Tax Rate Structure Research Articles

Impacts of anti-dumping duties on firm’s performance: Evidence from listed firms in seafood industry in Vietnam

The study aims to examine the impact of the anti-dumping tax imposed by the United States under the simultaneous influence of financial factors on the performance of enterprises in the seafood export industry. The author selected data including 21 companies listed on the Vietnamese stock market in the period 2017 - 2022, and used GMM estimation technique to retest the influence of familiar factors such as lag of the firm’s performance, size, leverage, liquidity ratio, sales growth rate to the firm’s performance (measured by ROA), in addition, the paper also provides additional evidence on the impact of new factors: anti-dumping tax and export sales ratio. Research results show that (1) 6 out of 7 independent variables including , Size, Liq, g, ADr, Exp.re / Tot.re are statistically significant, (2) anti-dumping tax rate and geographic revenue structure are both recorded negative impacts on performance. The results of this study contribute academically by providing a new insight into the relationship between revenue and profit in the case of exporting to countries that apply anti-dumping tax and contribute practically by proposing some implications for foreign trade policy and corporate financial management strategy.

Income composition inequality of Chinese residents and fiscal redistribution effect: An empirical analysis on individual income tax and transfer system.

Based on the data of China Family Panel Studies (CFPS), this paper decomposed Chinese residents' income into labor income and capital income by income source, and measured the income inequality and income composition inequality of Chinese residents during 2010-2018. We take the Gini coefficient as a measure of inequality and, by decomposing it by income source, analyze the absolute and relative marginal effects of capital income and labor income on the overall income inequality. On this basis, this paper discusses the redistributive effect of financial instruments such as personal income tax and transfer payment on income inequality and income composition inequality. The results show that capital income is not only the main driving factor for the increase of overall income inequality, but also its influence on inequality is gradually increasing. The results of the redistribution effect of fiscal instruments show that although individual income tax and transfer payment both help to reduce the overall income inequality, only individual income tax can reduce the inequality of income composition, while transfer payment will exacerbate it. In the background of the rising share of capital income, it may widen the income distribution gap in the long run. Hence, future fiscal redistribution efforts should consider the income composition inequality. This includes further promotion of individual income tax reforms, optimization of the tax rate structure, enhancement of relevant tax laws governing capital income like property income, and continuous improvement in the redistributive impact of fiscal instruments.

Four Years of Goods and Services Tax in India: Road Ahead

The ideology behind GST was to reduce the multiplicity of existing indirect taxes and implement a uniform taxation structure across the nation. A perfect GST would have been wherein the GSTs are taxed at a single tax rate, subject to minimal or no exceptions. However, for a country like India, a tiered tax rate structure becomes inevitable to take into account the larger social agenda. GST is in the interest of trade and industry as it would do away with multiplicity of taxes and their cascading impacts. It will lead to the creation of a unified market for facilitating seamless movement of goods across the states. By subsuming a large number of Central and State taxes into a single tax, it would mitigate cascading effects or double taxation in a major way and pave the way for a national common market. However, we need to keep in mind that taxation policy has to be transparent, predictable and inclusive. This alone can maximise the favourable impact of GST on investment and growth. There is a strong case for phasing out a lot of exemptions. The GST council should seriously work on strengthening the GST system.

Taxing the 1 per cent: Public Opinion vs Public Policy

Abstract Recent studies suggest that public policy in established democracies mainly caters to the interests of the rich and ignores the average citizen when their preferences diverge. I argue that high-income taxation has become a clear illustration of this pattern, and I test the proposition on a least likely case: Norway. I asked Norwegians to design their preferred tax rate structure and matched their answers with registry data on what people at different incomes actually pay in tax. I find that within the top 1 per cent, tax rates are far below (by as much as 23 percentage points) where citizens want them to be. A follow-up survey showed that this divergence is entirely driven by capital incomes being taxed too low. My results suggest that even in a reasonably egalitarian society like Norway, the rich get away with paying considerably less in tax than what people deem fair.

