scholarly journals FISCAL AND SOCIAL DETERMINANTS OF PERSONAL INCOME TAXATION

2021 ◽  
pp. 163-173
Author(s):  
Volodymyr UHRYN
Keyword(s):  
Income Tax ◽  
State Regulation ◽  
Personal Income ◽  
Income Taxation ◽  
Future Research ◽  
Social Aspect ◽  
Personal Income Tax ◽  
State Budgets ◽  
Fiscal Efficiency ◽  
Personal Income Taxation

Introduction. Direct taxes are an important financial regulator of socio-economic processes, they are one of the most important sources of budgeting and an essential tool of state regulation. The personal income tax is the main tax through which social policy is implemented in the developed countries of the world. The advantages of this tax include its social justice and fiscal efficiency, as it is able to make the level of taxation directly dependent on the amount of income of taxpayers. In addition, progressive tax rates and benefits can reduce the tax burden on the poor and increase it on high-income earners. The purpose of the article is to considerate the theoretical and practical aspects of administration of the personal income tax in the conditions of reforming of fiscal policy of Ukraine, systematization of directions of improvement of collecting of the personal income tax to local and state budgets. Methods. Methods of dialectical analysis and synthesis, deduction, induction logical generalization, comparison and formalization are used in the article. Results. The article is devoted to the study of the essence and role of personal income tax administration. Peculiarities of citizens’ income formation as an object of taxation are considered. Monitoring and analysis of indicators of personal income tax to local and state budgets was carried out. The growth rates of nominal revenues of personal income tax and military duty, real and nominal wages are studied. It was found that the main factors reducing the level of fiscal efficiency of personal income tax in Ukraine are the shadowing of incomes and the outflow of labor, including skilled personnel. Ukraine’s tax policy for the last five years is fiscally oriented and does not take into account the social aspect of personal income taxation. As a result of the research, the directions of increasing the efficiency of personal income taxation in Ukraine based on foreign experience are systematized. Prospects. The current model of personal income tax does not sufficiently perform a socioeconomic function, does not provide a socially equitable distribution of income between different segments of the population. In recent years, the fiscal significance of the personal income tax has remained, but the system of personal income taxation requires the application of progressive rates. Therefore, promising areas of future research should be the development and improvement of the mechanism of personal income taxation in the context of ensuring their socio-economic interests.

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.

scholarly journals Personal Income Taxation Determinants in Federation of Bosnia and Herzegovina

2019 ◽  
Vol 10 (1) ◽  
pp. 153-163
Author(s):  
Irena Palić ◽  
Sabina Hodžić ◽  
Ksenija Dumičić
Keyword(s):  
Labor Market ◽  
Income Inequality ◽  
Error Correction ◽  
Bosnia And Herzegovina ◽  
Income Tax ◽  
Personal Income ◽  
Income Taxation ◽  
Personal Income Tax ◽  
The Impact ◽  
Personal Income Taxation

Abstract Background: In recent years’ income inequality has been an economic issue. The primary instrument for redistributing income is personal income tax. However, based on economic theory income inequality concerns indicators such as wages, transfer payments, taxes, social security contributions, and geographical mobility. Objectives: The objective of this paper is to examine the impact of certain labor market indicators on personal income taxation in Federation of Bosnia and Herzegovina (FB&H). Methods/Approach: Since personal income taxation consists of a very broad definition and for the purpose of this research only, income from dependent (employment) activity is observed. The econometric analysis is conducted using error correction modeling, as well as forecast errors variance decomposition. Results: The error correction model is estimated, and the cointegrating equation indicates that monthly wage and number of employees statistically significantly positively affect personal income taxes in FB&H in the long-run. After two years, the selected labor market indicators explain a considerable part of forecasting error variance of personal income tax revenues. Conclusions: The implementation of reforms in the labor market and tax policies of the FB&H is suggested. In order to achieve necessary reforms, efficient governance and general stable political environment are required.

