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This study explores the interplay between tax incentives, creative compliance, and innovation in enhancing business resilience and sustainability among micro, small, and medium enterprises (MSMEs) in Indonesia, addressing gaps in the existing literature regarding their interrelationships during crises. A cross-sectional survey of 360 MSMEs was conducted, utilizing the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach to analyze complex relationships among variables. The findings reveal that creative compliance, including tax planning and avoidance, does not directly impact resilience or sustainability. While tax incentives did not significantly enhance resilience during crises, they contributed to long-term sustainability. Innovation emerged as a critical factor linking creative compliance to business success and fully mediating the effects of tax incentives on resilience. This study emphasizes the necessity for MSMEs to prioritize innovation in their strategies, particularly in conjunction with effective tax practices, and highlights the need for government support through simplified regulatory frameworks to foster an innovative business environment. Limitations include the challenges of incorporating control variables in SEM and the need for further research into the long-term effects of these factors on sustainable performance. [ABSTRACT FROM AUTHOR]

This research aims to comprehensively analyze the implementation of tax incentive strategies in mitigating the economic impact of COVID-19, grounded in endogenous growth theory. Utilizing a literature review of 134 articles published between 2020 and 2023, this study evaluates tax incentives as public policy interventions, comparing practices globally to provide insights for Indonesia. The Population, Intervention, Comparison, Outcomes, and Context (PICOC) framework is employed to ensure the validity and reliability of the literature, while Publish or Perish citation metrics assess the quality of sources. Findings indicate that tax incentives strategically counter economic downturns by boosting purchasing power, sustaining businesses, and improving compliance. However, their effectiveness could be enhanced due to a lack of taxpayer awareness. To address this, the study recommends developing more comprehensive, interactive, and measurable socialization programs alongside strengthening the role of Account Representatives in assisting taxpayers. This research contributes to the existing literature by providing a detailed review of tax incentive policies implemented during the pandemic, focusing on Indonesia and comparisons with other Southeast Asian countries. The study aims to offer insights into best practices for designing and implementing tax incentives, particularly in crises, to better align these policies with sustainable economic growth.

This study examined the impact of changes in tax codes on voluntary giving to universities and colleges. While higher education institutions have drawn attention to individual gifts and philanthropic donations as supplementary financial resources, the recent introduction of the Tax Cuts and Jobs Act of 2017 in the United States reduced tax incentives for charitable contributions, thus raising concerns regarding considerable declines in charitable giving. By using panel data from the Voluntary Support of Education Survey, this research revealed that changes in tax benefits on charitable giving as a consequence of the new tax policy are associated with an overall decrease in the sum of individual donations and the number of individual donors. This loss of voluntary contribution is notably observed in private colleges and universities with an emphasis on research activities. [ABSTRACT FROM AUTHOR]

This study examines the link between sustainability practices and tax incentives for Indonesian firms by analyzing Bloomberg data from 2013 to 2022. It assesses sustainability through the Sustainability Growth Rate (SGR) and disclosures in the Environmental, Social, and Governance (ESG) domains, while tax incentives are measured by the Effective Tax Rate (ETR). A fixed-effects regression model controls firm-specific factors, revealing that a higher SGR significantly correlates with reduced tax liabilities. This study also suggests that firms with substantial sustainability growth are able to gain tax benefits. However, ESG disclosures alone do not significantly impact the ETR. Its robust sustainability practices have led to tax advantages rather than mere disclosure in Indonesia. Furthermore, this research contributes to the existing literature by highlighting the distinct impacts of various sustainability measures on financial outcomes, particularly in developing countries. They overview the importance of comprehensive sustainability strategies incorporating real growth in initiatives for achieving ethical and financial outcomes. This research also addresses critical insights for policymakers and business leaders in response to the emerging markets around developing countries.

AbstractThis paper investigates the impact of China’s value-added tax (VAT) expansion reform on specialization using data sourced from listed companies. Through an examination of changes in business scope and revenue, two significant findings emerge. First, certain companies extend their services beyond internal use, aiming to boost sales during the post-reform period. This expansion is evident in the changes observed in the business scope matrix. Second, certain service providers experience a significant revenue increase as they attract outsourced orders from manufacturers affected by the reform. The disaggregated analysis of the three sectors involved in the VAT expansion reform further substantiates these findings. Moreover, we rule out tax avoidance as a motive by evaluating actual changes in tax burden, as opposed to projected burdens. These findings have important policy implications for understanding the ramifications of VAT reform and the dynamics of specialization within the industry. [ABSTRACT FROM AUTHOR]

The COVID-19 pandemic has significantly impacted Micro, Small, and Medium-sized Enterprises (MSMEs) by causing reduced demand, supply chain disruptions, cash flow issues, and digitalization challenges. To alleviate these challenges, governments have implemented tax incentives and relief measures. This study examines the factors influencing MSME taxpayer compliance with tax incentives during the COVID-19 pandemic. This study uses a quantitative approach with 167 respondents as MSME taxpayers in East Java, Indonesia. This study uses the SEM-PLS approach. Based on the Theory of Planned Behavior (TPB) and Social Cognitive Theory (SCT), this study's results indicate a positive influence between attitude, subjective norm, Perceived Behavioral Control, and Self-efficacy on behavioral intention to tax compliance. It can be concluded that there is a positive relationship between behavioral intention to comply with taxes and tax compliance, which is moderated by tax incentives. This means that individuals who have a stronger intention to comply with taxes are more likely to actually comply, and this effect can be further strengthened by the provision of tax incentives.

