Efficiency of Tax Instruments in Stimulation of Investment Activity

Abstract

AbstractVarious preferential taxation schemes designed to stimulate investment activity have gained new momentum as part of the implementation of policy documents on realisation of national projects. The analysis of the prescriptive legal regulation has shown that preferential taxation schemes, depending on the sphere, can be as follows: national and supranational; territory-specific: special economic zones, advanced development territories, free ports, innovation centres, special administrative districts; depending on the form of investment and innovation activities: special investment contracts, regional investment projects, agreements on protection and promotion of capital investments, investment tax credit. Addressing the ways to increase the efficiency of tax instruments intended to stimulate investment activity is the key objective of fiscal, tax and custom-tariff policy in modern conditions. The purpose of the research is the formulation of proposals to improve the evaluation of efficiency of tax instruments used to stimulate investment activity within the framework of special investment projects. The basic research methods involved system analysis, comparative analysis of the existing methods for evaluation of efficiency of tax instruments aimed to stimulate investment activity. The research result lies in the development of approaches to assessing the efficiency of special investment contracts.KeywordsFiscal performanceEconomic efficiencySpecial investment contractsInvestmentsTax incentivesTax expenditure