scholarly journals CURRENT STATE OF CORPORATE INCOME TAXATION SYSTEM IN UKRAINE

2021 ◽  
Author(s):  
Bohdan Zasadnyi ◽  
Iryna Kononohova
Keyword(s):  
Income Tax ◽  
Income Taxation ◽  
Corporate Income Tax ◽  
Entrepreneurial Activity ◽  
Social Production ◽  
State Budget ◽  
Corporate Income Taxation ◽  
Tax Legislation ◽  
Accelerated Depreciation ◽  
Taxation System

Taxes are used as a way of government influence on social production, its dynamics and structure, and are also a source of government revenue. To the greatest extent, this applies to corporate income tax, since it is one of the most important sources of budget revenue. Difficult political and economic conditions, instability and complexity of domestic legislation, a significant tax burden on business highlight the need to study the peculiarities of corporate income taxation not only as a powerful fiscal tool, but also in terms of its regulatory functions. In Ukraine, the possibilities of using corporate income tax as a regulatory factor are somewhat limited by its large budgetary value, so there is a need to study also a foreign experience of corporate income taxation in order to find the best ways for our country to improve the collection and administration of corporate income tax. To stimulate entrepreneurial activity, ensuring its stable development, it is necessary to create an optimal effective tax system that would provide stable revenues to the state budget, without burdening entrepreneurs. This issue is extremely acute, because the corporate income tax can be used as an effective tool for balanced dynamic economic growth on the basis of innovative development, and as a reliable source of state budget revenues. This article defines theoretical questions concerning the economic essence and place of the corporate profit tax in the taxation system. Determined main reasons for the fluctuations of revenues from corporate income tax in the budget of Ukraine, namely: the loss of income tax of the dominant fiscal role in the formation of tax revenues of Ukraine is due to lower rates and changes in the procedure for determining the object of taxation, as well as general negative trends in economic development of Ukraine. The main areas of improvement of corporate income taxation mechanism in Ukraine at the present stage of economy development are investigated. Conclusions are drawn about introducing a progressive system of corporate income taxation, harmonization of accounting and tax legislation on the calculation of corporate income tax, reviewing the list of tax incentives and using the accelerated depreciation method that reduces the tax base.

scholarly journals THE CONCEPT OF CORPORATE REFORM INCOME TAXATION IN UKRAINE

2021 ◽  
Vol 4 (39) ◽  
pp. 130-137
Author(s):  
N. Mamontova ◽  
V. Vityuk
Keyword(s):  
Income Tax ◽  
Negative Impact ◽  
Value Added ◽  
Income Taxation ◽  
Corporate Income Tax ◽  
Corporate Management ◽  
Value Added Tax ◽  
Public Attention ◽  
Corporate Income Taxation ◽  
Low Efficiency

Abstract. The article examines the feasibility and relevance of reforming corporate income taxation in Ukraine. We have scrutinized scientific researches of domestic and foreign scientists. The low fiscal efficiency of corporate income tax has been investigated and a stable relationship has been detected between the level of tax payment and a set of additional factors, namely the level of corporate management, the form of ownership and public attention. The high weight of the payment of income tax in the overall structure of the top-30 enterprises of Ukraine for the payment of taxes was noted. The international experience of corporate income taxation is analyzed and summarized. The necessity of replacing the income tax with another type of corporate income taxation has been substantiated. Systemic problems of the effectiveness of the existing models of corporate income taxation in the world are noted. The negative impact of low-tax on the functioning of tax systems in a lot of countries and the creation of the effect of uneven tax burden is emphasized. Information on the practical experience of introducing a tax on withdrawn capital in the foreign countries has been systematized. The low efficiency of that concept and the inexpediency of using this concept in the modern domestic conditions have been investigated. The possibility of replacing the value added tax has been assessed and the critical dependence of the budget incomes on the tax has been established. Concept of reforming corporate income taxation was developed and substantiated by introducing 1% turnover tax in addition to value added tax and the complete abolition of income tax. The volume of tax receipts for 2010—2019 has been estimated in the case of the introduction of author's concept of corporate taxation of income instead of current taxation system. The positive consequences for Ukrainian economy have been evaluated and systematized. Strong need to form a new tax culture and philosophy of interaction between representatives of tax authorities and business was emphasized. Keywords: corporate income taxation, corporate income tax, tax on withdrawn capital, turnover tax. JEL Classіfіcatіon H25 Formulas: 0; fig.: 0; tabl.: 3; bibl.: 19.

