Tax Incentives Research Articles

Effect of Integrated Customs Management Systems (ICMS) on Customs Duty Performance in Nairobi County, Kenya

Purpose: Tax is an important stream of revenue for government’s development projects and therefore all efforts must be made by governments to ensure that it is accurately and efficiently collected to facilitate the government’s operations. This study sought to determine the of integrated customs management system on factors affecting customs duty performance Nairobi County, Kenya. The theories supporting the study is comparative theory of international trade. Methodology: The study employed explanatory research design. The target population of this study was 438 respondents comprising customs heads of departments, customs officers and customs agents at Embakasi Inland Depot, Nairobi. with a sample size of 209, out of which 173 respondents correctly filled the questionnaires and submitted them accordingly. The data collected was analyzed through descriptive and inferential statistics. A linear regression model was used. Results: The coefficient study showed that a unit change in ICMS increases customs duty performance significantly β =0.205 p-value =0.000<0.05. Conclusion: The study recommends that the KRA and the government of Kenya prioritize the continuous improvement of the Integrated Customs Management System (ICMS). Customs management should ensure full utilization of the ICMS by training customs officials and stakeholders, given its positive impact on duty performance. Future research may be carried out on the effects of tax incentives on Customs duty performance

Pathways to corporate green technological innovation: An analysis from the perspective of dynamic capabilities

Green technological innovation has become a pivotal tool for driving economic restructuring and achieving environmental sustainability. However, in the face of complex and volatile market and policy environments, a critical question remains: how can enterprises effectively select and implement innovation pathways to address environmental turbulence? Drawing on data from 14,751 Chinese listed companies from 2012 to 2022, this study employs dynamic capabilities theory and a fixed-effects panel model to examine the impact of dynamic capabilities on firms’ choice of green innovation pathways. Results show a significant positive influence of dynamic capabilities on green innovation, although this effect varies depending on the research and development model and the level of environmental turbulence. Firms with high dynamic capabilities tend to favor independent research and development, with an effect coefficient of 0.778 (p<0.01); firms with moderate dynamic capabilities benefit more from cooperative research and development, with a coefficient of 0.045 (p<0.01); and firms with lower dynamic capabilities primarily pursue green innovation through technology transactions, with a coefficient of 0.052 (p<0.01). Furthermore, environmental turbulence significantly moderates the relationship between dynamic capabilities and green innovation negatively, with an interaction coefficient of -0.088 (p<0.05), indicating that environmental uncertainty weakens the positive impact of dynamic capabilities.These findings suggest that firms can select suitable research and development models aligned with their level of dynamic capabilities and adopt flexible innovation strategies to effectively manage environmental turbulence. This study proposes the following policy recommendations: enterprises should strengthen their dynamic capabilities, particularly in knowledge acquisition, resource integration, and adaptability to environmental changes, to enhance their green innovation capacity. Additionally, the government should increase policy support for green technological innovation by offering financial subsidies, tax incentives, and intellectual property protections, helping enterprises maintain their innovation momentum amid environmental turbulence.

Environmental Policies and Tax Incentives in the Pillar Two Era: A Comparison of the EU and US Approaches

This article explores the interaction between global corporate taxes, specifically under the OECD’s Pillar Two, as implemented by the EU Minimum Taxation Directive (2022/2523) in the European Union and by the Corporate Minimum Tax (CAMT) in the United States, and fiscal incentives supporting environmental tax policies under the European Union’s Green Deal and the US Inflation Reduction Act (IRA). The article compares the EU and US approaches and reveals the impact on the investment strategies of MNEs, with a focus on the location of intangibles related to renewable energy technologies, as well as State aid considerations. The article proposes that, instead of marginalizing the green tax credits, they should be reshaped and made subject to a benchmark that supports sustainable innovation within the global tax framework.

