Evaluation the impact of the personal income tax reform in the Czech Republic in 2021 on effective tax rate and tax progressivity

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F21%3A10247773" target="_blank" >RIV/61989100:27510/21:10247773 - isvavai.cz</a>

Result on the web

<a href="https://jtr.urfu.ru/fileadmin/user_upload/site_15907/2021/Krajnak.pdf" target="_blank" >https://jtr.urfu.ru/fileadmin/user_upload/site_15907/2021/Krajnak.pdf</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.15826/jtr.2021.7.2.094" target="_blank" >10.15826/jtr.2021.7.2.094</a>

Result language

angličtina

Original language name

Evaluation the impact of the personal income tax reform in the Czech Republic in 2021 on effective tax rate and tax progressivity

Original language description

Legislation governing personal income taxation is often subject of changes. A significant tax reform of the personal income tax in the Czech Republic took place in 2021. The reform implements a progressive tax rate, changes the way the tax base is determined and increases the tax relief for the taxpayer. The aim of the article is to evaluate the impact of the tax reform of personal income tax on the effective tax rate and tax progressivity. To assess the goal of the paper the research methodology includes methods of description, comparison, analysis and synthesis and methods of regression analysis are used. The source of information for analysis was the data published by the Czech Statistical Office. It was concluded that in 2021, in comparison with 2020, the tax burden represented in this study by the effective tax rate, in all cases became lower, by approximately 5%. The main reason for this decline is the adjustment of the method of construction of the tax base, which for the first time in the history of the Income Tax Act is gross wages. Until the end of 2020, on the other hand, the tax base was a super-gross wage. The second factor that reduces the tax burden is the increase in the deduction per taxpayer by CZK 3,000 per year. On the contrary, this fact increases the degree of tax progressivity, as confirmed by the results of the progressivity analysis and the regression analysis. The changes that have taken place in the personal income tax this year have a positive impact on the taxpayer, but from the point of view of the state, this reform has reduced the state budget revenues.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50202 - Applied Economics, Econometrics

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2021

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Journal of Tax Reform

ISSN

2412-8872

e-ISSN

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Volume of the periodical

7

Issue of the periodical within the volume

2

Country of publishing house

RU - RUSSIAN FEDERATION

Number of pages

12

Pages from-to

134-145

UT code for WoS article

000692367600002

EID of the result in the Scopus database

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