Beneficial ownership of income as an antiabusive measure in Serbian Tax Law

The Serbian Corporate Income Tax Act contains a provision on the beneficial ownership of income (hereinafter: the BO provision), which is one of the conditions for the application of the preferential tax rate on income tax after tax deduction, which is envisaged in Treaties for the avoidance of Double Taxation on income and capital (hereinafter: Double Taxation Treaties/ DTTs). The subject matter of research in this paper is the term "beneficial ownership", which is not defined in the Corportate Income Tax Act. It may ultimately lead to abusing the preferential tax rates from the DTTs in tax planning and "treaty shopping" through the use of conduit companies. Tax experts have different opinions on the legal nature of the BO provision, which is given the function of an anti-abusive measure (on the one hand) and a rule for the attribution of income (on the other hand). The author analyzes the current function of the BO provision envisaged in the Serbian Serbian Corporate Income Tax Act (CITA), and its inadequate application. The author advocates for enacting the BO provision as an anti-abusive measure, and examines the possible application of the BO provision in domestic tax law, with reference to Articles 10, 11, and 12 of the DTTs that Serbia contracted with other states, as well as Articles 10-12 of the OECD Model-Convention on Income and Capital (2017) and Commentaries on these articles. Such an application of the BO provision may preclude "treaty shopping". In final remarks, the author points out why the BO provision should be envisaged as an anti-abusive measure in Serbian tax law.

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Taxation in a mixed economy: the case of China

Studies in Economics and Finance ◽

10.1108/sef-08-2015-0183 ◽

2017 ◽

Vol 34 (1) ◽

pp. 49-61 ◽

Cited By ~ 2

Author(s):

Davidson Sinclair ◽

Larry Li

Keyword(s):

Income Tax ◽

Central Government ◽

Corporate Income Tax ◽

Tax Rates ◽

Government Ownership ◽

Effective Tax Rate ◽

Effective Tax Rates ◽

Content Type ◽

Tax Rate ◽

For Profit

Purpose The purpose of this paper is to investigate how Chinese firms’ ownership structure is related to their effective tax rate. The People’s Republic of China provides an interesting environment to examine the corporate income tax. Government has significant ownership stakes in the for-profit economy and state-owned enterprises (SOEs) are liable to the corporate income tax. This is very different to most other economies where SOE tends to dominate the not-for-profit economy and pays no corporate income tax. Government ownership also varies between the central government and local government in addition to state asset management bureaus. This provides a rich institutional background to examining the corporate income tax. Design/methodology/approach A panel data analysis approach is used to examine relationship between ownership structure and effective tax rates of all public firms in China from 1999 to 2009. Findings The authors report that effective tax rates do appear to vary across the ownership types, but that SOEs pay a statistically higher effective tax rate than to non-state-owned. In addition, local government owned SOE pay higher effective tax rates than central government and SAMB owned SOE. The authors also investigate Zimmerman’s (1983) political cost hypothesis. Unfortunately, these results are econometrically fragile with the statistical significance of those results varying by empirical technique. Originality/value This paper provides insight into government ownership and taxation in China.

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THE COMPARISON OF CORPORATE INCOME TAX IN LATVIA AND LITHUANIA

INDIVIDUAL. SOCIETY. STATE. Proceedings of the International Student and Teacher Scientific and Practical Conference ◽

10.17770/iss2017.3048 ◽

2017 ◽

pp. 20

Author(s):

Jūlija Ščeglova ◽

Iveta Mietule

Keyword(s):