The mechanism of personal income taxation and its prospects in Ukraine

2021 ◽  
Vol 92 (1) ◽  
pp. 33-42
Author(s):  
Yaroslav Yarema
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Income Taxation ◽  
Tax Rates ◽  
Personal Income Tax ◽  
State Budget ◽  
Low Incomes ◽  
The Impact ◽  
Personal Income Taxation ◽  
Current Mechanism

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.

scholarly journals Potential and Possible Ways of Harmonizing the Personal Income Taxation Process

2018 ◽  
Vol 21 (3) ◽  
pp. 109-130
Author(s):  
Tomasz Wołowiec
Keyword(s):  
Income Tax ◽  
18Th Century ◽  
Personal Income ◽  
Point Of View ◽  
Income Taxation ◽  
Personal Income Tax ◽  
Cultural Economic ◽  
Tax Systems ◽  
Universal Structure ◽  
Personal Income Taxation

Personal income tax (hereinafter referred to as PIT) has a short history, as it appeared in tax systems of EU countries as late as at the end of the 18th century. As a specific universal structure it performs two economic functions: providing financial means for covering some public expenses (fiscal function), leveling inequalities – through its structure – in population incomes (a redistribution function). It also implements social functions of taxation through various tax reliefs and exemptions or the structure of the tax scale. Contemporary personal income tax in European countries has been shaped by many years of evolution. This proces is continuing, taking into account the process of European integration and the processes of standardizing and harmonizing tax systems in European Union countries. Most EU states only sporadically implement major reforms of personal income taxation. The scope of such changes is usually limited and determined by current fiscal needs or the need to stimulate a particular behavior of taxpayers. The current taxation of personal incomes is a very complex phenomenon which should be analyzed not only from the legal point of view, but also taking into account its social, cultural, economic and political system aspects.

scholarly journals STATE AND PERSPECTIVES OF PERSONAL INCOME TAXATION

2019 ◽  
Vol 2 (42) ◽  
pp. 19-34
Author(s):  
Dmitro Dema ◽  
Iryna Shevchuk
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Income Taxation ◽  
Regulatory Function ◽  
Tax Burden ◽  
Personal Income Tax ◽  
Individual Income ◽  
Individual Income Tax ◽  
The Individual ◽  
Personal Income Taxation

The article deals with the directions of development and elements of the personal income taxation mechanism. The role of the tax in the regulation of incomes of the population is determined and the state of use of its regulatory capabilities in the modern system of taxation is assessed. The peculiarities of the tax burden assessment are determined and the inconsistencies of the proportional system of the social justice principle are emphasized. The necessity of strengthening the tax regulatory function using the tax burden transfer to the prosperous strata of the population by the progressive taxation tools is substantiated. The necessity of the preferential policy improvement is emphasized by introducing a non-taxable minimum of citizens' income and revision of existing privileges on personal income tax. The foreign experience and trends of individual income tax in foreign countries are considered and summarized. The dynamics of the individual income tax receipt to the consolidated budget of Ukraine is analyzed taking into account its fiscal sense. The factors of increasing fiscal efficiency are considered and the influence of changes in the interbudgetary distribution of the tax on local budget revenues is estimated. The directions of the personal income tax reformation on the basis of improvement of certain elements of the taxation mechanism are proposed.

On the Issue of Progressive or Proportional Taxation of Personal Incomes

2018 ◽  
Vol 11 (3) ◽  
pp. 114-120
Author(s):  
D. G. Chernik
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Personal Income Tax ◽  
The Social ◽  
Social And Economic Development ◽  
The Subject ◽  
Discrete Measures ◽  
Personal Income Taxation ◽  
Personal Taxation ◽  
Personal Incomes

The subject of the research is the procedure for personal income taxation. The purpose of the workwas to determine which personal taxation regime is more justified: progressive or proportional. The paperprovides the reasons for the transition from the progressive to the proportional tax. The risks and possibilities of transition to the progressive scale are analyzed. It is concluded that in order to achieve social justice and improve the welfare of the majority of peoplerather thana very small part of them, it is necessary to adopt a set of economic, fiscal and administrative measures aimed at solving a single task — ensuring the social and economic development of Russia. Discrete measures, such as the introduction of the progressive personal income tax will not lead to desired results. Moreover, the progressive tax cannot be introduced unlessit is ruled by law that large spendings of citizens must correspond to their incomes.

