Nasyrov I.N.Branch of Kazan (Volga) Federal University in Naberezhnye Chelny, Naberezhnye Chelny, Republic of Tatarstan, Russian Federation ecoseti@yandex.ru
Shtyrlyaeva E.V.Branch of Kazan (Volga) Federal University in Naberezhnye Chelny, Naberezhnye Chelny, Republic of Tatarstan, Russian Federation e.styrlyaeva@yandex.ru
Importance The main problem in the sphere of income generation in the form of dividends is double taxation. The gist of the problem is in violation of the principle of one-off taxation. The principle implies that one tax object is liable to only one type of tax for a period as provided by the law. Objectives The aim is to show that the cancellation of double taxation of dividends is an acceptable solution for all parties involved. Methods We simulated the dependence of tax amount on income of organizations, individual entrepreneurs, and employees. The basis for the calculations was effective income tax rates, dividends, and payments to insurance funds. The data of the conducted survey with the involvement of senior students - future young economists confirmed the simulation results. We processed the data using the arithmetic mean averaging. For this purpose, we applied two data presentation methods, i.e. using smoothed and accurate data. Under the first method, the opinion of the respondents was distributed smoothly, within the range from 0 to 100%. Under the second method, the opinion was exactly equal to either 0 or 100%. We used the Laffer curve as a tool for analytical data processing. Results The simulation results show that there will be no impairment of economic entities' interests. The organizations' owners will be in the most favorable position; individual entrepreneurs are in the second place. Individual employees will also get indirect benefits owing to an increase in the number of jobs in newly created organizations. Conclusions and Relevance We propose to maintain the current rate of organization profits tax of 20% with complete cancellation of the dividend tax as a further direction to improve the tax system, rather than to increase the tax rate, according to the plans of the Government.
Keywords: profit, dividends, tax, rate, owner
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