The global proliferation of the Covid-19 pandemic has adversely impacted public health, society, and the economy. To face the pandemic, managers are frequently required to make highly complicated decisions about financial reports. Earnings management occurs when managers modify financial statements for the advantage of stakeholders by evaluating opportunities in certain business activities. This paper investigates the impact of audit opinion and tax incentives on earnings management and leverage as a moderating variable among consumer goods manufacturing companies. A purposive sampling technique was performed to select 15 manufacturers in the consumer goods industry subsector listed on the Indonesia Stock Exchange between 2019 and 2021, which matched the research criteria. This study's findings indicate that audit opinion and tax incentives influence earnings management among consumer goods companies in the COVID-19 pandemic era. Moreover, leverage was a moderating variable for audit opinion and earnings management, but it did not moderate the effect of tax incentives on earnings management.

State regulation of the anthropogenic impact on nature, including the policy of limiting greenhouse gas emissions, makes it necessary to support those enterprises that are willing to invest in climate projects. The relevance of incentives in this field is confirmed by the task set by the Arctic Council chaired by Russia at the Research and Training Conference on Climate Change and Permafrost Thawing 2023, namely to find reasonable, practical solutions for adapting the global economy to such changes. In the area of taxation, there is a solution prepared by the Russian Ministry of Economic Development willing to provide a package of tax benefits for investors. According to the draft, they should be exempted from paying VAT and income tax. At the same time, the variety of previously introduced preferential ‘investment’ tax regimes calls into question the rationality of new tax incentives due to the assumption of their redundancy. The fact is that they have similarities in the basic idea of support aimed at the growth of regional investment activity. For this reason, the purpose of the article is to answer the following questions: Is it really worthwhile to expand the number of tax regimes once again? Is it possible to use existing incentives instead of introducing new ones? To achieve the purpose, we rely on the results of comprehensive, comparative analysis of the developed incentives and the current tax preferential regimes on the example of the Sakhalin region. It stands out among other regions of Russia by its carbon-neutral pilot project and the greater number of preferences already enjoyed by investors, so we can provide representative and practically significant results. The hypothesis of the study is based on the concept of complementarity, meaning that the newly developed tax incentives will contribute to the complexity of the Russian tax system but will not cross the scope of the other mentioned tax regimes. The results show that climate projects have their own specifics in terms of objectives as well as areas of investment that require special approaches in tax policy, since investors create a useful economic effect in the form of reducing greenhouse gas emissions rather than producing goods, and no taxable profit is generated until the investor profitably sells carbon units in the market.

Focusing on the value of green innovation efficiency in cities, this paper explores the intrinsic mechanisms of tax incentives and the innovative development of digital economy industries in promoting efficiency. This paper first proposes the principle of the regression algorithm required for the study as its theoretical foundation. In the principle, it focuses on the solution method of the LS method, proposes the univariate regression model and the multivariate regression model respectively, and determines the parameter estimates through the residual vector derived by the least squares method. Combined with the regression model, the mediation effect model is proposed to examine the impact of tax incentives on urban green innovation efficiency by taking government subsidies and tax incentives as the entry point of tax incentives. The results show that the regression coefficients of government subsidies and tax incentives are 1.769 and 1.838, respectively, which are positive, and the tax incentives can significantly improve urban green innovation efficiency and can realize the improvement of urban green innovation efficiency by promoting the innovative development of the digital economy industry. The effect size of tax incentives on urban green innovation efficiency in different regions of East, Central, and West China shows regional heterogeneity.

Relevance. Qualitative and quantitative transformations taken place under the impact of a number of interconnected facts, destabilizing for the world economy. Contemporary conditions direct gas producing countries, including Russia, towards enhancing the competitive advantages to maintain their positions in the world gas market, first of all, towards increasing the share of liquefied natural gas in the market. It is impossible without sufficient resource base to expand production of operating large capacity LNG projects. Aim. To analyze the effect of management-economic mechanisms on the expansion of resource sufficiency to provide the production of liquefied natural gas. Object. Large capacity LNG projects. Subject. Financial and fiscal framework applied for implementation of large capacity LNG projects. Methods. Empirical and economic-statistical. Results. Institutional incentives for provision of resource sufficiency have allowed the authors to reveal different approaches to stimulating resource sufficiency depending on the business tax systems, implementing LNG projects. The paper demonstrates differentiation in natural resource users’ reaction to tax benefits. Using licensing system a resource user intensifies his activities in development of hard-to-recover reserves, which increases resource sufficiency of LNG projects. Whereas using treaty system (which is, in fact, incentive framework of taxation) the effect is insignificant to stimulate geological exploration. This in future may occur as a decrease in liquefied natural gas production as well as possible negative social-economic consequences in a region. The authors suggest legislative consolidation for business operating in the condition of production sharing agreement, of mandatory minimum – 10 % of net profit spent for geological exploration.

