Peculiarities of payment of local taxes by enterprises during the legal regime of martial law

Abstract

In the conditions of war, special attention is paid to the strengthening of public administration and local self-government in order to strengthen the state in order to provide a powerful repulse to the enemy and the possibility of restoring the economy of Ukraine. The development of local self-government is particularly important as it encourages the creation of a full-fledged living environment for citizens, the provision of high-quality and accessible public services, the establishment of institutions of direct people’s power, and the coordination of the interests of the state and territorial communities. The basis of the development of local self-government is the formation of local budgets, which today have significantly decreased due to the decrease in the number of the population, bankruptcy of private enterprises, etc. It should be noted that today the economic activity of business has decreased by 50 percent, and about 8 million Ukrainians are abroad. A large number of Ukrainian citizens became internal migrants. The damage caused by missile attacks to our infrastructural facilities exceeded 40 billion dollars. Each missile attack worsens the financial results of entrepreneurs, causing a decrease in earnings, a decrease in wages for employees, along with this, and tax revenues. That is why the main task for the development of territorial communities is the implementation of effective reforms that will make it possible to increase the resource and financial base.
 It was noted that the liberalization of taxation during the war is a forced anti-crisis measure. Lowering the rates of excise tax, value added tax, introduction of a single tax of 2% for virtually all enterprises, easing of the administrative burden on taxpayers, deregulation of business and loosening of tax control helped business survive the shock. These measures helped enterprises to focus on personnel problems, readjust business to extreme working conditions, search for new opportunities for recovery and adjustment of production. They did not deal with the issues of finding resources and means for calculating and paying taxes. While the introduced changes are temporary and short-lived, they will cease after the end of the war and the stabilization of the situation. That is why, after the recovery of business activity and reduction of the unemployment rate, the state should return to the permanent post-crisis model of taxation.