Income Tax ◽

The State ◽

Corporate Income Tax ◽

Tax Rates ◽

State Budget ◽

Tax Base ◽

Tax Rate ◽

Common Features ◽

Advance Payment ◽

Tax Payers

Corporate income tax is one of the important taxes that provide revenues to the state budget. Article contains a comparison between Latvian and Lithuanian existing legislation relating to corporate income tax, studied differences between the tax rates, tax base, tax period and taxpayers. Were described differences that are related to the advance payment calculation, as well as created an example that shows how advance payments are calculated in Latvian and Lithuanian companies. As a result, it was found that there are several common features in the Latvian and Lithuanian legislation, with regard to corporate income tax, for example, the tax payers, taxation period, tax rate, the taxable amount. But there are several differences, such as the nuances of rates for non-residents, depending on the type of revenue, advance payment deadlines and other particularities of the calculation of the advance payments. Also differ corporate income tax payment deadlines. It was concluded that making advance payments in Lithuanian enterprises is more profitable, because it was calculated that at the same conditions, the amount of advances in Lithuania is lower than in Latvia.

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Effective Corporate Income Tax Rates: Southern and Northern Economies of the European Union

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v10i1.16273 ◽

2020 ◽

Vol 10 (1) ◽

pp. 117

Author(s):

Dimitris Balios ◽

Nikolaos Eriotis ◽

Stefanos Tantos ◽

Dimitrios Vasiliou

Keyword(s):

European Union ◽

Income Tax ◽

Corporate Income Tax ◽

Tax Rates ◽

The European Union ◽

Tax Rate ◽

Industrial Sectors ◽

Determining Factors ◽

Business Profitability ◽

Alternative Approaches

In the present study, we attempt to investigate the determinants of the effective corporate tax rate of companies of the European Union (EU) discriminating between northern and southern economies. We adopt in our analysis the period after the outbreak of the crisis in the Eurozone up today including some years before 2009 in the assessed period. Our empirical investigation is based on three alternative approaches to effective income tax rate based on accounting information. We investigate the determinants of ECITR assessing two sub-samples of firms from all the aforementioned industrial sectors for 16 member countries of Europe. The first sub-sample consists of firms from 12 member countries of "North" European Union and the second sub-sample consists of firms from 4 member countries of "South" European Union. The analysis covers the period 2004-2016. Estimation results point out that the effective corporate income tax rate is variously affected by firm-specific determining factors for both northern and southern economies. The relation between ECITR and determining factors is ascertained to be less significant (sensitive) during the pre-crisis period in comparison with the respective empirical findings after the outburst of the economic crisis in the European Union. Empirical findings indicate that effective corporate income tax rate is more vulnerable to financial leverage for southern economies in comparison to the northern economies signaling financing structure differences between the two EU-country groups. Finally, there is evidence that there is an indisputable and positive coexistence between business profitability and tax burden.

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The Influence of Corporate Income Taxes on Investment Location: Evidence from Corporate Headquarters Relocations

Management Science ◽

10.1287/mnsc.2020.3906 ◽

2021 ◽

Author(s):

Travis Chow ◽

Sterling Huang ◽

Kenneth J. Klassen ◽

Jeffrey Ng

Keyword(s):

Income Tax ◽

Strong Support ◽

The State ◽

Economic Consequences ◽

Corporate Income Tax ◽

Tax Rates ◽

Tax Rate ◽

Percentage Point Increase ◽

Point Increase ◽

State Income

This study examines the effects of jurisdictions’ corporate taxes and other policies on firms’ headquarters (HQ) location decisions. Using changes in state corporate income tax rates across time and states as the setting, we find that a one-percentage-point increase in the HQ state corporate income tax rate increases the likelihood of firms relocating their HQ out of the state by 16.8%, and an equivalent decrease in the HQ state rate decreases the likelihood of HQ relocations by 9.1%. Exploiting the unique tax policy features within the state apportionment system lends strong support to the interpretation that taxation drives this effect. Our analyses also demonstrate that state income tax features affect the destination of the HQ move. We contribute to the literature on corporate decision making by showing how state income taxation affects a real corporate decision that has significant economic consequences for the company and the state. This paper was accepted by Brian Bushee, accounting.

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Personal Income Taxation in Poland

Ekonomika ◽

10.15388/ekon.2008.17683 ◽

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.

