IMPACT OF CHANGES IN PERSONAL INCOME TAX ON TAXPAYERS WORK INCOME
DOI:
https://doi.org/10.17770/iss2022.7013Keywords:
benefits, personal income tax, tax burden, taxable minimum, tax reformAbstract
Compared to other countries, following the World Bank analyses, Latvia compared to other countries of the European Union before 2018 tax reforms had relatively high labour taxes but very low capital taxes. It is important that tax reform from 2018 has given some impact on tax burden for all tax payers, including employers. Reducing tax burden can make impact on consumption of goods and services, employer’s competitiveness. The aim of the research is to study the changes in personal income tax since 2018 and their impact on earned income. The author studied the impact of changes in personal income tax on labor income in different categories and developed proposals on how to improve personal income tax in order to increase the net labor income of employees.Downloads
References
Par iedzīvotāju ienākuma nodokli (11.05.1993). Latvijas Republikas likums, redakcija uz 01.01.2022. https://likumi.lv/ta/id/56880-par-iedzivotaju-ienakuma-nodokli
Par Valsts nodokļu politikas pamatnostādnēm 2018.-2021. gadam (24.05.2017). Latvijas Republikas Ministru kabineta rīkojums Nr. 245. https://likumi.lv/ta/id/291013-par-valsts-nodoklupolitikas-pamatnostadnem-2018-2021-gadam
Abrams, S. (2017). Finding Balance. Capitol Ideas, 40-41.
Bule, L., Leitāne, L., & Rozīte, K. (2019). Personal Income Tax Reform in Latvia: Assessment of Effect. International Scientific Conference „Contemporary Issues in Business, Management and Economics Engineering", 679-688. https://doi.org/10.3846/cibmee.2019.069
Cerniauskas, N, & Jousten, A. (2021). Statutory, effective, and optimal net tax schedules in Lithuania. IZA Journal of Labor Policy, 11(1), 2-33. https://doi.org/10.2478/izajolp-2021-0005
Kavale, L., & Joppe, A. (2008). Nodokļu politikas un administrēšanas pamati. LU Akadēmiskais apgāds.
Kelmere, L. (2020). Ievads grāmatvedībā jeb Grāmatvedības pamati: teorija un uzdevumi. Izdevniecība “Lietišķās informācijas dienests”.
Krajnak, M. (2019). Do Selected Tax Advantages Affect Tax Revenue from the Personal Income Tax? Journal of Competitiveness, 11(4), 73–88. https://doi.org/10.7441/joc.2019.04.05
Latvijas Republikas Centrālā statistikas pārvalde (2021). Vidējais bērnu skaits mājsaimniecībās ar bērniem. https://data.stat.gov.lv/pxweb/lv/OSP_PUB/START__POP__MV__MVE/MVE030/table/tableViewLayout
Latvijas Republikas Finanšu ministrija (13.12.2021). Nodokļu un nodevu politika. https://www.fm.gov.lv/lv/nodoklu-un-nodevu-politika
LV portāls (26.10.2021). Kādas izmaiņas paredz valsts budžetu 2022.gadam pavadošie likumprojekti. https://lvportals.lv/skaidrojumi/333973-kadas-izmainas-paredz-valsts-budzetu-2022-gadam-pavadosie-likumprojekti-2021
Palić, I., Dumičić, K., & Grofelnik, B. (2017). Analysis of Personal Income Taxation Determinants in Crotia in Long Run: Evidence from Conintergration Analysis. Naše gospodarstvo/Our Economy, 63(3), 12-18. https://doi.org/10.1515/ngoe-2017-0014
Puzule, A. (2021). Iedzīvotāju ienākuma nodokļa aprēķināšana, maksāšanas kārtība un pārskatu sastādīšana. [Power Point prezentācija]. https://ekursi.rta.lv/pluginfile.php/78655/mod_resource/content/ 5/Nod_nod_pol_6_tema_IIN_2021.pdf
Visniewska-Kuzma, M. (2020). Measurement of Personal Income Tax Progressivity in the Post-Socialist Countries of Europe Compared to Other OECD Countries. Eastern journal of European studies, 11 (2), 113-131.
