THE LATEST TOOLS FOR OPTIMIZING THE TAX REGULATION OF THE INSURANCE BUSINESS

Abstract

The article applies a scientific-methodical approach to the taxation of insurers' incomes in order to achieve an optimal balance between the revenue base of the budget and the minimization of budget risks. Empirical measurement of relationships between the financial results of insurers and tax regulation of their activities using economic models and mathematical apparatus made it possible to develop the latest financial decision-making tools based on the Census II method. These tools contribute to the formation of the tax base (income after insurance activities) from the point of view of minimizing the impact of budgetary risks on the level of state budget revenues. The foundation of the developed scientific-methodological approach is the algorithm of actions for determining the actual deviation of the tax base from the calculated trend cycle. This allows us to minimize the risk of not receiving budget revenues and create multiple scenarios of resilience to the influence of external factors. The proposed approach makes it possible to produce alternative financial decisions regarding the choice of the taxation mechanism of domestic insurers in order to minimize budgetary risks. The practical significance of the obtained results is revealed in the developing theoretical and methodological provisions and outlined methodological approaches in practical activities, which justify the optimal choice of the tax base of insurance companies with the lowest level of variability, taking into account the influence of exogenous processes in a dynamic market background. This will form prerogatives to minimize the risk of not receiving budget revenues. It has been empirically proven that the specified scientific-methodical approach will contribute to the optimization of the insurance business taxation process, ensuring a balance between the interests of the state and all participants in this market.

Keywords

• financial decisions
• tax tools
• insurance market
• insurers
• state regulation of the insurance market
• tax regulation of the insurance market