scholarly journals Tax Facilities through Omnibus Law Taxation: A Canon Taxation Review

2021 ◽  
Vol 5 (3) ◽  
pp. 195
Author(s):  
Fidiana Fidiana
Keyword(s):  
Foreign Investment ◽  
Tax Policy ◽  
Tax Rates ◽  
Regional Competitiveness ◽  
Industrial Growth ◽  
Secondary Sources ◽  
Adjustment Policy ◽  
Tax Incentive ◽  
Tax Exemptions ◽  
Conceptual Study

This research is a conceptual study to examine tax policy in the pandemic situation with a canon taxation perspective, namely equity, certainty, convenience, and efficiency. The study conducted by using a literature review concerning the role of Omnibus Law includes tax facilities to attract foreign investment underlining strengths and weaknesses. Data is obtained through secondary sources in the form of archival reports and previous research relevant to the research. Based on the analysis of literature studies, this research produces several things. First, the principle of equity is found in adjusting corporate tax rates. Associated with the aim of attracting foreign investment, the tariff adjustment policy naturally will not be realized in 2020, where traffic between countries is restricted to prevent the spread of Covid-19. Second, in the tax policy scheme of domestic tax subject reclassification, which includes more than 183 foreigners working in Indonesia, and Indonesian citizens living abroad over 183 days are classified as subject to foreign tax. Tax is imposed on foreigners only on income earned in Indonesia. This pattern fulfills certainty principles. Third, the regional tax incentive scheme is an instrument that ensures the certainty of regional investment in line with the principles of equity and convenience. Furthermore, local tax exemptions can lower the price of consumer goods in the regions, thereby increasing the purchasing power of the wider community, which was hampered by the pandemic. In this way, local taxes play a role in increasing regional competitiveness through public policies (tax incentives), to improve the welfare of people, especially those affected by the epidemic. Fourth, the tax holiday scheme encourages industrial growth in accordance with the principle of efficiency.

scholarly journals Zróżnicowanie fiskalnych skutków gminnej polityki podatkowej w Polsce

Studia BAS ◽  
2021 ◽  
Vol 1 (65) ◽  
pp. 77-102
Author(s):  
Paweł Felis ◽  
Grzegorz Otczyk
Keyword(s):  
Tax Policy ◽  
Property Tax ◽  
Property Taxes ◽  
Small Scale ◽  
Tax Rates ◽  
Tax Exemptions ◽  
Governance Tools ◽  
The Subject ◽  
Empirical Analyses

The article explores the subject of diversification of local tax policy and its fiscal consequences in Poland in 2007–2019. It focuses on various types of municipalities and tax governance tools they use (establishing tax rates, applying tax exemptions and non-statutory reliefs). The analysed taxes include immovable property taxes (property tax, agricultural tax) and movable property ones (tax on means of transport). Theoretical and empirical analyses confirmed the hypotheses. Polish municipalities utilize tax governance tools on a small scale and their taxation policies differ depending on the category of local tax and the type of municipality.

Tax competition and the activity of the regional tax policy

2020 ◽  
pp. 5-27
Author(s):  
S. M. Drobyshevsky ◽  
N. S. Kostrykina ◽  
A. V. Korytin
Keyword(s):  
Tax Competition ◽  
Tax Policy ◽  
Fiscal Federalism ◽  
Policy Instruments ◽  
Tax Incentives ◽  
Fiscal Autonomy ◽  
Tax Legislation ◽  
Tax Exemptions ◽  
Open Question ◽  
Regional Budgets

The problem of efficiency of regional tax expenditures is an actual issue of the fiscal policy and fiscal federalism in Russia. A large fiscal autonomy allows federal subjects to realize a more active tax policy to attract new investments. One cannot claim current fiscal powers of the Russian regions to be wide. However, not all the regions use even existing tax policy instruments. Moreover, out of the regions that use them only few provide incentives to stimulate investment decisions. Others use regional tax measures to support businesses that already have strong positions in the region. And it is an open question whether such tax incentives are efficient. On the other hand, an aggressive tax competition for investors can also be wasteful for regional budgets. In this paper, we calculate indicators that characterize the depth and scope of tax exemptions provided at the regional level. The calculations are based on the open tax statistics. Through the analysis of the tax legislation as well as the economic structure of selected regions, we reveal the inducements of their higher activity: federal regional tax policy, tax competition or benefits for budget-forming companies of the region.

Main Tax Policy Matters for Establishing Chile as a Regional Operative Investment Hub

2021 ◽  
Vol 22 (3) ◽  
Author(s):  
Hugo Hurtado ◽  
Jaime Del Valle
Keyword(s):  
Foreign Investment ◽  
Tax Policy ◽  
Policy Design ◽  
Oecd Countries ◽  
Policy Instrument ◽  
Holistic View ◽  
Regional Approach ◽  
Key Policy ◽  
Past Experiences ◽  
International Tax Policy

Unlike other OECD countries, Chile has not yet established a uniform tax policy toward foreign investment. Moreover, Chile had past experiences of unsuccessful legislation on specific exempted investment vehicles created with the purpose of establishing the country as a hub or platform for foreign investment. An effective international tax policy design requires taking a holistic view of the challenges and their corresponding solutions. As a country’s tax regime is a key policy instrument that may negatively or positively influence investment, Chilean tax policy is being oriented in this regard. This Article reviews the progress of those projects and current legislation, compares other OECD countries’ experiences in this matter, analyzing the main facts or elements to consider upon deciding the relevant tax policy, and finally proposes a tax regime that could make Chile more competitive when attracting foreign operative investment, focused on a more regional approach. Accordingly, this Article also intends to serve as guide or help to be considered by regulators on the hard road of designing tax standards. 

scholarly journals Pandemics and Tax Innovations: What can we Learn from History?

