Taxation the Income of Individuals from Agriculture

Emil Kalchev

Abstract: Individuals’ income taxation is a mandatory component of any tax system. The essential point herein is
whether taxation treats the income from different types of activities in the same or different way. If peculiarities
in taxation of income from a particular source are identified, a number of questions arise: about the possibilities
for taxpayers to reduce their tax burdens, using these peculiarities, the economic and social meaning of
the specificities, about existing approaches to completing tax declarations, etc. This article examines the
peculiarities of taxing the income of individuals from agricultural activities through an analysis of the Law
on Personal Income Tax. In pursuit of this objective, the provisions of the law governing the differences in
tax treatment for this income have been identified. These differences are subject to an economic analysis,
which is logically carried out in two dimensions: an examination of the existence of strategies for optimal
economic behavior, minimizing the tax burden on farmers (possibilities for tax planning), and an analysis of the
macroeconomic and social sense of the particularities of farmers’ income taxation.

Keywords: income taxes; tax planning; taxation

Date published: 2020-06-08