Mathematical models to support the formation of effective options for compromise income tax rates for regional enterprises

Abstract

Abstract The article is devoted to the development of a set of mathematical models and algorithms to support the formation of income tax rates in the regional budget, which provide a compromise for the interests of regional authorities, business leaders and the public. To support the formation of effective options for compromise income tax rates, a two-level algorithm is proposed based on mathematical models and methods. The proposed models differ in the level of aggregation of enterprises in the region’s economic system. At the upper level, options for income tax rates in the regional budget for enterprise groups are determined. Rates are formed on the basis of the principle of harmonizing tax revenues to the regional budget, the number of jobs and profits of the group’s enterprises. At the lower level, optimization models are proposed for targeted adjustment of the income tax rate for socially significant enterprises in the region. The software implementation of the proposed models and algorithms allows a reasonable calculation of income tax rates using statistical information.