Government regulation of the personal income taxation in the context of personnel forming for smart industry
The paper presents a brief analysis of theoretical and practical aspects of state regulation of the personal income taxation to stimulate the formation of STEM staff. The research was conducted in the context of the development of the Smart Industry in Ukraine.It is defined, that the main driver of the Smart Industry is STEM staff, armed with digital skills. The rapid development of technologies requires constant skills renewal. This leads to the need for the lifelong learning concept implementation. A personal income tax could stimulate staff to invest in their education.We investigate the world theoretical concepts of income taxation. It was concluded, that it is a combination of the tax base, rates and reliefs that can serve as a tool to stimulate investment in education.The experience of foreign countries with different tax systems, corresponding to theoretical concepts of income taxation, was analyzed. The results of the analysis showed that the most effective instrument of personal income tax in foreign countries is tax reliefs on education. In addition, in advanced countries government programs and the public-private partnerships have a significant impact on stimulating the development of STEM staff.The Ukrainian tax system and its possibilities to stimulate the formation of STEM staff were investigated. The analysis revealed that there are few tax reliefs on education, government programs are not developed and the system of public-private partnership is imperfect. The formation of STEM staff is at the initial legislative stage, and so far measures taken concerned its introduction at the level of general secondary education.On the basis of theoretical principles and analysis of foreign experience we proposed recommendations on the state regulation of the formation and development of STEM staff in Ukraine. They are based on the reform of the personal income taxation under the current income tax and the introduction of a tax on the withdrawn capital, cancelling the taxation of individuals’ dividends. The main incentive measures for STEM education are supposed to be privileges and preferences on personal income tax in case of education expenses with the additional implementation of government programs and the establishment of partnerships between government and business.