scholarly journals Taxation of personal income in the context of issues of social fairness

2020 ◽  
Vol 4 (4) ◽  
pp. 46-55
Author(s):  
Nikolay M. Artemov ◽  
Karina A. Ponomareva
Keyword(s):  
Russian Federation ◽  
Income Tax ◽  
Legal Regulation ◽  
Personal Income ◽  
Income Taxation ◽  
Excise Tax ◽  
Leading Position ◽  
The Russian Federation ◽  
Tax Benefits ◽  
Personal Income Taxation

The subject. The leading position of the personal income tax in most countries is due to a number of circumstances. First, it is a personal tax, the object of which is the income actually received by the payer, and not the estimated average income that could be received in specific economic conditions. Second, income tax allows to maximize the implementation of the basic principles of taxation - universality and uniformity. In recent decades, national regimes of personal income taxation regimes have been actively developed both in foreign countries and in Russia. Purpose of the study. The article shows the results of analysis of the framework of personal income taxation in the Russian Federation in the context of the principle of the social fairness. Dealing with selected provisions of the national legislation of European countries and Russia the article shows that elements of progressive taxation can be applied only in particular aspects. The proposals of taxation of rich taxpayers are also brought into light. Methodology. The research was carried out with the application of the formally legal interpretation of legal acts as well as the comparative analysis of Russian and European legal literature. Structural and systemic methods are also the basis of the research, The main results. After studying the European experience of personal income taxation the authors come to the conclusion that some of the ideas described can be transferred to the Russian tax legislation, but this should be done with caution. It is not necessary to introduce a progressive tax system in its pure form in the Russian Federation, but it is worth considering options for switching to a dualistic system. The authors believe that the elements of borrowing foreign experience should be aimed rather at a fair distribution of benefits, for example, through rules that fix tax benefits. Conclusions. The following proposals can be formulated to improve the legal regulation of personal income taxation in the Russian Federation: the distinction between taxation of taxpayers with ultra-high incomes and those with minimal incomes should be based not on the income criterion, but on the expenditure criterion; to establish a non-taxable minimum in the amount of the minimum wage, which will ensure tax fairness for taxpayers with lower-average incomes; to review the criteria of taxation of luxury vehicles, raising the border separating the mass and premium segments of the Russian car market by at least two times - up to 6 million rubles. The best solution would be to abolish the vehicle tax and impose an increased excise tax on fuel and lubricants for personal transport.

PROSPECTS FOR THE DEVELOPMENT OF PERSONAL INCOME TAXATION IN THE RUSSIAN FEDERATION

2019 ◽  
Vol 9 (7) ◽  
pp. 1063-1072
Author(s):  
Yadgar Valeev ◽  
◽  
Anton Naurskov ◽  
Adilya Safiullina ◽  
Yuliya Seregina ◽  
...  
Keyword(s):  
Russian Federation ◽  
Personal Income ◽  
Income Taxation ◽  
The Russian Federation ◽  
Personal Income Taxation

scholarly journals Development of Taxation of Income of Individuals in the Russian Federation Based on Foreign Experience

2020 ◽  
Vol 20 (4) ◽  
pp. 412-421
Author(s):  
Alexandra O. Ryndina ◽  
◽  
Maria S. Zhverantseva ◽  
Tatiana E. Totikova ◽  
◽  
...  
Keyword(s):  
Russian Federation ◽  
Income Tax ◽  
The United States ◽  
Personal Income ◽  
Income Taxation ◽  
Personal Income Tax ◽  
Social Significance ◽  
Foreign Experience ◽  
The Russian Federation ◽  
The Common

Introduction. The issue of reforming the taxation of personal income has not left the agenda in recent decades. The importance of solving this issue is determined by the high economic and social significance of personal income tax and its impact on the labor market and consumption. Theoretical analysis. The article analyzes the statistics of the Federal Tax Service on income tax on physical incomes in the budget system of the country, identifies and substantiates the problems of income taxation in the Russian Federation. Discussion of results. A study of the characteristics of income taxation in the United States, Norway and Sweden revealed the common features and differences in the principles of constructing a system of income taxation in the studied countries and the Russian Federation. The analysis made it possible to substantiate measures to improve the system of income taxation of the Russian Federation based on foreign experience and evaluate the expected effect of some measures.

