Subject The article deals with modern scientific and practical approaches to the economic substance and tax incentives for cybersecurity in small and medium-sized businesses. Objectives The purpose is to unveil problems preventing the implementation of economic and tax incentives to ensure cybersecurity, both in Russia and in other countries, and to demonstrate possible tax incentive schemes for SMEs. Methods The study draws on the interdisciplinary approach, the comparative method, and the systems approach. Results I show that the development of tax incentives to ensure cybersecurity seriously suffers from the lack of an integrated approach to the economic substance of cybersecurity. It is possible to apply a differentiated approach to large organizations and to small and medium-sized businesses. The paper gives examples of specific approaches to the technology of tax incentives for cybersecurity in SMEs. Conclusions Encouraging the cybersecurity through tax and other economic measures is crucial in many developed countries. There is a need to differentiate approaches to large businesses and SMEs. Implementation of proposed tax incentive techniques is impeded by the lack of specific approach to the economic substance of cybersecurity. The inhibiting factor is also the inconsistency in the choice of concepts of information security, cybersecurity, digital security, which eventually affects economic approaches.
Keywords: cybersecurity, tax incentives, economic incentives, digital economy
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