2020 ◽  
Vol 6 (3) ◽  
pp. 270-297
Author(s):  
A. I. Pogorletskiy ◽  
◽  
F. Söllner ◽  
Keyword(s):  
Tax Policy ◽  
Large Scale ◽  
Inductive Method ◽  
Tax Administration ◽  
The European Union ◽  
The Past ◽  
Tax Incentive ◽  
Tax Systems ◽  
The Impact ◽  
Tax Regulation

In this article, we shall see how pandemics of deadly diseases have changed tax systems over the past two millennia, each time leading to the emergence of new forms of taxation and tax administration. The purpose of the article is to prove that pandemics and the most notable innovations in tax policy are closely interrelated and that the consequences of the largest pandemics in the history of mankind are new approaches to the organization of national tax systems as well as the formation of interstate tax regulation. The lessons from history can be applied to the current corona crisis and may help us devise the appropriate anti-crisis tax policy. The study is based on the historical empirical-inductive method applied to reliable facts of the past related to pandemics and taxation. We trace the evolution of tax policy under the impact of the most significant pandemics and identify patterns of taxation and tax administration that are specific to their eras and are still relevant in the course of the pandemic COVID-19. Our analysis allows us to draw the following conclusions: (1) There is a historical link between pandemics and tax regulation. Many tax innovations originated in response to the consequences of large-scale epidemics of deadly diseases. (2) Many of the tax incentive tools used today in the fight against the corona crisis have already been used during previous pandemics so that we may learn from the experience of earlier times. (3) The COVID-19 pandemic can be expected to have several important consequences for taxation and public finance: innovations in tax administration with an emphasis on remote fiscal audits and digital control; innovations in the taxation of digital companies and their operations at the national and international level; possibly fundamental changes in the tax system of the European Union; and possibly a return of the inflation tax.

scholarly journals Tax Policy and Foreign Investment

1969 ◽  
Vol 34 (1) ◽  
pp. 146
Author(s):  
Dan Throop Smith
Keyword(s):  
Foreign Investment ◽  
Tax Policy

Tax Competition in Wilhelmine Germany and Its Implications for the European Union

1996 ◽  
Vol 48 (3) ◽  
pp. 324-357 ◽  
Author(s):  
Mark Hallerberg
Keyword(s):  
European Union ◽  
Tax Competition ◽  
Tax Policy ◽  
National Government ◽  
Common Denominator ◽  
Tax Rates ◽  
The European Union ◽  
Political Systems ◽  
Data Set ◽  
State Tax

The twenty-five German states from 1871 to 1914 present a useful data set for examining how increasing economic integration affects tax policy. After German unification the national government collapsed six currencies into one and liberalized preexisting restrictions on capital and labor mobility. In contrast, the empire did not directly interfere in the making of state tax policy; while states transferred certain indirect taxes to the central government, they maintained their own autonomous tax and political systems through World War I. This paper examines the extent to which tax competition forced the individual state tax systems to converge from 1871 to 1914. In spite of a diversity of political systems, tax competition did require states to harmonize their rates on mobile factors like capital and high income labor, but it did not affect tax rates on immobile factors. In states where the political system guaranteed agricultural dominance, taxes on land were reduced, while in states with more open systems, tax rates remained higher. One unexpected result is that tax rates on capital and income converged upward instead of downward. The most dominant state, Prussia, served as the lowest-common-denominator state, but pressure from the national government, especially to increase expenditures, forced all states to raise their tax rates. These results suggest possible ways for the European Union to avoid a forced downward convergence of member state tax rates on capital and mobile labor.

Agglomeration, Tax Differentials, and the Mobility of Professional Athletes

2016 ◽  
Vol 45 (2) ◽  
pp. 283-302 ◽  
Author(s):  
Grant A. Driessen ◽  
Steven M. Sheffrin
Keyword(s):  
Tax Policy ◽  
Residential Location ◽  
Professional Athletes ◽  
Location Decisions ◽  
Tax Rates ◽  
Limit States ◽  
Residential Patterns ◽  
Agglomeration Effects ◽  
Residential Location Decisions ◽  
Different Levels

Interstate mobility may limit states’ ability to choose their desired tax policies. The forces of agglomeration, however, may allow states more leeway in setting tax rates. Moreover, mobility and agglomeration effects are not uniform for all individuals within a state and may vary significantly across different groups. We explore this heterogeneity by examining the residential location decisions of professional racecar drivers and golfers, which have similar industry characteristics but different levels of agglomeration. Consistent with our theory, we show that tax preferences are a powerful determinant of golfer residential patterns, while agglomeration mitigates much of this effect among racecar drivers. These findings highlight the need to better understand how competition and agglomeration interact when formulating tax policy.

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