State Budget Revenues Research Articles

Taxation Issues for Digital Financial Assets

The objective of the study is to determine the status of a digital financial asset and the features of its taxation in the Russian Federation and progressive countries. Currently, there are three main taxation models that are used in this area: income tax, corporate income tax, and capital gains tax. The article explores the prospects for introducing the experience of foreign countries in the Russian Federation. The possible changes that may occur in tax regulation are analyzed. The experience of leading countries in the field of legal regulation of the use of digital financial assets and the taxation of cryptocurrency transactions is analyzed. Such an analysis will allow Russia to keep pace with countries with a leading economy and at the same time increase state budget revenue through taxation of cryptocurrency transactions. The study provides an analysis of the conceptual scenarios of digital income taxation and objects of taxation in the process of cryptocurrency creation. The study critically assesses possible options for applying international standards for tax accounting of digital assets. Groups of problematic issues that arise in the tax accounting of digital assets are developed. The prospect of further research is the development of tax accounting methods for each of the established entities for the creation and circulation of digital financial assets in accordance with accounting objects.

Formation of a new paradigm of anti-money laundering: The experience of Ukraine

The increase in the level of money laundering is associated with digitalization and technification of all spheres of society, the globalization of financial markets, the consequences of quarantine measures caused by the COVID-19 pandemic, and the new ways of committing money laundering crimes. The paper aims to identify the peculiarities of anti-money laundering activities in Ukraine and outline approaches to increase the effectiveness of combating money laundering in the country. The current state of the problem of money laundering is analyzed based on the study literary sources, regulatory framework and their discussion in the Ukrainian society. An attempt was made to systematize the factors influencing the increase in the level of money laundering. The consequences of increasing the level of money laundering for Ukraine have been determined: a shortfall in state budget revenues, a decrease in the level of the social sphere financing, reduced living standards of the population. It has been emphasized that there is a need for a comprehensive approach to the problem of money laundering, which will include ongoing training for financial audit specialists, the establishment of special units to investigate money laundering crimes, enshrining the classification of money laundering crimes in regulatory documents and the establishment of criminal liability for their commission.

ЗОВНІШНЯ ТОРГІВЛЯ ТОВАРАМИ ТА КЛЮЧОВІ НАПРЯМИ ЇЇ РОЗВИТКУ В УКРАЇНІ

The article seeks to explore the drastic changes in the modern economic realia in Ukraine which are characterized by intensification of globalization, elimination of barriers that hinder the development of economic relationships with other actors in the world economy. This opens up new opportunities for domestic enterprises to use external factors of development, attract international financial and technological resources, implement production and management best practices, and expand the existing markets. The purpose of this article is to provide insights on the trends of international trade in goods in Ukraine, identify the key vectors to address the international trade challenges in Ukraine and to specify the prospects for further development of international trade in goods. To attain the research objectives, the general research methods have been employed, in particular, the logical approach and generalization, and the methods of statistical and financial analysis – to assess the indicators of export and import of goods in Ukraine. Special emphasis is put on the significant effect from the drop in Ukraine's external turnover with the CIS countries (from 15.2% in 2015 up to 10.8% in 2019). Among the major reasons for the decline in foreign markets trading are geopolitical issues, complete or partial exclusion of Ukrainian enterprises from their direct participation in foreign economic activities, currency instability and volatility of the national economy, etc. According to the results of the study, it is argued that the lag in creating favorable environment to enhance production and international trading along with expanding the state budget revenues (behind imbalanced structure of exchange trade and its low efficiency) will reinforce the structural and investment crisis and extend the period of economic stagnation. All this reduces the opportunities to boost the national economy competitiveness and expand international trading. Thus, there is a need to reconsider the current approaches and actions to gain a competitive edge, in particular this refers to tackling the crisis challenges and facilitate post-crisis economic recovery. The study pinpoints a significant role of exports in shaping Ukraine's economy. Thus exports must become a driver in structural transformation of Ukraine’s economy, both in the short-run and in the medium term perspective. In this context, it is proposed that to continue to foster economic partnerships with the EU and other countries globally, Ukraine needs to accomplish the reforms within the country, in particular, improve the business climate, eliminate corruption and strengthen self-government. The Ukraine's international trade efforts should be aimed at increasing and accelerating exports of Ukrainian goods, implementing import substitution policies to improve Ukraine's trade balance; promoting the optimization of import structure; generating government to support Ukrainian exports, etc. Hence, further development of Ukraine's international trade and its implications for the national economy should rely on a balanced government policy to enhance domestic manufacturing, mitigate crisis effects, overcome unemployment, and strengthen the national currency.

