General Tax System Research Articles

LEGALIZATION OF INVESTMENTS IN DIGITAL CURRENCY: FEATURES OF TAX REGULATION IN RUSSIA

The article was prepared based on the results of the study, the subject of which are legislative short stories in connection with the entry into force of the Federal Law “On Digital Financial Assets, Digital Currency and on Amending Certain Legislative Acts of the Russian Federation”. Using a very extensive methodological basis (a general scientific dialectical method of cognition, analysis, synthesis, comparative legal, formal methods), the author analyzes the content and essence of digital currencies (cryptocurrencies) and the principles of taxation of income received from operations with them. Prospects for the use of digital financial assets on the Russian economy are noted. In the work, the author summarizes the current state of tax regulation of cryptocurrency operations both in the general tax system and in special tax regimes. It is noted that the obligation of crypto investors to determine the tax base and pay income tax arises only at the time of conversion of cryptocurrency into a ruble bank account, into electronic fiat money. It is indicated that certain categories of citizens in the Russian Federation are prohibited from acquiring digital financial assets and digital currency. The scientific novelty of the study is that it identifies the most problematic tax aspects and solutions for them. The author emphasizes that despite the legalization of cryptocurrency turnover, in Russia there is a trend towards strict state regulation and control of the turnover of digital currencies.

PECULIARITIES OF FORMATION AND REPORT SUBMISSION BY FARMS

The article reveals the role, significance, features of the formation and submission of reports by farms. Attention is drawn to the fact that at the present stage the problems of transformation of the domestic agricultural sector are intensifying. Farming is considered one of the most common forms of entrepreneurial activity in the agricultural sector. In an uncertain, ever-changing environment, the effective functioning of an enterprise often depends on the ability to develop and implement creative management decisions based on analytical information. In order for all farm reporting to be as useful as possible, it should be simpler in structure and order of filling and at the same time – concise. The composition and reporting structure of farms depends on the one hand on the types of accounting, and on the other – on the information needs of users. In addition, the organizational and legal form of the entity and the form of accounting should be considered. If the farm is established in the form of a legal entity, it is subject to the requirements of mandatory accounting. The peculiarities of the organization of farm accounting and reporting are determined. It is noted that in addition to the volume of activity, other factors also influence, among which it is worth noting the specialization, the number of business transactions, the system of taxation of the farm. The specifics of financial and statistical reporting of farms as legal entities and natural persons-entrepreneurs are revealed. A farm as a legal entity compiles the same reports as a regular agricultural enterprise. A farm (natural person-entrepreneur) prepares reports as an ordinary natural person-entrepreneur. Peculiarities of formation and submission of tax reporting are investigated. If the farm is on the general system of taxation, it is obliged to file a declaration of income tax (the form approved by the order of the Ministry of Finance dated 20.10.2015 № 897 as amended). Taxpayers who are registered during the reporting (tax) year (newly created) pay income tax on the basis of an annual tax return for the period of activity in the reporting (tax) year. If the farm is on a simplified taxation system, it will submit, depending on the selected group, either a declaration of a single taxpayer of the third group (legal entity), or a declaration of a single taxpayer of the fourth group (form of declaration approved by order of the Ministry of Finance from 19.06.2015 № 578 with changes). It is established that farms that own or rent wells and are required to report in accordance with IFRS. Such reporting is subject to publication together with the auditor's report on its website (in full). The impact of qualitative characteristics of reporting and the principles of its formation on the completeness of economic processes and features of economic activity in the reporting system.

Self-sufficiency as an object of management in the system of economic support of forestry enterprises

The article investigates the essence of the concept of «self-sufficiency» of the state of the enterprise development. The main characteristics and conditions of economic activity functioning are offered. On the basis of the conducted analysis the external and internal factors that negatively affect the level of self-sufficiency of forestry enterprises are determined. It is established that today, most forest enterprises have a very low level of the management efficiency in terms of profits, investment formation due to depreciation policy and labor cost indicators. At the same time, in relative terms, this sector of the economy is characterized by the highest tax burden due to the payment of rent for special use of forest resources and payments from profits on two calculations of the general system of taxation and deductions from net income for state-owned enterprises. Summarizing the results of scientific research and applying content analysis, it is proposed to define the essence of the concept of «self-sufficiency» of forest enterprises as their ability to maintain and strengthen stable positions in certain market segments, optimize performance indicators that form added value and its structural elements on the level of systematic independent investment opportunity, and ensure the development of the relations of expanded reproduction of economic activity on the basis of rational use of its potential, as well as the creation of conditions for its increase. It is proposed to use the model of factor analysis of the ratio of value added, labor cost and net income to assess the level of self-sufficiency of forestry enterprises.

