INSTITUTIONAL ENVIRONMENT FOR BUSINESS DEVELOPMENT IN THE RUSSIAN FEDERATION: NEW APPROACHES TO ESTABLISHING TAX INCENTIVES
Ramziya K. Shakirova1* and Nadezhda V. Kurochkina2
1Assist. Prof. Dr., Mari State University, Russia, ramziya05@gmail.com
2Senior Lecturer, Mari State University, Russia, nadiakyr@rambler.ru
*Corresponding author
Abstract
Tax benefits as an element of formal institutions institutional environment for business development play a significant role in the functioning of the economy. The tax system of the Russian Federation includes taxes of three levels: Federal, regional and local. The procedure for establishing tax exemptions on these taxes is different. Tax reliefs on federal taxes are established exclusively at the federal level. Tax benefits sub-Federal level may be established at the Federal, regional and municipal authorities. This practice is considered ineffective and will gradually change.
The aim of this study is to analyze the prerequisites and consequences of introducing new principles of the tax benefits on regional and local taxes in the Russian Federation.
In the article the analysis of statistical reporting of the Federal tax service of the Russian Federation on tax incentives for regional and local taxes provided to taxpayers for 2013 and 2015 in the Republic of Mari El Republic of the Russian Federation.
According to the results of the study concluded: 1) the high proportion of benefits at the Federal level established at the regional and local taxes; 2) the need to change the procedure for establishing exemptions on these taxes.
The article also discusses the new principles of the tax benefits, which are regulated in the Main directions of tax policy of the Russian Federation for the medium term. The article provides information about the process of optimizing tax benefits on regional and local taxes, with the conclusion that possible deterioration of the institutional environment of entrepreneurship and business climate in the region.
Keywords: institutional environment, tax policy, tax concessions, tax expenditure budget, the budgets of sub-Federal level.
| FULL TEXT PDF |  |