Investigation of tax benefits as tool for charity activities stimulation

DOI

10.2991/ttiess-17.2017.52How to use a DOI?

Keywords

preferential taxation, charitable spending, state stimulation, tax benefit

Abstract

The article explores the issues of government measures to promote the commercial organizations' participation in charitable activities. The reporting data of banks, represented in Irkutsk region, are used as the empirical basis for the study. The study has used a sample of 49 banks, operating in Irkutsk region in 2011–2014. The research is based on the assumption that the preferential taxation reduces the cost of charitable services for the company. The authors set two main tasks: to construct a theoretical model, describing the tax benefit effect on financial contribution to the charitable sector, and to find the optimal limit for charitable spending, as a part of expenses reducing the taxable profit of the company. The authors concluded that there is the hypothetical possibility of increasing charitable donations as the result of introducing preferential taxation. The optimal limit of charitable expenses for tax purposes is up to 5% of the taxable profit. It is rationale to provide this optimal limit taking into account the budget efficiency.

Copyright

© 2017, 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  - Anna Kireenko
AU  - Sofia Golovan
PY  - 2017/06
DA  - 2017/06
TI  - Investigation of tax benefits as tool for charity activities stimulation
BT  - Proceedings of the International Conference on Trends of Technologies and Innovations in Economic and Social Studies 2017
PB  - Atlantis Press
SP  - 312
EP  - 319
SN  - 2352-5428
UR  - https://doi.org/10.2991/ttiess-17.2017.52
DO  - 10.2991/ttiess-17.2017.52
ID  - Kireenko2017/06
ER  -