ABSTRACT
There has been global economic fallout from the Pandemic COVID-19. Micro, Small and Medium Enterprises (MSME) is one of the industries hit worst. Many MSMEs have seen their profits decline or even disappear. Consequently, tax income dropped. In order to raise tax revenue, the government has implemented a number of reforms, one of which is a push for greater tax compliance among MSMEs. This study aims to analyze the effect of providing tax incentives and understanding taxpayers on MSME tax compliance during the COVID-19 pandemic. This study also examines risk preferences as moderation. The population in this study is the MSMEs food sector in the city of Pekanbaru, Indonesia. Samples were selected using convenience sampling. A total of 397 MSMEs in the food sector participated in this study. During the months of December 2021 and February 2022, data was gathered by distributing questionnaires to taxpayers directly and also by using Google forms. Data analysis techniques used SEM with Warp PLS. Tests show that tax incentives affect the compliance of MSME taxpayers during the COVID 19. This study demonstrates that understanding MSME tax rules can boost compliance. The high risk faced by taxpayers can reduce tax compliance even though the government provides tax incentives. However, with a high level of understanding, even though taxpayers have risks, they still carry out their tax compliance. This study aids the government's effort to give tax incentives and outreach to better comprehend the needs of MSME taxpayers.
ABSTRACT
This research aims to compare public governance response measures regarding the fiscal policies adopted by subnational governments for economic sustainability in Brazil and Colombia in the face of the Covid-19 crisis. Data collection was performed on 92 government websites from 27 Brazilian states and 33 Colombian departments (subnational governments). Through exploratory qualitative analysis, fiscal policies were studied between 2020 and 2021, instituted by laws and decrees. Categorized into two strands: (i) laws supporting the maintenance of economic sustainability and (ii) tax incentives. The main results indicated that in a short time government needed to create methods and tools to adapt to the context of social isolation and revealed fiscal policies to support small businesses. In Brazil, governments have implemented actions: supporting vulnerable people, self-employed entrepreneurs, small businesses, such as granting financial credit. In addition to tax incentives, there was exemption, postponement and payment in installments. In Colombia, a line of credit was granted to support the liquidity of all companies in the tourism sector, the incentives were granted through tax exemptions, except for the tourism and air transport sectors. As much as the incentives launched were aimed at minimizing the impacts of the pandemic and maintaining part of the revenue collected by governments, for both countries the need for tax reform was evident. It should be noted that Colombia started processing the tax reform project in 2021 and on November 4, 2023, it was approved by both legislative houses, and is in the final drafting process. This article theoretically contributes to the expansion of studies that assess economic sustainability and public governance in developing countries in the face of relevant economic crises.Alternate :Esta pesquisa tem como objetivo comparar as medidas de resposta de governança pública referentes as políticas fiscais adotadas pelos governos subnacionais para a sustentabilidade econômica no Brasil e na Colômbia frente à crise da Covid-19. A coleta de dados foi realiza em 92 websites governamentais de 27 de estados brasileiros e 33 de departamentos colombianos (governos subnacionais). Por meio da análise qualitativa exploratória foram estudadas as políticas fiscais, entre 2020 e 2021, instituídas por leis e decretos. Categorizados em duas vertentes: (i) as leis de apoio à manutenção da sustentabilidade econômica e (ii) os incentivos fiscais. Os principais resultados indicaram que em pouco tempo os governos precisaram criar métodos e ferramentas para se adaptar ao contexto de isolamento social e revelaram políticas fiscais de apoio aos pequenos negócios. No Brasil, os governos têm implementado ações: apoiar pessoas vulneráveis, empreendedores autônomos, pequenos negócios, como concessões de crédito financeiro. Além dos incentivos fiscais, houve isenção, postergação e parcelamento de impostos. Na Colômbia, foi concedida uma linha de crédito para apoiar a liquidez de todas as empresas do setor de turismo, os incentivos foram concedidos por meio de isenções fiscais, exceto para os setores de turismo e transporte aéreo. Por mais que os incentivos lançados visassem minimizar os impactos da pandemia e manter parte da receita arrecadada pelos governos, para ambos os países a necessidade de uma reforma tributária ficou evidenciado. Cabendo destacar que a Colômbia iniciou a tramitação do projeto de reforma tributária em 2021 e no dia 04 de novembro de 2023, foi aprovado pelas duas casas legislativas, estando em processo de redação final. Esse artigo contribui teoricamente para a expansão de estudos que avaliam a sustentabilidade econômica e a governança pública em países em desenvolvimento diante crises econômicas relevantes.
