Welcome to site of Scientific Works of NDFI (demo).

№ 3/2018

Nauk. pr. NDFI 2018 (3): 143–158https://doi.org/10.33763/npndfi2018.03.143

ACCOUNTING AND TAXATION

RAINOVA Larysa ¹

¹SESE "The Academy of Financial Management"
OrcID ID : https://orcid.org/0000-0002-8275-3094

Taxation of pensions in Ukraine in the context of foreign experience

Changes in the legislative regulation of the taxation of pensions, including those from foreign sources, as well as the amounts of monthly lifetime cash allowance that took place in Ukraine during 2014-2018, are investigated. The components of the burden on these incomes in terms of taxes and charges that were levied on their amount, depending on the availability or absence of employment of their recipient are determined. Differences in the level of deductions from different but comparable in size sources of income as pension payments and wages are established. The author gives a general description of the foreign experience of income taxation of the elderly people, as well as a number of measures taken in European countries aimed at limiting the amount of public pension expenditures to reduce the burden on the national budgets for the purpose of their comparison with the corresponding measures taken in domestic practice during 2014-2018. It is noted that the strengthening of adverse demographic trends, budgetary and macroeconomic imbalances, as well as institutional problems of the EU development, have led to adjusting the priorities of the EU social policy. In most developed EU countries, pension reforms in the pre- and post-crisis period were oriented towards ensuring the financial sustainability of national pension systems and maintaining an appropriate level of income for the elderly. The expediency of preserving the norms of legislation concerning the taxation of pensions, including those from foreign sources, as well as the amounts of monthly lifetime cash allowance in the version that operated at the time of the abolishment of such taxation, is substantiated. Despite the low fiscal efficiency of such measures, related by the limited range of subjects of taxation, their adoption would contribute to the increase of vertical equity in the taxation of individual incomes. It is expedient in the context of the recent strengthening of the trend to shift the tax burden towards increasing taxation on a relatively low level of personal income.

Keywords:pensions, monthly lifetime cash allowance, personal income tax, military duty, special procedure for paying pensions to working pensioners

JEL: Н24, Н55

RAINOVA L. . Taxation of pensions in Ukraine in the context of foreign experience / L. . RAINOVA // Наукові праці НДФІ. - 2018. - № 3. - C. 143-158.

Article original in Ukrainian (pp. 143 - 158)

Download

Downloads :335

1. Bashko, V. Y. (2015). Ways to achieve balance of the pension system in Ukraine. Finance of Ukraine, 6, 97-107. Retrieved from finukr.org.ua/?page_id=723&aid=4219&lang=uk [in Ukrainian].

2. Hlushchenko, V. V., Levchenko, I. A. (2013). Factors of revitalization of public participation in nongovernmental pension insurance. Finance of Ukraine, 7, 69-77 [in Ukrainian].

3. Hura, N. O. (2013). Non-state pension funds as an object of accounting and reporting. Finance of Ukraine, 11, 100-108 [in Ukrainian].

4. Kyrylenko, O. P. (2016). Reforming of the pension system in Ukraine. Finance world, 3(48), 7-19 [in Ukrainian].

5. Libanova, E. M. (Ed.). (2010). Pension reform in Ukraine: directions of implementation. Kyiv: Instytut demohrafii ta sotsialnykh doslidzhen imeni M. V. Ptukhy NAN Ukrainy [in Ukrainian].

6. Mortikov, V. V. (2014). Gains and losses as a result of functioning of the state pension insurance system. Finance of Ukraine, 6, 40-48. Retrieved from finukr.org.ua/?page_id=723&aid=4109&lang=uk [in Ukrainian].

7. Nadraha, V. I. (2015). Financial risks of pension system development in Ukraine: demographic aspect. Finance of Ukraine, 1, 79-86. Retrieved from finukr.org.ua/docs/FU_15_01_079_uk.pdf [in Ukrainian].

8. Rudyk, V. K. (2014). Contemporary trends in the development of the pension insurance system in Ukraine. Kam'ianets-Podilskyi: Abetka [in Ukrainian].

9. Tkachenko, N. V., Shabanova, O. V. (2014). Scientific approaches to the determination of the investment potential of the private pension funds. Finance of Ukraine, 9, 93-106. Retrieved from finukr.org.ua/?page_id=723&aid=4144&lang=uk [in Ukrainian].

10. Tkachenko, N. V., Shabanova, O. V. (2016). The enhancement of scientific and methodical approach to optimization of an investment portfolio of private state pension funds. Finance of Ukraine, 1, 80-98. Retrieved from finukr.org.ua/?page_id=723&aid=4287&lang=uk [in Ukrainian].