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Analisis Pajak Penghasilan Bagi Wajib Pajak Badan Usaha Kecil- Menengah Di Indonesia

Binus Business Review ◽

10.21512/bbr.v3i2.1352 ◽

2012 ◽

Vol 3 (2) ◽

pp. 673

Author(s):

Fany Inasius

Keyword(s):

Comparative Research ◽

Income Tax ◽

Research Method ◽

Small And Medium Enterprises ◽

Document Analysis ◽

Tax Law ◽

Tax Rates ◽

Tax Rate ◽

Principle Of Justice ◽

Medium Enterprises

Income Tax on Small and Medium Enterprises (SMEs) has been amended in the Tax Law number 36 of 2008 concerning Income tax (the latest Income Tax Act). In the the latest Income Tax Act, tax rate for small and medium business entity with gross circulation up by 4.8 billion rupiahs receives 50% tariff cuts out of the normal rate. This implies a reduction in rates for small and medium enterprises since 2009 compared to rates based onthe previous Income Tax Act (the old Income Tax Act). However, in the calculation of income tax based on the principle of justice, the old Income Tax Act provides a sense of fairness as the basis of taxation based on profit compared to the latest Income Tax Act which based on sale revenues. This study focuses on a comparison of the tax on SMEs corporation by the latest Income Tax Act and the old Income Tax Act. From the research conducted using comparative research method, descriptive, and document analysis, it shows that there is a decrease in tax rates based on the latest Income Tax Act, but the principle of justice in the taxation of SMEs is still less than the old Income Tax Act.

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The Effect of Corporate Taxes on Investment and Entrepreneurship

American Economic Journal Macroeconomics ◽

10.1257/mac.2.3.31 ◽

2010 ◽

Vol 2 (3) ◽

pp. 31-64 ◽

Cited By ~ 178

Author(s):

Simeon Djankov ◽

Tim Ganser ◽

Caralee McLiesh ◽

Rita Ramalho ◽

Andrei Shleifer

Keyword(s):

Cross Section ◽

Informal Economy ◽

Income Tax ◽

Corporate Income Tax ◽

Entrepreneurial Activity ◽

Domestic Firm ◽

Tax Rates ◽

Corporate Tax ◽

Tax Rate ◽

Aggregate Investment

We present new data on effective corporate income tax rates in 85 countries in 2004. The data come from a survey, conducted jointly with PricewaterhouseCoopers, of all taxes imposed on “the same” standardized mid-size domestic firm. In a cross-section of countries, our estimates of the effective corporate tax rate have a large adverse impact on aggregate investment, FDI, and entrepreneurial activity. Corporate tax rates are correlated with investment in manufacturing but not services, as well as with the size of the informal economy. The results are robust to the inclusion of many controls. (JEL E22, F23, G31, H25, H32, L26)

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FISCAL CORRECTION OF REPORTING TAX PAYABLE TAXPAYER BASED ON GENERAL RATE OF CORPORATE INCOME TAX IN 2020 (CASE STUDY AT PT. KARMILA UTAMA SENTOSA)

International Journal of Research -GRANTHAALAYAH ◽

10.29121/granthaalayah.v9.i8.2021.4184 ◽

2021 ◽

Vol 9 (8) ◽

pp. 382-394

Author(s):

Suprianto ◽

Sarifudin ◽

Eka Agustiani

Keyword(s):

