FEATURES OF TAXATION AND ECONOMIC DEVELOPMENT MONACO

Abstract

Introduction. The prerequisites for the economic development of any country are individual, but the use of benchmarking and the borrowing of positive experiences from other countries is an urgent task for every government, especially the domestic, on the path of active reforms. Monaco, as a world-famous small country, demonstrates the successful dynamics of economic development, GDP growth, and ensuring a high standard of living for the population. One of the prerequisites is a flexible tax system and the promotion of business development, support for economic and innovation initiatives, and improvement of investment attractiveness. Goal. Definition of the dynamics of economic development of Monaco during 2008-2017, structure of economic sectors that form GDP, features of taxation, requirements for starting a business and directions of state support for its development. Results and discussion. The preconditions and indicators of economic development of Monaco, leading branches of the economy, dynamics of foreign economic activity, factors of taxation which promote the investment attractiveness of the country are determined. Conclusions. Characterized by indicators of economic development of Monaco, GDP dynamics, main industry features. Established basic tax preferences that promote the start-up of business and its development in Monaco (requirement to provide more than 75% of the work in the Principality). The creation of a favorable tax climate for foreign investment and the simultaneous harmonization of fiscal policies with France and the European Union have made it possible to attract Monaco's continuous flow of foreign investment, so some elements of Monaco's experience deserve to be used by Ukrainian society in the path of reform.