ABSTRACT
Solow-Swann's neoclassical theory of economic growth shows that without technological progress, capital accumulation can only lead to a short-term increase in the growth rate of output per capita. The challenges of sustainable innovative development in many countries are coming to the fore today. The creation, dissemination and use of innovations occur in companies, universities, scientific organizations (micro-level), between economic entities within the framework of regional (meso-level) and national (macro-level) innovation systems, as well as at the international level. Innovation support is carried out at the meso-level, focuses on companies and organizations, and is evaluated at the level of the country as a whole. State support for innovation is necessary for the following reasons: 1) the ease of information transfer puts manufacturing companies in a less favorable position compared to consumer companies;2) the difficulty of obtaining a loan for R&D with the risk of information leakage and lack of confidence in the final results;3) the socio-economic system of the country receives more benefits from innovation than all companies in the aggregate. The article discusses such types of support as government subsidies and grants, tax incentives, measures for the development of human capital in an innovative environment, competition and intellectual property protection policy. In the international practice of stimulating innovation, tax incentives are used, 1) allowing to reduce R&D costs, 2) based on non-reduction of R&D expenditures and 3) preferential tax regimes derived from innovation activities. It is shown that the methodological approaches used to assess the effectiveness of tax measures are the B-index (calculated and published by the OECD by country), the analysis of the validity of tax instruments and the use of the European Tax Analyzer model - computer modeling. The analysis of innovative development showed that the European Union in terms of the number of patents, residents and non-residents, the share of researchers in the total population and the share of R&D expenditures in GDP for 2000-2022 is often inferior to China, the USA, Japan and Korea, but generally has a positive development trend. The most popular tools in the European Union countries are tax deductions, "super deductions", R&D grants and other incentives. There is no direct correlation between the number of benefits and the level of innovation development. At the same time, it is noticeable that countries using a large number of support tools are becoming attractive to innovative companies and entrepreneurs. The article analyzes the measures of state support for R&D during the COVID-19 pandemic. Of these, the most relevant are grants and subsidies, and tax benefits. The analysis of tax instruments for stimulating innovation carried out in the article may be useful in the implementation of appropriate policies in other countries.
ABSTRACT
Although the sukuk market has maintained remarkable growth momentum over the recent years, the optimism has been significantly moderated by the abrupt shock due to the pervasive COVID-19 pandemic. However, sukuk can be used as an effective financing option by governments to overcome a fiscal deficit and to support those adversely affected by the pandemic. Sukuk Prihatin (SP), the first-ever digital sukuk issued by the Government of Malaysia, has launched to engage citizens to contribute to the country's recovery efforts in the wake of COVID-19. Therefore, this study aims to probe the motivation that influences retail investors' inclination to invest in such innovative sukuk. Based on an integrated model of planned behavior (TPB) and social cognitive theories (SCT) and data gathered from 279 retail investors, this research found that attitude towards SP investment (SPI), social norms, perceived control regarding SPI, sukuk features and digitization are significant determinants of investors' willingness to invest in SP. It also revealed that tax incentives-moderated interactions of social norms, perceived control and sukuk features on SPI intention are significant. © 2021 Informa UK Limited, trading as Taylor & Francis Group.
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This study aims to examine the effect of tax incentives and corporate voluntary disclosure related to covid-19 on interim reports on firm value. This study tested the two independent variables using the dummy variable method. The provision of tax incentives related to Covid-19 is based on government policy. The company's voluntary disclosure of covid-19 in interim reports is based on notes to financial statements. The method used is purposive sampling. The number of samples obtained was 114 companies selected according to the research criteria in the 1st and 2nd quarters of 2020 periods. This study used multiple regression analysis and panel data. The results show that the variable giving tax incentives related to Covid-19 has a negative and significant effect on firm value. Meanwhile, the variable company voluntary disclosure related to covid-19 in the interim report shows unidirectional results but has no effect on firm value.
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In the Philippines, Undersecretary Orlando R. Ravanera, Chairman of the Cooperative Development Authority, declared that since the founding of the Rochdale Cooperative in England in 1884, different countries have adopted this cooperative form of organization that has resulted in significant economic gains and social development. Findings in this research could offer policy makers, especially those in the Philippine Congress, insights on the importance of cooperatives as partners in community and nation-building by different governments across the globe. [...]to appreciate the role of cooperatives to the Philippine economy, especially during this COVID 19 pandemic, the two provisions in the Philippine Cooperative Code of 2008 that provide for the tax exemption and tax treatment of cooperatives are hopefully not repealed. 2. [...]some countries allow agricultural cooperatives to enjoy tax exemptions and tax holidays so that these organizations can continue their role in addressing poverty, securing food production and boost economic growth (Kireyeva, 2016) as a whole. The cooperatives' not-for-profit nature is a justification for tax advantages in some countries, however in Western agri-food systems agricultural cooperatives face the challenge of inevitably competing with investor-owned businesses where they are at a bind between raising capital and conserving their basic governance (Tortia, Valentinov and Iliopoulos, 2013).
