The Prospects of the Russian Personal Income Tax Reform in Research Proceedings by Scientists of Foreign Universities

Abstract

The experience of foreign universities in researching reforms of personal income taxation is especially interesting now for the Russian Federation as it plans to transfer from a proportional to a progressive personal income tax scale. Russia has the experience of using a progressive personal income tax, but it proved to be untenable because of minimal collection of taxes at the highest rate. The key objective of our research was finding the optimal tax rates and the number of personal income tax increments in the Russian Federation. The novelty of our research is in the use of indicators of several states to calculate the unknown quantity, while the custom here is adaptation of a foreign country's taxation system to local realities. The article presents comparative analysis of several foreign systems of progressive taxation of individuals, which take into account economic and social realities of each state. We compared indicators of the economies under research linked with the social features of taxation, national income distribution and the importance of the personal income tax for the budgets. Modern legislations establish different methods of calculating the taxation base for individuals, the rates. The research of foreign universities in the area of reforming personal income taxation, the extended experience of progressive personal income tax collection in these states and adaptation to Russia should help the Russian Federation introduce an effective progressive scale of the personal income tax. Basing on the data from 21 countries with a progressive personal income tax scale our research outlines several parameters of the personal income tax model, which could be used in the Russian economy taking into account the differences of local development indicators compared with their foreign analogues.

Aspects of application of tax control by countries for cross-border operations

“…Overall, Russia-EU trade relations are seen as problematic, both for trade with companies and Russian individuals in the EU. The majority of the trade barriers imposed are considered political actions from the part of global policy and until the tensions concerning Russia-Ukraine subside, the trade barriers are unlikely to change with the EU [37].…”

International Financial Reporting Standards' (IFRS) application peculiarities: a case study

“…Increases in the present value of costs to sell arising overtime should be presented in profit or loss as finance costs. However, during the same period, the value of non-current assets for sale may change, so the firm needs to recalculate it: 1) a company must recognize an impairment loss on the initial or subsequent write-down of an asset to fair value less costs to sell (Florou & Kosi, 2015;Tsilikova et al, 2020); 2) a company shall recognize a gain on subsequent increases in the fair value of the asset less costs to sell, but not in excess of any accumulated impairment loss that was recognized either in accordance with this IFRS or previously in accordance with IAS 36 Impairment of Assets (Ponomareva et al, 2020;Belyakova & Zvereva et al, 2020a, 2020b.…”