 Taxes and Business Philanthropy in ArmeniaZareh Asatryan and David Joulfaian Journal of Economic Behavior & Organization, 2022, vol. 200, issue C, 914-930 Abstract: The majority of countries around the world provide tax incentives for business philanthropy. However, little is known about the responsiveness of businesses to this tax treatment. This paper expands on this scant literature by focusing on the Armenian tax system which provides incentives for business philanthropy. The support takes the form of a deduction capped at a fraction of business receipts. This generates a kink beyond which the marginal tax subsidy drops to zero. Using administrative data for the years 2007 through 2017, we find strong evidence of bunching by Armenian firms at the kink, with a sizeable tax elasticity of giving at the intensive margin. The evidence on bunching continues to be strong regardless of whether firms have been audited, and to whether any tax deficiencies are observed. Keywords: Business philanthropy; Charitable giving; Corporate income taxes; Firm behavior; Bunching; Tax-price elasticity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:200:y:2022:i:c:p:914-930 DOI: 10.1016/j.jebo.2022.06.008 Access Statistics for this article Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D. More articles in Journal of Economic Behavior & Organization from Elsevier |
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