The Inherent Conflict Between Progressive Tax Rates and Income Inequality: Lessons from COVID-19 Restrictions

ABSTRACT We examine the relation between progressive tax rates, income inequality, and state income tax collections. We provide evidence that states with more progressive tax rate structures have higher tax collections. We then show an enhanced relation for states that enacted more stringent COVID-19 restrictions, which increased income inequality. Finally, we find that restrictions were more severe in states with more progressive tax rates. Our evidence sheds light on the inherent conflict between progressive tax structures and income inequality—income inequality increasing policies result in higher tax collections with a progressive tax system even though the latter aims to address income inequality. JEL Classifications: D63; H24; H31; H51; H53; H71.

Fairness dimension of goods and services tax

A tax system to be called fair must assess the tax liability of each tax-payer without any biases. Most studies suggest a positive relationship between tax fairness perception and compliance behavior. This relation can only be ascertained if the factors of tax fairness are known. This study investigates the dimensions of tax fairness in India concerning the recently implemented Goods and Services Tax (GST). A survey questionnaire on tax fairness was developed and administered to a sample of 210 business people belonging to the micro, small, and medium enterprises (MSME) sector. Measures of central tendency, factor analysis, and reliability analysis identify five robust tax fairness dimensions: General Fairness, Exchange with Government, Process Equity, Inter-Group Equity, and Tax Rate Structure. By identifying the dimensions of tax fairness, the perception of tax-payers can be understood, and the factors leading to tax evasion can be curbed.

Optimal Tax Design: Choice of Tax Base and Rate Structure

Optimal Tax Design: Choice of Tax Base and Rate Structure

Persepsi Keadilan dan Kepatuhan Pajak Pada Wajib Pajak Pengusaha dan Pekerja di Kota Salatiga

The purpose of this research is to provide a description of the perception of tax fairness and tax compliance on taxpayer businessmen and employee in city Salatiga. The samples of this research are businessmen and employees in Salatiga city which is using accidental sampling technique to choose the sample with. The data used in this research is primary data which was obtained directly from the respondents with questionnaire method. The method used in this research is descriptive statistic and t-test with 5% significance level. The results of this research indicate that (1) generally there is no difference in perception between businessmen and employees in dimentions of general fairness, exchange with the government, special provisions, tax-rate structure and self interest (2) employess are more than compliance compared businessmen with witholding tax system.

Суперечності та проблеми гармонізації ставок податку на додану вартість у ЄС

Despite the fact that today VAT is considered the most harmonized tax, the process of approximation of its various elements occurs at different pace and with different efficiency. Some of the most problematic in this context are such elements of the tax as rates and benefits. The purpose of this article is to analyze the contradictory process of harmonization of standard and preferential tax rates, the current level and prospects of their approximation. In the article the evolution of the harmonization process of standard and reduced VAT rates in the EU and the current state of their approximation is analyzed. It has been established that currently the structure of preferential tax rates is the least harmonized. Countries vary both by their number and size, with five EU countries continuing to use a third preferential rate below its minimum level determined by the directive, while a country like Luxembourg imposes a 3% rate on 14 categories of goods and services. The scope of application of preferential rates also differs significantly in different countries. If in Bulgaria only the supply of hotel accommodation services is taxed at a reduced rate, in many member states – 16-18 categories of goods and services. The analysis has shown that the most harmonized are the standard VAT rates of the EU member states, and the degree of their harmonization is characterized by a tendency to increase, as evidenced by the decrease in their coefficient of variation during 1994-2020. It was determined that their convergence took place under the influence of two processes – the introduction of the minimum level of the standard rate by the integration law norms and the natural convergence of these rates, which resulted in finding solutions to common problems for most Member States related to overcoming global economic crises and ensuring sustainable economic growth, one of the tax instruments which modern science considers is the transfer of the tax burden from income to consumption, which encourages an increase in standard VAT rates in countries with their initially low levels. It is concluded that in the future, providing more freedom for Member States to set VAT rates will be linked to the introduction of a definitive VAT system, which provides tax collection according to the principle of the country of destination and imposes less requirements on the harmonization of its rates.