ABSTRACT
La pandemia por la propagación del SARS-CoV-2 ha supuesto un elevadísimo coste en vidas humanas. El establecimiento por las diferentes autoridades gubernativas de medidas restrictivas para intentar evitar los contagios ha conducido, además, a una notoria reducción en el crecimiento económico y a que múltiples empresas se hayan visto obligadas a cesar en su actividad. Para ayudar a paliar esta adversa situación en los sectores más desfavorecidos con la crisis sanitaria, las potestades del Estado han adoptado medidas de carácter económico y social como el establecimiento del incentivo fiscal para fomentar la rebaja o moratoria de la renta arrendaticia a ciertos sectores de negocio. En el presente trabajo se realizará un exa- men de esta medida de justicia tributaria, abordando en un primer lugar el contexto en el que se ha instaurado, sus diferentes ámbitos de aplicación, la relevancia práctica de su reconocimiento y, finalmente, los problemas que acarrea desde la perspectiva de la igualdad de trato y no discriminación fiscal. Todas estas cuestiones serán tratadas desde una perspectiva crítica para invitar a la reflexión y mejora de este incentivo, que hace destacar el elemento de justicia que preside e inspira nuestro sistema fiscal.Alternate :The pandemic due to the spread of the SARS-CoV-2 has meant a very high cost in human lives. The establishment by the different government authorities of restrictive measures to try to avoid contagion has also led to a marked reduction in economic growth and that multiple companies being forced to cease their activity. To help alleviate this adverse situation in the most disadvantaged sectors with the health crisis, the Powers of the State have adopted measures of an economic and social nature such as the establishment of the tax incentive to promote the reduction or moratorium of rental income to certain business sectors. In this work, we will do an examination of this tax justice measure, addresing in the first place the context in which it has been established, its different areas of application, the practical relevance of its recognition and, finally, the problems it entails from the perspective of equal treatment and non-discrimination in taxation. All these issues will be treated from a critical perspective to invite reflection and improvement of this incentive, which highlights the element of justice that presides over and inspires our tax system.
ABSTRACT
Sustainable innovation is an important factor for enterprises to obtain core competitiveness in modern society, and only continuous R&D investment can ensure the smooth progress of enterprise innovation. Therefore, this study uses the post-subsidy data of enterprise R&D investment released by Hangzhou Science and Technology Bureau to explore the influencing factors of R&D investment and its sustainability by Chinese high-tech enterprises. In contrast to previous research which mainly focused on the pre-subsidy, this study focuses on the post-subsidy policy of R&D investment sustainability. Empirical analysis methods, such as cross-sectional linear regression and the propensity-score-matching method, were used to draw the following conclusions: (1) The quantity and sustainability of R&D investment of enterprises are obviously unbalanced among regions. Regions where high-tech enterprises are concentrated have higher levels of R&D investment and sustainability than other regions. (2) Under different scales, there are significant differences in the amount and sustainability of R&D investment. Large enterprises have stronger R&D investment strength, while small enterprises have stronger R&D investment willingness. However, the effect of scale on R&D investment will be reduced by regional factors. (3) The evaluation of high-tech enterprises and the enterprises’ R&D investments affect each other. (4) The sustainability of enterprise R&D investment will be affected by enterprise heterogeneity factors, and in turn, the sustainability of enterprise R&D investment will also affect the amount of enterprise R&D investment. Based on the results, the study provides suggestions for the government to make more targeted policies.
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This paper presents a qualitative evaluation of how Opportunity Zones (OZs) have attracted capital and economic development to highly distressed neighborhoods in West Baltimore. Based on 76 interviews with community and government officials, program managers, developers, businesses, and fund managers, we assess the strengths and weaknesses of OZs in West Baltimore and Baltimore City. We find that OZs are stimulating new investment conversations and building local economic development capacity. However, we also find OZs fail at oversight and community engagement, do not spur new development, and are a missed opportunity to incentivize actors and institutions critical to revitalizing distressed neighborhoods. To spur development in distressed neighborhoods, OZs require reporting standards, the removal of non-distressed census tracts, dollars for education and infrastructure, the incorporation of Community Development Financial Institutions, and incentives for non-capital gains holding investors.
