General Tax System Research Articles

Підходи до реформування спрощеної системи оподаткування в умовах реалізації Національної стратегії доходів до 2030 року

Introduction. Subjects of small and medium-sized enterprises in global fiscal practice can be taxed either under the general tax system or through simplified tax regimes. The application of such taxation regimes is determined by a number of their advantages and is established at certain stages of the socio-economic development of the state. Problem Statement. In the conditions of Ukraine's European integration and a critical shortage of financial resources, there is an urgent need to reform the simplified taxation system in Ukraine. The National Revenue Strategy until 2030 (hereinafter - the Strategy) outlines the reasons and main directions of reform. Its main objective, in this regard, is to establish incentives for business entities to transition from a simplified to a general taxation system. Purpose.To substantiate the approaches to the development and operation of a simplified taxation system, and to form proposals for its design in Ukraine in line with the implementation of the Strategy. Methods. The research employed a variety of general scientific and specialized methods, including logical analysis, synthesis, induction and deduction, description, theoretical generalization, abstract-logical reasoning, critical analysis, comparison, and expert evaluation. Results. Based on the analysis of the negative and positive aspects of the operation of the simplified taxation system in Ukraine, the expediency of its preservation with the elimination of negative aspects and taking into account the needs of the socio-economic development of the state is substantiated. Key areas and approaches to the design of a simplified taxation system in Ukraine are determined. Proposals have been made to define individual elements of the simplified system in the context of the implementation of the Strategy. Conclusions. The study of the methodological foundations of the design of certain spheres of simplified taxation regimes reveals the existence of several alternatives in the selection of approaches to their formation. These approaches are influenced by the macroeconomic situation in the state and the choice of tasks to be achieved when introducing or reforming the simplified regime. The authors outlined proposals for the design of a simplified taxation system in Ukraine, highlighting key areas and evaluating the extent to which these proposals are reflected in the Strategy.

Characteristics of the legal status of an individual entrepreneur

The article examines the peculiarities of the legal status of an individual entrepreneur in the course of entrepreneurial activity. The relevance of the study lies in the fact that an individual entrepreneur is the most popular form of doing business in Ukraine due to a fairly simple registration procedure, low administration costs, and the possibility to use the simplified taxation system The purpose of the article is to determine the main characteristics of the legal status of an individual entrepreneur. The author examines the interpretation of the concept of an individual entrepreneur in the legal literature. The author establishes that the legal status of an individual entrepreneur is the legal status which certifies the right of a citizen to engage in entrepreneurial activity, in particular, independent, systematic, initiative, at his/her own risk economic activity carried out by an entrepreneur with a view to achieving certain economic and social results and making a profit. The author considers the main legal acts regulating the activities of individual entrepreneurs in Ukraine, in particular, the Constitution of Ukraine, the Civil Code of Ukraine, the Commercial Code of Ukraine, the Tax Code of Ukraine, the Law of Ukraine «On State Registration of Legal Entities, Individual Entrepreneurs and Public Organisations», decrees of the President of Ukraine, resolutions of the Verkhovna Rada of Ukraine, and resolutions of the Cabinet of Ministers of Ukraine. The author analyses the peculiarities of registration of individual entrepreneurs, their basic rights and obligations. The author identifies the peculiarities of taxation of activities of an individual entrepreneur, in particular, the peculiarities of the general and simplified taxation systems. The general taxation system provides for the payment of personal income tax on a progressive scale, as well as military duty and a single social contribution. The simplified taxation system is divided into several groups, each of which has its own restrictions on the amount of income and the number of employees. The most popular is the second group, which allows you to run a business without employees and with a limit on income up to a certain amount. The article briefly describes how the beginning of the full-scale invasion and martial law affected the activities of individual entrepreneurs.