Income Tax ◽

Corporate Income Tax ◽

Fiscal Year ◽

Case Method ◽

Tax Credit ◽

Tax Rates ◽

Government Regulations ◽

Tax Rate ◽

Directorate General

ABSTRACT This study takes the title "Fiscal Correction of Reporting Tax Payable Taxpayer Based on General Rate of Corporate Income Tax in 2020 (Case Study at PT. Kamilia Utama Sentosa ). The aim is to analyze the fiscal correction and income tax payable in fulfilling the tax obligations of corporate taxpayers based on the 2020 Corporate Income Tax General Rate. This research was conducted at PT. Kamilia Utama Sentosa in Mataram with the application of the case method, namely the case at PT. Kamilia Utama Sentosa related to corporate taxpayer tax obligations referring to government regulations regarding general corporate income tax rates for 2020. Fulfillment of Corporate Taxpayer Obligations PT. Kamilia Utama Sentosa for the 2020 fiscal year, namely the Fulfillment of Corporate Taxpayer Obligations related to the calculation, deposit, and reporting of the Annual SPT has been carried out in accordance with applicable regulations, namely the application of the Corporate Income Tax rate of 22%. The results of the fiscal correction show that there is a time difference in the calculation regarding the recognition of expenses according to the tax law. Positive correction according to fiscal, there is a difference of Rp. 13,674,428, - while the Taxable Income in the Profit/Loss report is Rp. 496,659,611, so that the income tax payable by the Taxable Entrepreneur (KPKP) who gets the facility (50 % x 22 % ) x Income Tax Those who get the facility, namely income tax payable amounting to Rp 34,062,397,- After deducting the total tax credit that has been deposited, the underpaid/overpaid income tax (PPh payable – Tax Credit) is Rp 34,062,397 – 61,917,344 = Rp 27,854. 947,- (overpaid income tax). Overpayment of corporate income tax of PT. Kamilia Utama Sentosa can be requested back or refunded and or calculated in the 2021 tax year or the excess tax is returned to PT. Kamilia Utama Sentosa by submitting an application to the Directorate General of Taxes.

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PENGARUH PERUBAHAN TARIF PAJAK PENGHASILAN BADAN TERHADAP RETURN SAHAM DENGAN LIABILITAS PAJAK TANGGUHAN SEBAGAI VARIABEL INTERVENING PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI (Periode 2008 – 2010)

InFestasi ◽

10.21107/infestasi.v12i1.1804 ◽

2016 ◽

Vol 12 (1) ◽

pp. 98

Author(s):

Galih Rhendra Putra ◽

Heru Tjaraka

Keyword(s):

Stock Returns ◽

Income Tax ◽

Stock Exchange ◽

Corporate Income Tax ◽

Tax Rates ◽

Manufacturing Companies ◽

Tax Rate ◽

Analysis Technique ◽

Deferred Tax Liabilities ◽

Deferred Tax

This research aimed to test whether there is the effect of changes in corporate income tax rate to return stock with deferred tax liabilities as an intervening variable. Changes in corporate income tax rates expected to have an indirect effect on stock returns. Variables used in this research include the change in the corporate tax rate as independent variables, stock returns as dependent variable and deferred tax liabilities as an intervening variable. The population used in this research were all manufacturing companies listing on the Stock Exchange in the period the change in corporate income tax rate is 2008-2010. Data were analyzed using path analysis technique to assess causal relationships between variables that have been set. The results of this research indicate that the phenomenon of corporate income tax rate changes have no significant effect either on the deferred tax liabilities and stock returns, while deferred tax liabilities had a positive effect on stock returns. Results of this research concluded that the deferred tax liabilities can not be a mediator or intervening variable between corporate income tax rate changes and stock returns.

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The Effects of Corporate Income Tax on Corporate Capital Structure---Based on the Data of Listed Companies in China

International Journal of Economics and Finance ◽

10.5539/ijef.v8n1p166 ◽

2015 ◽

Vol 8 (1) ◽

pp. 166

Author(s):

Li Wenhong ◽

Wu Jiaqi ◽

Hu Tianran

Keyword(s):

Capital Structure ◽

Income Tax ◽

Listed Company ◽

Listed Companies ◽

Corporate Income Tax ◽

Tax Rates ◽

Main Method ◽

Tax Rate ◽

Corporate Capital ◽

Corporate Capital Structure

In 2008, the domestic and foreign corporate income tax systems were unified in China. Based on data of the listed companies in China from 2006 to 2012 and the established model, we find that income tax rates significantly influence the capital structure of listed companies in China, and there is a positive correlation to the asset-liability ratio. When tax rate falls, the listed company will lower financial leverage, and the main method is through increasing its owners' equity, rather than to reduce debt.

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