Special Tax Research Articles

Mobility Responses to Special Tax Regimes for the Super-Rich: Evidence from Switzerland

Abstract We use a novel rich-list dataset to estimate the sensitivity of the location choice of super-rich foreigners to a special tax regime, under which wealthy foreigners are taxed based on their living expenses, rather than their true income and wealth. We are the first to show that when some Swiss cantons repealed this controversial policy, their stock of super-rich foreigners dropped by 43% as a consequence. We find no response for the Swiss super-rich, who were unaffected by the policy change. The implied wealth and income tax mobility elasticities range between 28.4–32.2 and 1.4–1.5, respectively.

The Tax Incidence and Tax Pass-Through of Smokeless Tobacco in the US

Background: States adopt different tax bases for smokeless tobacco (SLT), making tax incidence on SLT not directly comparable across states. In addition, how taxes are passed through to SLT prices among states that impose specific taxes, and whether the pass-through rates for SLT are affected by the uptake and evolution of e-cigarettes, is unknown. Objective: This study will calculate the tax incidence on SLT and investigate how SLT taxes are passed to prices at the 25th, 50th, and 75th percentile levels, as well as whether these pass-through rates vary by e-cigarette uptake and evolution. Methods: We regressed SLT prices on specific taxes using ordinary least square regressions while controlling for state-, year-, and quarter-fixed effects. We then tested the difference in tax pass-through rates by different periods. Findings: The average tax incidence on chewing tobacco, moist snuff, dry snuff, and snus was 22%, 22%, 23%, and 20%, respectively. For moist snuff, taxes were fully passed to prices at the 25th and 50th percentiles (rate = 1.01, p < 0.001) and overly passed to prices at the 75th percentile (rate = 1.25, p < 0.001). The e-cigarette uptake and evolution significantly raised taxes by 13 cents and 14 cents per ounce, respectively, for moist snuff at the 75th percentile prices (p < 0.05). Conclusions: If harm is considered a criterion for taxing tobacco products, the tax incidence on SLT could be further increased. Considering that lower-priced SLT have lower tax pass-through rates, price promotion restrictions and minimum pricing laws may be needed to increase the cost of lower-priced products. Additionally, we observed that tobacco companies tended to increase tax pass-through for premium SLT products as e-cigarettes gained popularity, which may indicate a strategic response to shifting consumer preferences.

Policy Note: Special Taxes for Special Times? A Critical Analysis of Fiscal Crisis Responses with an Earmarking Feature in the Context of EU Law

Do special times require special taxes? The answer may not be the same from a legal, political, or economic perspective. One type of answer that legislators in Europe – both on the national and the supranational level – have given to the crises that make our times special are fiscal measures targeting extraordinary profits, revenues, or even assets while reserving the collected revenue for specific purposes. This article discusses the arguments for and against such earmarked crisis response measures in the context of their implications in the framework of EU law. It argues that specific earmarks may be attractive for reasons of political psychology such as health expenditure or inflation relief for households and firms. However, they may have unintended legal consequences by putting the respective measure into the scope of other legal regimes such as social security or banking regulation. The article contributes to the current debate about appropriate fiscal measures in times of crisis by pointing to examples of such direct and indirect interactions with primary or secondary EU law based on earmarking.

Current paths of tax for business entities: Financial, economic and legal aspects

The article aims to investigate the ways of optimizing taxation for business entities in Ukraine to enhance the efficiency of the domestic taxation system and analyze the economic and legal aspects of establishing a new model of relations between businesses and fiscal authorities in alignment with European tax standards. The authors examine the economic and legal dimensions of current trends in tax optimization for profits generated from business activities, value-added goods and services, transactions involving excisable goods, as well as taxation on various forms of income, property, and property rights of business entities. Legislative improvements related to taxation and financial mechanisms for determining and collecting specific taxes, such as income tax and a single tax, are discussed. This study addresses the pressing issues surrounding legislative provisions on business entity taxation and proposes methods for enhancing tax optimization strategies within each entity. The authors emphasize the significance of developing a tailored tax policy for businesses to manage financial stability, guide economic activities, and ensure compliance with tax obligations. The authors present applicable recommendations for optimizing taxation practices and enhancing financial mechanisms for tax assessment and collection within business entities. Their insights shed light on the importance of strategic tax policy development to navigate tax responsibilities and plan for future financial obligations effectively. This research provides practical recommendations for policymakers and business leaders to improve tax optimization strategies, ensuring that businesses can operate efficiently while fulfilling their tax obligations in a manner that aligns with European standards.