The Hungarian Retail Sales Tax in the Changing EU Context

In the last twenty years, Hungary has had three periods of special taxes (introduced as a result of the crises), but before and after 2010, and after the recession following the COVID-19 epidemic and the Russian-Ukrainian war, there were different legal policy reasons behind special taxes (including the retail sales tax). This raises questions as to whether the regulatory solutions implemented to address market failures during the first period are playing the same role today as they did in the past, and how their role has changed over the years. The introduced taxes often remain part of the general tax system, i.e. they are applied on a permanent basis (rather than on a temporary basis, as is usual with special taxes), and in 2023 they already accounted for almost 14% of total tax revenue (a higher proportion than, for example, corporate tax), which puts their role in the tax system in a different light. The Court of Justice of the European Union (CJEU) has repeatedly examined the EU framework, but it appears that the control has been weakened, mainly due to the impact of the current crises. At the same time, the Hungarian Constitutional Court is bound by the limits of the debt brake when examining the constitutional framework. The study explores the regulation of the Hungarian retail sales tax and its EU context, in particular with regard to the changes triggered by the crises. The introduced taxes often remain part of the general tax system, i.e. they are not applied on a temporary basis, and in 2023 they already accounted for almost 14% of total tax revenue (a higher rate than, for example, corporate tax), which puts their place in the tax system in a different light. The Court of Justice of the European Union (CJEU) has repeatedly examined the EU framework, but it appears that the control has been weakened, mainly due to the impact of the current crises, while the Hungarian Constitutional Court is bound by the limits of the debt brake when examining the constitutional framework.The study deals with the regulation of the Hungarian retail sales tax and its EU context, in particular with regard to the changes induced by the crises.

Development of the methodology of taxation of agricultural enterprises in the context of digitalization

According to the norms of Russian legislation taxpayers by default fall under the general system of taxation. Developing financial and economic activities, enterprises, including agricultural enterprises can apply different tax regimes: the transition, for example, to a simplified taxation system, unified agricultural tax, patent system, etc., is carried out at the initiative of the payer, i.e. is of notification nature. Since for the business owner the decisive moment is the total tax payments (tax burden), the issues of its optimization are of particular relevance. In the course of work we analyzed and systematized the norms of tax legislation of the Russian Federation and the Republic of Tatarstan, processed data on taxes and fees posted on the official website of the Federal Tax Service of Russia, using the economic and statistical method. The result of the research is the choice of optimal tax burden for agricultural enterprises of small business including the use of information technologies in order to increase the efficiency of their activities.

ФІНАНСОВА І НЕФІНАНСОВА ЗВІТНІСТЬ ГАЛУЗІ ТУРИЗМУ УКРАЇНИ – НА ШЛЯХУ ДО ЄС

The aim of the research was the theoretical justification and improvement of the disclosure of financial and non-financial information of the subjects of tourism activity on the way to the harmonization of the legislation of Ukraine with the legislation of the EU. Tourist activities in Ukraine are carried out by: tourist operators and agents, as well as other business entities that are legal entities or may be persons – entrepreneurs. The determination of the type of business entity depending on the organizational and legal form and certain criteria according to the Law of Ukraine "On accounting and financial reporting in Ukraine" is the basis of the choice of simplified or full financial reporting and the right to a simplified system of taxation and accounting. Sole proprietorships who are on the simplified or general taxation system, employed in tourism, submit only tax reporting to the relevant authorities. Travel agents and operators registered as legal entities, which are micro or small undertakings, independently determine the feasibility of drawing up financial statements and decide which set to submit: simplified or full financial statements. The authors made a comparison of financial statements according to NR(S)A and EU Directives. The EU directive significantly simplifies financial reporting for micro undertakings. Ukrainian legislation requires more detailed information about the assets, liabilities and capital of a small business. However, the EU Directive recommends much more detailed data on the income and expenses of such enterprises in the profit and loss statement and separately in the notes. Large undertakings in the tourism industry publish financial statements according to International Financial Reporting Standards on their web page or website. In addition, large undertakings disclose financial and non-financial information about the business in the management statement. This is the first non-financial report that has become mandatory for Ukrainian large and medium-sized undertakings. The article discusses the disclosure of non-financial information in statements in accordance with the new EU Corporate Sustainability Reporting Directive, and the determination of the stages of introducing sustainable development reporting during 2024–2028. We believe that the presentation of data on social responsibility and sustainable development by tourism campaigns will have a positive effect on their investment attractiveness.