The Appropriate Roles for Equity and Efficiency in a Progressive Individual Income Tax

Increased focus on economic efficiency in formulating tax policy, at the expense of achieving equity, has resulted in decreased rate progressivity in our individual income tax. This decrease has exacerbated inequality.
 There are several explanations for the intense focus on efficiency and reduced emphasis on equity. Predictions of efficiency gains from low individual income tax rates appear more certain than equity gains from progressive tax rates. Efficiency gains seem measurable, while equity gains appear intangible and unquantifiable. In addition, distributive justice, which underlies and shapes tax equity, exists in many abstract forms, some of which may not require progressive tax rates.
 This Article argues, however, that the emphasis on efficiency is misplaced. Inequality imposes measurable costs on the health, social well-being, and intergenerational mobility of our citizens, as well as on our democratic process. This is corroborated by significant empirical analysis.
 In contrast, empirical analysis shows that anticipated efficiency gains from low individual tax rates are speculative. A consensus exists among economists that taxes within the historical range of rates in the United States have little or no impact on labor supply. Moreover, economists cannot agree whether the myriad empirical studies on savings indicate that progressive tax rates decrease, increase, or have no impact on savings in the United States.
 The clear harms arising from inequality and the uncertain harms arising from progressive tax rates, strongly support always giving equity at least equal weight with efficiency in formulating tax policy. But given the high level of inequality in the United States and the currently low and flat tax rate structure, equity should be given more weight than efficiency at this time. Emphasizing equity in a progressive individual income tax will contribute to the health and economic mobility of our citizens, as well as the stability of our democracy.

Determinants of Taxpayers Compliance: Evidence from Small and Medium Macro Enterprises in Indonesia

The aim of this reseach to determine the factors that influence of taxpayers compliance. The populations for this study is corporate taxpayer registered in the Pratama tax office. Sampling technique of convenience sampling was adopted in which one hundred and fifty nine Small and Medium Macro Enterprises (SMMEs) responded to the survey questionnaire and a total of one hundred fifteen valid responses were judged to be appropriate. Analytical in this study uses multiple regression model used to test the hypotheses of the study through the statistical model. The result of this research indicates that general fairness, exchange with the government, self-interest, special provisions and tax rate structure have a significant effect on corporate taxpayer compliance behavior.

Study on system fairness dimensions and tax compliance in the Middle East context

People’s perceptions of a fair tax administration system have garnered growing interest as a decisive ingredient that can install compliance behavior among taxpayers. The tax that taxpayers wish to evade is determined by their perceptions of the various robust dimensions of fairness (i.e., general fairness, preferred tax rate structure, exchange with the government, special provisions, and self-interest). Such an important matter, like tax fairness, has been overlooked in the extant literature, especially in the Middle East context, although tax administrations still suffer from low and unsatisfactory rates of compliance. This paper aims to empirically examine the influence of fairness perceptions of the income tax system on compliance behavior of taxpayers in Yemen. The study used a survey questionnaire administered to 400 individual taxpayers in Hadhramout, one of the most prosperous business regions in Yemen. Based on the PLS-SEM analysis tool, the study found that general system fairness, preferred tax rate, exchange with the government, and the extent of self-interest are significantly related to income tax compliance, while special provisions do not affect compliance decisions. The results of the study can alert the tax authority and policymakers to consider the non-pecuniary factors, other than the measures of the coercion. Establishing a fair tax system is probably one of the most successful approaches to boost compliance among taxpayers, thus yielding more tax revenue and diminishing the administrative cost for the tax authority.

The Troubled Story of the Hungarian Advertisement Tax: How (Not) to Design a Progressive Turnover Tax

The provisions of the Hungarian Advertisement Tax stirred up many legal debates regarding the potential breach of EU law, including State aid rules and EU fundamental freedoms, respectively, as well as the violation of the non-discrimination provision of double tax conventions. The implications of these legal questions go beyond the Hungarian tax system and have special relevance on international and EU levels. This article analyses the compatibility of progressive turnover-based taxes with EU law that is of paramount importance now when Member States unilaterally introduce similarly designed digital taxes. Furthermore, the article also sheds light on the application of the non-discrimination clause of double tax conventions and the EU fundamental freedoms to procedural rules designed to enforce taxes on taxpayers who are likely not to be physically present in the taxing jurisdiction. Turnover taxation, digital tax, progressive tax rate structure, advertisement tax, tax treaty non-discrimination, state aid, registration requirement and default penalty, EU fundamental freedoms.

