Problems of tax on income of physical persons and publishing them solutions

The relevance of this topic to date is due to the fact that any citizen of the Russian Federation is a payer of the tax on income of individuals, which is why the analysis of its revenues to the budget of the Russian Federation, as well as finding ways to improve its effectiveness, is of particular importance.

Personal Income Tax is the main type of direct taxes. Calculated as a percentage of the total income of individuals without including in the tax base deductions and amounts exempt from taxation1.

Individuals who are tax residents of the Russian Federation, as well as individuals who receive income from sources in the Russian Federation who are not tax residents of the Russian Federation, are recognized as tax payers of personal income tax. It follows that this tax affects the interests of all sections of the economically active population2.

The basic rate of personal income tax is 13%. The basic part of the personal income tax is calculated, retained and transferred to the budget by the employer (tax agent). Revenues from the sale of property are declared by individuals inde-pendently3.

Let's analyze the income from the personal income tax in the consolidated budget of the Russian Federation as of 01.01.2016:

Table

The receipt of personal income tax in the consolidated budget of the Russian Federation for major types of economic activity as of 01.01.20164.

Type of economic activity	NDFL, thousand rubles.	Specific weight,%
Total by type of economic activity	2 805 209 225	100
Including: Agriculture, hunting and forestry	55 176 578	1,97
Fishery and fish farming	7 430 635	0,26
Mining	114 339 521	4,08
Manufacturing Processes	389 409 595	13,18
Electricity production and distribution	98 253 278	3,5
Building	139 423 164	4,97
Wholesale and retail trade; small busines	326 460 062	11,64
Hotels and restaurants	25 474 931	0,91
Transport and communication	246 844 970	8,8
Financial activities	180 046 393	6,42
Real estate transactions property, renting and provision of services	408 912 386	14,39

2 Tax Code of the Russian Federation. - 2016g.-

3 Tax policy of the state / ed. N.I. Malice. - Moscow: Yurayt, 2015. - 388 С.

4 Report on the receipt of taxes and fees in the consolidated budget of the Russian Federation for the main types of economic activity. –

Public administration and provision of military security	339 258 663	12,09
Education	223 135 417	7,95
Health care	191 007 819	6,81
Provision of other communal, social personal services	84 943 163	3,03

According to the table, it can be seen that the largest amount of income tax on personal income falls on income:

• -    from operations with real estate, leasing and provision of services, which amounts to 408 912 386 тыс. руб. (14,39% of total receipts);

• -    manufacturing industry – 389 409 595 тыс. руб. (13,18%);

• -    government controlled – 339 258 663 тыс. руб. (12,09%);

• -    wholesale and retail trade, small business – 326 460 062 тыс. руб. (11,64%).

Their total specific weight is 51.3%; about half of the proceeds. The smallest share falls on income from fishing and fishing - 7 430 635 thousand rubles. (0.26% of total revenues), guests and restaurants - 25 474 931 thousand rubles. (0.91%), the share of which in total is 1.17%.

In the system of taxes and fees of the Russian Federation, the volume of the proceeds of this tax ranks third, second only to the value-added tax and income tax. Therefore, at present, the actual issue is to ensure the completeness and timeliness of the receipt of personal income tax in the RF budget.

Analysis of the current situation makes it possible to identify the following problems that hamper the timely retention and payment of the tax on income of physical persons in full.

Firstly, it is a "flat scale" of taxation. The most frequently asked question in the society is the need to reform the tax rate, as well as the scale of its collection.

It seems reasonable to introduce a progressive tax rate that takes into account the interests of unprotected strata of the population5.

But at the moment the state does not take this step, as it fears a decrease in Russia's overall investment attractiveness and worsening tax conditions for the emerging middle class.

Secondly, the main problem of paying income tax on individuals is the definition of the object of taxation. In view of the ambiguity in the legislation of the Russian Federation, there are often controversial situations when a different interpretation of certain types of income leads to a violation of the rights of the taxpayer.

Thirdly, an important problem is the search for the best correlation between the fairness of taxation and the economic effectiveness of a tax. Since this tax has a direct impact on the costs of the population, some of its elements can both stimulate and reduce consumption. In connection with this, the most important task of the tax policy of the state is to establish such personal income tax rates, under which there would be a fair redistribution of income, and the problem of stratification of society would be minimized.

Fourth, the problem related to the place of payment of the tax is no less acute, since this tax is aimed at the formation of steps in regional and local budgets. However, if the taxpayer mainly uses public services at the place of his residence, then the tax must come at the place of residence, and not at the registration address of the organization. It seems that this will be an additional incentive for taxpayers, as they are interested in improving the welfare of the region in which they live.

Fifth, low incomes of the population of our country in comparison with the developed countries.

A fairly serious problem, now in Russia is the prevalence of the shadow economy. In other words, enterprises that leave taxes are enriched, and ordinary taxpayers must cover the "hole" in the budget from their own "pocket".

To address the above problems of legal regulation of the tax on personal income in the Russian Federation, there are several ways to solve them.

• 1.    Introduction of a progressive rate of personal income tax, depending on the size of the citizen's income for the year.

• 2.    It is necessary to simplify and improve the procedure for their provision, as well as to review the amount of tax deductions.

• 3.    Increase the amount of standard tax deductions in accordance with the subsistence minimum and the average wage.

• 4.    To improve the quality of the work of tax authorities. Carry out careful control over the quality of the work of tax authorities, as well as the competence of their employees.

• 5.    Create a transparent system of taxes and fees, which can avoid the development of the shadow economy and the diversion of funds to offshore.

Thus, it can be concluded that all of the above ways of solving the problems of regulating the personal income tax will help to raise the level of tax revenues to budgets of different levels, and also will help achieve social justice in taxing the incomes of citizens.