A COMMISSION-BASED BUSINESS MODEL FOR B2B VENDING-MACHINE BUSINESSES: THE LEAST COMMON DENOMINATOR OF THE TAXATION SYSTEMS IN JAPAN, UKRAINE, AND THE USA

The war devastated many aspects of life in Ukraine. The digital economy does not function without the proper working physical infrastructure, and vice versa. The world has two prominent economies that continually and successfully overcome massive-scale destruction of their civil infrastructure due to recurring natural disasters, namely Japan and the the USA. The short-term and long-term fiscal measures enacted by the government of Ukraine are similar to the ones undertaken by the governments of Japan and the USA. The short-term measures to overcome destruction due to the war, the recurring hurricanes, and the multitude of natural disasters, are comparable in all three countries and are based on short-term fiscal easing. The long-term measures relative to the topic seem to be absent in the USA. However, the long-term measures in Japan and Ukraine coincide directly and consist in the introduction of a special tax to aid recovery and increase robustness of the economy in the face of recurring threats, the military and natural respectively. The biggest difference between the tax laws of Ukraine, Japan, and the USA is the existence of a simplified taxation system in Ukraine. The price to pay for the use of this system is to bear two basic limitations: the requirement to have all operations to be made cash-only and the inability to claim amortization, depreciation, and deductions for tax purposes. However, during drastic economic downturns, the inability to claim losses and offset accounts on books is a heavy burden. The ability to claim losses due to destruction seems to be the main specific mechanism for the administration of fiscal help at times of disasters in Japan and the USA. For these reasons, the general taxation system may be considered a preferable choice during the war. This could allow a business entity to run with little but sufficient margins and remain within the legal field. Any existing vending business can be enhanced with the use of the business-to-business commission agreements proposed here, and that work as follows: the commissioner is providing the client one cell in a vending machine for rent, and the client sells its goods through that cell. In other words, the commissioner takes the duty to sell goods that belong to the client. This way, the B2B vending-machine business receives a guaranteed income that is comparable to the number of such commission-based vending points out of the entire number of its sales points. Besides that, the company frees a part of its liquidity that can be spent on other needs. From the perspective of the client, the agreement gives the ability to have a vending-machine business for only a fraction of the usual expenses. This means that almost any person in Ukraine may have the financial means to start such a business.

Special tax regimes for Small Businesses: Problems of choosing the optimal tax Burden

In accordance with the norms of Russian legislation, taxpayers by default fall under the general taxation system. Developing financial and economic activities, commercial enterprises may apply various tax regimes: transition, for example, to the simplified taxation system (STS), unified agricultural tax, patent system, etc., is carried out at the initiative of the taxpayer, i.e. is of notification nature. It should be noted that due to the restrictions established by the legislation, special tax regimes may be applied not by all taxpayers, but only by those that meet certain criteria, including: the status of the taxpayer (legal entity or individual); type of activity; number of employees in the staff; value of depreciated property; size and composition of income; complexity of accounting and tax accounting, etc. The taxpayer’s status is not subject to special tax regimes. Since the aggregate of tax payments (tax burden) is a defining moment for a business owner, the issues of its optimization become particularly relevant. the purpose of the study is to develop a methodology for determining the tax burden by small businesses applying special tax regimes. In the course of the work we analyzed and systematized the norms of tax legislation of the Russian Federation and the Republic of Tatarstan, generalized economic literature in the field of small business taxation, as well as processed data on taxes and fees posted on the official website of the Federal Tax Service of Russia, using the economic and statistical method. the result of the study is the comparison of two regimes of STS and ASTS (automated simplified taxation system) and the choice of the optimal tax burden for small businesses in order to improve the efficiency of their activities.

Justification of the choice of the taxation system Subjects of entrepreneurial activity

The article is devoted to the problems of taxation of specific business transactions, taking into account the norms of Chapter 21 «Value Added Tax», Chapter 25 «Corporate Income Tax» and Chapter 26.2 «Simplified Taxation System ». Based on the results of the calculations, a comparison of the tax burden was made under the condition of applying the general taxation system or the simplified taxation system. It is proposed to evaluate not only their production and financial results, but also the tax burden (burden) when planning the directions of development of the economic and financial activities of the organization.

