Abstract:RESUMOA análise de projetos industriais, cujo horizonte de planejamento usualmente varia de cinco a vinte anos, normalmente está sujeita a fortes condições de incerteza. Uma importante condição de incerteza é o fenômeno inflacionário, contornado pela Engenharia Econômica com o artifício de se trabalhar com fluxos de caixa em valores constantes e juros reais, desconsiderando os efeitos da inflação. Entretanto, nos casos das análises feitas depois do imposto de renda, os montantes reconhecidos como despesas de d… Show more
“…We have identified that this scenario has not changed, even after many years. The constant currency premise is a limitation in the research and a simplification of the model, which distorts long-term decision analyses (Álvares, 2001;Souza & Kliemann Neto, 2012), mainly because income tax considers not only the real interest rate but also monetary corrections for inflation when calculating taxable income. This study is relevant in this sense.…”
Purpose -The study investigates incentives in two types of private pension plans in Brazil: PGBL and VGBL. It identifies which one to choose to minimize income tax, considering both progressive and regressive forms of taxation.Theoretical framework -Based on Sutcliffe (2016), the individual decision-making process depends on the taxonomy of tax incentives (Disney & Whitehouse, 1999) and economic effects (Barr & Diamond, 2009;Armstrong, Davis, & Ebell, 2015).Design/methodology/approach -This study used an innovative approach, calculating the actuarial present value gross and net of tax for nominal cash flows, applied to the objective function that minimizes the average effective income tax rate -according to the definition by Fullerton (1984). A simulator was created for the optimal decision of representative individuals regarding the form of taxation to choose, thus reducing the amount of tax payable.
Research Practical & Social implications -We advise those with PGBL and VGBL pension plans on the best decision regarding forms of taxation, thus contributing to an improvement in tax legislation.Originality/value -The study's main contribution lies in calculating actuarial annuity gross and net of income tax, impacted by inflation over time, in addition to calculating traditional variables such as real interest rate, taxable income, deductible expenses, age, sex, and the life table.
“…We have identified that this scenario has not changed, even after many years. The constant currency premise is a limitation in the research and a simplification of the model, which distorts long-term decision analyses (Álvares, 2001;Souza & Kliemann Neto, 2012), mainly because income tax considers not only the real interest rate but also monetary corrections for inflation when calculating taxable income. This study is relevant in this sense.…”
Purpose -The study investigates incentives in two types of private pension plans in Brazil: PGBL and VGBL. It identifies which one to choose to minimize income tax, considering both progressive and regressive forms of taxation.Theoretical framework -Based on Sutcliffe (2016), the individual decision-making process depends on the taxonomy of tax incentives (Disney & Whitehouse, 1999) and economic effects (Barr & Diamond, 2009;Armstrong, Davis, & Ebell, 2015).Design/methodology/approach -This study used an innovative approach, calculating the actuarial present value gross and net of tax for nominal cash flows, applied to the objective function that minimizes the average effective income tax rate -according to the definition by Fullerton (1984). A simulator was created for the optimal decision of representative individuals regarding the form of taxation to choose, thus reducing the amount of tax payable.
Research Practical & Social implications -We advise those with PGBL and VGBL pension plans on the best decision regarding forms of taxation, thus contributing to an improvement in tax legislation.Originality/value -The study's main contribution lies in calculating actuarial annuity gross and net of income tax, impacted by inflation over time, in addition to calculating traditional variables such as real interest rate, taxable income, deductible expenses, age, sex, and the life table.
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