| Abstract [eng] |
The Master’s thesis analyzes the legal regulation of personal income tax reliefs and their application. The thesis aims to assess the clarity of the provisions of the Law on Personal Income Tax of the Republic of Lithuania. By examining court practice and interpretations provided by state institutions, the thesis conducts a comprehensive analysis of their application in practice. The first part of this paper analyzes the characteristics of the concept of tax incentives, as well as their forms and types. It examines the objectives of establishing tax incentives and the complexity of their implementation. The second part of the paper analyzes the limits on the application of tax-exempt income, the importance of their clarity, and the associated risks of abuse. It discusses how insufficiently precise legal regulation or ambiguous interpretation thereof may create conditions for the unfair application of tax provisions and the artificial reduction of tax liability. It also examines how such cases are assessed in judicial practice and what rules of legal interpretation and application are established therein. The third part of the paper analyzes the conditions for applying the tax-exempt income threshold and the criteria determining eligibility for this benefit. The advantages, disadvantages, and significance of this benefit for the interests of the state and society are evaluated. It also analyzes changes in Lithuanian legal regulation related to reducing income inequality, recommendations from state institutions, and the reasons for and specifics of applying an additional non-taxable income threshold. The fourth part of the thesis examines the conditions and limitations for applying the concept of deductible expenses, and analyzes changes in legal regulations and their causes. It also evaluates the introduction of an investment account and its significance in altering the portion of deductible expense benefits. |