Optimizing environmental regulation policies for digital transformation in energy enterprises in China: An evolutionary game theory approach

In response to the global consensus on achieving carbon reduction, China has introduced a series of policies aimed at accelerating the digital transformation of energy enterprises. However, these policies have revealed shortcomings such as deficiency in regulation methods and insufficient integration of regulation with technologies. This study applies evolutionary game theory (EGT) to evaluate the impacts of different environmental regulatory policies on the digital transformation and verifies the effectiveness of the theory in policy optimization. Utilizing modified real-world data, the study quantitatively examines the effects of alterations in various parameter combinations on players' strategic choices. The results indicate that: (1) increasing the regulatory intensity above 0.8, the carbon tax rate and penalties can promote the digital transformation, stimulating the low-carbon development in energy sector; (2) an interesting finding is that tax incentives such as carbon tax refund ratio can exacerbate enterprises’ reliance on government compensation, thereby slowing down their transition process; (3) this study highlights the optimal service provision intensity for technological service providers (TSP) is 0.9, which can expedite system evolution towards the ideal state and foster the construction of a favorable digital regulatory environment. The study provides valuable references for optimizing regulatory policies and promoting digital transformation to realize the decarbonization goal.

The Impact of Green Trade Openness on Air Quality

Environmental degradation is among the most pressing issues the world faces today. Air pollution is one of the many forms of environmental degradation and can drastically impact human health and ecosystem functioning. Research shows that rapid intervention strategies are required to achieve the environmental targets set out by international agreements. One strategy that has been widely accepted to combat this issue of environmental degradation is the introduction of green products. The adoption of green products can be increased through trade. However, knowledge of the impact of trading these products is limited. This study examines the relationship between the trading of green products and air quality in a case study of 33 Organization for Economic Cooperation and Development (OECD) member countries from 2003-2016. We employ several panel strategies, such as the Westerlund (2008) Durbin-H method for cointegration and the Method of Moments Quantile Regression (MM-QR). The trading of green products was proxied by the newly developed ‘Green Openness Index.’ Nitrous oxide (NOx) and sulfur oxide (SOx) emissions served as proxies for air pollution. The relationship between the variables was explored in the context of the Environmental Kuznets Curve (EKC). The cointegration analysis reveals that there is a long-run relationship among the series. Long-run estimations prove that the EKC hypothesis is valid for the analyzed series. Additionally, the empirical findings reveal that trading environmentally friendly products increases air quality while energy consumption decreases. We provide several policy suggestions based on the study’s outcomes, such as supporting the trade liberalization of green goods, reducing tariff and non-tariff barriers for environmentally friendly products, and promoting the adoption of environmentally friendly goods by providing subsidies and other tax incentives to consumers.

Technological sovereignty as a factor of competitiveness of oil and gas companies of the Russian Federation

Aim. To investigate the importance of technological sovereignty for strengthening the competitive positions of Russian oil and gas companies.Objectives. To identify the key factors that determine the level of technological independence of oil and gas companies; to assess how these factors affect their ability to compete successfully at the national and international levels.Methodology. The research uses general scientific methods of analysis and synthesis using a systematic approach.Results. The essence of technological independence as a factor in the development of competitiveness of companies in the oil and gas sector was analyzed. The assumption is formulated that the achievement of technological sovereignty allows companies to mitigate risks arising from external factors, including international sanctions and restrictions on access to advanced foreign technologies. Several strategic initiatives have been proposed to strengthen the technological sovereignty of the domestic oil and gas industry: training of highly qualified personnel, introduction of tax incentives and subsidies from the state for companies, creation of special economic zones or technology parks, protection of intellectual property and support for patent activity.Conclusions. Technological independence is the most effective method in the context of the struggle of Russian industrial companies against external challenges: sanctions and changes in global energy markets. The development of national technologies in the oil and gas sector due to the synergetic effect has a positive impact on strengthening the competitive advantages of Russian national companies in both domestic and international markets. In order to ensure technological sovereignty, special attention should be paid to the development of strategic risk management mechanisms, as well as effective communication models between the state, industry, and science.