Assessment of Spatial Proportions of the Tax Potential of Small and Medium Enterprises in a Resource Type Region

Purpose of the study – to determine the spatial structure and concentration of tax revenues from the activities of small and medium enterprises (SMEs) in municipal entities of the resource-type region (based on materials from the Kemerovo Region – Kuzbass), to characterize their compliance with the needs of local budgets.Materials and methods. The data on total tax revenues from SMEs, specific revenues per small and medium enterprise, in relation to population indexes, the total number of SMEs, the presence or absence of coal mining in the municipality were used. The coefficients of variation and oscillation, Atkinson index, the coefficient of paired correlation, Gatev coefficient, and the paired Student t-test were applied. The calculations were performed in the SPSS 19.0 program and the free software “R”.Results. The Kemerovo region – Kuzbass is characterized by high levels of spatial concentration of revenues from SMEs by municipalities, spatial inequality for this index. This is explained by not only the differences in the level of economic and business development between the centers and the periphery, but also by a large gap between municipalities in terms of population (10 times or more). The concentration and inequality of tax potential by municipalities in 2023 increased compared to 2021. The absolute values of revenues from special tax regimes and the population of municipalities have a very high level of correlation. Gatev coefficient (where another calculation method related to specific weights is used) showed a moderate degree of difference in the structures of these indexes. The center is ahead of the periphery in terms of the share of SMEs in the tax potential. Spatial inequality in revenues per one SME entity is moderate; in 2023, compared to 2021, a tendency towards an increase in this index was revealed. The leading positions are occupied by the Novokuznetsk municipal district (which is partly explained by the agglomeration effect of Novokuznetsk), Tashtagolsky municipal district (rapid development of the national resort of Sheregesh). The largest urban centers (Kemerovo, Novokuznetsk urban districts) occupy only third and fourth place. The absolute value of the tax potential of SMEs, as well as specific revenues from special tax regimes per one SME entity do not depend on the presence of a developed coal industry in the municipality.Conclusion. The study demonstrates spatial proportions and spatial inequality of municipalities in terms of SME tax potential, taking into account the specifics of resource-type regions. The presented methodological approach can be used to study a similar subject area in other regions dependent on mineral extraction. The findings of the study demonstrate the potential of SMEs in ensuring budget balance at the local level in the face of risks of declining coal production.

Reduction of the tax burden as a mechanism for stimulating business development in rural areas

The article is devoted to the study of both theoretical aspects of tax stimulation of the development of entrepreneurship in rural areas, as well as the preferential norms for taxation of enterprises that carry out their economic activities in rural areas, provided for in the current legislation of Ukraine, as one of the effective ways of stimulating their development. The relevance of this issue, especially in the conditions of the full-scale armed aggression of the Russian Federation against Ukraine, is confirmed both in scientific circles and by the survey of business representatives, including micro, small and medium-sized enterprises, conducted after the start of the full-scale invasion. The norms of the current legislation of Ukraine on such main directions of tax stimulation of the development of enterprises in rural areas, which were characteristic of the domestic legislation in different periods of its development, were separately studied, such as: write-off and restructuring of tax debt; reduction of the taxation rate by separate taxes; exemption from payment of certain types of taxes and fees (mandatory payments), introduction of special taxation regimes. On the basis of the conducted research, the advantages and disadvantages of each of these mechanisms of tax incentives were analyzed. It was revealed that, as of today, one of the main preferential tax regimes inherent in enterprises carrying out their economic activities in rural areas is a simplified system of taxation, accounting and reporting. Taking this into account, and in the context of government initiatives to impose an additional fiscal burden in the form of a military levy, in particular, on taxpayers of the third group of single taxes, a proposal is made to balance such a burden at least for a part of taxpayers who carry out their activities in the least favorable rural areas, including the territories affected by the consequences of the armed aggression of the Russian Federation against Ukraine, by reducing the taxation rate with a single tax to 2 percent for the period of martial law and for several years after its termination.

