this sector. In particular, the rich renewable energy potential of the Karabakh, East Zangezur, and Nakhchivan economic regions creates significant opportunities for these areas to become “green energy zones”. The Azerbaijani government is taking steps to develop renewable energy sources, as well as assess and harness the potential for electricity production from these sources. The favorable environment created for investors in the country, along with the implemented concession mechanisms, customs, and tax exemptions, is aimed at fostering the development of the renewable energy sector. It is worth noting that in the document “Azerbaijan 2030: National Priorities for Socio-Economic Development”, one of the five priorities is declared as “a country of clean environment and green growth”. Traditionally known as a global exporter of conventional energy resources, using renewable energy sources has become a key focus in Azerbaijan. One of the main objectives of ongoing energy sector reforms is to increase the share of electricity generated from “green” energy sources in the county’s energy mix. This article provides detailed insights into the development of Azerbaijan’s “green” energy industry. It offers a general overview of the country’s renewable energy potential and the finalized projects, while also exploring future prospects. Since the beginning of the new era of “green” energy in 2020, Azerbaijan has attracted leading global energy companies and organizations to develop renewable energy projects. By expressing its support for the joint initiative “Global Pledge on Renewable Energy and Energy Efficiency” at the COP28 Conference, which aims to triple the world’s renewable energy capacity and double energy efficiency by 2030, Azerbaijan aims to implement large-scale projects through private investment. It is no coincidence that electricity production from green energy sources nearly doubled in 2024, and the share of renewable energy in total electricity production was approximately 14 % last year.

Mediating Effect of Investor Confidence in-Between Factors Influencing Renewable Energy Investment: A Review and Proposed Model

This review article discusses the various applications of the renewable energy investment factors for Pakistan, along with the mediators of investor confidence. Since the country is mostly experiencing energy shortages and more dependence on fossil fuels, it is urgent to switch to renewable energy for sustainable development. Even though the country abundantly offers natural renewables such as solar, wind, and hydropower, investments in these resources have not increased much. The researchers studied the effects of important factors influencing investment decisions such as government incentives, regulatory frameworks, access to financing, political stability, and stakeholder engagement. Apart from the government incentives, which are tax exemptions and subsidies necessary to create an investment-friendly environment, policy inconsistency and bureaucratic hurdles in policy enforcement usually frighten away potential investors. In the same way, a comprehensive regulatory framework becomes an excellent template for minimizing uncertainties and risks regarding renewable energy project planning and development. The study also contributed to formulating effective innovative financing avenues such as green bonds and Sukuk to further open up new investment opportunities. Political stability is another essential determinant, given that it defines investor confidence. This means that political unrest denies many potential investors a chance to invest in the economy. It also looked at how investor confidence mediates the increased investment in renewable energy when investor perceptions of safety and opportunity are improved. It proposes a comprehensive model linking these elements to show how they interact to influence investment levels. This research intends to enlighten the policymakers and stakeholders concerned with the most pertinent conditions for inducing investment in the renewable energy sector. The research findings sought to widen debate on the conception of sustainable energy solutions and translate it into practical, actionable recommendations that would enhance investment strategies driving economic growth and environmental sustainability in Pakistan.

