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

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2021

Kód důvěrnosti údajů

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

Název periodika

Journal of Tax Reform

ISSN

2412-8872

e-ISSN

—

Svazek periodika

7

Číslo periodika v rámci svazku

2

Stát vydavatele periodika

RU - Ruská federace

Počet stran výsledku

12

Strana od-do

134-145

Kód UT WoS článku

000692367600002

EID výsledku v databázi Scopus

—