THEORETICAL ASPECTS OF GREEN FINANCING FOR PROVIDING SUSTAINABLE DEVELOPMENT

This article explores the theoretical foundations of green finance as a crucial tool for achieving sustainable development goals. Green finance supports environmentally friendly initiatives and projects that align with sustainability principles, particularly by providing funding for low-carbon projects and environmentally sound technologies. The article delves into the conceptual frameworks that underpin green finance and examines its connections with the economic, social, and environmental dimensions of sustainable development. It emphasizes the role that green finance plays in balancing economic growth with environmental stewardship and social well-being, thus contributing to a more sustainable global economy. The key instruments of green finance, including green bonds, sustainability-focused investment funds, and responsible financing mechanisms, are thoroughly analyzed to understand their significance in promoting sustainable economic growth. These tools not only facilitate the funding of eco-friendly projects but also help shift financial markets toward more responsible practices. In this context, the article emphasizes the pivotal role played by international financial institutions, governments, and the private sector in driving green investments and fostering an economy that is conscious of its environmental impact. Particular attention is given to policy frameworks and regulatory measures that can create favorable conditions for the expansion of green finance, such as tax incentives, subsidies, and environmental regulations that encourage sustainable investment. Moreover, the article addresses the challenges impeding the development of green finance. These challenges include scalability issues, market regulation difficulties, and the need for increased international cooperation. Overcoming these obstacles is essential to unlock the full potential of green finance and ensure that it can contribute effectively to global efforts in combating climate change. The article also explores the future prospects of green finance within the broader context of transitioning toward more sustainable economic models and identifies opportunities for innovation and growth in this sector. Finally, the article highlights international strategies and showcases successful examples of green projects from different countries around the world. These case studies provide insight into the positive impacts of green finance on economic stability and the reduction of carbon emissions, offering a clearer understanding of how green finance can play a central role in fostering long-term sustainability on a global scale.

How Does Innovation-Collaboration Network Structure Influence Regional Economic Resilience?

This paper examines whether different structures of co-patenting networks affect regional economic adaptation and adaptability in divergent ways. Adaptation differentiates from adaptability by recovering in a pre-shock growth path, while adaptability entails forging a new growth path. Focusing on computer, electronic, and electrical equipment manufacturing industries in U.S. metropolitan and micropolitan areas from 1990 to 2012, the study reveals that complete networks, characterized by closely connected nodes, promote adaptation but weaken adaptability. In contrast, coalitional networks, featuring loosely connected subgroups, enhance adaptability but hurt adaptation. The study contributes to regional economic resilience literature by empirically demonstrating the trade-off relationship between adaptation and adaptability from network structures’ perspective. Practically, the study helps policy makers to effectively allocate stimuli, such as grants and tax incentives, to develop targeted co-patenting networks to improve adaptation or adaptability.

The nexus of political connections and corporate tax strategies in Pakistan

PurposeExtant literature investigating the tax payment behaviour of politically connected firms largely supports the notion that politically connected firms have tax sheltering incentives, i.e. politically connected firms pay significantly less tax. Our paper adds to this stream of literature by considering the tax payment behaviour of two different groups of politically connected firms in Pakistan, viz. civil connected firms and military connected firms.Design/methodology/approachThe paper sheds light on the tax payment behaviour of politically connected firms and provides evidence that the tax incentives of politically connected firms are shaped by the institutional structure and contextual factors.FindingsThe results indicate that civil (military) connected firms pay significantly lower (higher) tax than non-connected firms. The findings hold in the face of a number of robustness tests, including the use of alternative proxies for the tax variable and endogeneity concerns.Originality/valueThese results make a significant contribution to the existing literature examining the tax payment behaviour of politically connected firms by providing evidence suggesting that tax sheltering is not the only viable option for politically connected firms; rather, some groups of connected firms have tax under-sheltering incentives. Our findings add to the political cost hypothesis and the signalling hypothesis in relation to tax payment incentives of politically connected firms.

