IMPLEMENTATION OF TAX INNOVATIONS FOR UKRAINIAN STARTUPS

Abstract

In recent decades one of the forms of small innovative entrepreneurship has become more widespread in the world – a startup. In order to stimulate the development of this industry, one of the priority areas of reforms is to create favorable tax conditions for startups. Сreating such conditions will be a direct way to attract investment in the national economy, both foreign and domestic. Such conditions will also contribute to the growth of gross domestic product and living standards of the population of a country. Startups today are developing small businesses in different countries. Large companies grow from them with potential for the future and competing products at the global level. Foreign experience shows that the application of simplified tax regimes is an important component in improving ecosystems for startups in any country. Ukraine has developed and implemented until 2030 the Strategy for the development of innovation, where startups are considered a structural part of the national innovation ecosystem. Within the framework of this Strategy was created a special legal and tax regime Diia City for IT companies and startups. That is why studying issues related to the conditions for the creation and operation of startups, their taxation, choosing a system that will reduce the tax burden, are relevant for the development of all innovative entrepreneurship. The article investigates acting taxation systems for startups in Ukraine and problems that arise in the application of the general and simplified taxation system and the new for Ukraine tax regime Diia City. The authors consider the key issues concerning the selection criteria for startups in the tax system which will allow them to reduce the tax burden. The article identifies a list of issues that need government support to improve the innovation ecosystem for startups in Ukraine.