Tax incentives as a stimulating mechanism for creative industries in regional economy

Abstract

Introduction. The article refers to international practices and proposes tax incentives as a stimulating mechanism for creative industries in Russia. The development of creative industries is a crucial aspect of both economic and cultural growth. However, tax support measures in Russia remain underdeveloped and inconsistent across regions. Purpose. The paper refers to international practices to identify efficient tax support mechanisms for creative industries that can be adapted to the Russian environment. Materials and Methods. Tax incentives for creative industries in the countries with the developed creative economies, such as the United Kingdom, the USA, Ireland, and Kazakhstan, are examined and compared, and the content of the Russian legislation is analyzed. Results. It was revealed that Russia lacks a unified federal support system, which results in regional disparities in the development of creative industries. International practices show the efficiency of tax incentives such as VAT-free taxation system and tax credits, which have contributed to the growth of creative industries abroad. Conclusion. These disparities could be eliminated by introducing a unified system of tax incentives at the federal level and developing a customized tax policy for creative industries, which will support their sustainable development. Keywords: tax incentives, creative industries, state sectoral policy, international experience, tax support, regional disparities, economic development Funding The article has been prepared with the support of the Russian Scientific Foundation, the project No. 22-18-00679 «Creative reindustrialization of the second-tier cities in context of digital transformation». For citation Karpova O. M., Turgel I. D. Tax incentives as a stimulating mechanism for creative industries in regional economy. Perm University Herald. Economy, 2024, vol. 19, no. 4, pp. 409–426. DOI 10.17072/1994-9960-2024-4-409-426. EDN FTWCOT.