ABSTRACT
Established by the Tax Cuts and Jobs Act of 2017 (TCJA),1 qualified Opportunity Zones (OZs) are a new place-based community development program that attempts to help economically challenged areas by encouraging private capital investment through the use of tax incentives. Although the program started at the beginning of 2018, implementation of the program has been slow, creating challenges for investors. The program's structure may have also inadvertently created an environment ripe for surging property prices. This unintended consequence has the potential to reduce or eliminate investor tax benefits, stimulate community gentrification, and diminish affordability for residents. Recent studies have found evidence of material price "premiums" for some commercial real estate properties located in OZs (Pierzak, 2021;Sage, Langen, and Van de Minne, 2019). Recognizing the policy's potential in driving increased investor interest in single-family home rentals, the authors of this study explore the impact of the program on existing single-family house prices and find that the community development program has led to excess home price appreciation totaling 6.8 percent from 2018 to 2020.
ABSTRACT
Equity crowdfunding facilitates companies’ access to capital, particularly for start-ups. In New Zealand, light-handed regulation and a syndication model have contributed to the growth of equity crowdfunding. This article analyses the effects of income tax legislation on crowdfunding in New Zealand and considers how — and whether — amendments to income tax legislation could further promote this form of private investment. This paper argues that dissonance exists between financial markets policy on crowdfunding and tax policy on research and development. In the context of dire predictions for Covid-19-related job losses, the potential for crowdfunding to promote start-ups, and to create jobs, deserves tax policymakers’ attention. © 2020, Australasian Tax Teachers' Association. All rights reserved.
ABSTRACT
Purpose To analyse Sukuk Prihatin (SP), the first-ever retail digital sukuk issued by the Government of Malaysia in the midst of the COVID-19 pandemic, as part of the national economic recovery plan. The issuance of SP was oversubscribed, even upsized, resulting in the government announcing its intention to issue similar types of sukuk in the future. In light of this, the purpose of this study is to understand the motivation for retail investors to invest in SP. Design/methodology/approach The purposive sampling method was applied via a self-administered survey, while the cross-sectional data were empirically tested using the SmartPLS 3.2.9 structural equation modelling. An integrated model of the theory of planned behaviour and social cognitive theories was used in determining investors' intention to invest in SP. Findings The findings of this research revealed that attitude (ATT) towards SP investment (SPI), social norms (SN), perceived control (PBC) regarding SPI, sukuk features (SF), tax incentives (TI) and the spirit of unity and brotherhood (SUB) were significant determinants of investors' willingness to invest in SP. This research also provided evidence for significant national pride-moderated interactions of ATT, SN, PBC, SF, TI and digitisation on investment intention. Practical implications The outcome of this study could assist governments and policymakers to structure sukuk and other debt-based capital market products to attract retail investors who would be willing to invest in the development of the nation in the midst of a crisis. Originality/value This study is the first of its kind to investigate various relevant predictors, which have been derived from behavioural, contextual and motivational perspectives. These predictors could influence investors' perceptions of an innovative sukuk like SP, which was issued in the midst of a pandemic. The value of this study is its possible use by governments and policymakers to further develop debt-based capital market products that have the dual function of an investment vehicle and a source of funds for the economic recovery of a nation.
ABSTRACT
This study aims to analyze the effect of providing social assistance, tax incentives, expansion of working capital, and credit restructuring on the development of MSMEs during the COVID-19 pandemic. The research was conducted on MSMEs in West Semarang, Central Semarang 2, and South Semarang. The population of this study was MSMEs' actors who had taken advantage of tax incentives, received social assistance, and received injections of funds in West Semarang, Central Semarang 2, and South Semarang. Purposive sampling was employed to obtain a sample of 369 MSMEs. The research data were obtained through 84 weekly observations from April to October 2020. The results revealed that the provision of social assistance, tax incentives, working capital, and credit restructuring influenced the development of MSMEs during the COVID-19 pandemic. The study results can provide additional information for the government in evaluating protection programs and accelerating economic recovery for MSMEs affected by COVID-19, as well as evaluating MSME business strategies towards a modern MSME business model while maintaining health protocols.
