Personal income taxation in the human capital development incentive

The article substantiates the opportunities for stimulating the human capital development through personal income taxation in Ukraine. The need for constant investments in the human capital for improvement of its quality has been substantiated by conceptual provisions of the human capital theory and empiric researches of its influence on economic growth. The completed analysis of theoretical concepts and practical use of income taxes worldwide allows substantiating the fact that concept of a flat income taxation can be successfully used to promote the human capital development. However, the analysis of income tax systems abroad shows that separate taxation tools for personal income, including tax allowances for education, are more efficient. This is especially typical for developing countries. In estimating investments in the human capital in Ukraine, it is found out that the share of working population with high skills increases against the decreasing actual expenses for higher education. In a meantime, foreign countries demonstrate the other economically correct dependence: the qualification level increases as real expenses to gain it increase. The analysis of real national expenses in Ukraine for one student and in the country in general also demonstrate their decrease. This proves the presence of problems in Ukraine that relate to financing the system of higher education. The methods of economic and mathematical simulation by building and parametrizing a number of functions allowed to substantiate the influence of investments in human education on the increase of the highly skilled labor, which in turn leads to the GDP growth. A scientific and methodical approach has been developed, based on the algorithm that takes into account the influence of the highly skilled labor factor (considering expenses for gaining the qualification) on the GDP level. This approach allows estimating the effectiveness of expenses on tax allowances and expediency of their use to promote investments in higher education in Ukraine. The economic consequences of the human capital development incentive by introducing tax allowances in Ukraine have been estimated. It is established that if the state increases expenses for higher education by granting allowances, the share of working population with high skills increases, thereby causing the GDP to grow by means of increasing employment level. However, it has been found out that the expenses for tax allowances are reimbursed only in the case where investments in fixed assets increase and amount no less than 25 % of the GDP.

International Tax Planning: China's New Regime for Taxing Expatriate Income: Tightening the Screws or Vintage Wine in a New Bottle?

Expatriates have been fundamental to China's economic growth, contributing to the country's socioeconomic development and modernization. The second-largest group of expatriates in China are North Americans. Personal income taxation concessions for expatriate workers have been an important instrument to attract and retain skilled foreign labour since China opened its doors to foreign investment and an income tax was adopted four decades ago. A recent overhaul of the law on individual income tax introduced a number of changes to expatriate income taxation, including the winding back of some preferential concessions previously offered only to expatriates. A literal reading of these changes suggests that the new regime has led to harsher tax treatment of expatriates and increased their tax liability. This article considers whether this view holds up, by closely analyzing the new system's major features relating to individual income tax as they affect expatriates. The authors challenge the literal reading of the law and argue that the recent changes have not fundamentally altered the underlying policy on expatriate income taxation. Further, an economically stronger China has not observed any diminishment of the role of personal income taxation as an instrument of government policy, despite the recent changes. A generous interpretation of the legal terms and rules, and of the application of concessions under the amended system, may encourage more lenient treatment of Canadians and other expatriates working and living in China.

THE IMPORTANCE OF SOCIAL ASSEMBLIES OF PERSONAL INCOME TAX SYSTEM IN REDUCING POVERTY

This article discusses one of the most pressing and global issues of human development today -the need to study the problems of poverty reduction, modern features, problems and a system of effective government measures, the State Poverty Reduction Program of the Government of the Republic of Kazakhstan and the Republic of Uzbekistan. A comparative analysis of the implementation of government measures to reduce poverty, the study of the importance of reforms in the system of personal income taxation in addressing the problems of poverty reduction. In this regard, the article aims to ensure the implementation of the principle of social justice in the practice of personal income taxation, the introduction of relevant innovations in the taxation system in the near future with the formation of a description of the poor, middle class and rich, reducing the share of shadow economy and legalization and guarantee of income. It is important that the issues of security are considered

HARMONIZATION OF PERSONAL INCOME TAXATION: IS IT POSSIBLE AND IF SO, DOES IT MAKE ECONOMIC SENSE?

