Subject. The article addresses tax incentives for capital investment in the framework of corporate income tax, and their effectiveness, estimated as the scale of application of incentive instruments. Objectives. We explore tax instruments intended to boost the investment activity of businesses in Russia, in the context of their demand by Russian organizations. Methods. To estimate the efficiency of tax incentives for boosting investment, we calculate absolute and relative values of reduction in the tax base, according to the data of the Ministry of Finance of the Russian Federation, the Federal Tax Service of Russia, and Rosstat, and the number of companies, using these tax instruments. Results. The set of tax incentives and preferences focused on stimulating the investment activity within the income tax is quite wide, however, their application imposes significant restrictions on taxpayers. The effectiveness of applied tax incentives remains rather low. A relatively modest number of organizations use early depreciation mechanisms for acquired fixed assets to reduce income tax. Bonus depreciation is more common, however, it is applied by a sufficiently low number of taxpayers, although to a significant proportion of newly entered items of property, plant and equipment. Accelerated depreciation, both the declining method of depreciation and increasing coefficients, are used less frequently than bonus depreciation. Conclusions. Prospects for expanding the investment activity of a business can be associated with investment tax deduction. Its effectiveness assessment is possible only in the medium term.
We analyze how actively Russian organizations apply the right to accelerate the return on capital investments when calculating corporate profit tax in federal districts. The emphasis of the study is placed on such an accelerated asset write-off tool as depreciation bonus. The investment climate of the Russian regions is reflected both in the size of investments and the dynamics of investment activity of organizations, and in the instruments used for direct and indirect stimulation of capital investments. For organizations, these incentives are expressed in terms of the corporate profit tax burden. Significant differences were shown by federal districts, by the absolute amount of the accrued depreciation premium, by the number of organizations using the right to it, and by relative indicators: depreciation premium per organization, the share of organizations that use this tool to reduce tax liabilities, tax savings on profit. The result of the study was confirmation of a positive relationship between the share of investments to which the depreciation premium was applied and the corporate profit tax burden, which may explain the unevenness in using accelerated depreciation methods for tax purposes.
Subject. This article assesses the role of tax incentives for the Russian business' investment behavior. Objectives. The article aims to identify the relationship between the corporate income tax burden as an indicator responding to tax benefits application and the investment activities of Russian companies. Methods. For the study, we used the methods of analysis and synthesis, and the systems approach. The analysis covers the period from 2012 to 2018. The data of the Russian Federal State Statistics Service, Federal Tax Service of Russia, and the Ministry of Finance of the Russian Federation are the source of information for analysis. Results. The article summarizes the characteristics of the investment activity of the Russian business. However, the article does not reveal any obvious relationship between the income tax burden and the investment activity of the Russian business in the 2010s. There is also no link found between fixed investment and return on assets. Conclusions. The increase in income tax burden in the late 2010s, accompanied by a decrease in profitability, poses a threat to the active investment development of Russian organizations.
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