PROSPECTS FOR THE APPLICATION OF A SPECIAL TAX REGIME FOR TRANSACTIONS WITH VIRTUAL ASSETS

The article studies the prospects of applying a special tax regime for transactions with virtual assets in Ukraine. Applying existing tax conditions to the virtual asset market will lead to the opposite effect – the complete shadowing of the industry. That is why there is now an urgent need for delayed adoption of the relevant bill, which should ensure the launch of a completely legal and transparent market for virtual assets. Based on the results of the research, a general conclusion was made that applies to both individuals and legal entities – a single tax rate on transactions with virtual assets, in the amount of 5% – even if on the general taxation system, even if on the simplified taxation system – which levels out separately a special tax regime for operations with virtual assets declared and regulated by Law No. 7150.

TAXATION OF AGRICULTURAL PRODUCERS: STATE, PROBLEMS AND PROSPECTS

The article is devoted to researching the current state, clarifying problems, and developing directions for optimizing the taxation of agricultural commodity producers. It has been proven that the agricultural producer in Ukraine is mostly represented by small business entities. It was emphasized that when implementing the minimum tax obligation, it is necessary to balance the interests of the state and taxpayers producing agricultural products on their own lands. The publication substantiates the directions for ensuring the conditions for optimizing the application of the general system of taxation by agricultural commodity producers, taking into account the specifics of agricultural commodity producers under the conditions of creating incentives for the introduction of innovative technologies and technological development. The peculiarities, advantages, and disadvantages of the application of the minimum tax liability are considered, and directions for its optimization are determined.

Some Features of Taxation of Business Subjects Under the Conditions of Martial State

Problem setting. The creation of an effective system of taxation of business entities is one of the main conditions for the effective functioning of the country’s economy and finances, in addition to the fact that the state ensures the redistribution of the gross domestic product and forms centralized and decentralized funds that affect not only the state’s ability to perform its functions, but also and economic status of economic agents. It is precisely in connection with this that, when forming the tax system, the state must take into account the world experience of its construction on generally accepted principles. Analysis of recent researches and publications. The works of such legal scholars and economists as V.O. Ryadinska, K.O. Tokareva, D.A. Kobylnyk, M.P. Kucheryavenko were devoted to the issue of taxation of economic entities, including under martial law. Ovcharenko A.S., Melnyk T.Y., Ivanishyna O.S., Demidenko L.S. and other. Target of the research is to clarify the peculiarities of taxation of business entities under martial law and to determine the main features and problematic issues of such taxation under martial law. Article’s main body. The article examines the peculiarities of taxation of business entities under martial law. It was noted that with the beginning of the full-scale invasion of Russian troops on our territory on February 24, 2022, the functioning of the entire social and state mechanism of Ukraine underwent forced changes. Such changes did not bypass the sphere of activity of business entities, in particular, the taxation of their activities. It is emphasized that from April 1, 2022, a new taxation model, which operates under martial law, was put into effect. It provides for the possibility of business entities to choose a special taxation regime. The introduced special taxation regime provides that taxpayers of the third group will pay a single tax of 2% of income. However, it is not enough to ensure the problem of VAT settlement from the book value of inventory balances, noncurrent assets, since the provisions on the exemption from VAT taxation of transitory balances of non-current assets have not been clarified, because before that, in the event of a change from the general taxation system to a simplified one, the VAT payer will be required to calculate tax liabilities for the following balances. Conclusions and prospects for the development. As a conclusion, it is emphasized that the introduced tax changes enable business entities to save money on paying taxes and invest them in further economic activity and thus support and develop it. At the same time, business entities must support the Ukrainian economy and, if possible, pay taxes (on a voluntary basis) and fill the budget so that the state can perform its functions. In the future, it is necessary to implement operational deregulation and update the state policy in the direction of tax and customs spheres.

