scholarly journals Accredited investor: legal status and problems of taxation

2021 ◽  
Vol 5 (3) ◽  
pp. 167-177
Author(s):  
I. V. Glazunova ◽  
К. I. Chernikova
Keyword(s):  
Stock Market ◽  
Income Tax ◽  
Legal Status ◽  
Legal Regulation ◽  
Personal Income ◽  
Personal Income Tax ◽  
Tax Rate ◽  
Tax Legislation ◽  
The Status ◽  
Tax Deductions

The subject of the research is the legal norms contained in legislation and other legal acts that regulate the grounds for the emergence and the mechanism for implementing the status of an accredited investor, requirements for individuals, as well as certain aspects of taxation of accredited investors. The experience of legal regulation of income from investment activities, used in foreign legislation, is also analyzed in the context of the topic.The purpose of the article is to confirm the need to revise the requirements for accredited investors, to clarify the legislative provisions of the personal income tax. The reason for this study was legislative changes that caused an ambiguous reaction among the entire legal community in Russia.The methodology. General scientific methods were applied in the framework of a comparative, logical and statistical study and analysis of law enforcement and judicial practice in the field of taxation of an accredited investors.The main results. The following issues were investigated. What was the reason for the introduction of the status of an accredited investor in Russian legislation? It was the need firstly to protect the rights of investors, and secondly to regulate and protect the stock market from unconsciously high-risk transactions. What requirements are specified in the law for obtaining this status, what requirements exist in foreign legislation and why does domestic legislation need to be revised? We can divide the requirements for obtaining the status into three general groups: experience, knowledge and risk. Investor is obliged to meet two criteria by European legislation, when only one criterion by Russian legislation. The problem of taxation of qualified investors was raised in the context of the progressive income tax rate. Taxation of qualified investors needs a thorough legislative review in terms of tax deductions.Conclusions. The ideas for the introduction of the status of an accredited investor, of a progressive personal income tax rate were implemented in Russian legislation from the legislation of foreign countries. Such Russian legal rules needs significant revision. The legislative term "accredited investor" should be introduced in legislation system. It is necessary to clarify the criteria for obtaining a status, as well as to consolidate the necessity for accredited investors to comply with two conditions instead of one. Such an initiative would allow investors themselves to approach investing more consciously and would remove risks from brokers. Tax legislation should be amended in part of tax deductions for persons whose main activity is investment, since the current state of affairs discriminates them against individuals in their rights. The revision of the fixed requirements as well as the clarification of the tax legislation will attract investors (both Russian and foreign) to the Russian stock market, while the economy will receive positive growth, intermediaries-brokers and issuing firms will be provided with protection from unconscious risks.

scholarly journals Personal Income Taxation in Poland

Ekonomika ◽  
2008 ◽  
Vol 84 ◽  
Author(s):  
Edyta Małecka-Zieńska
Keyword(s):  
Income Tax ◽  
Value Added ◽  
Personal Income ◽  
Tax Rates ◽  
Personal Income Tax ◽  
Tax Rate ◽  
Tax Exemptions ◽  
Tax Deductions ◽  
The One ◽  
Taxation System

The Polish taxation system has been undergoing substantial changes in recent years, aimed at creating a more transparent system and conforming to the taxation standards of market economy countries. The two most important changes were introduction of the personal income tax (PIT) in 1992 and replacement of the turnover tax with the value added tax (VAT) in 1993. The uniform personal income tax covered all incomes generated by natural persons irrespective of where the sources of income are located. The reform provided also a more equitable distribution of the tax burden by introducing a progressive system with three nominal tax rates (in 1992-20%, 30%, 40%).A comparative study of the effective PIT rate for pensioners and other groups of PIT payers is the main goal of this paper. The study refers to our own research on data received from The information of Polish Ministry of Finance about accounting of PIT in several subsequent years. Statistics cover a period from 1993 to 2003. However, numbers of taxpayers refer also to year 1992 when the PIT has been established and a period from 2004 to 2006.Concluding the situation in Poland, taxpayers with the highest income make exhaustive use of tax reductions. There are occurring situations when well-off people benefit more than people with relatively minor income (e. g. pensioners). It happens even if most of deductions were aimed generally at all taxpayers. Such a situation reduces the impression of the system fairness. Because tax deductions reduce budgetary revenues, the foregone revenues have to be compensated by other taxes or / and higher rates. Therefore, the system of deductions and relief, on the one hand, supports the special gains (e. g. house building), however, on the other it generates costs. It is possible that the reduction of tax rate for the I tax bracket and removal of some tax exemptions and deductions would make the Polish personal income tax more transparent, equal and simple.