Methods for operational risk’s analysis of entrepreneurial structures in civil engineering

The object of this research work is constructional business structures’ activity. The subject of the research is the connection between profit and work volume, taking into account a construction company’s tax and economic specifics. This research work’s goal is to develop formulas for calculating the break-even point (BEP) of a construction (contracting) company. In this case, the company can use three tax regimes. Firstly, it is the general taxation system (GTS), where the value added tax is paid. Secondly, it is a simplified taxation system (STS) with the object of taxation “income”. Thirdly, it is the taxation object STS “income reduced by the amount of expenses.” Methods of budgeting, methods of calculating tax liabilities, algebra, and general scientific methods are used to obtain the results. The approbation was carried out on the economic model of a construction firm, compiled with the use of data on the estimated cost of a building object in Novosibirsk. As a result, formulas have been developed for calculating the construction companies’ BEP, using STS, as well as BEP formulas of construction companies with the use of STS with various objects of taxation. These three BEPs values comparison is carried out, which proves the influence of the taxation system on the risks magnitude, the taxation system with the highest BEP is shown. The effect paradoxicality of STS on the tax liabilities amount, profits and operational risks is shown.

УДОСКОНАЛЕННЯ ДОКУМЕНТУВАННЯ РЕЗЕРВІВ ТА ЗАБЕЗПЕЧЕНЬ У СИСТЕМІ БУХГАЛТЕРСЬКОГО ОБЛІКУ ПІДПРИЄМСТВ

Law requires the creation of securities and reserves for most companies. The formation of reserve capital is mandatory for joint-stock companies in the amount of not less than 15% of the authorized capital, and for limited and additional liability companies - in the amount of the contribution of the participant who decided to withdraw from the company. Large and medium-sized enterprises are required to create the securities and reserve of doubtful debts, as well as small enterprises in the case when they are under the general system of taxation. The dynamics of the formation of reserves and securities shows a decline in 2015, and in subsequent years - their growth. Reserves and securities are reflected not only in different sections, but also in different parts in the balance sheet: the reserves for doubtful debts are in the asset as a regulation of receivables, and reserve capital and collateral - in liabilities, even though by their economic nature all their components are directly related to retained earnings, i.e. equity. The process of documenting the creation and use of reserves and securities is not regulated by any mandatory document. For its implementation, the forms of primary documents are proposed, which meet the requirements for documenting business transactions of accounting and provide all the necessary indicators for their calculation following the requirements of national standards. For business entities that sell goods with a quality guarantee, there is a need to create collateral for warranty repair. To form it, it is necessary to analyze the total value of returned goods in the total sale value for the reporting period. Warranty repairs can be of different cost and frequency, depending on the type of parts that have lost their suitability. Therefore, to form collateral for warranty repairs, it is advisable to develop a classification of types of repairs, taking into account their frequency and cost. It is expedient to form collateral for warranty repairs according to the nomenclature of sold products, as different goods require different, both in time and in the cost, warranty services. The proposed primary documents are the basis for determining transactions with reserves and securities in accounting, their further evaluation, and generalization in reporting.