Financial accounting and reporting of small business entities: the simplified tax system

This paper considers a simplified taxation mechanism used by small business entities. The state is most interested in the development of small businesses. Small enterprises create jobs, increase revenues to the state budget and fill market segments that are closed to large enterprises. The complexity of financial accounting and compliance with the rules of the general taxation system were an obstacle for many people to officially register as entrepreneurs. Aware of this, the government developed measures to detinize the work of self-employed persons, providing them with comfortable working conditions. And it is the presence of a simplified taxation system that is one of the main tools for this today. During her work, she has already managed to show herself as a useful and popular tool, which is chosen not only by aspiring startups, but also by experienced businessmen. More and more small businesses choose to switch to a simplified system of taxation, accounting and reporting. Such a step is appropriate, because it allows to reduce the tax burden and, as a result, to have more resources for growth. It also simplifies financial accounting and reporting, which reduces the risk of making mistakes and, as a result, paying fines. All highly developed countries prioritize the development of small businesses and apply a simplified taxation system. Ukraine is oriented towards international standards, therefore the improvement of taxation is currently in the center of attention of scientific and public opinion. In order to contribute to the research of this important topic, we will consider a number of theoretical, organizational and practical aspects of the simplified taxation system and propose ways to improve it in this paper.

Features of determining the average number of employees by medical organizations

Quite often, companies and individual entrepreneurs engaged in medical activities face the need to calculate the average number of employees. The correct calculation of this indicator is especially important for organizations and entrepreneurs applying a simplified or patent taxation system, in which one of the conditions for applying the regime is not exceeding the average number of employees of a certain limit. This indicator will be very important in the event of a transition of medical organizations or individual entrepreneurs to an automated simplified taxation system. Organizations on the general taxation system are also obliged to calculate the average number of employees for certain types of reporting. The article considers the indicators that make up the average number of employees. The peculiarities of calculating the average number of employees of the organization, the average number of external part-time employees and the average number of employees who performed work under civil law contracts were analyzed. Practical examples of calculation of the average number of employees and its individual indicators are given.

Особый режим налогообложения российских ИТ-компаний: от выбора преференций до налогового маневра в отрасли

IT industry is noticeably distinguished by the tax support provided to it in the Russian economy. Nowadays software companies are treated as main contributors to national technological breakthrough being one of the main priorities of federal tax policy. Tax maneuver of 2021 significantly changed well-known tax rules, but some of novelties became a logical development of previously implemented measures. We systematize them by following our classification that introduces three main phases, all of which provided a qualitative update of the previous taxation framework, and for analysis consider particular reliefs as a unified, specific tax regime integrated in the general taxation system. The purpose of the article is to identify priorities and evaluate effectiveness of mechanisms designed to stimulate IT companies, including a preliminary assessment of valid perimeter and performance of the maneuver. Obtained results indicate that the tax regime initially given to software business had a bad design, an extremely narrow scope of beneficiaries and, due to this, a little effect on the IT industry; modernization of that design with the revision of basics was necessary at least in order to stop the decline of IT industry in the part of small companies. However, the main trend of recent tax policy demonstrates a strengthening of sustainable business with comparative fall of competitiveness of beginning entrepreneurs. In sum, the tax maneuver has a positive economic impact but covers, according to our estimates, less than 20% of IT companies.

