Generolo Jono Žemaičio Lietuvos karo akademija

Often taxation is considered as a restriction to any market development, lessening the willingness to effective actions or raising the opportunity costs. Therefore lots of investigations are dedicated to identification of optimal measures in order to satisfy the fiscal needs still encouraging market performance. The purpose of this paper is to identify the impact of capital income taxation on corporate bond market development by using the Laffer curve and tax burden measurements and methods. While theoretical investigations proposed an application of tax exempt to corporate bond transactions, empirical results stated no significant arguments for corporate bond market stagnation to taxation.

Tax incentive is optional but highly important element of taxation, used in order to achieve different goals. On the one hand, tax incentives form tax expenditures and thus reduce budget revenue; on the other hand, they influence behavior of persons and businesses and may have positive or negative social and economic effect. This article analyzes the incentives of personal taxation in Lithuania and their social, economic and fiscal impact. The study was conducted using the method of descriptive and factor analysis. The results revealed economic impact of tax incentives applicable in Lithuania.