Assessment of Property Taxes and their Impact on Real Estate Investment in Plateau State, Nigeria

Taxes imposed on property in the country are characterised by intricate and complex interactions of both traditional, colonial, and modern-day circumstances, and the revenue generated from these taxes is often an important source of finance for the government. In most developing countries, these taxes have led to multiple taxation due to complex, diverse, inadequate, and imperfect information. Thus, this study aims to assess the various property taxes in practice and their impact on real estate investment in Plateau State, Nigeria. The objectives pursued include identifying the various property taxes along with their administering agencies and assessing the impact of these taxes on property investment. The researchers targeted 90 respondents from an estimated population of one million five hundred in the Greater Jos area, and successfully recovered 68 responses through simple random sampling based on the survey conducted among residents. A questionnaire was used to gather the views of taxpayers on multiple taxation and its effects on land and buildings, and the collected data was analysed descriptively. The results revealed that almost all taxpayers in Plateau State pay taxes to the government consistently and to more than two agencies. Furthermore, all tiers of government have their own forms of taxes collected, which have a direct effect on investment. It is therefore recommended, among other measures, that tax collection should be clearly defined and streamlined with respect to which tier of government is responsible for collecting specific taxes on property occupation. This could help reduce, if not eliminate, the issue of taxing the same property multiple times.

Crony Capitalism in Nepali Politics

The objective of this paper is to examine how crony capitalism undermines Nepali politics. The author of this course drew information from both primary and secondary sources, including key informant interviews, academic works by international authors found online, and social media posts. Since this is a qualitative study, the researcher has interpreted the data gathered while performing the research using descriptive and analytical methodologies. The author of the following article intended to elucidate the basic concept of crony capitalism while also revealing Nepali politics and the impact of businesspeople. The article discusses "crony capitalism," a term used to describeunjustified financial gain stemming from unequal administrative and political connections amongst business owners. While non-Western economies are typically linked with the term "crony capitalism," cronyism can arise in any economy due to three main factors. One must exercise caution when identifying cronyism, as what looks like cronyism is often a mediocre solution to an ineffective government program already in place. As a result, cutting cronyism without also cutting the size and reach of the government is challenging. The term "crony capitalism" refers to an economy where the success of corporations is based on close ties between business owners and public authorities. This includes favoritism in the granting of licenses, government subsidies, special tax exemptions, andother forms of interventionist behavior.

Legal Analysis on the Special Land Tax Rates for Industrial Land

Legal Analysis on the Special Land Tax Rates for Industrial Land

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.

Propuesta para desarrollar el turismo y actividades conexas en el área rural (Creación de empresas comunitarias en un enfoque de RSE)

Although there is a law to promote tourism, applying it is difficult due to the current contextual conditions in Bolivia. The objective of the research is to define some regulatory actions that should be developed to encourage the creation of productive community tourism businesses in the area rural, generating incentives for locals. The present work is qualitative descriptive, for this purpose the experiences developed in other countries are compared and based on consultation with experts and inspired by Corporate Social Responsibility (CSR), a proposal is developed that could respond to the peculiarities of this reality. The proposal establishesthe development of specific tax exemptions and a tax incentive from the use of the Corporate Profits Tax (IUE) in coordination between the community companies created and the communities based on their social control, with a differentiated treatment with external investors and in national parks in addition to a State that assumes different roles than those it has traditionally assumed in recent years.

