Taxation of income of small businesses in foreign countries

Issue № 11, 2021, article № 11, pages 115-127

Section: International relations and world agricultural experience

Language: Russian

Original language title: НАЛОГООБЛОЖЕНИЕ ДОХОДОВ ПРЕДПРИЯТИЙ МАЛОГО БИЗНЕСА ЗАРУБЕЖНЫХ СТРАН

Keywords: S-КОМПАНИИ, TAXES, TAXATION OF RURAL ENTERPRISES, TAX BENEFITS, TAX CREDIT, SMALL BUSINESS, RATES, DEDUCTIONS, TAX SYSTEMS, INCOME TAX, COMPANY TAX, S-COMPANIES, SOLE PROPRIETORSHIP, FOREIGN COUNTRIES

Abstract: The article discusses the issues of tax policy and methods of income taxation of small and medium-sized enterprises, with an emphasis on taxation of small businesses in the agricultural sector of foreign countries. Particular attention is paid to the experience of income taxation of small enterprises with the status of an individual, forming the socio-economic basis of the agricultural sector in most countries - sole proprietors, partnerships (unincorporated enterprises), freelancers. In relation to this category of enterprises in Western countries, the regime of so-called single-level "through" income taxation is used, in which double taxation of income is excluded, and taxes are calculated at income tax rates, usually using a progressive scale and taking into account all benefits and deductions, which provides a very pronounced segregation of tax burdens depending on the level of income of the enterprise. Small businesses with a low level of income are practically exempt from income taxes or pay taxes at law rates. This experience may in the future, when switching to a progressive scale of taxation of individual income, be of interest to Russia, where such a regime is currently absent in the tax system.

Authors: Getman Aleksandr Timofeevich