Subject This article discusses the use of special tax regimes to stimulate investment activity at the regional level. Objectives The article aims to consider the effectiveness of the application of investment tax incentives as tools for the development of regions. Methods For the study, we used the methods of systems, logical, and comparative analyses, and mathematical statistics. Conclusions To implement investment projects in the region, tax incentives are not the most significant factor in choosing by a potential investor at the moment. The application of tax exemptions is related to the non-receipt of budget revenues. The phasing out of individual federal tax exemptions and the transfer of authority to establish them at the regional (local) level should ensure a balanced regional budget, but at the same time may increase the differentiation in the regional development. However, the optimization of the existing investment tax incentives in the regions seems necessary.
Keywords: investment, tax incentives, development, regions
References:
Popov D.S., Khromova A.S. [Mechanisms of Planning of the State Impact on the Economic Interests of the Entrepreneurship]. Izvestiya Yugo-Zapadnogo gosudarstvennogo universiteta. Seriya: Ekonomika. Sotsiologiya. Menedzhment = Proceedings of the Southwest State University. Series: Economics, Sociology and Management, 2018, vol. 8, no. 2, pp. 203–211. URL: Link (In Russ.)
Mardan M. Why Countries Differ in Thin Capitalization Rules: The Role of Financial Development. European Economic Review,2017, vol. 91, pp. 1–14. URL: Link
Aleksandrov G.A., Rozov D.V., Vyakina I.V. et al. Obnovlenie osnovnogo kapitala. Innovatsii. Investitsii. Organizatsionno-ekonomicheskii mekhanizm: monografiya [Fixed capital update. Innovation. Investment. Organizational and economic mechanism: a monograph]. Moscow, Kreativnaya ekonomika Publ., 2018, 326 p. URL: Link
Malis N.I. [Tax policy for the medium-term period: benefits optimization and investments stimulation]. Nauchno-issledovatel'skii finansovyi institut. Finansovyi zhurnal = Financial Journal, 2014, no. 3, pp. 89–95. URL: Link (In Russ.)
Kiseleva O.V. [The instruments of investment activity stimulation on the example of the regions of Privolzhsky Federal District]. Rossiiskoe predprinimatel'stvo = Russian Journal of Entrepreneurship, 2013, vol. 14, iss. 15, pp. 23–31. URL: Link (In Russ.)
Aleksandrov G.A., Vyakina I.V., Skvortsova G.G. Formirovanie investitsionno privlekatel'nogo klimata regiona: kontseptsiya, diagnostika, innovatsii: monografiya [Formation of investment attractive climate of the region: conception, diagnostics, innovations: a monograph]. Moscow, Ekonomika Publ., 2014, 302 p.
Savina O.N. [The existing instruments to stimulate investment in the current economic conditions and suggestions for their improvement]. Finansovaya analitika: problemy i resheniya = Financial Analytics: Science and Experience,2015, vol. 8, iss. 6, pp. 43–57. URL: Link (In Russ.)
Aliev B.Kh., Alimirzoeva M.G., Kazimagomedova Z.A. [Analysis of the efficiency of tax privileges and preferences in the mechanism of State support for investment activities of enterprises]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2015, vol. 14, iss. 11, pp. 13–25. URL: Link (In Russ.)
Gromov V.V. [Problems and improvement issues of Russia's SEZ residents in regard to federal taxation]. Nauchno-issledovatel'skii finansovyi institut. Finansovyi zhurnal = Financial Journal,2018, no. 1, pp. 39–50. (In Russ.) URL: Link
Kharin A.G., Tomkovich A.V. [Assessing the impact of fiscal incentives on investment activities in the Kaliningrad Special Economic Zone]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2017, vol. 16, iss. 6, pp. 1000–1011. (In Russ.) URL: Link
Dunning J.H. The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions. Journal of International Business Studies, 1988, vol. 19, iss. 1, pp. 1–31. URL: Link
Van Parys S., James S. The Effectiveness of Tax Incentives in Attracting Investment: Panel Data Evidence from the CFA Franc Zone. International Tax and Public Finance, 2010, vol. 17, iss. 4, pp. 400–429. URL: Link
Zodrow G.R., Mieszkowski P. Pigou, Tiebout, Property Taxation, and the Underprovision of Local Public Goods. Journal of Urban Economics, 1986, vol. 19, iss. 3, pp. 356–370. URL: Link90048-3
Devereux M.P., Griffith R., Simpson H. Firm Location Decisions, Regional Grants and Agglomeration Externalities. Journal of Public Economics, 2007, vol. 91, iss. 3-4, pp. 413–435. URL: Link
Dharmapala D., Hines J.R. Jr. Which Countries Become Tax Havens? Journal of Public Economics,2009, vol. 93, iss. 9-10, pp. 1058–1068. URL: Link
Egger P.H., Wamser G. The Impact of Controlled Foreign Company Legislation on Real Investments Abroad. A Multi-Dimensional Regression Discontinuity Design. Journal of Public Economics,2015, vol. 129, pp. 77–91. URL: Link
Kang W., Lee K., Ratti R.A. Economic Policy Uncertainty and Firm-Level Investment. Journal of Macroeconomics, 2014, vol. 39, part A, pp. 42–53. URL: Link
Drobetza W., Ghoul S.E., Guedhami O., Janzen M. Policy Uncertainty, Investment, and the Cost of Capital. Journal of Financial Stability, 2018, vol. 39, pp. 28–45. URL: Link
Lopez J.J. A Quantitative Theory of Tax Evasion. Journal of Macroeconomics, 2017, vol. 53, pp. 107–126. URL: Link