ФІНАНСОВА ТА ПОДАТКОВА ЗВІТНІСТЬ УКРАЇНСЬКИХ ПІДПРИЄМСТВ ПІД ЧАС ВОЄННОГО СТАНУ

During the period of martial law in Ukraine, most business entities did not stop their activities or resumed them after a short break. The domestic economy must function, and the state budget must be constantly replenished so that Ukraine can defeat the aggressor as soon as possible. Most companies calculate and pay taxes and fees on time, keep accounting records and prepare financial statements. Individual enterprises, in addition to annual financial statements, are required to prepare and submit interim financial statements to certain users during the reporting calendar year (quarterly, halfyearly, nine months). The issue of the composition and terms of submission of interim and annual financial statements by domestic enterprises that have chosen the general or simplified taxation system under martial law remains unresolved. The procedure for compiling and submitting tax reports to fiscal authorities during the war needs to be clarified. Goal. The purpose of the study is to reveal the theoretical and practical aspects of the preparation and submission of financial and tax reporting by domestic companies in the conditions of martial law. Materials and methods. The methodological basis of the study is the dialectical theory of cognition, a systematic approach to the study and improvement of provisions on the organization and methodology of financial and tax reporting by enterprises during the martial law in Ukraine in order to meet the information needs of interested stakeholders. The methods of generalization, comparison, analysis, synthesis, induction and deduction were used in the process of substantiating the terms of submission of interim and annual financial and tax reports of enterprises during the war in Ukraine. The results. The scientific article reveals the peculiarities of financial and tax reporting under martial law conditions, in particular: the composition and terms of submission of interim financial reporting are revealed; defined deadlines for reporting and paying income tax by companies subject to the general taxation system; clarified issues in the part of the display in the tax reporting of software and PC with VAT regarding transactions for the supply of goods (services) in the customs territory, in the mode of export, import, re-export, re-import, temporary export of goods, etc.; generalized information on tax reporting by business entities that have chosen a simplified taxation system at the rate of 2%; outlined changes in the part of forming and submitting special reports to the supervisory authorities on the ESR, personal income tax and military duty.

ПОДАТКОВО-ОБЛІКОВІ АСПЕКТИ ДІЯЛЬНОСТІ ФІЗИЧНИХ ОСІБ-ПІДПРИЄМЦІВ

Small business is the driving force of the economy. The main part of it is occupied by individual entrepreneurs. In Ukraine, all types of activities are divided into twenty-one sections. In some of them there are from 1 to 7 types of activities, and in one – 24. However, the variety of activities is not related to the number of entrepreneurs who plan to run their business in them. The main sections chosen by business entities in 2022 are trade and information technology. Both activities do not require significant investments. Entrepreneurs are more sensitive to changes in the economy than legal entities, which have formed certain reserves to work in an unfavorable period. Since 2021, there has been a downturn in the economy due to quarantine and subsequent military actions, which has led to a decrease in business activity of business entities. Having analyzed the statistical data, it was found that most entrepreneurs choose the simplified taxation system without VAT registration. This is due to the simplicity of calculating the single tax (or payment of a fixed amount set by local AHs for different types of activities) and reporting, which shows only income without taking into account expenses. The amount of the single social contribution depends only on the minimum wage and the rate of this fee, which has not changed for a long time. Despite the chosen system of taxation, the current legislation provides that reporting is based on accounting data. Therefore, entrepreneurs are obliged to keep records of their activities in an arbitrary or legally approved form. The orders of the Ministry of Finance in 2021 approved the forms of inventory accounting for VAT payers (single tax at the rate of 3%) and entrepreneurs who sell medicines, goods for which a guarantee in use and jewelry. Also, the form of accounting of income and expenses is provided for entrepreneurs on the general taxation system and persons engaged in independent professional activities. The advantages of the general system of taxation for entrepreneurs is the possibility not to pay the unified social tax in unprofitable months, but such a month will not be counted when determining the length of service. Entrepreneurs on the simplified taxation system have restrictions on the number of employees. Regulation of their remuneration for both entrepreneurs and legal entities is the same. In the general system of taxation, the availability of primary documents for their purchase and payment is required to confirm the expenses incurred in the activity. The calculation of the financial performance of entrepreneurs only by the balance of funds on the account is considered incorrect, as it does not take into account the main economic categories – income and expenses.

Переработка семян масличных культур в сельскохозяйственных организациях Красноярского края и выбор налоговой стратегии

The article assesses the feasibility and effectiveness of the project for the processing of oilseeds, the industrial production of vegetable oils and feed products in the Krasnoyarsk Territory. The results of a marketing study of the oil and fat products market and a positioning option for an unconventional group of vegetable oils are presented. The analysis of the financial and economic activities of the leading enterprise of the agro-industrial complex of the Krasnoyarsk Territory, specializing in breeding, production and sale of elite seeds of wheat, barley, oats, was carried out; the prospects for organizing the production of oilseeds processing on its basis were determined. The connection of the project with the need to achieve the strategic goal of the region in meeting the needs of the population in locally produced products and a complex socio-economic effect (jobs, tax deductions) is reflected. The costs of the project and the main financial and economic performance indicators are presented. Options for taxation in the implementation of a project for the processing of oilseeds are considered, and the tax burden is determined. Directions for optimizing taxation and improving the financial results of economic activity in the implementation of a project for the processing of oilseeds are proposed. It is proved that for the leading enterprise of the agro-industrial complex of the Krasnoyarsk Territory, when implementing a project for the processing of oilseeds, it is advisable to apply the general taxation system.