Using data of China's listed companies from 2010 to 2018, we investigate the effects of China's accelerated depreciation (CACD) policy on corporate internationalization performance. The results show that CACD policy increases corporate incomes in foreign markets by 16.15% through the market expansion channel and the innovation incentive channel. The policy effect is more pronounced for firms with better corporate governance, more serious financial constraints, and weaker financial risks. [ABSTRACT FROM AUTHOR]

We exploit a quasi-experimental setting with high internal validity to measure the effect of adopting an intellectual property (IP) box on innovative activity and tax benefits. We document innovative activity increases, including patent applications, grants, and highly skilled employment, at the expense of patent quality. Domestic firms drive this effect. We also provide evidence that firms with patents, on average, enjoy up to 7.0 percent lower effective tax rates, with the most significant tax benefits accruing to multinational firms compared to domestic firms. We use the Belgium IP box that limits tax benefits to patent income. Prior IP box literature analyzes heterogeneous IP boxes and provides evidence of substantial increases in patent applications in response to IP box adoption. Our results suggest the patent-income only IP box leads to a modest increase in innovative activity by a maximum of 5.1 percent, with multinationals benefitting relatively more from a financial perspective. Data Availability: The data supporting this study's findings are publicly available from Bureau van Dijk Orbis, EPO PATSTAT, and the Belgian National Bank. JEL Classifications: H21; H25. [ABSTRACT FROM AUTHOR]

In the U.S., local property taxes fund public education more than any other source, but the revenue cost of property tax abatements for school districts has long eluded capture. This paper finds that at least $2.4 billion was diverted in 2019 to fund tax incentives from just the small percentage of school districts that disclosed out of the 10,370 financial statements reviewed. School board authority in the award process is limited or absent in most cases. Given the cost-inefficiency and cost-ineffectiveness of many awards, the long period of time before profits come in, and the critical need for closing the funding gap in public education, more judicious use of tax incentives is called for. Specifically, we recommend that all states establish independent agencies for reviewing incented projects regularly and rigorously, impose benefit reduction or clawback on underlivering recipients, enable institutions for multiscalar collective action, and maintain oversight of tax abatement reporting by local governments. [ABSTRACT FROM AUTHOR]

This paper aims to determine factors contributing to the tax aggressiveness among incentivised electrical and electronic (E&E) companies in Malaysia. The specific objectives were to examine whether characteristics of incentivised companies, such as size, profitability, leverage, capital intensity, and ownership, influence tax aggressiveness. It employs correlation analysis, multiple regression, and independent sample t-test to test a sample of 230 incentivised E&E companies (from 2017 to 2019). The findings suggested that only profitability, leverage, and capital intensity significantly influence tax aggressiveness, while size and ownership were insignificant towards tax aggressiveness. [ABSTRACT FROM AUTHOR]

We want government to help us prosper. For working people, prosperity requires employment and employment requires business. After World War II, most of the world was either devastated or underdeveloped leaving the United States without foreign competition. Local competition took its place. The States and local governments competed against one another on their natural resources, access to transportation, infrastructure, schools, and work force. These are the products of government spending. Some States did not have much to attract economic development. They created their own attributes instead. For example, right to work laws attracted companies that wanted to avoid unions and no usuary limits attracted credit card companies who wanted to charge high rates. Other States offered tax holidays. Move here and pay no tax for ten years. But saving money in taxes lost its appeal when other jurisdictions offered even more. Rather than build good sewage systems or roads for everyone, towns provided free infrastructure built to company specifications in addition to tax incentives. By the 1970s, firms learned that they could get States and localities to bid against one another. Each providing a package of bigger incentives. We can see the result of these races to the bottom in cities and towns that gave companies whatever they wanted only to find themselves with vacant factories and roads leading to nowhere. While the States were competing with one another, the rest of the world was emerging from war. Like the States, these countries wanted to help their citizens prosper. For those without natural resources or great infrastructure or educated workers, one alternative was to become a tax haven. A tax haven is the other side of a tax incentive. With tax incentives, a government gives up the right to tax in the hope that a firm's relocation will bring its citizens success. In a tax haven, a government hopes to improve its citizens' fortune by helping a foreign taxpayer avoid another government's taxes. Whether tax incentive or tax haven, in the end, the result is the same. The stakes get higher and higher. The companies and foreign taxpayers move from site to site. They take everything they can get and then convince another government to give more. Now a decade of investigative journalism shows that not only are the States in race to the bottom with their own tax revenues, but they are also transforming themselves into tax havens thus helping foreign taxpayers deplete their home countries' revenues. This paper is a cautionary tale. It shows what makes the United States the world's favorite tax haven and examines what we can expect if this trend continues. [ABSTRACT FROM AUTHOR]