Improving the mechanism of pit collection for community development in the context of decentralization

2021 ◽  
Author(s):  
О. Boiko
Keyword(s):  
Local Governments ◽  
Income Tax ◽  
Well Being ◽  
Local Communities ◽  
The State ◽  
Personal Income ◽  
Personal Income Tax ◽  
Tax Revenues ◽  
Fiscal Efficiency ◽  
Local Budget

Problem setting. In the analysis of any budget, important markers are åðó revenue indicators, which 80% consist of tax revenues. After all, they give the government and citizens an understanding of how capable the communityis, what amount of expenditures can be made from income, and whether the community has can develop and improve the well-being of its inhabitants. Personal income tax (hereinafter – PIT) covers about 60% of tax revenues of local budgets of Ukraine, so its important role for socio-economic development of local communities and regionsis clear.Recent research and publications analysis. The issue of studyingthe effectiveness of the mechanism of PIT payment and its influence on the process of generation of local government revenues have been in the center of research of domestic scientists such as O. Bandurka, N. Dieieva, I. Liutyi, N. Redinaet al. At the same time, the issue of the effectiveness of PIT collection and its importance for the development of communities in the current conditions of decentralization requires further thorough research.Highlighting previously unsettled parts of the general problem. The role and place of personal income tax in the structure of tax revenues of local budgets have been studies in the paper, the essence of the mechanism of its collectionhas been substantiated, the provision on the effectiveness of tax control over the completeness of its revenues have been analyzedand the reasons for reforming its payment procedure by tax agents have been justified.The purpose of the paper is to study the role and place of PIT in the structure of tax revenues of local budgets, substantiate the essence of the mechanism of its collection, analyze PIT administration procedure, makeproposals for improving the effectivenessof fiscal role of this tax for the community development.Paper main body. One of the most important taxes in the system of direct taxation in Ukraine is the personal income tax. Its share in the structure of tax revenues of the consolidated budget in recent years was about 20% – 23% (90% of which – revenues to local budgets, 10% – revenues of the state budget).The procedure for imposition of this taxis regulated by Section IV of the Tax Code of Ukraine, deducted from the income of citizens at a rate of 18%, which applies to almost all types of income of citizens.In the structure of tax revenues of local budgets, its share is the largest one and averages up to 60% of all tax revenues. During the period of 2015 – 2020, the fiscal efficiency of PIT in the structure of its revenues to local budgets was growing every year. Nominal PIT revenues to local budgets increased from UAH 54,9 billion in 2015 to UAH 177,8 billion in 2020.The key factors influencing the nominal growth of personal income tax revenues are inflation, as well as the annual increase in the minimum wage, changes in tax rates and other innovations in tax reforms of the recent years.Given the significant fiscal efficiency of PIT and its influence on budget generation of the communities, we cannot ignore the problematic aspects of its collection that have a direct impact on tax revenues in the structure of the newly formed amalgamated territorial communities, since success and well-being of local communities depends primarily on the amount of financial resources they own.Thus, according to the Budget Code of Ukraine, PITis distributed among the budgets in the following amounts: 60% goes to the ATC budget, 15% to the regional budget, and 25% to the state budget.It is worthnoting that the current rules of tax and budget legislation contain quite clear obligations of tax agents to pay PITtransfers to those local budgets within which territory businesses are located.Nevertheless, there are constant challenges for local governments and their ability to influence entrepreneurs to pay PIT at the location of legal entities and their units, and not at the place of registration of legal entities.Does this mean that a significant number of tax agents do not comply with the requirements of tax and budget legislation?The Law of Ukraine on Local Self-Government in Ukraine (Article 28) entitles local self-government bodies to monitor the compliance with obligations to pay to the local budget at enterprises and organizations, regardless of the form of their incorporation.Conclusions of the research and prospects for further studies. Given the above, business entities are obliged to pay PIT in accordance with current legislation at the place of their actual location, regardless of the place of registration, and local governments are empowered to control the completeness of taxes coming to the local budget and must actively exercise the initiative to provide additional revenues to community budgets.This will allow receiving PIT revenues to the budget of the community where the enterprises directly carry out their activities in order to develop communities and increase their solvency for the welfare of citizens.