ЕКОНОМІЧНЕ ЗНАЧЕННЯ ПРОЖИТКОВОГО МІНІМУМУ НА ДІЯЛЬНІСТЬ СУБ’ЄКТІВ МАЛОГО ПІДПРИЄМНИЦТВА

The article is devoted to the study of the economic significance of the subsistence minimum on the activities of small business entities. The dynamics of the living wage for able-bodied persons for the years 2018–2022 have been analyzed. The approved level of the subsistence minimum for 2023 in accordance with the Law of Ukraine "On the State Budget for 2023" was considered. The size and value of indicators in the activities of small business entities, which are tied to the subsistence minimum in 2023, were analyzed. The single tax rates, annual income limits and the size of the single social contribution for individual entrepreneurs in 2023 were studied. It was found that the subsistence minimum is defined as the value of a set of food products sufficient to ensure the normal functioning of the human body and preserve its health, as well as a minimum set of non-food goods and a minimum set of services necessary to satisfy the basic social and cultural needs of an individual. In general, it was discovered that the indicator of the level of subsistence minimum has a significant impact on the economic activity of a small business, as it is used in the calculations of the minimum wage, the amount of the single tax rate (ten percent of the subsistence minimum for an able-bodied person) , the amount of tax social benefits (this value is used in the calculation of personal income tax), the amount of alimony and calculation of wages: salary minimum (the official salary must be at least the subsistence minimum for an able-bodied person) and salary indexation (wages are indexed within the subsistence minimum for an able-bodied person) . The tax burden on the first group of individual entrepreneurs is also increasing, which makes it necessary for these business entities to take into account the established annual income limits for 2023 in order to prevent the transition to another group of the single tax or to the general taxation system. The adopted Law of Ukraine "On the State Budget for 2023" provides for an increase in the subsistence minimum, which requires further analysis of the impact and calculation of tax rates for small business entities.

Progressive turnover-based tax systems and EU state aid law: Case C-562/19 P Commission v. Poland and Case C-596/19 P Commission v. Hungary

In Commission v. Poland (C-562/19) and Commission v. Hungary (C-596/19) the Court of Justice of the European Union ruled that progressive tax systems based on turnover do not by definition provide selective advantages to undertakings with lower turnovers in violation of EU state aid law. The European Commission had declared a Polish tax on retailers and a Hungarian tax on advertisement incompatible with Article 107(1) TFEU because the progressive, turnover-based taxes favoured undertakings with smaller turnovers over those with larger turnovers. The General Court annulled both Commission decisions because such advantages were inherent to the content and objectives of the general tax system, which was for Poland and Hungary to define. The Court of Justice dismissed the appeals by the Commission, affirming that Member States are free, in line with their fiscal autonomy, to opt for a progressive and/or turnover-based tax system. While turnover-based corporate taxation may have market-distortive effects, the Court was right to dismiss the Commission's appeals. The principles of fiscal autonomy and legal certainty require an assessment of selectivity in light of Member States’ own definition of the content and objectives of their tax systems.

Taxation of agricultural enterprises: Ukraine practice and international trends

The article highlights the existing practice of taxation of agricultural enterprises in Ukraine, analyzes the size of the single tax for agricultural producers in comparison with the amount of tax for the general taxation system. The main approaches to the taxation of agricultural producers in European practice are highlighted. The world experience in supporting agriculture is considered. The proposals for improving the taxation of agricultural enterprises in Ukraine in the context of its differentiation in relation to the size of business entities are considered.