СУБ’ЄКТИ МАЛОГО ПІДПРИЄМНИЦТВА: ОПОДАТКУВАННЯ ТА ОРГАНІЗАЦІЯ ОБЛІКУ

The goal of the article is to disclose the issues of taxation and organization of accounting for small business entities. To achieve this goal, the tools of scientific research are used, namely: analysis and synthesis, induction and deduction (when stating an objective); comparison, systematization and theoretical generalization (when determining the criteria for the division of business entities into micro, small, medium and large enterprises; when choosing taxation system, disclosing the organization of accounting); logical generalization (to justify the relationship between the choice of the organizational and legal form of business, the tax system and the organization of accounting); tabular method (for rational, compact, visual presentation of research material). Criteria for dividing business entities into micro, small, medium and large enterprises are determined. It is found that small business entities can independently choose either a simplified or a general system of taxation, taking into account their advantages and disadvantages. The results of the analysis of the organization of accounting have shown that natural persons-entrepreneurs organize and conduct it using no special form electronically or on paper. At the same time, the organization and maintenance of accounting for legal entities are clearly regulated by current laws and standards. It is recommended to review the requirements for the organization of accounting for compliance with the needs of information support of users, as well as to consider the possibilities of simplification, unification and standardization in the organization of accounting, and to make appropriate changes in the legal field. It is proven that the understanding and consideration of small businesses by the relationship between the choice of the organizational and legal form of business, the tax system and the organization of accounting in decision-making will ensure their successful operation. Prospects for further research are identified, namely the justification of criteria for selecting the optimal tax system and software products for accounting by small business entities.

СУЧАСНИЙ СТАН РОЗВИТКУ ОПОДАТКУВАННЯ МАЛОГО БІЗНЕСУ В УКРАЇНІ

The article is devoted to the study of the current state of small business development and the need to reform the simplified taxation system, as well as to identify areas of stimulation of small business methods of state tax policy. It is considered that the taxation of small business is carried out in two forms - general or simplified. There is also found a single tax being the best way to tax small businesses because the general system of taxation is unclear and burdensome. It is determined that the system of simplified taxation promotes the development of small business by simplifying tax accounting and offers recommendations for improving the simplified taxation system in Ukraine. The rates of the single tax by groups, as well as the dynamics of tax revenues to local budgets from both legal entities and individuals are analyzed. It is found that the development of small business is possible only by combining and coordinating different forms, methods, means of regulation and state support, and the system of taxation of small businesses should be aimed at stimulating the development of small business and further filling budgets. Deficiencies in the legal framework related to the development and state support of small business in Ukraine are identified and ways to address them are proposed. It is substantiated that the most important method of influencing the activities of small business is the fiscal mechanism, which needs to be reformed in the direction of providing favorable conditions for doing business and attracting investment by building an incentive tax system. Experience of small business taxation in developed countries and new methods of state support that can be implemented in the tax policy of our state are studied. It is proved that if you exempt companies from taxation for a period of one to three years, provided they reinvest half of the net profit has a positive effect on the development of the company and the growth of tax revenues from its activities to the budget. The introduction of this tax regime in Ukraine will promote the development of small business, expand production, increase employment, increase competition, grow small businesses into medium and large and, as a consequence, increase tax revenues.

ТРАНСФОРМАЦІЯ ФІНАНСУВАННЯ МЕДИЧНОЇ ГАЛУЗІ В УКРАЇНІ У СУЧАСНИХ УМОВАХ

The article is devoted to the study of the development and analysis of urgent problems in financing the medical industry. The transformation of the financing of the medical industry is the key to building a mechanism of financial stable support for the population based on providing all citizens of Ukraine with equal and high-quality medical services. During 2014–2019, there was a decrease in the priority of health related to debt service, subsidies and pension costs, so the old financing model is no longer effective. Thus, for further transformation, it is necessary to increase funding or switch to a new model. The reform proposed by the Ministry of Health of Ukraine will not require the introduction of additional taxes and fees. Insurance premiums in Ukraine are provided by the general system of taxation. Experts believe that the introduction of an additional special fee on wages or payroll is inappropriate in an economic crisis. The National Health Service of Ukraine (NHSU) will act as an insurer. The money to cover medical expenses will come to this agency from the state budget. It is planned to introduce a clearly defined state guaranteed package of medical services, which will be based on the priorities of health care Consumers of medical services Budget of the National Health Insurance Fund Medical institutions and taking into account the economic situation of the state. The amount of funding for the state guaranteed package of medical services is a dynamic value, which is approved annually by the parliament. In 2018, the state will pay a doctor UAH 370 per patient per year without taking into account the relevant age coefficients, and from 2019 this amount is planned to increase to UAH 450. Calculations for secondary and tertiary care are still ongoing. Under this funding model, hospitals will not receive funds for biased overstatement of beds, economically unjustified living expenses and inflated staff. In other words, the reform envisages improving the efficiency of the use of budget funds in the health care system and stimulates the improvement of the availability and quality of medical services for patients.