The Appropriate Roles for Equity and Efficiency in a Progressive Income Tax

Increased focus on economic efficiency in formulating tax policy, at the expense of achieving equity, has resulted in decreased rate progressivity in our individual income tax. This decrease has exacerbated inequality. There are several explanations for the intense focus on efficiency and reduced emphasis on equity. Predictions of efficiency gains from low individual income tax rates appear more certain than equity gains from progressive tax rates. Efficiency gains seem measurable, while equity gains appear intangible and unquantifiable. In addition, distributive justice, which underlies and shapes tax equity, exists in many abstract forms, some of which may not require progressive tax rates. This Article argues, however, that the emphasis on efficiency is misplaced. Inequality imposes measurable costs on the health, social well-being, and intergenerational mobility of our citizens, as well as on our democratic process. This is corroborated by significant empirical analysis. In contrast, empirical analysis shows that anticipated efficiency gains from low individual tax rates are speculative. A consensus exists among economists that taxes within the historical range of rates in the United States have little or no impact on labor supply. Moreover, economists cannot agree whether the myriad empirical studies on savings indicate that progressive tax rates decrease, increase, or have no impact on savings in the United States. The clear harms arising from inequality and the uncertain harms arising from progressive tax rates, strongly support always giving equity at least equal weight with efficiency in formulating tax policy. But given the high level of inequality in the United States and the currently low and flat tax rate structure, equity should be given more weight than efficiency at this time. Emphasizing equity in a progressive individual income tax will contribute to the health and economic mobility of our citizens, as well as the stability of our democracy

ANALISIS STRUKTUR TARIF PAJAK DALAM MELIHAT KEPATUHAN WAJIB PAJAK BADAN (Studi Kasus pada PT. Bank Pembangunan Daerah Sulawesi Tenggara)

This study aims to determine and analyze the structure of tax rates to see taxpayer compliance which is PT. Bank Pembangunan Daerah of Southeast Sulawesi. Data collection methods used in this study are interviews, documentation and library studies. This study is descriptive analysis research. The results of this study indicate that companies that become taxpayers must have proof of registration as a taxpayer in the form of a Taxpayer Identification Number. PT. Bank Pembangunan Daerah of Southeast Sulawesi has registered as a taxpayer and had a Taxpayer Identification Number. The imposition of corporate tax rates is based on the gross circulation of the entity. PT. Bank Pembangunan Daerah of Southeast Sulawesi is subject to 25% PPh tariff since its gross circulation value exceeds Rp. 4,800,000,000. PT. Bank Pembangunan Daerah Southeast Sulawesi also reports and pays the tax liability on time and precisely the amount in accordance with the tax rates and the time stated in the SPT.

The Impact of Personal Income Tax Structure on Income Inequality for Belgium, Bulgaria, Germany, Lithuania, and Poland: A Comparison of Flat and Graduated Income Tax Structures

The level of income inequality in a country is usually a contentious and politically divisive issue. How the tax structure affects this inequality is of crucial concern to policymakers. In this paper, we examine the income tax experiences of five European Union countries: Belgium, Bulgaria, Germany, Lithuania, and Poland. This paper focuses on the comparison between flat and graduated personal income tax rate structures. Various methods were used to measure the progressivity of income taxes across these countries such as the average tax rate, cumulative shares of income, and the Gini and other indices. The findings show that the graduated rate income tax structure of Germany and Belgium are the most effective at reducing inequality. On the other hand, Lithuania’s proportional income tax structure is much more effective at reducing income inequality when compared to the graduated rate structure of Poland. Also, an appropriately-sized income tax threshold can transform a flat structure to a redistributive one that compares favorably with some graduated rate structures. In the case of Bulgaria, introducing an income tax threshold that is roughly the size of average income would reduce inequality by about 4 %.

The International Experience of Personal Income Tax Reform and China's Practice

Individual income tax plays an important role in China's tax structure. The reform of personal income tax has always been the focus of China's tax reform. However, there are still some problems in China’s personal income tax system. It does not play its due role in regulating income distribution. This paper focuses on the tax system of taxable unit, expense deduction standard, tax rate and so on in the United States and Japan. And proposes that in the process of individual income tax reform in China, it is necessary to perfect the tax collection and management system, improve the expense deduction standard, and adjust the tax rate structure. It is recommended that accelerating the establishment of a mixed tax system for individual income tax in China and a shift from individual taxable units to family-based taxable units.

