International Journal of Management and Economics Fundamental
99
https://theusajournals.com/index.php/ijmef
VOLUME
Vol.05 Issue 06 2025
PAGE NO.
99-102
10.37547/ijmef/Volume05Issue06-20
Individuals Get From The Income Tax Rate Optimization
In Foreign Countries Experiences Of Uzbekistan,
Introduction To The Practice Of Importance
Abdullazoda Shukrullo
Independent Researchers, Tashkent State Economic University, Uzbekistan
Received:
13 April 2025;
Accepted:
18 May 2025;
Published:
27 June 2025
Abstract:
This article analyzes the system of taxation of the individual in the format of incoming foreign countries,
advantages and disadvantages of progressive and proportional taxation model. Example of unified tax policies
and proposals for improving and developing countries are studied on a comparative analysis of the tax system
based on the premium developer with the undp.
Keywords:
Incoming tax, taxation model, progressive and proportional rate, financial planning, tax, tax benefits,
international experience and fiscal policy.
Introduction:
One of the important economic problems
facing most countries nowadays is the chronic nature
of the state budget deficit. This makes the issue of
finding effective ways to cover the budget deficit in
front of the states difficult. From the analysis of the
literature, it turns out that in most economically
progressive countries, it is taxes on income that make
up the vast majority of state budget revenues. Taxes on
the income of individuals in particular play a very
important role in the formation of the state budget. It
is of great importance to what extent the income and
expenditure of people is in the increase in the level of
profitability of citizens and a comfortable life. As
people's income increases, the quality of their lives also
changes for the better. Therefore, increasing the real
income of citizens is one of the most basic economic
and social measures that should be taken by any
modern and Democratic state. In particular, the social
significance of the income tax on individuals is that this
tax directly affects the standard of living of the
population by affecting the real income of citizens.
REVIEW OF THE LITERATURE
The tax system is the main foundation of the financial
stability of each state. In particular, taxes on the
income of individuals are one of the important sources
of the state budget and play an important role in
ensuring social justice, financing social programs and
maintaining economic equality. The form of tax rates
and the essence of tax policy are directly related to the
economic model and social policy of each country.
Taxes on income paid by individuals are manifested in
financial relations that occur in the amount of
replenishment of the state treasury.
Russian researcher M.Kulikova believes that while the
income tax levied on the population is the main fiscal
instrument, it is also an economic instrument that
increases the activity of people.
T.Barkhatova noted that the state performs various
functions that are not even considered harmonious
through income tax. In particular, through the means of
income tax, the state, on the one hand, forms a
significant share of budget revenues, and on the other
hand regulates the level of profitability of citizens. The
means of this are the level and composition of
consumption of people, as well as the management of
their savings. Again on the other hand, the population
is encouraged (encouraged) to make the most of the
income. In addition, through the means of income tax,
the state also puts before itself the task of social
protection of less well-off segments of citizens.
Of the Uzbek scientists, I.Niyazmetov also expressed his
views on the need for fairness in taxation of income,
taxation of all types of income in the same order. In
particular, Niyazmetov cited in the tax code of the
International Journal of Management and Economics Fundamental
100
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
Republi
c of Uzbekistan ―on the basis that the
principles of fairness of taxation‖ and ―uniformity of
the tax system‖ are practically not adhered to, the
absence of a single system for taxing income in
Republican tax legislation, the imposition of taxes on
the income of citizens and business entities in different
regimes.
RESEARCH METHODOLOGY
Scientific literature, economic analysis and statistics
and analytical work were selected as the
methodological basis of the study. The study used
methods of financial analysis to assess the level of
economic security of small business entities.
ANALYSIS AND DISCUSS THE RESULTS
he concept of improving tax sièsat, approved by the
decree of the president of the Republic of Uzbekistan
dated June 29, 2018 PD-5468, provides for taxation of
income of individuals at a proportional rate of 12
percent from 2019. This measure provides for the
possibility of uniformization of taxation on the income
of all categories of individuals, that is, compliance with
the principles of generality and uniqueness of taxation.
But, as we have seen above, when taxing income, not
only generality, that is, horizontal justice, but also
solvency, that is, vertical justice, should be ensured.
As of 2019, the tax rate on the income of individuals has
been brought to a single 12% rate as part of tax reforms
in Uzbekistan. This in some way we can see the positive
side of the calculation procedure for this type of tax,
which is expressed in a way that is understandable to
the taxpayer. However, in terms of the tax burden and
the point of social support, somewhat negative aspects
are also manifested. Therefore, this article is aimed at
determining the appropriate and effective tax model
for Uzbekistan, based on the study of the experience of
foreign countries.
Let's consider the system of taxation of income of
individuals on the scale of countries with different
economic development.
The us experience:
Individual income tax rate in USA.
№
Tortiladigan taxation income(us dollars)
tax rate(%)
1
0---11600
10 %
2
11601---47150
12 %
3
47151---100525
22 %
4
100526---191950
24 %
5
191951---243725
32 %
6
243726---609350
35 %
7
609351--- and higher
37 %
In the United States, each state sets its own tax rates.
