Taxes and Business Philanthropy in Armenia

The majority of countries around the world provide tax incentives for business philanthropy. However, little is known about responsiveness businesses to this treatment. This paper expands on scant literature by focusing Armenian system which provides support takes form a deduction capped at fraction receipts. generates kink beyond marginal subsidy drops zero. Using administrative data years 2007 through 2017, we find strong evidence bunching firms kink, with sizeable elasticity giving intensive margin. continues be regardless whether have been audited, and any deficiencies are observed.