Types of Tax Exemptions in the Russian Federation: A New Look at the Basis for Classification

Despite the great variety of tax exemptions enshrined in the tax legislation of the Russian Federation, many of them are undefined and not named. The lack of legal classification of tax exemptions makes it difficult to further develop this institute of tax law. At the current stage of development of tax relations in the Russian Federation the classification of tax exemptions is extremely important. Since it affects, firstly, the certainty of legal regulation of tax relations, from a large number of benefits provided by law allows to single out tax exemptions. Secondly, observing the balance of private and public interests of subjects of tax legal relations, allows taxpayers to fully realize the benefits provided by law. Thirdly, leads to the achievement of the goals of legal regulation, benefits become more effective. Application of tax exemptions is an exception to the rules of legal regulation, which requires careful justification and certainty of application. In this regard, the need for classification of tax exemptions for their proper use in the legislation on taxes and fees of the Russian Federation is established. It is revealed that in science the main approaches of authors to the classification of tax exemptions can be divided into two groups. The first group of classifications is associated with a broad understanding of tax exemptions as advantages provided by law. The authors refer to tax exemptions as all unnamed cases of legislative exemption from tax payment. The second group of classifications is associated with a narrow understanding of tax benefits. Supporters of this group differentiate tax exemptions based on their some (private) features. Having considered the existing approaches to the classification of tax exemptions it is concluded that it is necessary to identify the author’s grounds for classification based on the essential properties of tax exemptions.