For example, the highest level of tax in California can be
up to 13.3%. An important aspect of the US tax system
is the breadth of the system of benefits and deductions.
There are various benefits for married individuals,
people with disabilities, people with education, which
leads to a decrease in the tax burden. For example, the
following standard discounts set for 2025 can be cited.
Separate application for single and married persons: $
15,000, application for spouse or living spouse: $
30,000. Head of household: $ 22,500 can be deducted
from the income tax base.
The experience of Germany:
№
Tortiladigan taxation income(us dollars)
tax rate(%)
1
0---11600
10 %
2
11601---47150
12 %
3
47151---100525
22 %
4
100526---191950
24 %
5
191951---243725
32 %
6
243726---609350
35 %
7
609351--- and higher
37 %
Before you start working in Germany, you should get at
least some brief knowledge about income tax, the tax
classes, and other taxes. Anyone who resides in
Germany and is employed there is subject to individual
income tax (Einkommensteuer). The country operates
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
a progressive tax rate which means it increases with
taxable income.
In Germany, income tax is typically deducted directly
from your paycheck by your employer through a
system known as "Lohnsteuer." This means that your
employer withholds the tax from your salary and remits
it to the tax authorities on your behalf.
The marginal tax rate in Germany refers to the rate at
which the last Euro of income is taxed. The tax
percentage varies depending on income and the type
of tax being considered. Additionally, there are other
mandatory taxes and contributions to consider, such as
the solidarity surcharge, church tax, and social security
contributions. We will discuss this subject in more
detail later in the text.
The experience of Albania:
Salary
income tax
0 — ALL 30 000
0 %
30 001 --- 150 000 ALL
the high amount from the other side 30 000 to 13% of ALL
150 001 from the other side of the
top
15 all 600 + 150 000 more than the amount of 23 %
(Albania unit money
–
the other side(ALL) from 2025-the lowest position monthly salary of the year 740 euro;
ALL 30 000=306 euro)
In Albania, too, the income tax of individuals is taxed in
a progressive form, while income tax of individuals is
exempt from income tax if its monthly income is less
than the sum of less than 30,000 ALL. Any employer
who pays a salary or salary to an employee will
withhold personal income tax and hold the withheld tax
in favor of the tax authorities no later than the 20th day
of the next month of payment.
The tax system of uzbekistan with taqqosiy analysis:
Starting from the year 2019 in the republic of
Uzbekistan income tax from individuals to only 12% at
the rate established.
The mechanism of this taxation advantages:
•
Let's clear simplicity and
•
There is possibility of expansion of the tax base
•
Reduction of administrative costs
However, there are the following disadvantages:
•
The level of income inequality is not taken into
account in the tax burden
•
The taxation of relatively light layer is highly
profitable ministry
•
The limits of the principle of social justice
However, in most states, Income Tax (personal income
tax) and capital gains tax (Capital gains tax) are
separated from each other. To distinguish this, an
example of real estate can be made. When an
individual receives income from buying real estate and
renting it out, it is subject to income tax. If this sells real
estate to more expensive than it received, the capital
gains tax will pay. Most states, such as Bahrain, New
Zealand and Singapore, have waived capital gains taxes
in an effort to support individuals.
Looking at the comparative graph of the system for
taxing the income of individuals in the states of the
United States, Germany, and Albania for the highest
and lower rates of income tax, we can see that different
rates are set depending on the population of the
country and their level of income. From the result of
the comparison, it seems that in all developed
countries a progressive rate system was introduced,
and through this method the tax burden on income was
equalized.
1-Picture. By comparing the rate of the tax on income of individuals in the state chart.
0
20
40
60
United States of
America
Germany
Albania
Income tax rates: on the example of the United States,
Germany and Albania
Income tax rates from individuals Lower tax rate at %
Income tax rates from individuals Higher tax rate at %
International Journal of Management and Economics Fundamental
102
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
Comparative analysis shows that in most developed
countries, a progressive rate system is introduced, and
through this method, the tax burden on income is
equalized. That is, the income tax of individuals who
receive high income will also be higher, and individuals
who earn low income on the contrary will be taxed at a
reduced income tax rate or at a zero-level rate. Such a
procedure for taxation is considered an approach to the
social protection of the underprivileged layer of the
population. Currently, Uzbekistan does not have this
approach.
CONCLUSION AND SUGGESTIONS
Foreign experiments show that the progressive model
in income taxation is effective in reducing income
inequality in society and promoting social justice. Based
on the above information, I propose to put into practice
the following procedures for the tax system in
Uzbekistan.
1.
The introduction of a progressive tax system
–
for example, 10-12% low
–
income to a layer, 15-20%
–
high income.
2.
The expansion of the tax deduction system
–
education, health, disability, and children, families and
discounts introduction.
3.
The gradual expansion of the system of the
declaration
–
and high-income many-to cover the
movement of own source revenue.
4.
Transparency of tax information
–
this will
serve to increase confidence.
5.
Social policy and tax policy combination
–
through the funds collected through this tax will be
directed to the essential needs of the population.
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