Optimal effective tax structure for innovation-led economy in theoretical model

This paper constructs an effective tax rate structure model for innovation-led economy and estimates the common factors affect TFP. The results show that the labor effective tax rate, the consumption effective tax rate and the capital effective tax rate can affect TFP. The key to building an innovative economy and improving TFP is to increase R&D investment and optimize tax structure.

PENGARUH PERSEPSI KEADILAN PAJAK DALAM PERATURAN PEMERINTAH REPUBLIK INDONESIA NOMOR 46 TAHUN 2013 TERHADAP KEPATUHAN DALAM MEMENUHI KEWAJIBAN PERPAJAKAN

The purpose of this research is to analyze the influence of perceptions of tax fairness towards compliance in fulfilling taxation of obligations. Azmi and Perumal (2008) identified five of tax fairness dimension: general fairness, exchanges with government, special provisions, tax rates, and self-interest towards individual taxpayers compliance.This research used primary data obtained by distributing questionnaire to micro and small business owners in Center of Promotion and Marketing Horticultural Department of Marine and Agriculture DKI Jakarta. Multiple regression analysis was used to identify dimensions of tax fairness that influence compliance in fulfilling taxation obligations.The results of this research indicate that general fairness and the structure of tax rates influence towards compliance of micro and small businesses in fulfilling taxation obligations, while exchange with government, special provisions, and self-interest does not influence towards compliance of micro and small businesses in fulfilling taxation obligations.

Off Target: Assessing the Fairness of Ottawa's Proposed Tax Reforms for 'Passive' Investments in CCPCs

In July 2017, the Department of Finance launched consultations on a series of tax proposals affecting owners of Canadian-Controlled Private Corporations (CCPCs). The proposals on the treatment of “passive income,” from investments such as equities and government bonds, have attracted particular controversy. The proposed regime would end passive investment income-tax refundability for CCPCs – ie., taxes paid on investment income in a CCPC would no longer be tracked and refunded upon dividend payments. Although there are other versions of proposed changes, this is seemingly the one the government favours. Private corporations – and by extension their owners – would be taxed on their passive investment income on the same basis as if they were individual investors in fully taxable accounts. There would be diminished incentives to defer business consumption, and less income and business saving available for spending on capital equipment. The same is true of small business income retained for personal purposes – there will be greater incentives for immediate personal consumption of business income rather than saving it for retirement or other purposes. But is the current system inequitable? Our tax simulations show, overall, it is not – when benchmarked against the tax treatment afforded to personal retirement savings. Saving for retirement in tax-assisted plans – on a “consumption-equivalent” tax basis with a steeply graduated tax rate structure – is widely accepted in principle and in practice, because such treatment does not discourage saving as a pure income tax would do. Considering that additional administration, accounting, and tax compliance costs need to be incurred in corporate accounts, one could reasonably conclude that passively reinvested small business earnings receive a tax treatment similar to that of RRSP/TFSAs in a variety of possible portfolio compositions. Besides, successful businesses earning income above the small-business threshold enjoy no significant tax “advantages” on passively reinvested earnings. As laid out, these proposals risk delivering a blow to the retirement planning of many small business owners, not to mention their potential negative impacts on entrepreneurship and risk taking. Further, the playing field with respect to tax-assisted saving opportunities is already largely unequal. Outdated current tax rules allow career defined-benefit (DB) pension plan participants, particularly in the public sector, to end their careers with tax-assisted retirement wealth worth multiples of that practically achievable in RRSPs. If the government proceeds with changes along the lines it has outlined, fairness suggests that it should level the playing field so business owners have tax-assisted retirement saving opportunities comparable to those available to most public-sector employees in DB plans and Members of Parliament. The most ambitious reform would establish a lifetime accumulation limit of personal tax-assisted savings, in lieu of the current system of annual limits. A lifetime accumulation limit would ease the transition to the new proposed regime, and provide needed contribution flexibility and room to everyone, including small business owners, to accumulate sufficient retirement wealth.