The Current State Of Personal Property Taxation

A significant portion of local budget revenues is generated from tax revenues derived from individuals' property tax payments. Thus, the property tax levied on individuals is an important factor influencing the development level of the regions in our country. This article highlights the factors affecting property tax volumes and the tax incentives related to its payment. The theoretical and methodological foundations of taxing individuals on property are examined. The components of the property tax are analysed: the tax on real estate, excluding land plots, transport tax, and land use fees. The mechanism for collecting property tax from individuals is discussed under the Tax Code of Ukraine. The fiscal effectiveness of the existing system of property taxation for individuals in Ukraine is analysed, along with the peculiarities caused by the imposition of martial law. In the context of armed aggression against Ukraine, government budget expenditures have significantly increased. Therefore, studying the fiscal function of the property tax on individuals is a pressing issue. The article presents data on the payment of real estate tax by individuals, excluding land plots, transport tax, and land fees, before and after the onset of military actions in Ukraine. The research has established that the volumes of tax revenues from individuals' property taxes are increasing yearly. The research results confirm that the property tax on individuals, under martial law, is a substantial source of funding for local budgets in Ukraine. This underscores the importance and necessity of further enhancing the fiscal function of this tax. It has also been established that the fiscal potential of the property tax on individuals is not fully utilized due to the deficiencies in the existing taxation system. Brief examples of property taxation for individuals, based on the assessed value of such property in foreign countries, are provided. The prospects for reforming the property taxation system for individuals in Ukraine are discussed. Recommendations for reforming the property tax for individuals are formulated to increase its fiscal function.

Pengaruh Insentif Pajak terhadap Inovasi dan Kinerja Perusahaan: Tinjauan Literatur

In the era of globalization, many countries have introduced tax incentives designed to promote technological innovation and economic growth. This paper aims to examine global tax incentive policies in-depth, with a particular emphasis on their effectiveness in enhancing corporate innovation capabilities and performance. The findings indicate that the impact of such strategies on innovation and performance varies across different types and sizes of companies. While incentives provide a positive stimulus for participants, several challenges in policy design and implementation were identified, including a lack of adequate motivational measures and the complexity of policy execution. By comparing various approaches, this review highlights key elements of an effective tax incentive policy, such as policy flexibility, clear objectives, and support for strong internal management within companies. These insights offer new perspectives for theoretical research and practical recommendations for policymakers and business leaders to refine their tax strategies. Ultimately, these approaches are aimed at establishing conditions that foster technological advancement and economic growth.

Reduction of the tax burden as a mechanism for stimulating business development in rural areas

The article is devoted to the study of both theoretical aspects of tax stimulation of the development of entrepreneurship in rural areas, as well as the preferential norms for taxation of enterprises that carry out their economic activities in rural areas, provided for in the current legislation of Ukraine, as one of the effective ways of stimulating their development. The relevance of this issue, especially in the conditions of the full-scale armed aggression of the Russian Federation against Ukraine, is confirmed both in scientific circles and by the survey of business representatives, including micro, small and medium-sized enterprises, conducted after the start of the full-scale invasion. The norms of the current legislation of Ukraine on such main directions of tax stimulation of the development of enterprises in rural areas, which were characteristic of the domestic legislation in different periods of its development, were separately studied, such as: write-off and restructuring of tax debt; reduction of the taxation rate by separate taxes; exemption from payment of certain types of taxes and fees (mandatory payments), introduction of special taxation regimes. On the basis of the conducted research, the advantages and disadvantages of each of these mechanisms of tax incentives were analyzed. It was revealed that, as of today, one of the main preferential tax regimes inherent in enterprises carrying out their economic activities in rural areas is a simplified system of taxation, accounting and reporting. Taking this into account, and in the context of government initiatives to impose an additional fiscal burden in the form of a military levy, in particular, on taxpayers of the third group of single taxes, a proposal is made to balance such a burden at least for a part of taxpayers who carry out their activities in the least favorable rural areas, including the territories affected by the consequences of the armed aggression of the Russian Federation against Ukraine, by reducing the taxation rate with a single tax to 2 percent for the period of martial law and for several years after its termination.