Consolidated reporting of the single social contribution, personal income tax and military tax: innovations of 2021

The essence of the unified social contribution as an important component of the social protection system, and personal income tax and military tax, which, on the one hand, play a significant role in forming the revenue part of the state budget of Ukraine and, on the other, are the part of the costs affect the financial result of the entity is investigated in this paper. The main normative legal acts of Ukraine regulating the procedure of accrual, payment, accounting and reporting of the unified social contribution, personal income tax and military tax are analyzed, separate provisions of the legislation defining amendments to the submission of a single consolidated quarterly reporting of these taxes and payments are highlighted. The peculiarities of displaying information on the unified social contribution by legal entities and private entities-entrepreneurs, that is, all employers, regardless of the taxation system, as a part of quarterly reporting of personal income tax and military tax are formed. The peculiarities of reporting of the unified social contribution by private entities-entrepreneurs on the simplified taxation system by submitting as a part of the Declaration of the single taxpayer (quarterly/annual) Annex 1 with reflection of information about the amount of the unified social contribution paid during the quarter/year are revealed. The peculiarities of displaying information concerning single social contribution by private entities-entrepreneurs on the general system of taxation as a part of the Declaration of property and income are determined. The irrationality of the legislative initiative to combine reporting of the unified social contribution, personal income tax and military tax by different methods and bases of their calculations, various budget allocations of such funds for their payment, different users of information provided in these tax reports, various ways of errors correction and submission of clarifying reports, long period of information processing by state bodies in case of replacing monthly tax period by quarterly one while accruing various types of social benefits, pensions, etc. is substantiated.

ОСОБЛИВОСТІ ОПОДАТКУВАННЯ СУБ’ЄКТІВ ГОСПОДАРЮВАННЯ ТУРИСТИЧНОЇ ДІЯЛЬНОСТІ В УМОВАХ ПАНДЕМІЇ COVID-19

In Ukraine, during the COVID-19 pandemic, the tourism sector became one of the most affected sectors of the economy. During this period, many foreign countries implemented programs to stimulate and support this industry. In 2020, Ukraine introduced financial and economic support for small and medium-sized businesses, including tourism sector (UAH 4 billion was allocated to compensate for interest on existing loans, expanded program of available loans (5–7–9%)). In addition, in Ukraine, both in 2020 and in 2021, a number of tax benefits for tourism have been introduced – this is an exemption from paying a single tax, a single social contribution, reducing the VAT rate to 7% and more. The article examines the peculiarities of taxation of business entities in the conditions of the COVID-19 pandemic. It is determined that the tourism business in order to tax their activities can apply two systems of taxation: general and simplified. It is established that in case of choosing the general system of taxation by economic entities: legal entities pay corporate income tax at the rate of 18% and other taxes and fees provided by the Tax Code of Ukraine; natural persons-entrepreneurs pay personal income tax at the rate of 18%, military tax at the rate of 1.5%, single social contribution at the rate of 22% and other taxes and fees provided by the Tax Code of Ukraine. In case of choosing a simplified taxation system by business entities: legal entities pay a single tax at the rates of 3% or 5% and other taxes and fees provided by the Tax Code of Ukraine; natural persons-entrepreneurs pay a single tax at rates depending on the choice of the group and other taxes and fees provided by the Tax Code of Ukraine. The peculiarities of taxation in the general system of the tourism industry, which carry out their activities as legal entities or as natural persons-entrepreneurs, are highlighted. The diagnostics of taxation of tour operators and other business entities in the field of tourism on the simplified taxation system, where it was found that tour operators have the right to choose only the third group of the single tax at 3% and 5% or stay on the general taxation system. The peculiarities of value added taxation of tour operators, travel agents and other business entities of the tourism sector are determined. In addition, the tax incentives for tourism businesses in the context of the COVID-19 pandemic were analyzed.

