System of taxation of hotel enterprises in Ukraine

Abstract

The taxation system of hotel enterprises in Ukraine according to their organizational and legal status is analyzed. The influence of the tax system on the organizational and functional characteristics of hotels – staff, specialization, indicators of financial and economic activity, qualification of accountants, financial statements, etc. is revealed. The advantages and disadvantages of the general and simplified tax system in Ukraine are described. Most hotel businesses use a simplified tax system. The connection between the state tax policy in the hotel industry and investment activity is revealed. Taxation is a key point in which the government supports investment-attracting businesses. Support is provided in the form of reduced income tax rates, tax benefits. The state, by not receiving budget revenues, encourages hotel companies to reduce their income tax expenditures to invest more in business and increase profits. It is important, together with the reduction in the tax rate, to use means of influence for the purpose of tax relief. In Ukraine, the tax system does not promote investment in the hotel industry. The mechanism of application of tax privileges in countries known to the tourist specialization is characterized. It has been revealed that the hotel taxation system is one of the key factors of their microeconomic development, financial capacity building, and at the same time an instrument of investment in the hospitality sector of Ukraine. Reducing the profit tax rates of hotel companies from 21% to 18% contributes to improving their financial status, increasing production capacity, and improving service levels. However, such a tool cannot be a guarantee of reinvestment in an enterprise. Targeted tax benefits are considered more effective, for example: significantly reducing or exempting companies by category, type, capacity, location of income tax for a specified period. At the same time, with the reduction of the tax rate, it is necessary to use the means of influence to comply with the subjects of the hotel business with the targeted application of tax benefits. Key words: hotel enterprises, tax system, tax breaks, profit of enterprises, investments, investment climate.