Tax reliefs for employment of new residents Baturan, Luka; Milošević, Goran; Cvjetković-Ivetić, Cvjetana
Zbornik radova (Pravni fakultet u Novom Sadu),
2022, Volume:
56, Issue:
4
Journal Article
Peer reviewed
Open access
The paper analyzes the tax relief for employment of new residents. In the first two parts, there is a legal analysis of Art. 15c of the Law on Personal Income Tax and Art. 15a of the Law on ...Contributions for Mandatory Social Insurance. Then, this tax relief will be examined in the context of the principles of tax law and public finance, especially the principle of tax fairness, the principle of tax efficiency and the principle of the stability of the tax system. The conclusion is that the problem of the outflow of highly skilled workers could not be solved by partial reforms of tax laws. A systematic solution implies a radical reform of the personal income tax, which would be firmly based on the principles of tax law and tax science.
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Objectives
In a market economy, allocation decisions are more or less visibly related to the monetary savings of entities. The tendency of entities to save depends on both the interest rate on ...deposits and inflation, as well as the tax rate on income from capital (monetary savings). Also, the willingness of business entities to invest depends on the income from invested capital. Tax policy, its nature, implemented solutions, instruments in the form of reliefs and exemptions, and, above all, stability and predictability are an important element of effectively influencing taxpayers' behavior.
Material and methods
Induction was used as the main research method. It involves drawing general conclusions or establishing regularities based on the analysis of empirically identified phenomena and processes. Moreover, the work uses two general research methods, i.e. analytical and synthetic methods, characterized by a specific approach to the study of reality.
Results
To ensure economic growth and development, it is necessary to develop favorable tax solutions. Taxes should not affect the taxpayer's assets to an extent that prevents their further development. Therefore, it is important to balance the amount of tax collected from the company.
Conclusions
A simple consequence of the fiscal function of income taxes is a direct impact on the allocation of resources in the economy, because when the tax is paid, there is a final flow of income between the taxpayer and the state. The fiscal function of income taxes is always related to the allocation of resources, as it reduces the incomes of households and businesses, which limits their ability to invest, consume and save.
In an effort to limit the effects of the COVID-19 epidemic determined by restrictions in economic activity and various areas of social activity, the catalogue of preventive actions was expanded by ...tax and legal instruments in the form of income tax reliefs inclining taxpayers to certain behaviours. The reliefs entitle taxpayers to deduct the value of donations made for the purposes of counteracting COVID-19 from the tax base. Two types of such donations have been distinguished, i.e., donations for entities participating in the treatment of infected persons and donations for educational institutions providing remote education. The aim of this article is to establish the premises justifying the claim that the tax reliefs for donations made by income tax payers are autonomous in relation to other tax preferences available to taxpayers making donations for other socially useful purposes. The hypothesis about the ad hoc and temporary nature of these tax reliefs has been verified as true, and the dominance of the motivating and stimulating function over their fiscal function has been demonstrated. Symmetrical solutions have been identified in the legal structure of the subject tax reliefs, as the donor uses a deduction from the tax base, while the recipient does not include the accepted donation in their income. The study uses the legal-dogmatic method and, in addition, the empirical analytical method to present the jurisprudence of courts in the field of applying tax reliefs due to donations made by income tax payers.
Abstract Background The article evaluates the influence of the type of nominal personal income tax rate on its progressivity. This is examined in the Czech Republic in the period 1993–2020. Between ...1993 and 2007, the nominal tax rate was progressive, while from 2008 until the end of 2020, the nominal rate was linear. Objectives The paper aims to analyse if the type of nominal tax rate affects personal income tax progressivity. Methods/Approach The article uses analysis, synthesis, comparison and regression analysis methods. The progressiveness of the tax obligation indicator is used to evaluate the degree of tax progressivity. Results In the context of the analysis of the degree of tax progressivity, personal income tax is more progressive in the period of validity of the nominal linear rate for taxpayers with incomes below the average wage level. Conclusions Since the linear rate has been in force, the government in the Czech Republic has often mistakenly presented that tax rate innovations will ensure that everyone pays the same tax.
The main goal of this study is to assess whether, and if so, how the tax policy is implemented in Poland in relation to informal partnerships. The justification for conducting research in this area ...is the growing number of such relationships and the demands formulated by the public on the principles of taxation of cohabitants. The study analyzes not only taxes on natural persons, but also the provisions governing the principles of tax liability. The research shows that while pro-family tax policy is implemented on a fairly large scale in Poland, it does not apply to cohabitants. In principle, cohabitants do not have the right to any preferential taxation rules, above all tax reliefs and exemptions. Moreover, the analysis of the research material clearly indicates that staying in cohabitation can even aggravate the situation of a cohabitant under tax law (which can be seen perfectly well on the example of a cohabitant's liability for his partner's taxes). On the basis of a critical analysis of the Polish tax law provisions, the general thesis has been formulated that the situation of cohabitants is affected by deep asymmetry, because on the one hand the legislator uses cohabitation to improve the allocation of public revenues, but on the other hand it does not include cohabitants with pro-family tax policy (although cohabitation is very similar to marriage). The study includes certain demands on the legislator, thanks to which it is possible to cover cohabitants by pro-family tax policy.
This study contains a critical analysis of the judgment of the Voivodship Administrative Court in Rzeszów of 15th December 2015 (I SA/Rz 1090/15). In the Authors’ opinion the court wrongly ...interpreted the need for a strict interpretation of tax law in respect of the provisions implementing tax exemptions. In this study Authors claim that this view of the judges is not supported by the content of the current regulations and by doctrinal views.
In this paper the authors analyze legal and economic aspect of the tax reliefs related to solving housing issue in the Serbian system of personal income tax, i.e. capital gains tax. The aim of the ...paper is to analyze from the legal and economic viewpoint Serbian law related to the capital gains tax reliefs, problems in its implementation, as well as formulate appropriate de lege ferenda propositions. Due to its legal and economic disadvantages the authors suggest its repealing.
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Small and medium sized enterprises (SMEs) are increasingly the subject of interest and support of the governments of developed countries in which these businesses are one of the factors that influence ...the economical development. Many external and internal factors influence on the establishment, operation, growth and development of SMEs. The developed countries of the world put SMEs in the focus of their economic strategies and programs with specific macroeconomic policies measures, such as targeted fiscal policy to SMEs, tax exemptions and special taxation schemes that directly affect the reduction of operating costs, improve liquidity and competitiveness of small and medium-sized businesses. Nevertheless, Bosnia and Herzegovina and the Republic of Srpska, still do not adopt tax policies and practices of many developed countries around the world, so not enough attention is being paid to the improvement of SMEs. The aim of this study is to define the factors in the area of tax policy, which discourage the survival and slow down the growth and development of SMEs. For this purpose, we have implemented quantitative research in the area of 5 cities and 16 municipalities in the Republic of Srpska on the sample of 199 examinees. Based on the results of our empirical study analysis, we came to a conclusion that 93,96% of the sampled SMEs believe that tax compliance is complicated and expensive, while 92,96% believe that tax laws are complex and complicated. That introduction of cash accounting for VAT will contribute to their business through increased turnover and enlarged range of services and products is considered by 83,42% of SMEs. Even 85,93% of the examinees think it would contribute to their business if they had a lower tax rate in the first three years after its establishment, while 69,35% of the examinees believe that the income tax rate is high. Introduction of the quarterly VAT fling is seen as a contribution to their business by 65,33% of the examinees.
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