Prospective Directions of Personal Income Changes in the Context of Changing Legislation in the Russian Federation

2020 ◽  
Vol 26 (6) ◽  
pp. 649-655
Author(s):  
R. N. Berlizev
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Tax Burden ◽  
Rate Model ◽  
Personal Income Tax ◽  
Tax Rate ◽  
Tax Legislation ◽  
Dividend Payments ◽  
Progressive Tax ◽  
Definition Of

The topic of the study is relevant in light of changes in tax legislation pertaining to the current personal income tax system. From January 1, 2021, the personal income tax rate will change from 13 to 15 percent for incomes exceeding 5 million rubles (applies only to the amount over 5 million), which is basically the first step in the transition from a flat personal income tax rate to a progressive one.Aim. The presented study proposes and substantiates by calculation a new approach to calculating personal income tax based on a progressive rate.Materials and methods. This study uses generalization, synthesis, and systematization to analyze the risks and opportunities of the transition from the current personal income tax rate to progressive taxation.Results. The authors determine that income received by individuals through dividend payments is substantial, while the number of individuals who receive dividends is relatively small, and conclude that income received in the form of dividends can be classified as the so-called “excess income”, which is not defined at the legislative level. Therefore, now it is necessary to introduce and develop a definition of “excess income” in tax legislation and to draw a distinction between the concepts of “dividends” and “remuneration”. It is found by calculation that a relatively small increase in the tax burden on the income of dividend-receiving taxpayers would provide additional funds for the budget system. That said, changes to the system of taxes on personal dividends should be made with allowance for the introduction of a progressive tax rate. The proposal to completely abandon the flat personal income tax rate by introducing fundamental changes to tax rates that would affect almost any category of the population is substantiated. As a result of the proposed progressive tax rate model, budget revenues will increase, tax burden on individuals with the lowest level of income will diminish, and taxes imposed on citizens with income above the minimum level will remain the same.Conclusions. As a result of the proposed progressive tax rate model, budget revenues will increase, tax burden on individuals with the lowest level of income will diminish, and taxes imposed on the middle class will remain the same.

Earnings inequality and tax progressivity in Slovenia, 1991–2009

2013 ◽  
Vol 63 (4) ◽  
pp. 405-421 ◽  
Author(s):  
Tine Stanovnik ◽  
Miroslav Verbič
Keyword(s):  
Income Tax ◽  
Earnings Inequality ◽  
Personal Income ◽  
Early Years ◽  
Personal Income Tax ◽  
Tax Progressivity ◽  
Tax Legislation ◽  
Institutional Settings ◽  
Social Contributions ◽  
Minimum Wage Legislation

This paper analyses the distribution of employee earnings in Slovenia in the period 1991–2009. The analysis is based on large samples from the personal income tax (PIT) files. According to the Gini coefficient, increases in earnings inequality were moderate; however, relatively large increases in the shares accruing to the top 5% and top 1% of employees did occur. Inequality of employees’ after-tax earnings (i.e. net of employee social contributions and PIT) remained fairly stable in this time period, due to the increasing progressivity of PIT, as shown by the Kakwani index of progressivity. Increases in progressivity of the personal income tax came in leaps, following the introduction of new income tax legislation. Institutional settings and the introduction of minimum wage legislation in 1995 also appear to havemoderated inequality increases, which were quite large in the early years of the transition.

scholarly journals Evaluation the impact of the personal income tax reform in the Czech Republic in 2021 on effective tax rate and tax progressivity

2021 ◽  
Vol 7 (2) ◽  
pp. 134-145
Author(s):  
M. Krajňák ◽  
Keyword(s):  
Income Tax ◽  
Tax Reform ◽  
Personal Income ◽  
Personal Income Tax ◽  
Effective Tax Rate ◽  
Tax Base ◽  
Tax Rate ◽  
Tax Progressivity ◽  
The Impact ◽  
Income Tax Reform