SUKUK NEGARA DAN PEMBANGUNAN INFRASTRUKTUR DI INDONESIA

The economic growth of a country is strongly influenced by the availability of infrastructure that will support various economic activities. The need for the availability of funds and infrastructure development is a dilemma given the limited sources of state budget revenue. The issuance of Sovereign Sukuk (SBSN) is one of the government’s breakthrough to overcome this problem and is expected to be a solution option that can be used for infrastructure financing. This study aims to identify the development and contribution of Sovereign Sukuk (SBSN) for infrastructure development in Indonesia, include during the Covid-19 pandemic. From the results of data analysis using the library research method, its known that Sovereign Sukuk have a role as a source of APBN financing. The issuance of Sovereign Sukuk with various series of sukuk has contributed greatly to the develpoment of the various infrastructure projects in Indonesia. The total value of issuance and outstanding of Sovereign Sukuk also tends to increase every year which shows that Sovereign Sukuk is a financial instrument that is in demand by investors, both institutional investors and retail/individual investors because apart from being able to nvest, investors can also contribute to the country’s development.

Civil society and extractive capacity in authoritarian regimes: empirical evidence from Vietnam

ABSTRACT The relationship between taxation and representation has been widely discussed in democratic contexts, but largely overlooked in authoritarian regimes. Our article aims to fill this gap by analysing the impacts of civil society, which is proxied by non-profit institutions (NPIs), on the state’s extractive capacity in Vietnam. We hypothesize that a rising civil society can constrain autocrats from extracting more revenue via two main channels: by mobilizing the citizens to supervise the rulers and protect vulnerable groups (mobilizing role), as well as by providing public services and thus helping reduce government expenditure (complementary role). Using the case study of Vietnam, our empirical tests employing fixed effects and two-stage least squares confirm a negative relationship between the growth in NPIs’ asset and the state budget revenue and expenditure in the country from 2008 to 2014. Our article contributes to the current literature in two aspects. First, it explores the non-revolutionary impacts of civil society on the autocratic ruler’s extractive capacity. Second, by the operationalization of NPIs, it provides an alternative approach to empirically evaluate the impacts of civil society in non-democratic countries where lack of reliable data remains an inherent issue.

Fiscal policy and oil factor: Evaluation of the effects in global economic development

Research background:Today, the acceptance of fiscal policy decisions necessitates the analysis of policy efficiency with the help of optimization issues, the study of cause-and-effect relationships between budget expenditures and macroeconomic indicators such as economic growth, revenues, and the evaluation of a number of econometric models among all. The need for these areas makes it important to study and analyze the effects of fiscal policy on the economy, which allows to justify the relevance of the topic of the article.Purpose of the article:The article is devoted to the assessment of the fiscal and economic consequences of changes in oil prices in the world market, as well as the study of the relationship between state budget revenues and government expenditure in Azerbaijan. It was revealed that a 1% increase in oil prices, in the long run, increased Azerbaijan’s GDP by 0.52% and state budget expenditures by 0.88%. The calculations allow to conclude that there is a high correlation between government spending and state budget revenues in Azerbaijan. The obtained result indicates a positive relationship between the aforementioned economic variables.Methods:The most common method of analyzing the possible causal relationship between macroeconomic indicators is the causality test proposed by Granger in 1969. However, from a methodological point of view, the application of this test to study the causal relationship between economic indicators requires these indicators to be stationary. This statistical feature can be violated in the case of the economic indicator having the single root elements. To do this, we tested the Unit root problem of the variable using the Augmented Dickey-Fuller test. Simultaneously, a number of other important features of the evaluated models were tested and the adequacy of the models was confirmed.Findings & Value added: As a result of the research, it was determined that there is a short-term and long-term causal relationship between world oil prices and Azerbaijan’s GDP and state budget expenditures. According to the results, a 1 percent increase in oil prices leads to the increase of the current level of GDP growth in Azerbaijan by 0.20 percent in the short term, and by 0.52 percent in the long term. Parallelly, it was revealed that a 1 percent increase in world oil prices leads to a 0.88 percent increase in Azerbaijan’s state budget expenditures in the long run. The correlation between Azerbaijan’s government expenditures and state budget revenues was analyzed, and a high correlation between these two macroeconomic indicators was identified.