The Covid-19 pandemic has had impacts on various aspects of human life, particularly economic activities. In response to this situation, the government issued an income tax incentive policy for employees borne by the government (PPh 21 DTP) to maintain the purchasing power of the community, especially for employees during the pandemic. Until the end of 2020, the realization report of this incentive utilization was still low, reaching only 29.8% of the budget ceiling. This study aims to evaluate the PPh 21 DTP tax incentive policy using Dunn's policy evaluation criteria (2004). Policy evaluation covers aspects of effectiveness, efficiency, sufficiency, fairness, responsiveness, and accuracy. This research also outlines the supporting and inhibiting factors in utilizing this incentive. The research approach used is qualitative with qualitative research methods. The data analysis technique used is qualitative data analysis technique. The types of data used are primary and secondary data through in-depth interviews and literature review. The research concludes that the evaluation of the PPh 21 DTP tax incentive policy in the trading sector in DKI Jakarta has not met Dunn's policy evaluation criteria. This research result indicates that the policy is not fair, responsive, and accurate enough, thus not aligning with the goal of increasing community purchasing power. In order to encourage the optimization of incentives, the government should emphasize the benefits from the perspective of businesses as parties carrying out administrative obligations in utilizing the PPh 21 DTP incentive. [ABSTRACT FROM AUTHOR]

The purpose of the article/hypothesis: This paper aims to provide a comprehensive review of the theoretical and empirical literature regarding tax-induced earnings management. In particular, the association between anticipated tax changes and earnings management is of interest to the authors. Methodology: This paper uses a systematic literature review to achieve its research objectives. Results of the research: The presented research is mostly devoted to tax rate decreases and focuses on accrual-based earnings management methods. In anticipation of a tax rate change, companies shift their income from a high to a low tax rate period. Moreover, the probability of tax-induced earnings management is higher in case of extreme changes in the tax rate, larger prospects for tax savings as well as in case of private firms. This paper identifies several inconsistencies and gaps in the current literature, emphasizing that the connection between firms’ characteristics, the level of book-tax conformity and the practice of earnings management remains unclear.

This study presents an in‐depth investigation of the impact of "Mass Entrepreneurship and Innovation" (MEI) policy on small and medium‐sized enterprises' (SMEs') innovation using the propensity score matching–difference‐in‐difference method. The MEI policy's R&D subsidies are found to generate a positive effect on SMEs' innovation. Although R&D subsidies have no significant impact on SMEs' strategic innovation, they can promote substantial innovation and establish a solid microfoundation for China's high‐quality development. Compared with R&D subsidies, tax incentives in the MEI policy cannot encourage SMEs to innovate and may even have a negative impact on SMEs' innovation. [ABSTRACT FROM AUTHOR]

This study uses a firm-level dataset to examine the impacts of taxation on multinationals' decisions to set up new foreign subsidiaries in developing ASEAN countries. It finds that while taxes play a critical role in multinational enterprises' location choice decision, there is an important heterogeneity in the tax responsiveness. First, the tax sensitivity for high-tech firms is significantly lower than that for low-tech firms. Second, having a prior presence in the respective host country is associated with substantially lower tax responsiveness. Finally, in accordance with international-tax-avoidance considerations, the tax responsiveness is significantly diminished for affiliates with a connection to tax-haven countries. [ABSTRACT FROM AUTHOR]

IT industry is noticeably distinguished by the tax support provided to it in the Russian economy. Nowadays software companies are treated as main contributors to national technological breakthrough being one of the main priorities of federal tax policy. Tax maneuver of 2021 significantly changed well-known tax rules, but some of novelties became a logical development of previously implemented measures. We systematize them by following our classification that introduces three main phases, all of which provided a qualitative update of the previous taxation framework, and for analysis consider particular reliefs as a unified, specific tax regime integrated in the general taxation system. The purpose of the article is to identify priorities and evaluate effectiveness of mechanisms designed to stimulate IT companies, including a preliminary assessment of valid perimeter and performance of the maneuver. Obtained results indicate that the tax regime initially given to software business had a bad design, an extremely narrow scope of beneficiaries and, due to this, a little effect on the IT industry; modernization of that design with the revision of basics was necessary at least in order to stop the decline of IT industry in the part of small companies. However, the main trend of recent tax policy demonstrates a strengthening of sustainable business with comparative fall of competitiveness of beginning entrepreneurs. In sum, the tax maneuver has a positive economic impact but covers, according to our estimates, less than 20% of IT companies.

