Tax incentives for small business as a factor of sustainable development of the region in Russia

DOI

10.2991/cssdre-18.2018.10How to use a DOI?

Keywords

tax rate, small business, tax income, incentive, fixed effects model, ordinary least squares technique, region

Abstract

The article considers possibility of ensuring positive dynamics of territorial development through arrangement of favorable tax conditions for business activities. The authors give a quantitative estimate of reaction of the Russian small enterprises to reduction of a tax rate. By the aid of the ordinary least squares technique and the fixed effects model, the analysis of results of small business activitiy for 2006-2015 period in all regions of the Russian Federation has been carried out. The dependence established between the amount of the tax charged within the simplified tax system and the size of the tax rate on "net income" in the region is described by quadratic function with minus coefficient a. The value of the mentioned rate on average in the regions of the Russian Federation for the considered period was at the level above optimum. Tax rate decrease by regional authorities as well as its differentiation for small enterprises and individual entrepreneurs will encourage increase in range of legal activity of small businesses in Russia. The conclusion is made about expediency of use of tax methods to support small businesses for activization of development of regional economy and achievement of stable rates of its growth.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Karen Tumanyants
AU  - Evgenia Gulyaeva
PY  - 2018/05
DA  - 2018/05
TI  - Tax incentives for small business as a factor of sustainable development of the region in Russia
BT  - Proceedings of the International Scientific Conference "Competitive, Sustainable and Secure Development of the Regional Economy: Response to Global Challenges" (CSSDRE 2018)
PB  - Atlantis Press
SP  - 42
EP  - 46
SN  - 2352-5428
UR  - https://doi.org/10.2991/cssdre-18.2018.10
DO  - 10.2991/cssdre-18.2018.10
ID  - Tumanyants2018/05
ER  -