Linking regional investments and revenues at the provincial level to investment loan decisions by local government banks in Indonesia

This study aims to analyze how two different types of investments (local domestic and foreign direct investments at the provincial level) and revenues (booked by the provincial governments, general allocation funds, special allocation funds, local taxes, and retribution) affect investment loan decisions by local government banks in Indonesia. The study uses panel data applying ordinary least squares and multiple linear regression. Thus, 144 data were sampled from 2013 to 2021 from 16 local government banks out of Java Island in 21 provinces in Indonesia. The study found that local domestic investment at the provincial level affects investment loan decisions by local government banks. In contrast, foreign direct investment did not affect lending decisions, indicating that local domestic investment contributes to the real local economy at the provincial level. Different results were found in provincial revenues in the form of general and special allocation funds, which negatively affected loan investment decisions, possibly due to provincial revenues utilized to cover the financial deficit and capital expenditure spent chiefly on imported goods. Additionally, local taxes at the provincial level also negatively affect investment loan decisions, possibly due to fluctuations in local tax collection during COVID-19. However, the study found that local retribution contributes to predicting loan investment decisions, suggesting revenue collection by the governments considering local economic conditions. The study findings suggest that provincial governments should direct investments that can impact the local economy and spend their revenues on goods and services that can drive local economic growth. AcknowledgmentThe investment loan made by local government banks, which is associated with local investment and revenue, is part of a research grant project from the Economics and Business Faculty of Hasanuddin University. This project is a result of collaboration with national and international researchers. In carrying out this research, some inputs from people working in local government banks, financial service authorities, and provincial and regency governments are addressed.Thanks to Ahmadi Usman for secondary data and Syahidah Ulhaq for some application programs enabling mapping literature, as well as Israa Natiq Jabar for supervising the result and applied some inputs in the section of research method.

Preferential Personal Income Tax Regimes in the European Union: A New Form of Permitted (Harmful) Tax Competition?

The aim of this contribution is to examine whether the current normative framework of the European Union is adequately equipped to deal with the potentially harmful effects of the so-called preferential personal income tax regimes (PPITRs). For that purpose, after providing an overview of these special tax measures within the EU landscape, the article analyses whether these regimes could be considered a new form of harmful tax competition under the international soft law instruments developed by the OECD and European Union. It is highlighted that these instruments at present do not cover personal income tax rules, although the effects of PPITRs can be as harmful as those of preferential corporate income tax regimes. With regard to other EU instruments (State aid rules, fundamental freedoms and the fundamental right to equality), it is concluded that they are not adequate to tackle in a systematic way the potential harmful effects of special tax regimes targeting individuals. To remedy this hiatus, a proposal is made to extend the mandate of the EU Code of Conduct and adapt the currently applicable criteria under the Code to enable it to capture harmful PPITRs.

Sugar taxation policy and sugar consumption in Malaysia

Malaysia has been taking initiatives to combat obesity as well as non-communicable diseases. A sugar-sweetened beverage (SSBs) tax was proposed in 2014 and implemented in 2019 with an excise duty of RM0.40 per litre for ready-to-drink sugar content. This article aimed to spark a discussion about Malaysia's current sugar tax policies to reduce excessive sugar consumption among Malaysians. However, the alarming rise in the number of obesity and diet-related noncommunicable diseases indicates that the sugar tax control measures are less effective in combating health issues. This study compares Malaysia's neighbours' sugar tax policies and other sugar consumption-related measures. To combat the emerging sugar-related health issues in Malaysia, the government should collaborate with food manufacturers to reduce the amount of sugar in their food production, abate sugar-containing products’ promotion, educate the consequences of excess sugar consumption at all levels of education, apply sugar taxes with lower tax base rate and specific tax rate depends on sugar addition, and form a regional policy between neighbours.

Does the application of industrial robots promote export green transformation? Evidence from Chinese manufacturing enterprises

Green exports are key in propelling China's foreign trade toward high-quality development. Based on rigorous theoretical analysis, this article employs comprehensive data from the International Federation of Robotics (IFR) from 2006 to 2014, along with data from the China Customs and industrial enterprise databases, to evaluate the impact of industrial robot utilization on fostering the green transformation of exports. The results reveal that the application of industrial robots unequivocally contributes to advancing the eco-friendly transformation of exports. This conclusion withstands endogeneity and robustness tests. In particular, industrial robots directly promote the green transformation of exports and exert an indirect influence through technological and scale effects. Technological effects can be divided into technological progress and green production, while scale effects relate to enterprise size and industry competitiveness. In terms of heterogeneity, the promoting effect of industrial robot utilization on the green transformation of exports is more pronounced in foreign-funded enterprises, technology-intensive enterprises, and enterprises in the eastern region. To efficiently leverage policy effects and facilitate the green transformation of exports, this article suggests strengthening policy guidance, providing special funds, tax incentives, and rewards, enhancing enterprise research and development capabilities, and encouraging domestic and non-technology-intensive enterprises, and enterprises in the eastern region to utilize industrial robots.

