INSTITUTE OF TAXATION UNDER THE CONDITIONS OF THE NATIONAL INNOVATION SYSTEM TRANSFORMATION

Abstract

The article reveals the role and place of the institute of taxation in the national innovation system (NIS). This institute is presented through simple institutions of tax benefits and pressure, which stimulate innovative behavior. Institutions of stimulation of innovative behavior are the rules, regulations, incentives, sanctions and mechanisms designed to influence the motivation of economic subjects so that they choose from the available alternatives in favor of innovative behavior. Tax benefits have a stimulating effect by reducing the costs of participants in innovative activities and increasing financial results. The stimulating effect of tax pressure is the need for the economic entity to seek and implement new technologies, if it uses outdated and “harmful” technologies to the environment. The forms of the institutions of tax benefits used in foreign practice have been studied in detail and proposed by the National Academy of Sciences of Ukraine. The forms of the institutions of tax benefits used in foreign practice have been studied in detail and proposed by the National Academy of Sciences of Ukraine. Radical reform of the system of tax benefits is needed, which should radically change the institutional environment, formal rules, by strictly regulating the mechanism of their provision and strengthening control over the purposeful use of the amounts of received benefits. The conceptual principles of the reform should be based on the maximum harmonization of innovation and tax policy, on the ideas of the active influence of tax benefits on innovative behavior. It is noted that the institution of tax benefits is quite effective in stimulating innovation in developed countries but in Ukraine it has been relatively ineffective. The reason for the failure to apply tax benefits to stimulate innovative behavior in the Ukrainian economy lies in the specifics of the basic institutions of the institutional environment. To increase the strength of the formal Institution of Taxation, its institutions of innovative behavior stimulating, it is necessary to form adequate stereotypes of tax behavior purposefully.