Legislation governing personal income taxation is often subject to changes. A significant personal income tax reform was carried out in the Czech Republic in 2021. The reform implements a progressive tax rate, changes the way the tax base is determined, and increases the tax relief for the taxpayer. The aim of the article is to evaluate the impact of the personal income tax reform on the effective tax rate and tax progressivity. To that end, methods of regression analysis have been used. The source of information for analysis was the data published by the Czech Statistical Office. It was found that in 2021, in comparison with 2020, the tax burden represented in this study by the effective tax rate, in all cases became lower, approximately by 5%. The main reason for this decline is the adjustment of the method of construction of the tax base, which, for the first time in the history of the Income Tax Act, is gross wages. Until the end of 2020, the tax base was a super-gross wage, or the gross wage increased by social security contribution borne by the employer at his costs. The second factor that reduces the tax burden is a CZK 3,000 increase in the deduction per taxpayer per year. This fact increases the degree of tax progressivity, as confirmed by the results of the progressivity analysis and the regression analysis. The changes that have taken place in the personal income tax this year have a positive impact on the taxpayer, but from the point of view of the state, this reform has reduced the state budget revenues.

scholarly journals Improvement of Tax Regulation Arrangements for the Russian Stock Market

2020 ◽  
Vol 8 (16) ◽  
pp. 556-570
Author(s):  
Andrei V Koren ◽  
Tatyana E Danilovskikh ◽  
Artem A. Pustovarov
Keyword(s):  
Stock Market ◽  
Income Tax ◽  
Securities Market ◽  
Tax Base ◽  
Public Offerings ◽  
Tax Legislation ◽  
The Status ◽  
Tax Benefits ◽  
Russian Stock Market ◽  
Financial Transactions

The paper discusses various options for taxation of transactions with securities issued by Russian companies. The study aims to solve the problem of low investor activity in the Russian stock market by transforming the current tax legislation. An assessment of the factors restraining the development of the primary public offerings market is given. The problems of the existing methodology for the formation of the tax base when calculating income tax and personal income tax on transactions with exchange-traded financial assets are analysed. A methodology for providing tax benefits and tax incentives for investors is proposed. An assessment of the effectiveness of tax benefits using an individual investment account is given. A comparative analysis of the amount of taxes paid is carried out depending on the status of an investor and the type of securities. A detailed description of the methods for calculating taxes on stocks, bonds and futures is given. The results of the study consist in substantiating theoretical and practical provisions that allow us to develop an effective mechanism for taxing financial transactions in the securities market. The need is theoretically substantiated and the significance of state support in the stock market for citizens of the Russian Federation is determined. Mechanisms are proposed for cancelling separate accounting for several types of tax bases. The main problems are found and ways to improve the mechanism of taxation of transactions made on the Russian stock market are developed.

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 Can Tax Incentives for Electronic Payments Curtail the Shadow Economy? Korea`s Attempt to Reduce Underreporting in Retail Businesses

2017 ◽  
Vol 32 (2) ◽  
pp. 85-134
Author(s):  
Sung Myung Jae ◽  
Awasthi Rajul ◽  
Lee Hyung Chul
Keyword(s):  
Income Tax ◽  
Shadow Economy ◽  
Positive Impact ◽  
Tax Incentives ◽  
Personal Income ◽  
Personal Income Tax ◽  
Tax Rate ◽  
Gini Coefficients ◽  
Korean Economy ◽  
Business Income

Increasing tax revenues by curtailing the shadow economy has been a central goal of tax policy and administration in the Republic of Korea since the National Tax Service was established as an independent agency in 1966. This paper examines the Tax Incentives for Electronically Traceable Payments (TIETP) introduced by the Korean tax authorities in 1999 to promote payments made using credit cards, debit cards, and electronic cash receipts in business-to-consumer transactions. TIETP allows wage and salary earners to claim tax deductions for eligible purchases made using electronically traceable payments when they file their year-end income tax return. This tax incentive scheme has greatly contributed to transforming the Korean economy into a cashless economy over the last decade and a half. Card payments as a ratio of Korea`s GDP have ranked highest in the world since 2005, reaching 49% in 2014. TIETP has increased the percentage of business income earners who pay taxes from stagnant at around 30% up to the late 1990s to approximately 80% at present. The effective personal income tax rate for business income followed a continuous upward trend from 3.4% in 1998 to 6.3% in 2013. The total revenue increase driven by TIETP has been estimated as \3.4 trillion, with TIETP costs reaching \1.9 trillion. The net gain is an estimated \1.4 trillion (approximately US$1.3 billion), an increase of personal income tax revenue by 4.2%. TIETP also had a positive impact on income redistribution, decreasing Gini coefficients by 0.11 percentage points.

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.

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