Otomotiv sektörü hem gelişmiş hem de gelişmekte olan ülkelerin ekonomileri içerisinde stratejik bir öneme sahiptir. Ülkemizde de en önemli sektörlerden biri olan otomotiv sektörü, orta vadeli programlar içerisinde yer alan makroekonomik politikalarda öncelikli sektör olarak değerlendirilmektedir. Ekonomik büyüme için stratejik ve öncü bir sektör olması nedeniyle, ekonominin durgunluk dönemlerinde bir maliye politikası araçlarından olan bazı vergisel teşvikler otomotiv sektörüne uygulanmaktadır. Bu çalışmada, Türkiye’de 2006-2020 yılları arasında otomotiv sektörüne uygulanan vergi indirimi ve hurda teşvik politikalarının otomotiv sektöründeki satış rakamları ele alınarak etkinliği analiz edilmeye çalışılmıştır. Çalışmadan elde edilen sonuç, vergi teşviklerinin otomobil, otobüs, kamyon satışlarını anlamlı bir şekilde artırdığıdır. En önemli artış ise talebin fiyat esnekliği daha yüksek olan otomobilde görülmüştür.

The subject of the research is a corporate income tax regime of tax accounting of intangible assets and R&D spending. The working hypothesis is that realization of the regulative potential of tax policy in relation to stimulating R&D activity and creation of intangibles assets shall be streamlined and adapted to increase the effectiveness of innovations. Authors suggest that the key tax policy goal of the mechanism is the widening of the volumes of commercialized R&D results and intangibles, lowering the tax risks, and increasing the legal certainty. The aim of this research is formulation of tax policy proposals for subsequent reforming this mechanism of direct taxation of transactions related with R&D.To achieve the aim of the research the following research approach was employed by the authors. As a first step authors present a literature review on the issue. As a second step authors are performing the analysis of current rules related to tax accounting of R&D costs and intangibles in accordance with Tax Code of Russian Federation. As a third step authors delineate the barriers and legal obstacles in the performance of tax incentives for R&D by reviewing the judicial cases and analytical reports on the issue. Finally, authors formulate their tax policy proposals for the subsequent tax reforms in relation to tax accounting of R&D.The results and the scope of the study. Author’s working hypothesis is based on the idea that the effective application of tax policy instruments can contribute to success of the jurisdiction in winning in global tax competition game. This is particularly important in context of digitalization and for attracting investments and parts of activities of multinational enterprises to the territory of the state. Intangible assets and key people which coordinate the processes of the creation of intangibles can be regarded as the crucial value-added factors in the modern economy where technological MNEs are increasingly dominating. Countries compete internationally for these talented people and favorable and certain tax regime can positively impact on MNE decisions to make a profit center in any jurisdiction, while tax uncertainty can negatively impact this decision.Conclusions. One of the key results of this research is that R&D tax incentives in Russia remain rather unpopular instrument in corporate practice. Authors explain this with the existing legal barriers and legal uncertainty. This uncertainty leads to tax risks for taxpayers which impacts their decisions for using the incentives. Review of judicial cases related to tax accounting of R&D costs when calculating corporate income tax base showed that there are many different areas of disputes between taxpayers and tax authorities. It is important to note that some of this uncertainty is already addressed in recent amendments to Article 262 of Tax Code. Authors propose to reduce uncertainty by extending the scope of R&D tax incentives to all types of R&D activity. The goal of the research is therefore can be considered as achieved.

Since 2021, Russian IT companies have been stimulated by enhanced tax incentives, which allow one to pay corporate income tax only to the federal budget as well as pay social security contributions at a heavily reduced rate. While medium and large businesses get benefits from the new government support, small enterprises are traditionally supported through the simplified taxation system, which offers alternative tax measures. For this reason, the purpose of the article is to identify problems which could arise when new incentives are distributed in the economy. Based on the structure of the IT industry and the conditions of reducing taxes, it is argued that fairness of taxation is broken as small IT (software) companies constitute the majority and, at the same time, have little chance to be included in the tax incentive scope. The new privileges addressed to IT companies actually favor some businesses with high turnovers, and even the favorable simplified taxation system cannot completely eliminate distortions in the tax burden level. Along with this, sub-central governments have a strong motivation to raise their tax revenues within the framework of vertical tax competition. There is a need to make the tax system more neutral as well to harmonize tax regimes, and the article provides relevant proposals.