scholarly journals Analysis of Fairness of Personal Income Taxation in the Russian Federation

Lex Russica ◽  
2021 ◽  
pp. 82-94
Author(s):  
L. A. Yulgusheva
Keyword(s):  
Russian Federation ◽  
John Rawls ◽  
Personal Income ◽  
Income Taxation ◽  
Federal Law ◽  
Progressive Taxation ◽  
Tax Rate ◽  
Dialectical Approach ◽  
The Russian Federation ◽  
Personal Income Taxation

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.

scholarly journals Elements of progressive personal income taxation in the context of the principle of forward and backward links

2021 ◽  
Vol 5 (1) ◽  
pp. 68-79
Author(s):  
N. M. Artemov ◽  
К. A. Ponomareva
Keyword(s):  
Comparative Analysis ◽  
Russian Federation ◽  
Tax Evasion ◽  
Income Tax ◽  
Personal Income ◽  
Income Taxation ◽  
Personal Income Tax ◽  
Progressive Taxation ◽  
The Russian Federation ◽  
Do So

The idea of progressive tax scale in Russia received a fundamentally new development in 2020. The leading position of the personal income tax in most countries is due to a number of circumstances. First, it is a personal tax, the object of which is the income actually received by the payer, and not the estimated average income that could be received in specific economic conditions. Second, income tax allows to maximize the implementation of the basic principles of taxation – universality and uniformity. In recent decades, national regimes of personal income taxation regimes have been actively developed both in foreign countries and in Russia. Purpose of the study. The article considers the elements of progressive taxation of personal income in the context of the principle of direct and inverse relations. Dealing with selected provisions of the national legislation of European countries and Russia the article shows that elements of progressive taxation can be applied only in particular aspects. The proposals of taxation of rich taxpayers are also brought into light. Methodology. The research was carried out with the application of the formally legal interpretation of legal acts as well as the comparative analysis of Russian and European legal literature. Structural and systemic methods are also the basis of the research, The main results. The establishment of a classical progressive system in the Russian Federation will encourage a change in the model of behavior of both persons who have the opportunity to increase their income, but do not intend to do so due to a decrease in the nominal increase in wages, and persons who previously declared income in full, but if the tax model changes, they will apply personal income tax evasion schemes. In addition, the results of a comparative analysis of the experience of the EU Member States show the ineffectiveness of the progressive income tax scale as a tool to combat social inequality. The comparison provided in the research also examines the problems of proportional and progressive taxation in the context of the principle of equity. In the context of the practice of applying progressive taxation, the experience of foreign countries is studied. Based on foreign experience, it can be concluded that the introduction of family taxation would require a fundamental change in the basis of income taxation in the Russian Federation, as well as would entail discrimination of taxpayers in terms of registered and civil marriage and abuse in order to extract tax benefits. The authors conclude that a more appropriate option for taking into account family circumstances is the widespread use of tax deductions. Since Russian legislation does not establish poverty criteria, personal income tax is levied even on income in the amount of the subsistence minimum. This also does not correspond to the principle of social justice, because in the absence of such criteria, poverty cannot be considered a basis for tax exemption. Thus, the establishment of a classical progressive system in the Russian Federation will encourage a change in the model of behavior of both persons who have the opportunity to increase their income, but do not intend to do so due to a decrease in the nominal increase in wages, and persons who previously declared income in full, but if the tax model changes, they will apply personal income tax evasion schemes. We believe that in the context of the principle of equity, the essence of progressive taxation is not the establishment of several tax rates and is not determined by the number of tax deductions that can be granted only to a small number of persons, including wealthy taxpayers, but that it reflects the ability of a person to pay tax. In our opinion, this ability should be guaranteed by the exemption from taxation of the minimum amount of income (minimum wage). Сonclusions. According to the results of the study, it is concluded that the establishment of a classical progressive system in the Russian Federation will encourage a change in the behavior model of both persons who have the opportunity to increase their income, but do not intend to do so due to a decrease in the nominal increase in wages, and persons who previously declared income in full, but if the tax model changes, they will use personal income tax evasion schemes. In addition, the results of a comparative analysis of the experience of the EU member States show the ineffectiveness of the progressive income tax scale as a tool to combat social inequality. It is proposed to apply only elements of progressive taxation when reforming the Russian tax regime for individuals, namely, to establish a nontaxable minimum in the amount of the minimum wage, which will ensure tax fairness for taxpayers with lower-average incomes. 

scholarly journals Taxation of cryptocurrency mining in the Russian Federation: whether there is an economic basis for collecting personal income tax?