Structural Discrimination in Nonprofit Hospital Community Benefit Spending

Nonprofit hospitals receive substantial tax exemptions to provide a community benefit. However, little is known about the distribution of community benefit spending (CBS) across US communities with varying degrees of social vulnerability beyond the hospital's immediate geographic area. To assess associations of CBS per capita with community-level characteristics and social determinants of health. This cross-sectional study used Internal Revenue Service Series 990 Tax Forms from 2018 to 2023, to create a dataset of CBS for nonprofit hospitals in the US. Facility-level CBS allocation to counties was based on inpatient utilization to more accurately reflect a hospital's community. Data were analyzed from January to December 2024. County-level race and ethnicity characteristics and socioeconomic factors, including educational attainment, proportion living below 138% of the federal poverty level (FPL), and the Social Vulnerability Index (SVI) score. The primary outcome was total CBS per capita. Generalized linear regression models with a γ log-link function were used to assess the association of CBS per capita with community-level social determinants of health characteristics. A total of 2465 nonprofit hospitals across 3140 US counties were included. Allocation of CBS varied significantly across communities, with the counties in the highest quintile receiving a mean (SD) of $540 ($250) per capita compared with counties in the lowest quintile with $22 ($16) per capita. Communities in the highest quintile of CBS had a higher proportion of White residents, while communities in the lowest quintile had a higher proportion of residents who were non-Hispanic Black or Hispanic, had lower educational attainment, and were living with incomes below 138% of the FPL. For every 1% proportional increase in non-Hispanic Black or Hispanic residents in a community, there was 1.61% (95% CI, 1.38%-1.84%) and 0.88% (95% CI, 0.63%-1.14%) less CBS per capita, respectively. In addition, there was less allocation of CBS per capita among counties with a greater proportion of people with low educational attainment, greater levels of poverty, or higher SVI scores. These results were consistent before and during the COVID-19 pandemic. This cross-sectional study found that nonprofit hospitals' CBS was regressively allocated across US communities, with more socially vulnerable or racially and ethnically minoritized communities receiving less benefit than more affluent, non-Hispanic White communities, suggesting that the nonprofit tax system may be structurally discriminatory and contributing to health disparities.

Inclusionary housing policy and rent burdens: evidence from New York City’s 421-a tax exemption program

This study evaluates the effect of an inclusionary housing program – specifically, the 421-a tax exemption program – on rent burden among households in New York City. This programme required developers of housing projects in Geographic Exclusion Areas (GEA) to set aside 20% of newly built units as affordable housing to receive a tax benefit. Using New York City Housing Vacancy Survey data, we estimate a difference-in-differences (DID) design with a continuous treatment variable. We find that this programme helped ease households’ rent burden. We also find that the GEA restriction affected the rent burden of households in a heterogeneous manner, depending on their income level. Specifically, the GEA restriction was more likely to decrease the rent burden among low-income households but increase it among moderate- to middle-income households. We also suggest that these heterogeneous effects of the programme could be attributed to the additional costs of the affordability condition, which removed less profitable projects, primarily affecting moderate- to middle-income households.

Assessing Zimbabwe's Tourism Sector /as A Driver Of Economic Growth: An Econometric Modelling Approach

Tourism plays a vital role in the economic development of both developed and developing countries, serving as a significant driver of growth. In Zimbabwe, tourism is one of the fastest-growing sectors after mining and agriculture. To capitalize on this potential, investments are sought in various tourism sub-sectors, including accommodation, conference facilities, restaurants, theme parks, and other tourism facilities. The Zimbabwean government have created an enabling environment to boost tourism revenue as it is key to the development of the country. This was done through providing incentives such as duty rebates, tax breaks, and tax exemptions in designated Tourism Development Zones to support investors. These efforts aim to diversify the tourism product base, enhance competitiveness, and attract more visitors. This study sought to analyse the contribution of tourism revenue towards economic growth. The research employed a quantitative approach, utilizing secondary data and time-series analysis through Simple Linear Regression Model and ordinary least squares. Findings revealed a positive correlation between tourism revenue, trade openness, and government expenditure, while inflation exhibited a negative impact. This indicates that tourism revenue significantly contributes to economic growth. The findings of the research will inform policy decisions and strategies aimed at enhancing the tourism sector’s contribution to Zimbabwe’s economic growth. By prioritizing tourism development, Zimbabwe can unlock its full potential and reap the benefits of this vital sector.