Objective: The purpose of this study was to analyze the effect of tax socialization, tax knowledge, and service quality on MSME taxpayer compliance and to test whether tax incentives were able to moderate the effect of these factors on MSME taxpayer compliance in Manado City. Research Design & Methods: This research is quantitative research using primary data. The population of this research is MSME taxpayers who are registered at KPP Pratama Manado. Determination of the sample of this study using the slovin formula and obtained a sample of 98 MSME taxpayers with non-probability sampling technique. The data analysis method used in this research is multiple linear regression analysis and moderation test for moderating variables. Data analysis using IBM SPSS 25. Findings: The results of this study indicate that taxation socialization has no effect on MSME taxpayer compliance, tax knowledge does not affect MSME taxpayer compliance, service quality has a positive and significant effect on MSME taxpayer compliance. In the moderating variable, the use of tax incentives is able to moderate the effect of tax socialization, tax knowledge, and service quality on taxpayer compliance. Contribution & Value Added: This study complements the limitations of studies on tax socialization, tax knowledge, service quality and the use of tax incentives in analyzing its relation to MSME taxpayer compliance. [ABSTRACT FROM AUTHOR]

This study discusses the analysis of the effectiveness of implementing tax incentives for luxury goods in the manufacturing industry during the COVID-19 pandemic, where the provision of tax incentives for luxury goods is one of the government's concrete efforts to minimize risks that will occur in aspects and fields affected by the pandemic. This incentive is officially granted through the issuance of PMK 20/PMK.010/21, concerning Sales Tax on Luxury Goods on the Delivery of Taxable Goods Classified as Luxury in the Form of Certain Motorized Vehicles Covered by the Government for the 2021 Fiscal Year, which was effective from 26 February 2021–01 April 2021, and was then accompanied by changes and the renewal of sales tax on luxury goods regulations during the pandemic. The author conducts an analysis using quantitative and qualitative methods (mixed method research) using secondary data and primary data, where secondary data are obtained from motor vehicle sales data before and after the COVID-19 pandemic from Gaikindo, which are processed using SPSS with normality tests and paired-sample T-tests. Then, for primary data, the author distributes questionnaires to Gaikindo and then processes them using multiple regression analysis. It is hoped that from the results of this analysis of the implementation of this incentive in the manufacturing industry, it can be found from the sales of motorized vehicles before and after the COVID-19 pandemic that the policy steps taken by the government were indeed effective and provided benefits not only to entrepreneurs engaged in manufacturing, but also to the community as consumers, so that what is described to the public so far is in accordance with the reality on the ground. [ABSTRACT FROM AUTHOR]

Until now, Indonesia still faces Covid-19 and is still in the process of economic recovery. However, the Directorate General of Taxes (DGT) was able to achieve the target of 100% tax revenue according to the target mandated in the 2021 State Budget even before the close of the year. At the end of 2021 tax incentives that have been utilized in the framework of the National Economic Recovery Program have reached IDR 63.16 trillion (100.5%) from the ceiling of IDR 62.83 trillion. This achievement is thanks to the contributions of all Taxpayers who continue to be committed to paying taxes. On this achievement, the government continues to show improvement efforts that must be maintained momentum, in order to continue to the 2022 state budget. The purpose of this study is to find out and analyze the evaluation of the utilization of tax incentive policies during the covid-19 pandemic in the framework of national economic recovery. This research uses descriptive qualitative methods through literature studies. In the evaluation of the utilization of tax incentive policies during the Covid-19 pandemic, it was explained that this tax revenue is one of the many state revenues that participate in supporting the nation and the country.

This study aims to analyze the factors that influence personal tax compliance in paying the income tax from online sales of MSME, namely tax policy, tax knowledge, tax sanctions, and tax incentives. This study adopted the attribution theory and used a quantitative approach employing a survey method by distributing the questionnaires related to paying online sales tax of the individual taxpayers running MSMEs. A total of 159 respondent data across Yogyakarta, Central Java, and Lampung, which met the criteria, were analyzed and tested using Structural Equation Modeling (SEM) with the help of SmartPLS 3.0. This study indicates that tax knowledge and tax sanctions have significant and positive effects on tax compliance, but tax policy has no significant effect on tax compliance. Likewise, tax incentives cannot moderate the relationships between tax policy, tax knowledge, tax sanctions, and tax compliance.

In response to the crisis caused by Covid- 2019 outbreak, the government issued the Minister of Finance Regulation Number 23/PMK.03/2020 regarding tax incentives for taxpayers affected by the coronavirus outbreak as part of the national economic recovery program, which along with the pandemic situation has been amended or replaced several times. One of the incentives provided is the Income Tax Article 21 incentive. Thisresearchexaminesto gives a comprehensive review and analysis of the implementation of the Income Tax Article 21 incentive for taxpayers affected by the Covid-19 Pandemic and the problems encountered throughout the policy's implementation. This study uses a descriptive qualitative approach to explain objectively, in detail, and in-depth the results obtained. Observation, in-depth interviews, and documentation techniques were used in collecting the data. This study indicates that although the Income Tax Article 21 incentive is beneficial for the recipients in spending during the pandemic, its implementation faces various challenges. In terms of the realization of this incentive, it is relatively low compared to the initial budget allocation, so it is doubtful that it will provide the expected multiplier effect on economic growth, as the objective of this policy. Thus, the improvement in economic and public consumption growth cannot be linked directly to the contribution of the Income Tax Article 21 incentives policy alone because many other things and policies can affect the economy.