Reforming the tax system: From special tax regimes to general system of taxation

Subject. The article considers special tax regimes in the Russian tax law, their evolution and current state, and ways to improve the tax system. Objectives. I focus on developing the theoretical and practical basis for reforming the tax system, considering to phase out the special tax regime in the tax regulation of ordinary business activities and to transfer to the general taxation system. Methods. The study employs methods of logical analysis and synthesis, induction and deduction. Results. Digital technology development made it impractical to maintain special tax regimes for tax and legal regulation of small businesses implementing ordinary activities. More favorable economic and financial environment for small businesses should be created within the general taxation system, through lower tax rates, up to a certain threshold. Special tax regimes should regulate specific activities, requiring a special approach to tax regulation and State control. The paper presents a set of practical measures to reform the design of the Tax Code. The offered structure of taxation creates a single tax legislation for the vast majority of business entities. Conclusions. The abolition of special tax regimes for taxation and regulation of small businesses and creation of a single tax system based on the general tax regime will simplify the Tax Code structure and make the tax system more transparent and consistent. The offered action plan will help make the abolition gradual and seamless. The findings can be used in legislative activities to reform the tax system.

Direct Taxation of Agricultural Enterprises

Financial support of the current activity and perspective economic development of the agricultural enterprises in Ukraine still remains a significant problem nowadays. Under the condition of limited budget resources, the necessity of activation of mechanism of government control of economic processes, that is conducted by the methods of legal, administrative and financial economic influence, deserves special attention. Key position in the government economic regulation belongs to the methods of tax adjustment which include the usage of budget, tax, customs, money credit, price making and investment policies means. The study of tax regulation of the agrarian sector of the economy is getting special significance, taking into account the lack of financial resources of agricultural enterprises, tendency to the reduction of the budgetary expenditures on the industry development, intensification of socio-economic problems because of political and economic instability in the country and integration of Ukraine into the world economic community. One of the most acute issues of the current development of the agrarian sector of the economy is the creation of the efficient mechanism of taxation. Today the situation is such that despite the growth of state budget revenues, agrarian business is constantly exposed to tax changes. Though, the practice of law application shows that amendments to the Ukrainian laws concerning taxation very often cause new problems. They relate primarily to the growth of the tax burden on small producers, in particular, farms. Agroholdings minimize their tax payments by acquiring the status of taxpayers of the 4th group. This allows them to accumulate significant funds for investment. Agricultural companies do not legally pay income tax on the land they use. Instead, they pay a meager tax under the simplified system of taxation in agriculture, the amount of which is many times smaller than if they paid under the general system of taxation. The scientific novelty of the obtained results is presented by a set of theoretical and practical aspects of the study, namely proposals for the current state of taxation of agricultural enterprises and recommendations for improving the security of the Ukraine`s taxation.