2020 ◽  
pp. 35-46
Author(s):  
Dmitrii Aleksandrovich Kolesnichenko ◽  
Olga Viktorovna Kolesnichenko
Keyword(s):  
Russian Federation ◽  
Income Tax ◽  
Current System ◽  
Legal Regulation ◽  
Personal Income ◽  
Entrepreneurial Activity ◽  
Personal Income Tax ◽  
Economic Basis ◽  
The Russian Federation ◽  
Basic Approaches

The subject of this research is legislation, official interpretation, case law, and doctrinal sources on taxation of cryptocurrency mining in the Russian Federation with regards to personal income tax. The author verifies the hypothesis on the absence of economic basis for collection of personal income tax for cryptocurrency mining, thus there is a need for fundamentally new model of legal regulation for taxation of this activity. Special attention is given to assessment of tax consequences of mining based on the content of official interpretation of the Ministry of Finance of the Russian Federation, as well as with consideration of the developed in the doctrine basic approaches towards determination of the legal nature of cryptocurrency as property and property rights (other financial instruments. The author’s significant contribution consists in substantiation of the conclusion that the current system of legal regulation has no economic basis for collection of personal income tax for cryptocurrency mining; at the same time, future taxation of mining can be based on the patent tax system of taxation. It is reasoned that in order to ensure the implementation of the indicated special tax regime, it is necessary to attribute mining to entrepreneurial activity, as well as modify legal definition of the latter, which is formulated in Article 2 of the Civil Code of the Russian Federation. The author determines the legal prerequisites for taking cryptocurrency mining activity out of shadow and its lawful exercise in the Russian Federation.

Taxation Issues for Digital Financial Assets

2021 ◽  
pp. 089443932110039
Author(s):  
Viktor Shestak ◽  
Alla Kiseleva ◽  
Yuriy Kolesnikov
Keyword(s):  
Russian Federation ◽  
Income Tax ◽  
Legal Regulation ◽  
Capital Gains ◽  
International Standards ◽  
Financial Assets ◽  
State Budget ◽  
The Russian Federation ◽  
Digital Assets ◽  
Tax Accounting

The objective of the study is to determine the status of a digital financial asset and the features of its taxation in the Russian Federation and progressive countries. Currently, there are three main taxation models that are used in this area: income tax, corporate income tax, and capital gains tax. The article explores the prospects for introducing the experience of foreign countries in the Russian Federation. The possible changes that may occur in tax regulation are analyzed. The experience of leading countries in the field of legal regulation of the use of digital financial assets and the taxation of cryptocurrency transactions is analyzed. Such an analysis will allow Russia to keep pace with countries with a leading economy and at the same time increase state budget revenue through taxation of cryptocurrency transactions. The study provides an analysis of the conceptual scenarios of digital income taxation and objects of taxation in the process of cryptocurrency creation. The study critically assesses possible options for applying international standards for tax accounting of digital assets. Groups of problematic issues that arise in the tax accounting of digital assets are developed. The prospect of further research is the development of tax accounting methods for each of the established entities for the creation and circulation of digital financial assets in accordance with accounting objects.

