Bestaeva, Z. U., Payzulaev, I. R. Formation of the System of Taxation of Physical Entities in Russia

Abstract: The article is devoted to the formation and development of the system of taxation of physical entities in Russia. The authors of the article describe the very first attempts to introduce property taxes. The first taxes and levies (payable with both money and products) were paid solely by taxpayers, i.e. physical entities. Other economic entities joined in paying taxes only later. Today tax payments collected from physical entities are the part of financial and economic relations and create somewhat like a sub-system of taxation of physical entities. The author also views particular changes in the system of taxation of physical entities that came into force on January 1, 2014 as well as changes that are expected to be made soon for the purpose of improving the procedure for the income taxation. The system of taxation of physical entities involves the following taxes: personal income tax, individual property tax, inheritance or gift tax, land tax and transport tax. The system of taxation of physical entities of the Russian Federation needs to be further improved in accordance with the principles of justice, legal certainty and economy as formulated by Adam Smith so that it would not only contribute to budget revenues but also regulate the economic activity of citizens. The results of the research of the process of formation and development of taxation prove that taxes collected from physical entities play an important role in formation of the budget revenues and regulation of the economic activity of citizens.

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