Аналитическая оценка правового регулирования реализации профессиональных услуг средними медицинскими работниками в качестве дополнительного дохода.

In the Russian Federation, the practice of providing medical services at home by specialists with secondary medical education has developed. Despite the fact that there are currently no direct restrictions on entrepreneurial activity in the Russian Federation, the existing legal framework for the sale of professional services by secondary medical workers contains a number of lacunae that contribute to the development of the shadow economy of healthcare. According to expert estimates, the revenues of the shadow market of medical services in 2023 amounted to 215 billion in real terms. At the same time, services provided to patients outside the framework of the legislation of the Russian Federation may be of poor quality due to non-compliance by performers with standards of medical care, failure to comply with sanitary and epidemiological norms and rules, and lack of control by inspection bodies. The purpose of the study is to use international experience to conduct an analytical assessment of the legal regulation of the sale of professional services by secondary medical professionals as an additional income. Methods and materials. The study analyzed the legislation of six countries: the Russian Federation, the Republic of Kazakhstan, the Republic of Uzbekistan, the Federal Republic of Germany, the French Republic and the Kingdom of Belgium on the provision of paid medical services by specialists with secondary medical education. Results. One of the reasons for the growth of the shadow sector, it seems possible to highlight the problem of excessive legal regulation of the commercial activities of nursing staff. In the Russian Federation, the provision of «nursing» medical services refers to licensed activities. At the same time, the development of current legislation on «self-employment» with the addition of «services of secondary medical personnel» to the list of activities will allow legalizing part of the shadow sector of medical services. According to the above comparative legal analysis, nurses in Uzbekistan, Germany, France and Belgium can work in the statuses of «selfemployed», «Freiberufler», «Entreprise individuelle» and «self-employed», respectively. Each of the statuses allows specialists with secondary professional medical education to provide their services within the legal framework, conclude contracts with patients and maintain medical records without excessive licensing rules, which are presented in the Russian Federation or the Republic of Kazakhstan. Conclusion. Thus, both according to expert estimates and according to the results of a comparative legal study, in order to reduce the size of the shadow sector of medical services, in particular, to legalize the provision of nursing care «at home», it seems rational to add the services of specialists with secondary medical education to the list of activities provided by the self-employed in accordance with Federal Law «On conducting an experiment to establish a special tax regime «Tax on professional income».

The language and motivations of expertise in political discourse

The study aims to explore how language elements of specialised and political communication are represented in parliamentary discourse. Within the ParlaMint corpus, we examine Hungarian parliamentary speeches between 2020 and 2022 on the ‘KATA’ (specific tax of small taxpayer businesses). The specialised terms, terms used in standard language, sentiment and attitude values are analysed. Results show that there is a significant difference in term use and the sentence sentiments between the different discourse participants (policy actors, opposition, governing party). There are only a few emotionless speeches, and no large differences in the proportion of terms and emotions are observed. The results can be relevant for studies on populist communication, the relationship between technocracy and democracy, and the methodological aspects of computer-assisted discourse analysis. The paper also outlines future orientations for research, including extended thematic analysis and investigation of contextual shifts in the actual meaning of terms within political discourse.

Інституціональний базис для регулювання ринку логістичних послуг в україні та її регіонах з боку держави