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International collaborations between national research centres, universities and companies will benefit from knowledge sharing that will contribute to replicate innovative solutions in the field of digital innovation (European Commission, 2021a, 2021b;Moazzez et al., 2020;Ordóñez de Pablos, 2004a, 2004b, 2005;Vaska et al., 2021;Zhang et al., 2016). [...]companies and countries need to invest in their human capital, re-skill and upskill and develop new competencies that support the transition towards a circular and green economy (Lytras et al., 2018;Ordóñez and Edvinsson, 2020;Zahedi and Naghdi Khanachah, 2021). [...]the paper presents and analyses the example of Coimbra, a medium-sized city in Portugal, underlining both the role of academia and the Instituto Pedro Nunes-Incubator have had on these domains. There is evidence that they also provide an important Schumpeterian stimulus within economies by increasing competition, promoting innovation and augmenting the efficient allocation of resources within economies. Besides the more traditional transactional forms of support (tax incentives, grants, etc.), there is now the recognition that relational forms of support such as network building, developing connections between entrepreneurial actors, institutional alignment of priorities, fostering peer-based interactions have been strategic to improve both the efficiency and the effectiveness of the entrepreneurial ecosystem”. [...]the study at hand identifies essential factors that contribute to the successful implementation of IoT-based smart warehouse infrastructure.
ABSTRACT
:The Covid-19 pandemic is a global problem that affects every aspect of almost all countries, especially the economic aspects. The Indonesian government states that the Covid-19 pandemic is an unnatural disaster that affects economic stability as well as state revenue, which is exacerbated by the existence of an incentive scheme.This study aims to analyze the provision of tax incentives by the government to respond to the economic impact caused by the Covid-19 pandemic, as well as the impact on tax revenue on the tax incentive scheme or policy undertaken. This research is a descriptive study with a qualitative approach, which describes an event that becomes a phenomenon, then explains the situation based on the data obtained and analyzed.From several of the incentives and tax policies undertaken, more emphasis is placed on the regulatory function than on the budgetary. This step was taken to face the difficult economic conditions due to Covid-19. Losses in the form of loss of tax revenue due to the consequences of tax incentives can be calculated through the Tax Expenditure analysis, to measure the effectiveness of the tax incentives provided.
ABSTRACT
PURPOSE: This study was aimed to identify the effect of tax incentive practices on the sustainability of MSMEs during an outbreak of coronavirus pandemic in Ethiopia. DESIGN/METHODOLOGY/APPROACH: To achieve this objective, the researcher has employed a quantitative research approach with an explanatory research design in which six hypotheses have been tested. The primary data were collected from 300 MSMEs owners/operators using structured questionnaires. A multiple regression model was employed to study the effect of tax incentives parameters on the sustainability of MSMEs. FINDINGS: According to the regression analysis, this paper revealed that tax holiday, tax allowance, reduction in the tax rate, accelerated depreciation, loss carry forward, and tax exemption have a positive and statistically significant effect on the sustainability of the MSMEs. RESEARCH LIMITATIONS: The current study was geographically focused on Ethiopia by considering the MSMEs sector. The subject wise was focused on the effect of the tax incentives on the sustainability of MSMEs. The primary data were limited to the year 2020. It might be improved in the future if other researchers incorporate large firms in the country and use secondary data for the analysis of multiple years. Also, future researchers will improve the same study by considering both monetary and non-monetary incentives as study variables. PRACTICAL IMPLICATIONS: To survive during the COVID-19 pandemic, MSMEs need support from the government in the form of tax incentives. The tax incentives play a great role in enhancing the growth and the sustainability of MSMEs as well as the economy as a whole. So the owners of MSMEs have to ask the government to obtain necessary support in the form of monetary and non-monetary incentives to be sustainable in economic activity. Also, the findings and recommendations of the current study might serve as an ingredient and be informative to the policymakers on the MSMEs sector. The governments have to continue to shape tax incentives policies to support the MSMEs' sustainability by providing tax and non-tax incentives. ORIGINALITY/VALUE: This study contributes to empirical evidence about the effect of tax incentives practices on the sustainability of MSMEs during the outbreak of COVID-19 in Ethiopia by considering six tax incentive practices in terms of tax holiday, tax allowance, reduction in the tax rate, accelerated depreciation, loss carried forward, and tax exemption.
ABSTRACT
Since the end of March 2020 millions, as the COVID-19 pandemic emerged as a health emergency, working people had to stay at home, telework or had to face consequences of the crisis such as low wages or layoffs.i In Mexico unemployment became a major problem for the economy. Although the country took measures to contain the imp act of the pandemic on the labor market, these have not been sufficient;the development and implementation of activities that create incentive or promotions are indispensable components of the recovery or sustainability of industries in times of crisisii. According to Article 25 of the Political Constitution of Mexicoiii, the State is responsible for guiding national development and ensure that it is comprehensive and sustainable;the State shall, according to the Constitutional provision, ensure the stability of public finances and the financial system to help generate favorable conditions for economic growth and employmentiv. I shall argue however that the fiscal policies implemented to contribute as determining factors in the sector of growing unemployment due to the COVID-19 pandemic have not been adequate even though the optimal measures were being taken under a more socialist system of governance in place during the two years. © AesthetixMS 2021