Tax Instruments Supporting Science and Research as a Factor of Economic Growth – Evidence from the Slovak Republic

Objective : The main aim of this paper is to provide a united view on the issue of tax instruments supporting science and research in the Slovak republic and to evaluate their impact on state budget revenues. Research Design & Methods : The research question that this paper tries to answer is whether the support of research and development in the Slovak Republic through tax instruments is sustainable and suitable for the business sector. Qualitative and quantitative methods are used in the research. The paper analyzes legislation related to the issue of super deduction in order to identify the factors that affect this tax instrument. At the same time, the authors adopt the descriptive and normative economic approaches. Based on the deduction, procedures are subsequently chosen to quantify selected factors and their impact on state budget revenues in the Slovak Republic. Findings : Apart from the last seven years, the Slovak Republic has been characterized by almost no state support for research and development. However, since 2015, new forms of tax incentives have included the provision of tax relief in the form of a deduction of research and development costs, a patent box, as well as tax breaks for new investments. In 2015, 83 entities claimed a deduction of research and development costs amounting to more than EUR 9 million, while in 2019 the amount of this deduction increased to more than EUR 119 million. The statistics of the Financial Administration of the Slovak Republic also show that small companies with 10 to 49 employees apply the deduction to the highest degree, followed by medium-sized companies with 50 to 249 employees, micro-enterprises with up to 9 employees, and large companies with over 250 employees. The highest rate of deduction of research and development cost in terms of regional distribution was recorded in the Bratislava, Trenčín and Trnava regions. Implications / Recommendations : Tax incentives for research and development encourage investment and are therefore considered an appropriate form of support for the business environment. However, the biggest positive is the duplication of the possibility of claiming costs with respect to the reported corporate tax base. The question arises here: how often should the percentage rate for duplicate costs be changed? The analysis of applicants for a deduction of research and development costs in the Slovak Republic also showed that the number of new applicants for the tax benefit is constantly growing. This may encourage the re-use of such a tax credit in future years. The decrease in the volume of the deduction of research and development costs in 2019, with a 1.5-times increase in its rate, can be assessed negatively. It is clear that the success of this instrument of tax stimulation of private investment in research and development in Slovakia may encounter a barrier such as the inability to claim the costs incurred in the form of a deduction of research and development costs against a sufficient tax base. Contribution : The question arises here: how often should the percentage rate for duplicate costs be changed? The success of this instrument of tax stimulation of private investment in research and development in Slovakia may also run into the barrier of not being able to claim the costs incurred in the form of a deduction of research and development costs against a sufficiently high tax base, especially in the current period, when there has been a significant decline in Slovak companies’ profits. What, then, is the perspective for deducting research and development costs in the pandemic period and in the post-pandemic period, respectively?