scholarly journals Assessment of the international competitiveness of the corporate income tax of Ukraine

2021 ◽  
Vol 2021 (1) ◽  
pp. 145-159
Author(s):  
Natalia Frolova ◽  
◽  
Keyword(s):  
Income Tax ◽  
Methodological Approach ◽  
Weighted Average ◽  
International Competitiveness ◽  
Oecd Countries ◽  
Corporate Income Tax ◽  
Tax Rate ◽  
Corporate Income Taxation ◽  
Accelerated Depreciation ◽  
International Ranking

The article is devoted to assessing the international competitiveness of the corporate income tax system based on the approach of the US Tax Foundation, which develops International Tax Competitiveness Index of the corporate income tax (ICI) and takes into account the level of income tax rates, cost recovery, tax incentives and complexity of tax law. According to the analysis of the international ranking of OECD countries, Estonia, Latvia, Lithuania, and Hungary had the highest ICIs in 2019-2020. The main factors that have had a positive effect on their competitiveness are the low top marginal income tax rate, unlimited loss carryback and carryforward, no restrictions on the list of assets subject to depreciation, as well as the use of accelerated depreciation, which allows companies to compensate for a larger share of the initial value of assets, LIFO inventory or at least inventory by the weighted average cost method, no Patent Box; no tax credit for R&D, and low corporate income tax complexity. The calculation of the ICI for Ukraine, based on the approbation of the methodological approach of the Tax Foundation, found that in 2019-2020 Ukraine with a total score of 55.07 took 24th place out of 35 OECD countries. The author characterizes the main components of Ukrainian corporate income taxation in terms of their impact on international competitiveness; in addition, ways to increase ICI are substantiated.

REGIONAL ASPECTS OF TAXATION IN THE CONTEXT OF THE UTII ABOLITION

2020 ◽  
Vol 10 (9) ◽  
pp. 1939-1948
Author(s):  
I.G. Tkharkakhova ◽  
◽  
M.E. Ordynskaya ◽  
D.I. Ponokova ◽  
◽  
...  
Keyword(s):  
Income Tax ◽  
Social Insurance ◽  
Patent System ◽  
Entrepreneurial Activity ◽  
Tax Regimes ◽  
The Republic ◽  
The Right ◽  
Taxation System ◽  
Tax Deduction ◽  
High Share

Over the past years, the unified tax on imputed income has been the most convenient, effective, simple and economical for the majority of individual entrepreneurs in our country. Now entrepreneurs should abandon this tax regime. A very topical issue is the choice of the taxation system that will minimize budgetary obligations. Based on the Rosstat data, individual entrepreneurs occupy a fairly high share in the total population of entrepreneurs in this country. Taking into account the fact that the Republic of Adygea is an agricultural one, and in addition to standard cargo transportation, many individual entrepreneurs are also engaged in the transportation of agricultural products, we have selected this particular segment for research. The paper provides a comparative analysis of taxation systems that can be used by entrepreneurs providing freight services in the Republic of Adygea. For clarity, we examined such tax systems and special tax regimes as: tax on professional income, patent system, simplified “Income” taxation system. For each of the systems, both the advantages of its application and the disadvantages are systematized. The patent system may only have its own benefits for entrepreneurs operating in only one region and without employees. Professional income tax is similar to the simplified “Income” tax system. Only with this option there is no possibility of using the tax deduction of fixed contributions for pension and social insurance. The calculations and recommendations presented in the work will help individual entrepreneurs make the right choice. The most optimal variant can be chosen only by the entrepreneur himself, basing on the peculiarities of the entrepreneurial activity.

