Taxes and business philanthropy in Armenia

Arbeitspapier

The majority of countries around the world provide tax incentives for business philanthropy. However, little is known about the responsiveness of businesses to this tax treatment. This paper expands on this scant literature by focusing on the Armenian tax system which provides incentives for business philanthropy. The support takes the form of a deduction capped at a fraction of business receipts. This generates a kink beyond which the marginal tax subsidy drops to zero. Using administrative panel data for the years 2007 through 2017, we find strong evidence of bunching by Armenian firms at the kink, with a sizeable tax elasticity of giving at the intensive margin. The evidence on bunching is robust to whether firms have been audited, and to whether any tax deficiencies are observed. This suggests that the observed response is likely to be real rather than being driven by reporting responses.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ZEW Discussion Papers ; No. 21-022

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Business Taxes and Subsidies including sales and value-added (VAT) ; Fiscal Policies and Behavior of Economic Agents: Firm ; Corporate Culture; Diversity; Social Responsibility
• Thema: Business philanthropy ; charitable giving ; corporate income taxes ; firm behavior ; bunching ; tax-price elasticity

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Asatryan, Zareh ; Joulfaian, David
• Ereignis: Veröffentlichung
• (wer): ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
• (wo): Mannheim
• (wann): 2021

Weitere Informationen

• Handle: http://hdl.handle.net/10419/231412
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