Societal Impact of the Tennessee Small Business Administration: Lowered Barriers to Entry, State Growth, and Economic Freedom

This paper focuses on the effects of SBA lending and its possible effects on the economic growth in Tennessee. After all, claims about the belief that small business is the driving force behind job creation and economic growth are found throughout political speeches, newspaper columns, and public policy forums. These claims are frequently presented as justification for tax incentives, regulatory policies, and other government programs that favor small business by removing barriers to entry. Access to capital is often the biggest obstacle for an entrepreneur. This research focused on the relationship between guaranteed loans from the SBA and the economic growth of Tennessee. This research found a positive relationship between the SBA 7A lending and state growth in Tennessee. Thus, providing policymakers evidence that pursuing policies which support economic freedom will continue to support Tennessee’s state growth.

Comparative assessment of the progress of employee financial participation in the member states of the EU

PurposeThis article provides an overview of the different measures promoting EFP schemes that are in place across the EU-27 and the United Kingdom and classifies Member States according to a “success score” given to each measure. “Success” is measured by the degree to which both soft and hard criteria have contributed to promotion of EFP in different countries.Design/methodology/approachThe article assesses the progress of EFP in EU 27 and the UK using three indicators: (i) legal framework, (ii) fiscal incentives and (iii) political support and social dialogue to obtain an overall score for each country both for ESO and PS. Countries are then grouped into clusters, showing that a significant number of countries have made progress in the spread of both ESO and PS.FindingsESO is much less frequently used in Europe than e.g. in the US. If this still largely unexploited potential is to be harnessed, further development of financial participation, ESO in particular, should be part of an overall European strategy for stimulating sustainable and inclusive growth of the EU economy. A generally favourable attitude in some countries has usually led to supportive legislation for EFP schemes, which, in turn, have led to the spread of these schemes. Tax incentives are important tools for enhancing and broadening financial participation. When properly designed, they promote the spread of EFP effectively.Originality/valueAssessing the progress of EFP schemes in EU 27 and the UK using the three indicators (i) legal framework, (ii) fiscal incentives and (iii) political support and social dialogue, we obtain an overall score for each country both for ESO and PS and compare it with those produced in 2014. We can show that in as many as twelve countries, i.e. 44% of MS, there was a positive change in their overall score between 2014 and 2024.

“I Don’t Know Whether It’s Priority, or Capacity, or Both”: Implementation Gaps in Employment Policies Targeting People with Disabilities in Kenya and Bangladesh

Disabled people are often excluded from employment, particularly in accessing waged employment. This exclusion persists despite enabling policies and legislature, indicating a need to address gaps in implementation. To improve policy implementation, it is crucial to better understand the gap between policy intention (what was planned) and effect (what happens), including reasons that widen this gap (what explains what happened). This study explores this in the context of Kenya and Bangladesh, drawing on key informant interviews and analysis of policies and programmes related to employment, social protection, and disability. Using the policy triangle framework, we analysed the policy context, process, actors, and content of relevant policies and programmes. The study identified key policy provisions on employment quota, social assistance, job placement services, tax incentives, and training opportunities, all of which were designed to promote employment for disabled people. However, implementation is limited in both countries, for reasons including ambiguity in policies, unavailability of data for monitoring, and lack of transparency among implementers. The data suggest that addressing these aspects would promote accountability among duty-bearers, advocacy power among rights-holders, and ultimately improve implementation and inclusion of disabled people in employment.