11. Fedorenko, A. V. (2013). Municipal nongovernmental pension funds and regional investment policy. Finance of Ukraine, 7, 55-68. Retrieved from finukr.org.ua/docs/FU_13_07_055_uk.pdf [in Ukrainian].

12. Tsikanovska, N. A. (2014). Theoretical and methodological approaches to the financial security diagnostics of private pension funds in Ukraine. Finance of Ukraine, 8, 85-96 [in Ukrainian].

13. Keenay, G., Whitehouse, E. R. (2003). The Role of the Personal Tax System in Old-age Support: A Survey of 15 Countries. Fiscal Studies, Vol. 24, No. 1, 1-21.
doi.org/10.1111/j.1475-5890.2003.tb00074.x

14. OECD. (2011, October 12). Taxation and Employment. OECD Tax Policy Studies, 21. Retrieved from www.uscib.org/docs/Taxation_and_Employment.pdf.

15. OECD. (2011). Pensions at a Glance 2011: Retirement-income Systems in OECD and G20 Countries. OECD Publishing. Retrieved from www.oecd-ilibrary.org/docserver/pension_glance-2011-en.pdf?expires=1531235768&id=id&accname=guest&checksum=138FD6F093302F78D8D5D1C79A6804E1.

16. Xu, A. (2015). Pension Taxation in the EU: A Concern for Mobile Pensioners? CESifo DICE Report, Vol. 13, No. 3, 75-77. Retrieved from www.cesifo-group.de/DocDL/dice-report-2015-3-October.pdf.

17. OECD. (2017). Pensions at a Glance 2017: OECD and G20 Indicators. OECD Publishing. Retrieved from www.oecd-ilibrary.org/docserver/pension_glance-2017-14-en.pdf?expires=1530556877&id=id&accname=guest&checksum=F272AB55AEE678325C66F780FED9BF58.

18. Verkhovna Rada of Ukraine. (2015). On Amendments to Certain Legislative Acts of Ukraine on Pensions (Act No. 213-VIII, March 2). Retrieved from zakon0.rada.gov.ua/laws/show/213-19 [in Ukrainian].

19. Verkhovna Rada of Ukraine. (2015). On Amendments to Certain Legislative Acts of Ukraine (Act No. 911-VIII, December 24). Retrieved from zakon0.rada.gov.ua/laws/show/911-19 [in Ukrainian].

20. Verkhovna Rada of Ukraine. (2016). On Amendments to Certain Legislative Acts of Ukraine (Act No. 1774-VIII, December 6). Retrieved from zakon2.rada.gov.ua/laws/show/1774-19/page [in Ukrainian].

21. The State Fiscal Service of Ukraine. (2018). Regarding the taxation of income earned in the form of pensions for working pensioners. Retrieved from dp.sfs.gov.ua/baner/podatkovi-konsultatsii/konsultatsii-dlya-yuridichnih-osib/print-67269.html [in Ukrainian].

22. Okhrymenko, O. (2016, August 12). Taxation of pensions. Herald. Officially about taxes, 30 (887). Retrieved from www.visnuk.com.ua/ru/pubs/id/90010107 [in Ukrainian].

23. European Commission. (2015). The 2015 Pension Adequacy Report: current and future income adequacy in old age in the EU. Vol. I. Retrieved from ec.europa.eu/social/BlobServlet?docId=14529&langId=en.

24. Pension Fund of Ukraine. (2017, February 2). Report on the work of the Pension Fund of Ukraine in 2015 and the Work Plan of the Pension Fund of Ukraine for 2016. Retrieved from www.pfu.gov.ua/informatsiya/potochna-diyalnist/zvity-pro-diyalnist/arhiv-zvitnist-zvity-pro-diyalnist/zvit-pro-robotu-pensijnogo-fondu-ukra [in Ukrainian].

25. Pension Fund of Ukraine. (2018, March 3). Report on the work of the Pension Fund of Ukraine in 2017, budget, priorities and Fund\\\'s work plan for 2018. Retrieved from www.pfu.gov.ua/informatsiya/potochna-diyalnist/zvity-pro-diyalnist/potochni-zvity-pro-diyalnist/zvit-pro-robotu-pensijnogo-fondu-ukrayiny-u-2017-rotsi-byudzhet-priorytety-diyalnosti-ta-plan-roboty-fondu-na-2018-rik [in Ukrainian].