Receiving a social tax deduction on personal income tax through an employer: amendments to the Tax Code of the Russian Federation

2021 ◽  
pp. 25-31
Author(s):  
O.V. Shinkareva ◽  
S.A. Kormacheva
Keyword(s):  
Russian Federation ◽  
Income Tax ◽  
Personal Income ◽  
Personal Income Tax ◽  
Tax Deductions ◽  
The Russian Federation ◽  
To Receive ◽  
Tax Deduction

Article analyzes changes which the employers performing functions of the tax agent on an income tax will face since the beginning of 2022. Changes have been made to the Tax Code of the Russian Federation, which not only expand the range of social tax deductions, but also in some cases change the format of interaction between the employer and the employee, which he decided to receive a social tax deduction for personal income tax. The peculiarities of obtaining various types of social tax deductions through the employer, changes that will come into force in 2022 in this area, as well as the necessary documents are disclosed on the basis of which the employer provides the employee with social tax deductions.

scholarly journals Income taxation of self-employed attorney and peculiarities of single social contribution payment

1970 ◽  
pp. 112-116
Author(s):  
Olena Hedziuk
Keyword(s):  
Income Tax ◽  
Legal Regulation ◽  
Personal Income ◽  
Income Taxation ◽  
Professional Activity ◽  
Tax Law ◽  
Net Income ◽  
Personal Income Tax ◽  
Taxable Income ◽  
Social Contribution

 The paper is designed to present the legal regulation of income taxation of self-employed attorney. For tax purposes, the attorney who carries out the activity is an individually self-employed person, namely, a person who pursues an independent professional activity.      An individual who intends to pursue independent professional activity is obliged to register with the supervisory authorities at their place of residence as self-employed persons. If a person is registered as an entrepreneur and at the same time this person carries out an independent professional activity, such an individual is accounted for the controlling bodies as an entrepreneur with a sign of pursuing the independent professional activity.       Income received during the calendar year from conducting independent professional activity is taxed on the personal income tax at the rate of 18%. Taxable income is the cumulative net income, that is the difference between the income and the documented expenses required to pursue a certain type of independent professional activity. Individuals engaged in an independent professional activity are obliged to keep records of income and expenses from such activity.       In addition to the personal income tax, attorneys also pay a military levy and a single social contribution.      Discussion issues in the enforcement of tax law were distinguished: the issue of taking into account expenses in determining taxable income for taxation of income received by an attorney, as well as problem of payment of the single social contribution in the case of combining business activity and independent professional activity. In this situation, the tax authorities believe that the taxpayer must pay a single social contribution twice as an entrepreneur and as a person who provides independent professional activity. Courts often support taxpayers and confirm that a person should only pay a single social contribution as an entrepreneur. Tax authorities’ explanations remain unchanged.     To avoid double taxation and to ensure the implementation of the principles of tax law, in our opinion, this issue needs attention from the tax authorities and an up-to-date analysis tax legislation.

scholarly journals EUROPEAN PRIORITIES FOR PERSONAL INCOME TAXATION

2020 ◽  
pp. 77-87
Author(s):  
Fedir TKACHYK ◽  
Victoriia OSTAPCHUK
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
European Countries ◽  
Income Taxation ◽  
Social Aspects ◽  
Tax Rates ◽  
The European Union ◽  
Personal Income Tax ◽  
Important Place ◽  
Personal Income Taxation

Introduction. In the current conditions of globalization of socio-economic development and formation of a new financial civilization, social aspects of tax policy take a important place. The system of taxation of income of citizens in Ukraine today is not fully coping with the performance of their functions. The experience of developed European countries on the formation of an effective mechanism of taxation of personal income will contribute to the establishment of the newest social and fiscal-oriented paradigm of taxation of citizens in Ukraine. The increased interest in the procedures for administering the personal income tax is also explained by the fact that this tax is one of the main sources of income to the budget of Ukraine. The purpose is to determine the peculiarities of taxation of personal income tax in Ukraine, to find out the common and different features tax system in Ukraine and European countries, to systematize recommendations on improving the mechanism of taxation of personal income. Results. The international typology of personal income tax systems is given. The general features of personal income taxation and mechanisms of application of personal income tax rates in some countries of the European Union are considered. It is argued that the implementation of the European tax experience will facilitate a faster transition to a new and effective system of personal income taxation in Ukraine. To improve personal income taxation in Ukraine, it is necessary to revise personal income tax rates, increase the amount of tax-free minimum incomes, ensure the full functioning of electronic declaration of personal incomes, optimize concessional policies, increase tax literacy and tax culture. Prospects. Further research will focus on the social aspects of taxing citizens' income in terms of differentiation of tax rates, the logic of using preferences in taxing personal income, the introduction of an effective threshold of the non-taxable minimum income, promoting the right to tax rebates, etc.

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