Taxation of corporate profits: ukrainian realities and estonian experience
Journal Title: Економіка. Фінанси. Право - Year 2018, Vol 11, Issue
Abstract
Introduction. Today it is considered that the existing system of corporate taxation does not contribute to the effective functioning of the domestic tax system and constrains its further economic development, despite improving its position in world rankings. The main problems that require an immediate solution are: low level of fight against corruption in the tax area, ambiguity in the inter-pretation of tax legislation and significant depreciation of fixed assets. That is why searching for directions of reforming the corpo-rate profit tax is very actual. The purpose of the work is to analyze the efficiency of the current system of collection of corporate income tax in Ukraine, to identify its main problems, and to study the reforming of this type of tax, based on the experience of the Estonian tax system. Results. The article considers the peculiarities of tax collection on enterprises' profit in Ukraine, analyzes its fiscal efficiency and the necessity for the formation of budget resources. It also substantiates the impracticability of the existing mechanism of taxation of corporate profits, based on the principles of the European taxation model. The taxation problems of financial results of economic entities, as well as the ways to overcome them, in particular, with the possibility of applying the experience of the Estonian taxation model of distributed profits have been investigated in the article. Conclusion. The fiscal efficiency of the corporate tax is currently quite low, it is not budget-making, so the corporate tax system needs to be changed. Reforming the mechanism of levying the corporate tax by deciding the introduction of the Estonian tax model can contribute to improve the situation, but only if the possibilities of short-term losses compensation of budget revenues will be investigated. At the same time, in the long-term perspective, the mechanism of tax on distributed profits seems to be effective, as there should be a reduction of administrative pressure and easier control over observance of legislation.
Authors and Affiliations
Olena Mykolaivna Dakhno, Kateryna Serhiivna Hoholieva, Iryna Serhiivna Lytvynenko
Keywords
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