National Interests: Priorities and Security

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Tax mechanisms to regulate investing activities as a tool to strengthen the economic security of the State

Vol. 15, Iss. 4, APRIL 2019

Received: 29 January 2019

Received in revised form: 15 February 2019

Accepted: 11 March 2019

Available online: 15 April 2019


JEL Classification: Е62, Н20, Н25

Pages: 729–744

Vyakina I.V. Tver State Technical University, Tver, Russian Federation

Skvortsova G.G. Tver State Technical University, Tver, Russian Federation

Subject Tax mechanisms to regulate investing activities are considered as an important tool for strengthening the economic security of the State. At the same time, the authorities apply tax incentives and benefits to attract domestic and foreign investments to key economic sectors.
Objectives The purpose of the work is to develop ways to streamline tax incentives for investments and boost the economic activity that contribute to strengthening the economic security of the State through the analysis of the best global practices for applying investment preferences, and evaluation of Russian experience in tax incentives for investing activities.
Methods We employ methods of systems, logical and comparative analysis of academic literature, the content analysis, methods of mathematical statistics and graphic simulation.
Results The global experience in using tax incentives as a tool to increase investment appeal of a territory and ensure economic security demonstrates efficiency subject to the availability of favorable business environment, administrative factors of investment climate, and sufficient quality of government. The paper formulates specific directions for optimizing the tax benefits that boost the investing activity of the business.
Conclusions Tax incentives remain a popular tool to attract investment both in Russia and abroad. However, their effectiveness in the Russian reality largely depends on administrative and legal factors of business climate and management quality.

Keywords: tax incentive, tax break, economic security, globalization, investment appeal


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