Increased tax rates in the taxation system of the Republic of Lithuania

The subject. The research covers analysis of legal regulation that sets the increased tax rate
 instrument and the comparison of this instrument with other similar legal instruments.
 The purpose of the article is to clarify the content of the increased tax rate as legal instrument
 of taxation, its place in the general tax system, as well as the assumptions and objectives of
 the application thereof. The authors dare to confirm or disprove hypothesis that increased tax
 rates can be considered as specific punitive measure applied to taxpayers.
 The methodology of the research includes the analysis of Constitution and legislation of Republic of Lithuania, system analysis, logical-analytical method, formal-legal interpretation of
 Lithuanian laws.
 The main results, scope of application. An increase in the tax rate means exceptional taxation
 conditions opposite to the application of tax reliefs. It should be noted that if the application
 of the tax reliefs is foreseen in practically all taxes applied in Lithuania, the increase of the tax
 rate is intended only in a few cases. Taxation system of Lithuania sets the possibility to apply
 increased tax rates for real estate, land, natural resources and environmental protection taxes
 if the respective conditions foreseen in legislation are met. This legal regulation forms the distinct legal instrument – the increased tax rate. The increased tax rates is the economic sanction that comes to effect for harmful or illegal behaviour. The consequences of these economic sanctions are very severe what makes this instrument being equal to legal responsibility. Furthermore, this research examines if the higher tax rate might be applied along with
 other forms of legal responsibilities, for example, fine under the tax law. When trying to answer the question whether it is correct to recognize the application of a higher tax rate as a
 legal liability measure, it is necessary to clarify the purposes of its application, the bases (assumptions) that differ in individual taxes. The legal presumption of the application of the calculation of real estate and land taxes at
 the increased rate is the compliance of the object of taxation with certain objective properties established by the legal acts, i.e. abandonment, non-use of the property or the use
 not for the intended purpose, which results in the inclusion of such property in special lists
 of objects subject to levy of increased tax rate. The increased tax rate on state-owned natural resources is applied when the extracted resources are undeclared, the declared quantity of extracted resources is lower than the quantity actually extracted or extraction of
 natural resources is performed without the permit. Therefore, the application of a higher
 tax rate on state natural resources or environmental pollution tax is a consequence of the
 improper performance of their obligations under the relevant tax laws, for the purpose of
 punishing for the breaches of tax laws. Meanwhile, none of the laws enshrining the imposition of an increased tax rate provides for any grounds for exempting the taxpayer from
 paying the increased tax rate.
 Conclusions. The higher tax rate is, in essence, is to be considered a specific punitive measure applied to taxpayers. This is confirmed by the logical analysis of the texts of tax laws.
 The application of the higher tax rate in all cases is determined by violations of legal acts
 (taxes or other) which allow this phenomenon to be seen as a specific form (instrument) of
 legal coercion (liability).

Análisis comparativo de empresas acogidas al régimen especial y su eventual acogimiento al régimen general

Considerando que el régimen tributario establece la manera en la que se pagan los impuestos y los niveles de pagos de los mismos dependiendo del tipo y el tamaño del negocio; esta investigación analiza la diferencia entre el impuesto a la renta de tercera categoría y la utilidad de empresas acogidas al régimen especial, considerando su eventual acogimiento al régimen general; en el centro comercial de Gamarra en el año 2014. Bajo un nivel descriptivo, se explicita, cómo las empresas del régimen especial en un eventual acogimiento al general, pueden pagar un menor impuesto con relación a los gastos deducibles. Según la técnica T de Student, los resultados revelan que existe una diferencia positiva y estadísticamente significativa del impuesto a la renta según los procedimientos del régimen general en relación con el régimen especial (t=8.952; con un p =.000 < .05); es decir, se demuestra que las empresas del régimen especial, acogiéndose al régimen general pagarían un menor impuesto a la renta. Asimismo, existe una diferencia positiva significativa al realizar el cálculo de la utilidad según los procedimientos del régimen general en relación con el régimen especial (t=8.952, con un p =.000 < .05); no obstante, las empresas del régimen especial, acogiéndose al régimen general generarían una menor utilidad. Finalmente, gracias a los corolarios evidentes en el presente estudio, se concluye que existe una diferencia estadísticamente significativa entre el impuesto sobre la renta de tercera categoría, la utilidad entre las empresas del régimen especial y su eventual acogimiento al régimen general, de allí que, si las empresas del régimen especial se acogieran al régimen general pagarían un menor impuesto y obtendrían una mayor utilidad tributaria.

Reform of VAT and special tax regimes: The tax system harmonization

Subject. This article considers the issues of harmonization of tax regimes and reform of special tax ones. Objectives. The article aims to determine areas to improve the tax system, harmonize the General Tax System and special tax regimes, and involve business entities applying special tax regimes in the VAT movement. Methods. For the study, I used the methods of logical analysis and synthesis, induction and deduction. Results. The article offers a concept of harmonization of the General and Simplified Tax Systems, and the Unified Agricultural Tax. As well, the article substantiates the need to combine the Simplified Tax System and Unified Agricultural Tax, and limit the marginal gain for the application of special tax treatments. Conclusions and Relevance. The preconditions that led to the introduction of the Simplified Taxation, Unified Agricultural Tax and Unified Tax on Imputed Income special tax treatments are not relevant today. A fresh approach to special tax regimes is needed in the context of the digitalization of the tax system. The results obtained can be used in legislative activities to reform the tax system.