The main research question is based on the thesis that harmonization of personal income taxation in the European Union is, on the one hand, not possible and, on the other hand, not advisable Harmonization of income taxes is much more difficult than harmonization of indirect taxes from the practical, technical and legal perspective and is a result of: (a) when creating the Treaty of Rome it was decided that direct taxes would not have a notable impact on the operations of the internal market, and that approach led to a lack of appro-priate regulations, especially in the area of personal income taxes; (b) income taxes, as forms of direct taxation are an important tool for fiscal policy that affects social and eco-nomic activities and it is difficult for politicians to abandon this tool for managing national policies; (c) directives requiring the formulation of direct tax harmonization must be agreed upon with a majority vote in the national Assemblies (Parliaments), which leads to a lack of consensus on desired aims, costs and benefits, procedures; (d) progress in direct tax harmonization creates an aura of challenges to the tax independence if nations and leads to entrenchment of state and elite positions; (e) EU States Mmember states have different rules for remunerating employees, setting incomes from retirement funds and affecting the structure of income-generating costs and expenditures that reduce the tax base.

About surplus of the buyer/seller in the labor market

The objective of the article — to analyze not only microeconomic, but macroeconomic aspects of surplus of the buyer/seller in the labor market, to research economic policy oriented on its redistribution. The concept of employer/employee surplus in the labor market is clarified. This surplus is a socio-economical phenomenon, some noneconomic factors must be taken into account in researching it. The influence of inflation, social and age characteristics, changes in the market positions of labor market subjects on their salary offers and surplus has been determined. It makes sense to differentiate between nominal and real surplus, fixed surplus and surplus that can be influenced. The article presents grouping of job advertisements based on salary formulation. Informational aspects of the identifying economic surplus are considered. The author proposes direct and indirect indicators to reveal the changes in economic surplus: wage proposals in the vacancy announcements, salary reviews, resume data, population polls, prices for services of individual entrepreneurs, dynamics of unemployment and shadow employment etc. Potential of the government policy on surplus redistribution and the regulation of employer/employee behavior is substantiated. Some instruments aimed at such redistribution through incomes of employers, employees are proposed: minimum wages regulations, changes in taxation (personal income taxation, wage taxes); indexation of personal incomes, subsidization of wages, antimonopoly and administrative regulation of prices. The government can also influence the behavior of surplus receivers through immigration policy. The influence of some instruments on surplus regulation is contradictory. Minimum wage regulations can increase and decrease the surplus at the same time.

LEGISLATION OF THE SOCIAL AND LEGAL STATUS OF SELF-EMPLOYED PERSONS IN UKRAINE

Nowadays in countries with developed industry, there is a marked shift from formal to informal employment. In this context, the impact of self-employment on the development of the state should be one of the topical issues in the debate on employment policy. Due to the development of the platform economy, self-employment is developing as the main or additional source of income. The development of Ukraine as a socially oriented state governed by the rule of law is determined by the level of development of all state spheres, including self-employment of the population of state institutions, including the institution of personal income taxation. As of today, in countries with developed industry, there is a marked shift from formal to informal employment. In this context, the impact of self-employment on the development of the state should be one of the topical issues in the debate on employment policy. Due to the development of the platform economy, self-employment is developing as the main or additional source of income. The development of Ukraine as a socially oriented state governed by the rule of law is determined by the level of development of all state spheres, including self-employment of the population of state institutions, including the institution of personal income taxation. It was emphasized that the above-mentioned provisions of international legal acts became the basis for consolidation of the principles of labor freedom and the prohibition of forced labor in the Constitution of Ukraine. In turn, these constitutional principles are the normative and legal basis for the consolidation of the principle of freedom of labor agreement within the framework of labor law. It has been established that the establishment in the national legislation of the principle of freedom of the labor contract should enable an employed person and an employer who exercises the right to recruit staff to determine the working conditions that are most appropriate for them. The terms of the employment contract should not be burdensome for their parties and disturb. In such situations, the legislator prefers social rather than economic rights, since social law is more closely connected with the natural right of a person to life and freedom and security.

