PERSONAL INCOME TAX IN THE MUNICIPAL BUDGET: TAX ADMINISTRATION AND TAX REPORT

The paper discusses the concept, methods of execution and administration of personal income tax. The trend of personal income tax revenues to the budget of the Russian Federation and the budget of the municipality is studied. The concept, methods of executing and administering of the personal income tax at various levels of the budget system has been studied from the theoretical point of view. Tax revenues in the consolidated budget of the Russian Federation are analyzed. The dynamics of the earnings from the personal income tax in the budget of municipal entities and the means of increasing revenues from this tax is considered in more details. As a result of the full study, one of the many reasons for the emergence of informal employment was revealed — a large volume of the reported accounts for employees in the Social Insurance Fund, the Federal Tax Service and the Pension Fund of Russia, which has a negative impact on employers’ desire to formalize the employee. On the basis of the above, a proposal was made to address the problem of informal employment of workers in organizations. It consists in simplifying the form of submission of accounting documents for each employee. To achieve this goal, it is necessary to develop a single form of reporting about employees, establish one reporting period and authorize one body to take account of employees. These proposals will help simplify the submission of accounts for each employed person and will become one of the motivating factors for entrepreneurs to formalize labor relations with employees. It is assumed that this will help to reduce informal employment and increase budget revenues from the payment of personal income tax.

economy, personal income tax, income tax, consolidated budget, budget of municipal entities, tax reporting, Russian Pension Fund, Social Insurance Fund, Federal Tax Service, unofficial employment.

Sychanina S. N., Mironchuk M. I. Personal income tax in the municipal budget: tax administration and tax report // Business. Education. Law. 2018. No. 4 (45). Pp. 203–208. DOI: 10.25683/VOLBI.2018.45.421.