Legal regulation of taxation of legal entities: domestic and foreign experience

Abstract

The paper proves that taxation of legal entities always causes a number of heated disputes in any state. In general, the taxation of legal entities is fragmentarily similar to the tax systems of developed European states, but in practice a situation arises when the domestic tax system of Ukraine is not a tool for increasing the competitiveness of the state and does not contribute to the growth of economic activity of economic entities. In Ukraine, the scale of tax evasion is affected not so much by the size of tax rates, but by the distortion of the conditions of competition due to the uneven distribution of the tax burden; corruption; imperfection of the legislation regulating business activities, as well as non-compliance with the laws by taxpayers. In the process of reforming the taxation system in Ukraine, an important problem is not only the level of the tax burden, but also the optimal combination of direct and indirect taxes. The current system of taxation today does not satisfy either the state or taxpayers. A whole series of miscalculations and distortions that were allowed during its creation led to the fact that taxes do not fully fulfill either fiscal or incentive functions. A separate positive is the possibility of switching to a simplified taxation system, because in our country, in accordance with the norms of the Tax Code of Ukraine, in addition to the general principle of withholding taxes, a simplified system operates in Ukraine. It was determined that a particular problem is the instability of the system of taxation of legal entities, which provokes frequent changes in legislative acts regarding individual taxes, which negatively affect the development of entrepreneurial activity in our country. Fiscal direction of the tax system is also quite difficult for entrepreneurs, i.e. insufficient identification of the regulatory function of taxes. It has been proven that in order to really stimulate the investment climate in the country, it is necessary to carry out much deeper reforms and use the gained international experience. The conditions for doing business are, first of all, a favorable investment climate, which, in turn, cannot be created without a stable, predictable, moderately burdensome tax field.