Selective Fiscal Measures and the Definition of the Relevant Reference Framework in the Light of Cases C‑106/09 P, Commission v Gibraltar and C‑203/16 P, Heitkamp BauHolding v Commission


 
 
 This article examines fiscal State aids and the selectivity condition. Assessing the selectivity is relatively complex in tax matters since it involves the analysis of the general tax system in which the regime under review applies. The focus of this article is on the selectivity analysis and the analysis of the general tax system i.e. the determination of the relevant reference framework. The definition of the relevant reference framework is still open to various interpretations despite the fact that the European Court of Justice has examined selectivity issues in several cases in the 2000s. The Gibraltar judgement has materially broadened the interpretation of the selectivity condition and the application of Article 107(1) TFEU. The Heitkamp BauHolding judgment confirms the interpretation adopted in the Gibraltar judgement, but also defines the scope of Article 107(1) TFEU in more detail. Yet the offset of the selectivity assessment i.e. the determination of the relevant reference system is still receptive to various interpretations.
 
 

ПРОБЛЕМНІ АСПЕКТИ ОПОДАТКУВАННЯ ФІЗИЧНИХ ОСІБ-ПІДПРИЄМЦІВ НА ПРИКЛАДІ ГОТЕЛЬНОГО БІЗНЕСУ

Small business is a social and economic phenomenon. Each of those who take part in it can find their place in this sector of the economy. The state, local authorities, economic partners and entrepreneurs receive positive results from the activities of small enterprises. The role and place of small enterprises in the national economy is better manifested in the functions performed by these enterprises. Small business makes a significant contribution to the formation of a competitive environment. There are several conflicts currently. The first is a conflict between individual entrepreneurs and individuals. The second is a conflict between individual entre-preneurs on a simplified taxation system and a common system. Their taxation and the taxation of others differ from each other, which raises a large number of questions and dissatisfaction.The main purpose of the work is to analyse and identify problematic aspects of taxation of entrepreneurs in Ukraine using the example of the hotel business.A simplified taxation system can be chosen by both individual entrepreneurs and legal en-tities. Since the general system is more complicated in its form of taxation (accounting and repor-ting), more and more entrepreneurs are conducting their activities in a simplified taxation system. Hotels, like any other enterprises, can at their discretion choose a taxation system within the limits proposed by the current legislation. Hotels can use a simplified or general taxation system. These two systems have advantages and disadvantages. Individual entrepreneurs choose the most convenient system for themselves. Basically, they work on a simplified system, and this gives rise to a number of contradictions. If we compare an individual who works for an employer and an individual entrepreneur with the same income, then an individual who works for an employer has a higher tax burden.The article examined the simplified and general taxation systems. These systems have both advantages and disadvantages. Individual entrepreneurs choose the most convenient system for themselves, according to their activities. Choosing a simplified system, individual entrepreneurs have an advantage in choosing a group in which they will carry out activities. This allows you to regulate the amount of income, and subsequently the amount of taxes.

METHODS FOR DETERMINING TAX INCOME IN ACCORDANCE WITH NATIONAL LAW AND IAS 12 “INCOME TAXES”