Promoting the ESG agenda for small and medium-sized businesses in the Republic of Kazakhstan in the context of sustainable development

Small and medium enterprises (SMEs) in Kazakhstan can become a system-forming factor in economic diversification in the context of ESG development. Responsible business requires the responsible attitude of business entities in all those affected by its activities. The introduction of ESG principles into the activities of S&MSB will ensure long-term profitability, improve the image of organizations, and ensure both the sustainability of the company itself and the sustainability of the development of a socio-economic system of a higher order. The formation and implementation of public non-financial indicators for business entities will make it possible to intensify efforts to promote the ESG agenda in transformative business conditions. The goal is to study the problems of promoting the ESG agenda for SMEs in the Republic of Kazakhstan and systematize non-financial indicators that promote responsible business conduct. Research methods - deconstruction, analysis, synthesis, description, comparison, survey. Conclusions are drawn about the need for legislative regulation, the formation of non-financial reporting, and the use of tax incentives for those business entities that follow ESG principles. Legislative regulation is aimed at creating publicity and openness in the presentation of non-financial reporting data. Criteria for monitoring non-financial reporting are proposed, covering the environmental, social, and managerial profile of the entrepreneur. The results obtained can be used by SMEs, higher education, the public, and government authorities.

Policy recommendations on supporting employee financial participation

Purpose From the first PEPPER report in 1991 until this PEPPER V Report the EU has not only expanded from 12 Members States to currently 27 but also faced complex and urgent challenges. Both the financial crisis of 2008/09 and the coronavirus disease 2019 (COVID-19) pandemic 2020/21 have left their marks on “Social Europe”. Although the overall dynamic of employee financial participation (EFP) across the EU 27 is positive, EFP is declining in terms of its share of household income in the light of the concentration of capital ownership and of capital income. Along with the issue of distributive justice, other challenges, such as business succession in small and medium enterprises (SMEs) that have been on the agenda for decades, and new ones like the extension of EFP to social enterprises, are calling for action.Design/methodology/approach From the comparison of the countries, the cluster analysis and the background of the importance of legal framework and fiscal incentives, two general principles can be derived: (1) establishing EFP schemes through legislation is of primary importance as countries that provide a stable and transparent regulatory framework for EFP also show a wider implementation of EFP practices; (2) when properly designed, fiscal incentives promote the spread of EFP effectively as both countries with a long tradition of tax incentives for EFP (e.g. UK, France) and those with a more recent development (e.g. Austria) confirm.Findings It is against this background that the following policy recommendations should be read. Tax incentives should (and in most countries they actually do) target those taxes, which constitute the heaviest burden in the national taxation system. (1) Tax incentives should be provided for both employees and the employer company. (2) Even substantial tax incentives may prove inefficient when the pre-conditions for eligibility are too restrictive, complex or inflexible. (3) Some forms of tax incentives are more suitable for certain types of plans, e.g. deferred taxation for employee share ownership (ESO), capital gains tax in lieu of personal income tax for dividends and sale of shares, or tax exemptions for matching contributions for European Employee Stock Ownership Plans (ESOPs).Originality/value In light of this need for SME action and the great potential for introducing ESO in this enterprise segment, from our recommendations we emphasise in particular: Alleviating the evaluation problem in unlisted SMEs through debt-to-equity-swaps. ESO may initially take the form of an employee loan to the company, creating corporate debt, which is subsequently converted into company shares. Facilitating share transfers in privately held limited liability companies (LLCs) by ending the requisite for notarial certification (Italy and France) or limiting it to the identity of seller and buyer. ESO in SMEs via intermediary entities, e.g. trusts, foundations, LLCs or other special purpose vehicle (SPVs) to hold and administer employee shares (AT, IE, UK, HU, FR, SI, USA).

