Europe, Financial sector, fiscal policy, public finance, Research

Financial Taxation: International Practices

1) Project description and general objective
Project analyses key features of international tax regulation practices in regards to financial markets. The objective of the report is to draw conclusions for measures that could be reasonably applicable to the Russian Tax Code. Comparative analysis is concentrated on 34 high-income OECD countries that are considered to have the strongest fiscal institutions today. In places where the detailed tax design features were compared, the authors analyze tax treatment in a sub-set of ten comparator countries. In many places the analysis presented in the project takes into account the historical context, i.e. development and evolution of tax regulation measures, as well as regulations that have not yet been implemented such as the proposed European Union Financial Transaction Tax (EU FTT).

2) Project Structure and Involvement of CASE
CASE is the sole contractor and is responsible for implementation of the whole project.

3) Project Output
Project results into the report. The report explores the general historical context of taxes levied on financial markets and, in particular, on taxing capital gains and financial transactions. Report also presents a comparison of the role of transaction and capital gains taxation in OECD economies. Characteristics of the tax system in Russia are described. In addition, the authors provide a list of OECD countries broadly similar to Russia in terms of the main features of tax code, and list countries leading in the ranks of the effect of taxation on incentives to invest. The report addresses twenty different aspects related to the taxation of financial operations. Report summarizes best practices that could be reasonably applied in Russia.


Donor: Ye.T. Gaidar Institute for Economic Policy

Partners: n/a