Taxation of Personal Income in Russia: Areas of Improvement

DOI

10.2991/assehr.k.200113.054How to use a DOI?

Keywords

progressive tax system, tax deductions, tax revenues, social justice, living wage, R/P 10% ratio, Gini coefficient

Abstract

In the taxation of individuals a personal income tax (PIT) occupies a special place. Being federal, this tax does not enter the federal budget, and according to the established standards is credited to the budgets of the subjects of the Russian Federation and local budgets, being one of the main sources of tax revenues of these budgets. Personal income tax is a direct personal tax withheld directly from the taxpayer’s income, and therefore affects the interests of the majority of the country’s population. The social function of personal income tax concerns the problems of fair taxation and is implemented through the use of the method of taxation (progressive, proportional), the use of tax deductions (discounts). In essence, the social function regulates the level of the tax burden based on the amount of income of an individual. The article analyzes the consequences of the introduction of a proportional system of taxation of personal income since 2001, identifies both negative and positive sides, justifies the need to make changes to the system of taxation of personal income. Special interest in personal income tax is caused by the fact that it directly affects the formation of monetary incomes of the population, the structure of savings and consumption of citizens, tax revenues of budgets, gross domestic product (GDP) of the country. The role of personal income tax is also that its share in the budget depends on the level of economic development.

Copyright

© 2020, 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  - Nikolay Zotikov
AU  - Elena Lyubovtseva
AU  - Alina Savderova
PY  - 2020
DA  - 2020/01/16
TI  - Taxation of Personal Income in Russia: Areas of Improvement
BT  - Proceedings of the Ecological-Socio-Economic Systems: Models of Competition and Cooperation (ESES 2019)
PB  - Atlantis Press
SP  - 266
EP  - 270
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200113.054
DO  - 10.2991/assehr.k.200113.054
ID  - Zotikov2020
ER  -