The mechanism of personal income taxation and its prospects in Ukraine

The article analyses the current mechanism of personal income taxation in Ukraine, examining the impact of its individual elements on total revenues from personal income tax. The analysis of revenue contributions from personal income taxation to the consolidated state budget and local budgets indicates that the personal income tax remains the most important sources of revenue. In the structure of personal income tax revenues, wages are the main source of taxable income. The author analyses the mechanism of taxation for natural persons (businessmen) and tax receipts flowing to local budgets from incomes from business activity and highlights its shortcomings. In this context, he proposes introducing progressive tax rates, which will make it possible to shift the tax burden from individuals with low incomes to those who earn higher incomes.

Analysis of Fairness of Personal Income Taxation in the Russian Federation

The paper explores the issue of fairness of progressive taxation. The introduction of progressive taxation in the Russian Federation in 2021 was announced by the President of the Russian Federation Vladimir Putin in his Address to citizens on June 23, 2020. The issue of returning to progressive taxation has been repeatedly raised in the scientific community, and one argument in its favor was the provision that progressive taxation is more fair than proportional taxation. At the same time, as Putin’s words suggest, the main goal of the introduction of tax progression is to find funds for financing certain projects, but not to achieve justice. However, the task set by the President does not exclude the need to investigate the issue of fairness of progressive taxation and the doctrinal justification of the proposed changes, which makes the chosen topic relevant.The paper deals with the essence of “fair taxation” on the basis of the theories of justice, developed by John Rawls and Amartya Sen, and principles of taxation. The author analyzes the Federal Law of November 23, 2020, No. 372-FZ “On Amendments to Part Two of the Tax Code of the Russian Federation in Part Concerning Taxation of Personal Income Exceeding 5 Million Rubles for the Tax Period” that introduces application of a combined tax rate to the income exceeding 5 million rubles per year, as well as the issue of prospects for further changes in personal income taxation in the Russian Federation in the context of achieving justice. Methodologically, the paper is based on the principles of the dialectical approach. The author applies general scientific methods of cognition, namely: analysis, synthesis, generalization, induction.Based on the principles of taxation and several approaches to the interpretation of fairness, it is concluded that progressive taxation is more fair than the ones in force until 2020, including proportional taxation. The author proposes amendments to the Tax Code of the Russian Federation aimed at enhancing fairness of taxation. They include intensification of tax progressiveness (taking into account amendments entering into effect on January 1, 2021) and the introduction of a tax-free minimum on personal income.

Development of Personal Income Taxation Achievement by Practicing Skills within the Class in the Course of Tax Law

This academic article presents the principles of teaching and learning to promote proactive learning or active learning. Action by focusing on learning is important, and also using the proactive learning management process. The use of learning through the use of practicing skills within the class. The goal of teaching and learning management that focuses on the students is to manage learners to create new knowledge through self-thinking process, allowing the learner to learn by doing, and to understand. It can bring knowledge to integrate into daily life and have qualifications for the goals of education that want learners to be smart, good and happy. Good teaching is a dynamic movement, constantly changing, both in organizing activities and teaching method which consists of creating atmosphere, technique, style, content, and things that are not too far from the students and planning of teaching and learning systematically.

Digging into the Channels of Bunching: Evidence from the Uruguayan Income Tax

Based on detailed administrative tax records, we implement a bunching design to explore how individual taxpayers respond to personal income taxation in Uruguay. We estimate a very modest elasticity of taxable income at the first kink point (0.06) driven by a combination of gross labour income and deductions responses. Taxpayers use personal deductions more intensively close to the kink point and underreport income to the tax authority. Our results suggest that the efficiency costs of taxation are not necessarily large in contexts characterised by limited deduction opportunities. Policy efforts should be directed at broadening the tax base and improving enforcement capacity.