Malaysia is likely to introduce new laws on social enterprises of taxation. However, the important questions are whether the said laws are adequate. This study explores previous research on social enterprises and taxation to gain a further understanding through a systematic literature review on social enterprises and taxation from the Malaysian perspective. This is normative legal research. The data was gathered through library research which consisted of numerous publications. This study concludes that tax and social enterprises, perhaps due to the different economic structures in each country, result in taxation being slightly discussed by previous scholars. Nevertheless, we clearly define social enterprises from different perspectives, including the characteristics present in social enterprises. Moreover, the perspective regarding tax relief for social enterprises in Malaysia has been highlighted. Although Malaysia has introduced a new policy to support its social enterprises with Social Enterprise Accreditation, a more significant regulatory or tax incentives approach is needed to support social enterprises in Malaysia.

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The purpose of the article/hypothesis: This paper aims to provide a comprehensive review of the theoretical and empirical literature regarding tax-induced earnings management. In particular, the association between anticipated tax changes and earnings management is of interest to the authors. Methodology: This paper uses a systematic literature review to achieve its research objectives. Results of the research: The presented research is mostly devoted to tax rate decreases and focuses on accrual-based earnings management methods. In anticipation of a tax rate change, companies shift their income from a high to a low tax rate period. Moreover, the probability of tax-induced earnings management is higher in case of extreme changes in the tax rate, larger prospects for tax savings as well as in case of private firms. This paper identifies several inconsistencies and gaps in the current literature, emphasizing that the connection between firms' characteristics, the level of book-tax conformity and the practice of earnings management remains unclear. [ABSTRACT FROM AUTHOR]

Copyright of Akademi Sosyal Bilimler Dergisi is the property of Akademi Sosyal Bilimler Dergisi and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study conducted quantitative comparisons of various public R&D support options using a CGE model. The analysis considered four different options by varying the types of fiscal incentives and the scope of beneficiaries concerning the firm size. The findings indicate that direct subsidy is more effective in spurring private R&D investments than indirect tax incentives. In addition, selective R&D support toward small and medium enterprises is found to induce balanced growth among industries. In summary, the simulation results suggest that R&D support under the direct subsidy scheme aimed at SMEs has the potential to achieve a higher equilibrium state within the Korean economy. This study confirms that the government should carefully design the R&D promotion policy by ensuring that direct R&D inducement effects are transmitted to industrial output growth with a diversified industrial structure and higher knowledge spillover effects. [ABSTRACT FROM AUTHOR]

Objective - The paper aims to measure tax incentive effectiveness specifically for SMEs using internal government factors such as modernization and socialization of the tax system and internal personal taxpayers' factors using tax knowledge. Methodology/Technique - Using primary data collected by questionnaire. Respondent criteria prepare according to SMEs classification from the Regulation of the Minister of Finance of the Republic of Indonesia. Data in this study were analyzed using multiple linear regression with SPSS statistics. Findings - this research found that modernization, socialization, and taxpayer knowledge will improve tax incentive efficiency. Internal government factors consist of modernization of the tax system and frequent socialization, significantly encouraging taxpayers to utilize the incentive without having deep knowledge of taxation. Novelty - This study explains the determinants of tax incentives from both sides, government, and taxpayer, especially for SMEs during pandemic COVID 19 in the Indonesian market. [ABSTRACT FROM AUTHOR]

This study aims to assess the effectiveness of the COVID-19 tax incentives that the government has issued. It focused on Micro, Small, and Medium Enterprises (MSMEs) taxpayers to participate in COVID-19 tax incentives. Using a qualitative method, this study used in-depth interviews with 2 informants who were a tax consultant and a small-medium enterprise accountant. The findings show that the effectiveness of the COVID-19 tax incentive is still lacking, and it is in line with the participation of MSMEs that is still low in utilizing tax incentives. The low participation of MSMEs in utilizing tax incentives can be seen from the data, which shows that after 5 months of running the program, out of around 2.3 million MSMEs, only 200,000 have taken advantage of this facility. The tax consultant states that the scheme that has been implemented in mitigating the financial burden of MSMEs is not effective for the object of incentives in not substantial. The informant suggests incentives to cover value-added tax also. The government is expected to create a new and better incentive scheme. The new incentive scheme is also to provide an equilibrium of responsibility for both government and society. This paper contributes theoretically by examining new types of tax incentives, namely COVID-19 tax incentives, and helping policymakers make better tax incentive schemes in the future.