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 O papel dos saberes não matemáticos na Modelagem Matemática: o estudo do cálculo do Imposto de Renda The role of non-mathematical knowledge in Mathematical Modeling: the study of the calculation of income tax

2019 ◽  
Vol 20 (3) ◽  
Author(s):  
Claudia Fernandes Espirito Santo ◽  
Renato Borges Guerra
Keyword(s):  
Mathematical Modeling ◽  
Mathematical Models ◽  
Income Tax ◽  
Mathematical Knowledge ◽  
Personal Income ◽  
Future Research ◽  
Personal Income Tax ◽  
Preliminary Results ◽  
Anthropological Theory

Este artigo trata sobre a indispensabilidade de saberes não matemáticos para o uso de modelos matemáticos sobre problemas em contextos concretos a partir de pressupostos da Teoria Antropológica do Didático. O modelo praxeológico misto é proposto como dispositivo metodológico de análise. Análise do modelo do cálculo do Imposto de Renda Pessoa Física em situação demonstra a potencialidade do dispositivo para fazer emergir os saberes não matemáticos que fundamentam os modelos matemáticos sobre contextos concretos. Resultados obtidos preliminares apontam a indispensabilidade dos saberes não matemáticos da situação para o uso pertinente dos modelos matemáticos em situação e encaminham pesquisas futuras. <br>This article addresses the indispensability of non-mathematical knowledge for the use of mathematical models on problems in concrete contexts based on the assumptions of the Anthropological Theory of the Didactic. The Mixed Praxeological Model is proposed as a methodological analysis device. The analysis of the model of the calculation of Personal Income Tax in situation demonstrates the potentiality of the device to emerge the non-mathematical knowledge that base the mathematical models on concrete contexts. Preliminary results indicate the indispensability of the non-mathematical knowledge of the situation for the pertinent use of mathematical models, and forward future research.

scholarly journals The Theoretical Aspects of the Functioning of the System of Personal Income Taxation

2020 ◽  
Vol 12 (515) ◽  
pp. 389-394
Author(s):  
H. P. H. P. ◽  
Keyword(s):  
Income Tax ◽  
The State ◽  
Personal Income ◽  
Income Taxation ◽  
Tax Burden ◽  
Fiscal Pressure ◽  
The Cost ◽  
Taxation System ◽  
Tax Payers ◽  
Personal Income Taxation

The publication outlines theoretical aspects of the system of personal income taxation and determines that individuals and the tax agent are the paramount actors in certain synergistic relations of the institutional system elements. The state of formation of the revenue part of the Consolidated Budget of Ukraine was researched. Monitoring the formation of the revenue part of the consolidated budget is a set of methods for identifying and assessing the causes and signs that may lead to an increase in the tax culture of personal income tax payers and, at the same time, to increase the revenue part of the budget. The study of the structure of the tax determined that income in the form of wages and income tax, which is paid by the tax agent on income in the form of wages, dominate with great advantage and indicate the urgency of changing the policy of the State and in the minds of taxpayers oward their diversification. The fiscal pressure of income tax on taxpayers is analyzed. The tax burden should also take into account the cost of social benefits received, and therefore local self-government bodies should have information on the amount of taxes paid by one person or one employee and their dynamics in the future. A forecast of the tax burden on payment of tax to local budgets is carried out. It is proved that local self-government bodies should have not only a sufficiently predicted, but also an ever-growing amount of income tax, which requires urgent reform of the current taxation system. Ways to improve the system of personal income taxation are proposed. The author singles out the main stages of the strategy for reforming the personal income taxation system and the strategic goal: obtaining maximum revenues to the budget with an acceptable tax burden on the taxpayer. A set of factors of influence and differences between the taxation system of Ukraine and those established in other countries is formed.

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