Introduction. A profit is one of the most important indicators of the financial performance of business entities, as it is a source of financing the costs of their production and social development. The part of the income is withdrawn by the state as an income tax and a source of funding for public expenditure. The understanding of the correct methodology for determining tax profit in accordance with applicable national law and IAS 12 "Income Taxes" is being the most often interest of the accountants and practitioners. Purpose. The purpose of the article is to investigate the methodology for determining tax income in accordance with the Tax Code of Ukraine and national accounting standards. The regulatory approach to research allows for the identification of differences in the regulation of this research object at the national level and in accordance with IAS 12 “Income Taxes”. Methods. To achieve this goal, common scientific methods, both at the empirical and theoretical levels of research were used. The methods of analysis to compare the methodology for determining tax income in accordance with the Tax Code of Ukraine and the corresponding national accounting standard were used. Modeling and abstraction techniques to address the various situations associated with the reflection of income tax by businesses of different ownership were used. Results. The article describes a new methodology for determining taxable income in accordance with the rules of national legislation and gives a critical analysis of new changes in the Tax Code of Ukraine. There are two options for finding a business entity on the general tax system; regular correspondence on accounting for income tax on ordinary activities have been clarified. For the first time the method of determining tax profit (loss) according to the Tax Code of Ukraine and national standards has been compared; the composition of information on the main components of income tax expense and information subject to separate disclosure under IAS 12 “Income Taxes” has been systematized. The snippet of the Income tax declaration on the decision not to apply tax differences is given. Discussion. To increase the level of objectivity and materiality of the information on tax profit presentation presented in the financial statements, it is necessary to search for trade-offs between accounting and tax concepts within a common ideology. The results have shown that tax changes are not always made public in the proper explanation and are being challenged by users (accountants) who have different interests. The consideration of the method for determining tax income allows us to argue that the international standards more broadly define the criteria for recognizing and reflecting in the financial statement current income tax.

ОЦЕНКА НАЛОГОВОЙ НАГРУЗКИ МАЛОМАСШТАБНОЙ ПИЩЕВОЙ ПРОМЫШЛЕННОСТИ

The observed high shadow activity in small business requires scientific search for the causes of this institutional trap. Tax burden is considered to be a key factor of its existence. The study is aimed at assessing tax burden of small industrial enterprises in terms of its adequacy to developed countries. Methodology of the study is based on the supply-side economics theory, namely the well-known concept of the Laffer curve. The research applies classical methods such as tax burden calculation, economic modeling based on small food industry, as well as comparative analysis of tax burden in Russia with the same taxation in a country with high level of small business development (USA). Such business formats as an individual entrepreneur (similar to the US Sole Proprietorships) and OOO (similar to the US – Limited Liability Company) are considered. The comparison allows us to make a conclusion on tax burden adequacy in the Russian Federation for small industrial enterprises, subject to availability of special tax regimes in the form of Patent tax system and Unified Imputed Income Tax (UIIT). Another important conclusion of the article is that small business, which has no opportunity and benefits to apply special regimes, bears increased tax burden (compared to the United States) due to General tax system.

СПРОЩЕНА СИСТЕМА ОПОДАТКУВАННЯ: СУЧАСНИЙ СТАН, ПЕРЕВАГИ, НЕДОЛІКИ ТА ПЕРСПЕКТИВИ

UDC 336.2; JEL Classification: H 30Purpose. Investigation of the peculiarities of the enterprise different taxation systems functioning. Formation of actions algorithm for enterprise when choosing an effective taxation system in accordance with the main activity aspects. Methodology of research. Analysis and synthesis methods, logical analysis method were used during the study. Research information resources were electronic information resources and periodical material. Results. Today there is a rather exhaustive list of applying conditions of different taxation systems according to the peculiarities of a enterprise functioning. However, the choice a general or simplified tax system has certain advantages, disadvantages, and consequences. The main advantages of the general system of taxation: taxation solely the financial result of the enterprise; reduced tax rate at dividend payment; no need for quarterly income control; lack of restrictions for expansion of activities; no restrictions on the number of employees; no restrictions at the choice of activity kind. The benefits of applying a simplified tax system are a significant reduction in the tax list; significant simplification of accounting and reporting; the right not to use RST; the right to choose whether or not to pay VAT; payment of the fixed tax in the first and second group, regardless of the actual level of profitability and income, if the activity is highly profitable. Therefore, at choice of taxation system, the business owner should analyze the type of activity, the need to use barter operations, netting, the need to use hired labor, seasonal fluctuations in the income volume, the level of enterprise profitability, should formulate a tax burden forecast for each taxation system. Originality. The list of disadvantages and advantages of different systems of enterprise taxation is determined. The algorithm of the enterprise actions at the choice of the optimum tax system is formed. Practical value. The findings will be able to use by researchers, business owners, and executives at selection of an effective tax system.