The transformation of the Ukrainian economy towards market relations has brought to light significant imbalances in the logistics sector. A lack of an adequate theoretical framework and a clear state policy in this area has led to several problems. These include insufficient information support of logistics processes, a limited number of large logistics operators, and a need for more research and development in logistics. These factors complicate the optimization of trade flows and reduce the competitiveness of Ukrainian enterprises, making it an urgent matter that requires immediate attention. This publication aims to provide a detailed study of the system architecture and the evolution of forms of state regulation in the logistics sector. The architecture of the state regulation system in logistics provides a structured and comprehensive approach to managing logistics processes at the state level. It includes several main components that interact to ensure the effective functioning of the logistics services market. It is necessary to implement modern approaches to the state regulation of logistics services to ensure the Ukrainian economy’s sustainable development and improve citizens’ quality of life. These approaches can potentially revolutionize the sector, bringing about significant improvements. In particular, the priority task is to create a single digital window platform that will combine all permitting procedures into a single electronic service. At the same time, the government should actively work on harmonizing Ukrainian customs legislation with European standards, which will significantly simplify customs formalities and speed up the movement of goods. Implementing these measures will help increase the competitiveness of Ukrainian businesses and attract foreign investment, paving the way for a brighter future for the Ukrainian logistics sector. It is crucial to ensure close cooperation between the state and business. Regular consultations, transparency of regulatory procedures, and flexibility of legislation are critical factors for attracting investment and stimulating innovation. Introducing special tax regimes, such as corporate tax rebates for companies investing in infrastructure development and support for start-ups and innovative companies, will help modernize the industry and increase efficiency. However, the most significant step is harmonizing Ukrainian legislation with European standards. This is not just a formality but a significant milestone that will facilitate Ukraine’s integration into the European Economic Area, opening new opportunities for the Ukrainian logistics sector and paving the way for its growth and development. Keywords: state regulation, institutionalism, institutional framework, logistics, logistics sector, logistics regulation.

What are the costs of rigidity? A general equilibrium study of the fuel market in Argentina

The policy that is most widely applied to the biofuel market in the world is the mandatory blend. This policy aims to induce the use of biofuels by setting a minimum level of biofuel per unit of blended fuel. This paper studies the costs and benefits of such a policy. To do so, a Recursive Computable General Equilibrium model (CGE), calibrated with a new own-developed energy-oriented Social Accounting Matrix of Argentina for 2018, has been developed. Such a model is extended by explicitly embedding a constrained fuel blending model into the CGE setup. This research addresses the following questions: What are the costs and benefits of a mandatory blend compared to a full flexibility scenario? Is it better to induce the use of biofuels through a tax on fossil fuels or a blending constraint? What is the impact of international price shocks when considering different blending regimes? This paper finds that the mandatory policy has a negative impact on the economic activity, poverty, income distribution, and energy affordability, but a positive one on emissions. When analysing the convenience of a special tax on fossil fuels instead of a mandatory regime, this paper finds that the cost and benefits of each policy are distributed differently over time. The special tax on fossil fuels performs better in the short run while the mandatory blend does so in the long run. Finally, this paper finds that flexibility in the fuel market improves the country's performance when there are shocks on international prices.

The single tax in Ukraine: reform or repeal

The institution of a simplified taxation system provided for in the tax system of Ukraine is characterized by permanent variability, which is always aimed at achieving an optimal balance between national interests (reduction of the shadow economy sector; attracting funds to budgets; reducing the level of tax administration costs; preventing the use of simplified taxation system in minimization schemes; etc.) and individual interests of taxpayers (reducing the tax burden; promoting the competitiveness of taxpayers; improving the convenience of paying taxes; minimizing the amount of tax reporting; etc.). Since the introduction of the simplified taxation system, it has been significantly transformed and, compared to 1998, is qualitatively better. Despite this, discussions in political and scientific circles about the need to take steps to further modify this special tax regime, up to its complete abolition, do not stop. The article considers the National Revenue Strategy until 2030 approved by the supreme executive body of Ukraine, which defines a medium-term roadmap for reforming tax policy and tax administration in Ukraine. The article outlines the main principles that should be followed in modernizing the national simplified taxation system and considers the goals that the state seeks to achieve through the practical implementation of the approved strategy. The author describes in detail the key measures envisaged by this national strategy for reforming the simplified taxation system, including in the context of Europeanization of the tax system of Ukraine, and points out the uncertainty of certain elements of these measures, which leads to complications in the tax planning process for entities. The author concludes that the approved national strategy, which is aimed at approximating the national tax policy and tax legislation of Ukraine to the provisions of the European Union legislation, provides for depriving legal entities (including agricultural producers) of the right to tax their income with a single tax, and defines measures to tighten the requirements for single tax payers (individual entrepreneurs) and increase their tax burden.