THE COMPARISON OF CORPORATE INCOME TAX IN LATVIA AND LITHUANIA

2017 ◽  
pp. 20
Author(s):  
Jūlija Ščeglova ◽  
Iveta Mietule
Keyword(s):  
Income Tax ◽  
The State ◽  
Corporate Income Tax ◽  
Tax Rates ◽  
State Budget ◽  
Tax Base ◽  
Tax Rate ◽  
Common Features ◽  
Advance Payment ◽  
Tax Payers

Corporate income tax is one of the important taxes that provide revenues to the state budget. Article contains a comparison between Latvian and Lithuanian existing legislation relating to corporate income tax, studied differences between the tax rates, tax base, tax period and taxpayers. Were described differences that are related to the advance payment calculation, as well as created an example that shows how advance payments are calculated in Latvian and Lithuanian companies. As a result, it was found that there are several common features in the Latvian and Lithuanian legislation, with regard to corporate income tax, for example, the tax payers, taxation period, tax rate, the taxable amount. But there are several differences, such as the nuances of rates for non-residents, depending on the type of revenue, advance payment deadlines and other particularities of the calculation of the advance payments. Also differ corporate income tax payment deadlines. It was concluded that making advance payments in Lithuanian enterprises is more profitable, because it was calculated that at the same conditions, the amount of advances in Lithuania is lower than in Latvia.

Tax Reform: Theory and Practice

1987 ◽  
Vol 1 (1) ◽  
pp. 11-28 ◽  
Author(s):  
Joseph A Pechman
Keyword(s):  
World War Ii ◽  
Income Tax ◽  
Tax Reform ◽  
Theory And Practice ◽  
Income Taxation ◽  
Tax Rates ◽  
Pressure Groups ◽  
Comprehensive Income ◽  
Tax Legislation ◽  
The Individual

The Tax Reform Act of 1986 is the most significant piece of tax legislation enacted since the income tax was converted to a mass tax during World War II. After decades of erosion, the individual and corporate income tax bases were broadened and the revenues were used to reduce tax rates. Loopholes and preferences that were formerly considered sacrosanct were eliminated or moderated despite the determined opposition of powerful pressure groups. Comprehensive income taxation, which had earlier been regarded as an impossible dream, carried the day with strong bipartisan support. I will trace the origins of the tax reform movement and speculate about why it was successful in 1986 after repeated failures in earlier years. I also explain what the 1986 act accomplished and what more needs to be done to achieve the objectives of comprehensive income taxation.

scholarly journals The Theoretical Aspects of the Functioning of the System of Personal Income Taxation

2020 ◽  
Vol 12 (515) ◽  
pp. 389-394
Author(s):  
H. P. H. P. ◽  
Keyword(s):  
Income Tax ◽  
The State ◽  
Personal Income ◽  
Income Taxation ◽  
Tax Burden ◽  
Fiscal Pressure ◽  
The Cost ◽  
Taxation System ◽  
Tax Payers ◽  
Personal Income Taxation

The publication outlines theoretical aspects of the system of personal income taxation and determines that individuals and the tax agent are the paramount actors in certain synergistic relations of the institutional system elements. The state of formation of the revenue part of the Consolidated Budget of Ukraine was researched. Monitoring the formation of the revenue part of the consolidated budget is a set of methods for identifying and assessing the causes and signs that may lead to an increase in the tax culture of personal income tax payers and, at the same time, to increase the revenue part of the budget. The study of the structure of the tax determined that income in the form of wages and income tax, which is paid by the tax agent on income in the form of wages, dominate with great advantage and indicate the urgency of changing the policy of the State and in the minds of taxpayers oward their diversification. The fiscal pressure of income tax on taxpayers is analyzed. The tax burden should also take into account the cost of social benefits received, and therefore local self-government bodies should have information on the amount of taxes paid by one person or one employee and their dynamics in the future. A forecast of the tax burden on payment of tax to local budgets is carried out. It is proved that local self-government bodies should have not only a sufficiently predicted, but also an ever-growing amount of income tax, which requires urgent reform of the current taxation system. Ways to improve the system of personal income taxation are proposed. The author singles out the main stages of the strategy for reforming the personal income taxation system and the strategic goal: obtaining maximum revenues to the budget with an acceptable tax burden on the taxpayer. A set of factors of influence and differences between the taxation system of Ukraine and those established in other countries is formed.

scholarly journals ON THE CORRELATION OF ADVOCACY AND ENTREPRENEURSHIP

2021 ◽  
Vol 77 (4) ◽  
pp. 93-100
Author(s):  
Andrii Lapkin ◽  
Keyword(s):  
Legal Status ◽  
Entrepreneurial Activity ◽  
Scientific Article ◽  
Professional Activities ◽  
Tax Legislation ◽  
Domestic Legislation ◽  
Advocacy Activity ◽  
The Subject ◽  
Taxation System