To further explore the development of construction waste recycling enterprises and promote the recycling of construction waste resources in China, a system dynamics model of the economic benefits of construction waste recycling enterprises is established using the system dynamics method and taking the tax incentive of the Guangzhou Municipal Government as an example. The economic benefits of construction waste recycling enterprises are analyzed from the perspective of the total cost, total revenue, and total recycling amount. The results of the MATLAB simulation and numerical analysis show that (1) by simulating the effects of different taxes such as value-added tax (VAT), education surcharge, urban construction tax, and enterprise income tax on the economic benefits of construction waste recycling enterprises, it is found that when tax incentives reach 70%, the VAT favorable policies bring the highest gains, followed by enterprise income tax, whereas favorable education surcharge policies and urban construction tax have the least impact on economic benefits. (2) Taking the monetary subsidy of the Guangzhou municipal government as an example, it is estimated that the total revenue of construction waste recycling enterprises will increase by 33.56% annually in 2030. When the new production technology is adopted, the return on investment (ROI) will reach 46.8% in 2030 compared to previous technological improvements. In the simulation scenario, the ROI will be 42.2%, which has a good incentive effect on the cost control of enterprises. (3) Increasing the available power to VAT and corporate income tax can improve the profitability of construction waste recycling enterprises in China; however, tax incentive policy will no longer be the main factor affecting the benefits of enterprises when a certain time is reached. (4) It is suggested that the government improves the relevant tax laws incentive policies, increase tax incentives, and add equipment tax incentive policies, actively change the tax mode, and increase indirect tax models to improve the economic benefits of enterprises. The research results provide a decision-making reference for the government to formulate laws and policies related to the economic benefits of construction waste recycling and promote the development of the construction waste recycling industry, the development of new industries, such as waste recycling and treatment, and the formation of industrial chains, to achieve the strategic goal of sustainable development. [ABSTRACT FROM AUTHOR]

This study investigates the impact of the value-added tax reform in services on enterprise upgrading during China's transition. We found that the reform significantly accelerates the process of enterprise upgrading by using data on China's listed companies from 2009 to 2017 and a difference-in-differences approach. Heterogeneous analyses show that the impact of the reform is mainly manifested in non-state-owned enterprises. We also find that quality upgrading (value-added) plays a dominant role, while the potential of total factor productivity is not fully exploited yet. Tax reduction, investment in innovation, specialization, and factor allocation are major pathways to achieving enterprise upgrading. These findings provide implications for transitional economies in promoting enterprise upgrading through tax incentives. [ABSTRACT FROM AUTHOR]

The article deals with the problems of small and medium entrepreneurship (SME) in Germany, its role in the country’s economy. It reveals the mechanism of interaction of government structures, political parties, business alliances and the expert community in formulating and carrying out policies aimed at supporting SME. It shows that real business conditions in Germany differ substantially from what is usually offered to potential investors in advertising brochures. The Total Early-Stage Entrepreneurial Activity Index (TEA-Quote) puts Germany far behind its competitors. For several consecutive years the number of liquidated small and medium enterprises has been higher than that of newly created ones. Germany’s new generation prefers to seek jobs in big companies or in the civil service. Germany seems to have lost the Gründer spirit. Entrepreneurs complain about the great number of bureaucratic procedures, the growing shortage of skilled workforce, high electricity prices, and difficulties in accessing bank credits for micro and small enterprises. An underdeveloped market of venture capital has been a drag on innovative startups. A successful cluster policy, which gave a new impulse to the development of several territories, has not offset serious shortcomings in the country’s entrepreneurial climate. While not dramatizing the situation, the author considers as mistaken a common point of view found in Russian publications. This point of view holds that framework conditions for business in Germany constitute a near-ideal model, which leads to success as long as it is copied faithfully. The article analyses public discussion in Germany about the problems of SMEs, complains of small and medium business against the authorities. The key provisions of the government strategy to develop small and medium business adopted in 2019 and a cessionary package to mitigate damage of the coronavirus outbreak on the German economy adopted in 2020 are reviewed. The main conclusion of the author is that the German experience should be treated selectively, taking into account overall internal political, economic and social conditions under which the German policy of supporting SMEs is designed. The strengths of this policy lie in its systemic nature and a commitment to align it with industrial, innovative, social, research, and educational policies.

This paper examines tax incentive policies in geothermal industries in ASEAN to better understand the development of geothermal industry investment in the ASEAN Member States (AMS) using a qualitative method. The results indicate that tax incentive policies have supported the investment climate and the development of geothermal industries in the AMS. Geothermal investments and production capacities in AMS have increased significantly. AMS that provide geothermal tax incentives include Indonesia, Lao PDR, the Philippines, Thailand and Vietnam. The performance of geothermal tax incentive policies is reflected in the level of utilization of geothermal potential, which is higher in states that provide greater tax incentives. The results also indicate that geothermal power plants in AMS use dry steam, flash and binary cycle technologies with flash plants being the most common. Results suggest that the future development of geothermal energy in AMS will be related to the tax incentive policy and investment climate in those states. Furthermore, the granting of various types of tax incentives should be focused on the initial investment in geothermal development. ©2020. CBIORE-IJRED. All rights reserved