Regulatory Barriers For Entrepreneurship and Start-Ups In Renewable Energy: Bibliometric Analysis

This article conducts a bibliometric analysis to investigate regulatory barriers faced by entrepreneurs and start-ups in the renewable energy sector. The research highlights how inconsistent and outdated regulations in many regions challenge the growth and scalability of renewable energy ventures. Key barriers include complex permitting processes, restrictive grid connection policies, and inadequate support mechanisms such as subsidies and tax incentives. The study underscores that although global investment in renewable energy technologies has grown, many emerging and developing economies lag behind due to high capital costs and regulatory hurdles. The methodology involves data collection from the Scopus database using specified keywords such as “entrepreneurship,” “start-ups,” “renewable energy,” and “regulatory barriers.” One hundred seven documents published between 2002 and 2024 were analysed through bibliometric techniques using tools like Biblioshiny and Excel. The study cleans and processes data by removing irrelevant terms and consolidating synonyms to improve the accuracy of the bibliometric analysis. Key research indicators, such as the h-index, g-index, m-index, and citation rates, are employed to evaluate the impact of publications and authors. The analysis also focuses on co-citation networks, clustering keywords, and tracking the evolution of themes over time. Results reveal that regulatory barriers to renewable energy entrepreneurship are widely studied but fragmented. Five main keyword clusters were identified: renewable energy technologies, policy and regulatory frameworks, business models, economic development, and environmental sustainability. A notable trend is the convergence of interdisciplinary research, combining economic, policy, and technological perspectives on overcoming barriers. The analysis highlights a significant publication growth in recent years, peaking in 2022 with 15 publications, which reflects an increasing academic interest in this area. The most cited papers often discuss solutions to regulatory challenges, such as streamlining administrative processes, improving grid access, and implementing supportive financial mechanisms. Case studies from leading renewable energy markets, like Germany and California, showcase successful strategies that have fostered innovation and allowed start-ups to thrive. However, the study emphasises that many emerging markets continue to struggle with outdated regulatory frameworks that hinder the commercialisation of new technologies, particularly in energy storage. The study concludes that future research should focus on detailed longitudinal studies and interdisciplinary approaches that combine legal, economic, and technological analyses. Policymakers are urged to adopt flexible, adaptive regulations to support innovation in renewable energy, ensuring that start-ups can leverage technological advancements and contribute to the global energy transition.

Tinjaun Yuridis Terhadap Kesiapan Kewajiban Spin Off Bagi Unit UsahaSyariah (UUS) Menjadi Bank Umum Syariah (BUS)

Law Number 21 of 2008 concerning Sharia Banking in Article 68 paragraph 1 and Article 40 Article 40PBI No. 11/10/PBI/2009 mandates that every Sharia Business Unit (UUS) which is a sharia unit in aConventional Commercial Bank (BUK) to separate itself (spin-off). and it is explained that UUS is obligedto separate into BUS if the value of UUS assets has reached 50% (fifty percent) of the total asset value ofits parent BUK. The spin-off time is no later than 15 (fifteen) years from the enactment of the law, namely2023. The aim of this writing is to determine the impact of the spin-off on UUS by analyzing the solutionsthat can be offered. The research results show that it is necessary to review Law Number 21 of 2008concerning Sharia Banking by considering the financial condition of UUS. Apart from that, UUS whichhas carried out a spin-off by becoming a new BUS can optimize the use of Third Party Funds in the formof financing and other services. In order to encourage BUS growth, support from the government isneeded, such as providing tax incentives and simplifying regulations on capital participation. Apart fromthat, the new BUS needs to carry out various innovations by adding financing products and developingexisting products. This research aims to determine the readiness of the Spin Off obligation for UUS tobecome a BUS and the issue of readiness to fulfill the obligations of UUS to become a BUS in July 2023.Keywords: Spin-off Obligations, Sharia Business Units (UUS), Sharia Commercial Banks (BUS)

Implementation of Tax Incentive for Micro, Small, and Medium Enterprises at Special Economic Zone in Indonesia

Implementation of Tax Incentive for Micro, Small, and Medium Enterprises at Special Economic Zone in Indonesia