tax incentives

Social Development and Taxation: Correlation and Interdependence

Introduction. Social orientation of Russia means that it is the state’s responsibility to provide an efficient system of social welfare and state guarantees as well as establish proper legal regulation of the social sphere. Thus, it is especially important to conduct research aimed at revealing the relationship and interdependence between social policy and taxation. Theoretical analysis. The article presents and proves a hypothesis that there is a direct correlation between the level of social development and taxation system efficiency. The author suggests an original methodology for calculating taxes for companies and organizations involved in the social sector or providing social services. Empirical analysis. The hypothesis of tax incentives as the most relevant and effective way to support socially significant social sphere in Russia. According to the author, this problem can be solved by implementing a policy of low taxes, flexible changes in the level of tax burden and individual tax rates in the pre-specified range, the wider use of tax incentives system. Results. The paper clarifies the content of the concept of «social services»; reveals the necessity of legal and regulatory definition of «socially important sphere» and establishing a normative body of rules governing financial relations arising in the social sphere; presents an original approach to the interpretation of the concept of «social sphere» and regulation of the social sphere from the perspective of financial resources allocation; clarifies the definition of social sphere and social organizations providing social services; identifies the role of tax incentives in the development of the social sphere; and develops an institutional approach to the description of the correlation between the development of social sphere and taxation by expanding the range of infrastructural elements of the social sphere and taxation system.

Тo the Question of Preferential Tax Treatment for Small Businesses in Saratov Region

Introduction. In the context of economic crisis in Russia there is an urgent necessity in state support of small businesses, especially in the form of reducing taxes for businesses in the region. We have to analyze the preferential tax treatment for small businesses in Saratov region and its impact on the development of small business in recent years. It determines the relevance of the study. Theoretical analysis. In Saratov region preferential tax treatment for small businesses is presented in a number of regional laws. In particular, there are differentiated tax rates in application of simplified taxation system for certain categories of taxpayers; there is a two-year «tax holiday» for 11 types of businesses in the patent system of taxation and 72 types of businesses under the simplified taxation system. From January 1, 2016, the cost of patents for certain types of activities was reduced as well as the number of business activity types falling under patent system of taxation was also expanded. Discussion of results. Positive trends in the development of small businesses and the receipt of taxes to the regional budget in recent years has revealed the need for extension of differentiated tax rates in the region at the application of simplified taxation system and confirmed the effectiveness of legislation adjustment on patent system of taxation. The existing mechanism of «tax holidays» can be an essential support for small businesses in conditions of some changes, for example, extension of the grace period under condition of obtaining certain positions by taxpayer, the distribution of incentives on current enterprises.