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№ 3/2018

Nauk. pr. NDFI 2018 (3): 48–64

EDUCATION FINANCING

TOCHYLINA Iryna ¹

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-1176-4252

International expierence of tax incentives for higher education development

The author considers the issues of using tax mechanisms to stimulate the development of the education sphere. To achieve the objectives, the author researches and systematizes the world’s best practices of applying tax incentives for education in order to find strategic reference points of taxation in the education sphere and to ensure the interaction between education and tax policies during the reform process in Ukraine. The author examines the potential influence of tax policy on the education sector from the standpoint of two different spheres of its influence: formation of special taxation conditions for the purpose of financial support for persons gaining tertiary education and privileged tax regime on revenues from selling educational services by education institutions. The article contains a system analysis of peculiarities inherent to the application of tax benefits related to education and training within the personal income tax, corporate income tax, and value-added tax. The author emphasizes that existence of special tax regimes for the involvement of a charitable donation is also an important factor of government support for the education sector. Tax incentives are attractive instruments of government support because they enable citizens to balance their incomes and expenses for education with regard to taxation. Furthermore, such benefits are relatively easy to obtain. Taking into account directions of the education reform in Ukraine, particularly,
the transformation of terms of financing higher education institutions and tendencies towards shifting a burden of financing to students and their families, the author substantiates the necessity for assessing the regulatory effectiveness and an incentive effect of tax benefits for education. This substantiation is grounded on the data on the actual budget burden compared to the effect achieved. Such an assessment should be imperative for implementing new mechanisms of tax benefits provision or improving the current ones.

Keywords:education tax benefits, education tax credit, tax exemption, tax deferral, taxation of education institutions

JEL: Е62, Н52, Н75, I22, I23, I25

Tochylina I. . International expierence of tax incentives for higher education development / I. Tochylina // Наукові праці НДФІ. - 2018. - № 3. - C. 48-64.

Article original in Ukrainian (pp. 48 - 64)

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