The relevance of the topic of the scientific article is due to the development of the institution of the bar in Ukraine, in the process of which the issue arises about correlation between advocacy and entrepreneurship. This problem is not only theoretical, but also practical, since the determination of the legal status of an advocate as a subject of advocacy, as well as the taxation of this activity, depend on its solution. The purpose of the scientific article is to determine correlation of advocacy to entrepreneurial activity, as well as to resolve the issue of the possibility of combining these types of activities by an advocate. This problem is considered in two aspects: the possibility of a person combining advocacy activities with entrepreneurial activity and the possibility of carrying out entrepreneurial activity within the framework of advocacy activity. Based on the analysis of theoretical works and domestic legislation, it was concluded that the conduct of advocacy is compatible with any type of entrepreneurial activity. At the same time, Ukrainian law does not consider advocacy as an enterprise. The issue of taxation of advocacy is being considered. On the basis of tax legislation, it was concluded that advocates are considered to carry out independent professional activities, which excludes the application of a simplified tax system to them. The compliance of advocacy activity with the criteria of entrepreneurship was analyzed. The possibility of attributing advocacy to the types of entrepreneurial activity with preservation of specific tasks, guarantees and other features of advocacy activity is justified. This creates the basis for the possibility of taxing advocacy under in a simplified system. The delimitation of advocacy and entrepreneurial activity could remain only the subject of theoretical discussions, if not applied to the measurement of this problem relating to the approach to taxation of such activities. Consideration of advocacy as an entrepreneurial is more advantageous for lawyers, since it allows a simplified taxation system.

The mechanism of personal income taxation and its prospects in Ukraine

2021 ◽  
Vol 92 (1) ◽  
pp. 33-42
Author(s):  
Yaroslav Yarema
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Income Taxation ◽  
Tax Rates ◽  
Personal Income Tax ◽  
State Budget ◽  
Low Incomes ◽  
The Impact ◽  
Personal Income Taxation ◽  
Current Mechanism

The article analyses the current mechanism of personal income taxation in Ukraine, examining the impact of its individual elements on total revenues from personal income tax. The analysis of revenue contributions from personal income taxation to the consolidated state budget and local budgets indicates that the personal income tax remains the most important sources of revenue. In the structure of personal income tax revenues, wages are the main source of taxable income. The author analyses the mechanism of taxation for natural persons (businessmen) and tax receipts flowing to local budgets from incomes from business activity and highlights its shortcomings. In this context, he proposes introducing progressive tax rates, which will make it possible to shift the tax burden from individuals with low incomes to those who earn higher incomes.

scholarly journals Exemption of Polish Local Government Units and their Unions from Corporate Income Tax – The Fundamentals, Evolution of Solutions and Legal Framework

2019 ◽  
pp. 457-466
Author(s):  
Ofiarska Małgorzata
Keyword(s):  
Local Government ◽  
Income Tax ◽  
Legal Framework ◽  
Corporate Income Tax ◽  
Protective Function ◽  
The Public ◽  
Tax Legislation ◽  
Judicial Practice ◽  
Regulatory Law ◽  
Income Tax Law

Local government units and their unions as income earning legal entities are subject to the provisions of the Act on corporate income tax. Being subject to income tax law translates also to the opportunity of benefiting from tax privileges established by the law. The establishment and application of tax preferences on income of local government units and their unions is an important instrument in supporting their efforts to perform important – in social and economic terms – public tasks. Tax privileges also serve an important protective function with regard to the public funds being managed by local government units and their unions. To ascertain the fundamentals and the scope of the regulatory law regarding subjective and objective tax exemptions addressed to local government units and their unions, as well as the way in which these regulations evolve, the tax legislation and judicial practice were analysed and the reference literature was reviewed with the application of the dogmatic-legal and empirical methods. The hypothesis on the conditional nature of tax exemption and the need for strict interpretation thereof was proven to be correct. The inability to apply such exemptions in metropolitan unions, which can be interpreted as discriminatory, was evaluated critically. Moreover, it has been proven that the provision of statutory income tax exemption thresholds to local government units and their unions is an overly complicated process since the Act income tax incorporates references to the provisions of the Act on the income of local government units which do not conclusively determine the revenue sources of these entities.

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