Temu’s Paradox: Disrupting Markets in Import-Driven and Producing Economies

The rapid expansion of Temu, a global e-commerce powerhouse, is reshaping economic landscapes with profound and often polarizing effects. This study delves into its dual impact on two contrasting economic environments: non-productive economies that thrive on imports with minimal trade barriers (e.g., the Middle East) and producing economies with strong local industries fighting to stay afloat (e.g., Southeast Asia). While Temu’s meteoric rise in import-dependent markets is fueled by tax exemptions and insatiable consumer demand for ultra-affordable goods, its aggressive penetration into producing economies threatens to undermine local industries, displace workers, and disrupt regulatory frameworks. Through a rigorous comparative economic analysis, policy evaluation, and consumer behavior study, this research uncovers the deeper implications of Temu’s business model on market stability, economic sovereignty, and long-term sustainability. The findings shed light on the shifting dynamics of global e-commerce, the effectiveness of protectionist policies, and the socio-economic trade-offs of unrestricted cross-border trade. As nations grapple with the balance between affordability and self-reliance, this study serves as a critical exploration of the policies and strategies that will shape the future of digital commerce in emerging markets.

Assessing the Tax Impacts and Community Benefits of Nonprofit Hospitals with IMPLAN

Nonprofit hospitals receive scrutiny regarding two interrelated issues: (1) the equity impacts of their tax-exempt status on the communities they serve and (2) the degree to which the community-benefit spending they offer serves local communities. Using economic impact analysis, the authors construct heuristic models that estimate the economic and tax benefits of nonprofit hospitals’ operations in four small and medium-sized metro regions. The estimates find that overall tax revenues disproportionately flow to state and federal levels of government, while the costs of tax exemptions disproportionately fall on local and regional levels of government. Additionally, forms of community benefit spending that are frequently criticized, such as uncompensated means-tested care, are found to be important forms of regional investment. The authors conclude by highlighting workforce development as a pathway to improving nonprofit hospitals’ community relationships.

Examining the asymmetric influence of tax revenue policy in an oil-dependent economy: evidence from Oman

Purpose This study aims to examine the asymmetric effects of tax revenue policies on the economic activity of Oman. Design/methodology/approach This study applies the nonlinear autoregressive distributed lag model and uses data from 1980 to 2022. Findings The findings confirmed that economic activity has a cointegrating relation with the positive and negative shocks of the tax revenue policy and selected macroeconomic variables. In addition, the long-run results show that positive changes in tax revenues have a positive significant effect on the economy, while negative shocks in tax revenues have a negative effect on the economy at the 5% significance level. The study concludes that a significant long-term asymmetric relationship exists between taxation policy changes through the revenue channel for the economy of Oman. Originality/value No previous study has specifically investigated the asymmetric impact of tax revenue policies on the economy of Oman, which is an oil-dependent country. To the best of the authors’ knowledge, this study is the first attempt to explore this relationship with respect to the Omani economy, and it uses extensive time series data and employs various contemporary econometric techniques. Given Oman’s reliance on oil and gas revenues, which typically fund approximately 70% of the country’s annual budget through taxation on oil and gas sold, fluctuations in global oil prices directly influence country’s fiscal position. Thus, this study contributes to the literature by empirically confirming the asymmetries impact of fiscal (tax) policies on Oman’s economy. The implication of the results suggests that the government cut back on tax incentives and tax exemptions for local and foreign businesses. This move can foster economic growth and reduce the negative competition effect among investors and taxpayers, which may ultimately improve the country’s tax revenue.

Medical debt in America, Part II: Financial support for the most vulnerable.

In this second part of a series on medical debt and the costs of care, we examine the past and present financial protections for low-income patients at nonprofit hospitals. Born of almshouses and religious orders, nonprofit hospitals were devoted at their founding to the care of the poor. However, over the course of the twentieth century, they became more focused on high-priced care for paying patients. Federal regulations surrounding tax exemption and charity care have been loosened to allow hospitals to spend relatively little on financial assistance, contributing to inequitable and inadequate financial protections for low-income patients.

Evaluating the effects of Climate Smart Agricultural (CSA) practices on productivity, adaptation, and mitigation indicators in Ethiopia: A meta-analysis approach.

Evaluating the effects of Climate Smart Agricultural (CSA) practices on productivity, adaptation, and mitigation indicators in Ethiopia: A meta-analysis approach.