| Abstract [eng] |
This master thesis evaluates and compares the Lithuanian PIT system with foreign countries on the basis of legal acts, case law, scientific literature and explanations of the tax administration. The master thesis analyses the classical principles of taxation that have shaped the tax system, as well as the modern principles of taxation that are relevent to the PIT system. The Law on Tax Administration identifies four main principles of taxation that must be followed by entities involved in tax relations. The main elements of the PIT system and their problems in case law are assessed. It analyses the problems arising in the recognition of a person as a permanent resident of Lithuania, the determination of the object and base of the PIT, the application of the rate of the PIT, the application of exemptions, the declaration of income, and the obligations of subjects. The following are the assessments of the above-mentioned issues in the practise of the Supreme Administrative Court. Currently, the rate of the PIT system is progressive for certain incomes, so the negative and positive aspects of the introduction of progressive taxation in Lithuania are evaluated, as well as the proposals aimed at adjusting the PIT rate. The investment account is assessed with a view to a fairer taxation of investment. It assesses the legal framework and the conclusions drawn from the investment account project. The elimination of the PIT tax allowance through the introduction of an investment account is analysed. The paper compares the elements of the Lithuanian PIT system with those of the Baltic States and Germany. It analyses the objects, benefits and rates of PIT in the current legal framework of the countries and presents their differences and similarities, based on data and legislation provided by the European Commission. |
