Introduction of Corporate Income Tax Deferral As an Essential Factor for Economic Development of Latvia

Fiscal Measures to Boost the Economic Development of Russian Territories

Financial Journal ◽

10.31107/2075-1990-2020-5-99-113 ◽

2020 ◽

Vol 12 (5) ◽

pp. 99-113

Author(s):

A.D. Andryakov ◽

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E.A. Dombrovskiy ◽

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Keyword(s):

Economic Development ◽

Income Tax ◽

Federal Budget ◽

Corporate Income Tax ◽

Compensation Mechanism ◽

Russian Regions ◽

The Russian Federation ◽

Reduced Rate ◽

Equalization Grants ◽

Additional Stimulation

Two possible directions of fiscal measures aimed at improving Russian territories’ economic development are discussed in the paper: one at the level of largest agglomerations and another one at the regional level. It is widely accepted that agglomerations are “engines” of economic growth. The Strategy of Spatial Development of the Russian Federation until 2025 pays special attention to the development of agglomerations. However, the latter process has not only natural limitations, but also institutional ones arising from low fiscal independence of municipalities which form agglomerations. To overcome the institutional limitations, the paper proposes a set of fiscal measures, including a redistribution of tax revenues and expenditure obligations between the center of a given agglomeration and the region that contains it. The current fiscal mechanisms of stimulating economic development of Russian regions are analyzed. A mechanism of additional stimulation for regions to develop their own revenue base is proposed; it includes the transfer of receipts of VAT levied with a reduced rate of 10 % to regions in exchange for centralization of some part of corporate income tax in the federal budget. Different scenarios of this exchange are analyzed. It is shown that centralization of the corporate income tax amount corresponding to the 1 % rate in the federal budget in exchange for the transfer of VAT levied with a rate of 10 % to regions with a compensation mechanism within the transferred amounts is neutral to the federal budget and to budgets of the regions which receive equalization grants.

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Reregulating Indonesian Stock Buyback: A Lesson From United States

Yuridika ◽

10.20473/ydk.v36i3.26826 ◽

2021 ◽

Vol 36 (3) ◽

pp. 559

Author(s):

Didik Farkhan Alisyahdi ◽

Diffaryza Zaki Rahman

Keyword(s):

Economic Development ◽

Income Tax ◽

Limited Liability ◽

Corporate Income Tax ◽

Share Repurchases ◽

Share Repurchase ◽

The Us ◽

Stock Buyback ◽

Jobs Act ◽

Tax Cuts

This article compares the corporate income tax cuts enacted by the Indonesian COVID-19 Relief Law and the US Tax Cuts and Jobs Act. It investigates the correlation between the tax cuts in the Tax Cuts and Jobs Act, economic development, and share repurchases in the US. It seeks to identify appropriate limitations on share repurchases in Indonesia following the enactment of the COVID-19 Relief Law. This research was carried out using the juridical normative method by tracing the literature and laws concerning share repurchase arrangements in Indonesia and the US. The results show that there is a slight positive correlation between the reduction of corporate income tax and economic development in the US and that the US income tax cuts have caused significant growth in share repurchases. After the enactment of the Indonesian COVID-19 Relief Law, which also reduced corporate income taxes, Indonesia may be on the verge of extensive share repurchase activity, as occurred in the US. To tackle this problem, we recommend amending Law No. 40 of 2007 concerning limited liability companies to re-regulate the restriction on share repurchases.

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ASYMMETRY OF TAXATION OF TNK ACTIVITIES IN CONDITIONS OF UNEQUALITY OF ECONOMIC DEVELOPMENT

Financial and credit activity problems of theory and practice ◽

10.18371/fcaptp.v2i37.229939 ◽

2021 ◽

Vol 2 (37) ◽

pp. 105-115

Author(s):

A. Maksymenko ◽

V. Kozak

Keyword(s):

Economic Development ◽

Income Tax ◽

Negative Relationship ◽

Developed Countries ◽

Corporate Income Tax ◽

Tax Burden ◽

Less Developed Countries ◽

Tax Rate ◽

The Government ◽

The Impact

Abstract. The unevenness of economic development significantly dynamizes the vector orientation and clearly shows the nature of economic contradictions, which acquire their concentrated form in the asymmetry of taxation of TNCs. Research shows the relationship between corporate income tax rates and country risk ratings. It has been established that for European countries the negative relationship (positive slope) between the corporate income tax rate and the level of risk for the country prevails. The results of the study confirm the hypothesis that the greater the risk in countries, the higher the corporate income tax rate set by the government. Using econometric methods, the impact of tax legislation of countries on the activities of TNCs was analyzed and it was found that in less developed countries, the tax system to a lesser extent stimulates the business activities of TNCs. At the same time, both less developed countries (Vietnam) and highly developed countries (Japan and Germany) have great potential for improving tax policy. It is proved that in developed countries the greatest directly proportional influence on the indicative turnover of TNCs is exerted by such indicators as the level of tax burden in relation to GDP, corporate tax rate, the rate of deduction of enterprises for social security. The rate of indirect taxes has an inversely proportional effect. The most significant tax factors that determine the dynamics of profits of the respective TNCs are the level of tax burden in relation to GDP. Keywords: tax burden, taxation of TNCs, tax regulation, income tax. JEL Classification H20, F23 Formulas: 0; fig.: 4; tabl.: 2; bibl.: 17.

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The investment activity of Russian business: Relationships with corporate income tax burden

International Accounting ◽

10.24891/ia.23.7.800 ◽

2020 ◽

Vol 23 (7) ◽

pp. 800-823

Author(s):

A.A. Razuvaeva ◽

N.V. Pokrovskaya

Keyword(s):

Income Tax ◽

Systems Approach ◽

Corporate Income Tax ◽

Federal State ◽

Tax Burden ◽

Return On Assets ◽

Investment Activity ◽

Analysis And Synthesis ◽

Tax Benefits

Subject. This article assesses the role of tax incentives for the Russian business' investment behavior. Objectives. The article aims to identify the relationship between the corporate income tax burden as an indicator responding to tax benefits application and the investment activities of Russian companies. Methods. For the study, we used the methods of analysis and synthesis, and the systems approach. The analysis covers the period from 2012 to 2018. The data of the Russian Federal State Statistics Service, Federal Tax Service of Russia, and the Ministry of Finance of the Russian Federation are the source of information for analysis. Results. The article summarizes the characteristics of the investment activity of the Russian business. However, the article does not reveal any obvious relationship between the income tax burden and the investment activity of the Russian business in the 2010s. There is also no link found between fixed investment and return on assets. Conclusions. The increase in income tax burden in the late 2010s, accompanied by a decrease in profitability, poses a threat to the active investment development of Russian organizations.

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