| Abstract [eng] |
This Master's thesis analyses the system of real estate tax benefits established by the Law on Real Estate Tax of the Republic of Lithuania. It assesses the validity and legality of the applied benefits, identifies problematic areas of their application and presents proposals for the improvement of the system of benefits. The first part of the paper examines the concept of tax benefits and their legal nature. It assesses the relationship between these benefits and the basic principles of taxation. The types of forms of tax relief, as set out in tax law doctrine, are presented: general and individual, subject or object-based, permanent or temporary. The second part of the paper analyses specific real estate tax benefits for natural persons, which depend on the purpose of the real estate and the use of the real estate, as well as benefits for legal persons, which depend on the status of the owner of the real estate and the sphere of use of the real estate. The third part of the paper analyses the right of municipal councils to apply real estate tax benefits at the expense of their budget. It discusses how municipalities set tax rates and apply benefits on social, cultural, educational or investment promotion grounds. It examines case law on the legality, justification and proportionality of the granting of benefits. The author proposes to establish clear criteria for the application of benefits and a procedure for their periodic review in order to ensure transparency and fairness of the tax system. The results of the paper show that there are a number of problematic aspects in the application of the property tax benefits in question. It was found that some of the benefits, while pursuing social or economic objectives, are not based on objective criteria, and the high number of benefits makes the real estate tax itself less effective. Particularly at municipal level, there is a high degree of heterogeneity in practice, which leads to different treatment of taxpayers and may jeopardise legal principles such as equality, legality and proportionality. The analysis justifies the need for the legislator to clarify the grounds for applying the preferences by establishing criteria that would ensure transparency, legal clarity and compliance of the tax system with the rule of law. |