МЕРЫ ГОСУДАРСТВЕННОГО РЕГУЛИРОВАНИЯ ЦЕН НА НЕФТЬ И НЕФТЕПРОДУКТЫ КАК УСЛОВИЕ УКРЕПЛЕНИЯ ЭНЕРГЕТИЧЕСКОЙ БЕЗОПАСНОСТИ РОССИИ

The research presented in the article is based on the stable concept that the prices of oil and oil products are the most important factor in the economic development of Russia. A high price increases the profitability of oil companies and state budget revenues, while a low price increases the availability of energy resources for consumers and creates a positive multiplier effect in other sectors of the economy. The author draws attention to the dependence of the domestic economy on energy prices, which, in turn, forces the government to actively regulate this market in accordance with the adopted Doctrine of Russia's energy security. In the article, the author analyzes the possibilities of a compromise between budget replenishment and the tasks of increasing the competitiveness of the entire economy, notes the need for a constant search for measures to stabilize the domestic market, while a set of tools for solving current problems can create problems of strategic stability of the economy in the future. The author's main conclusion based on the results of the study is that the problem of energy security and regulation of oil prices cannot be solved outside the country's general industrial policy and the priority development of high-tech manufacturing industries.

Komparativna analiza efekta evazije poreza preko poreskih rajeva

By looking at the most famous tax havens today, we turn our attention to research that will show the real problems and impact of tax havens on tax evasion. For the mentioned research, we will use a comparative analysis in which the tax system of the EU countries and the countries of tax havens will be included. In all modern countries, personal and corporate income tax are one of the safest sources of state budget revenue. The most significant direct taxes are personal income tax (tax) and corporate income tax.

ЗОВНІШНЬОЕКОНОМІЧНА ДІЯЛЬНІСТЬ УКРАЇНИ: ФІСКАЛЬНІ НАСЛІДКИ

The article considers the peculiarities of Ukraine's foreign economic activity in the development of international economic relations and identifies the impact of the taxation system on the import of goods into Ukraine on the fiscal consequences for domestic priorities. In particular, it is analyzed the share of VAT on imported goods in the structure of state budget revenues for 2016-December 2020, the dynamics of excise tax on goods imported into Ukraine and depending on the object of taxation in 2019, the volume and share of import duties in the structure revenues of the State budget. Particular attention is paid to issues related to the filling of the budget, namely, attention is focused on the structure of objects from which excise tax was paid on imports. In particular, the importance of such tools for regulating foreign economic activity as import duties is revealed, but its share in the structure of customs duties is not the most significant, and VAT charges significantly exceed revenues from customs duties on imports. It is emphasized that the priority task to overcome the existing contradictions in the field of foreign trade should be the introduction of an effective and adequate to the requirements of the time model of foreign economic activity. Because, as the results of a study of the activities of domestic enterprises - subjects of foreign economic activity show, the current model is outdated and inefficient and can not ensure the development of this area. The current state of affairs requires a number of sound management decisions backed by political will and economic expediency, and most importantly, not only in the field of fiscal policy. Therefore, the study of the peculiarities of Ukraine's foreign economic activity in the development of international economic relations and determining the impact of value added tax, excise tax and duties on fiscal consequences for domestic priorities allows us to determine that for a full-fledged solution of this range of issues requires a comprehensive approach and the formation of an appropriate strategy, the fundamental basis of which should be the concept of ensuring the fiscal interests of the state.

Фіскальне навантаження в національній економіці: динамічний аспект

The article is concerned with features of the taxation system in Ukraine. The authors disclose the meaning and structure of the tax system, which, in turn, are determined by tax policy, the latter belonging to the exclusive right of the State that conducts it independently, in accordance with the tasks of socio-economic development. The research is aimed at highlighting the essence of the tax system, analyzing the theoretical-methodological aspects of its development, studying the current state and identify the main problems and prospects of the taxation system in Ukraine, as well as developing proposals for ways to improve it, taking into account the present day requirements of in this sphere of relations. The functions and principles of the taxation system construction are considered. The list of actual problems of the domestic tax system is generated. The reasons and prerequisites for the problems faced by the tax system in the process of its functioning are disclosed. The concept of tax as a key element of the taxation system is distinguished, as well as tax revenues, which is one of the components of the State budget revenues. It is noted that the problems of excessive tax burden and contradiction of tax legislation in Ukrainian realities are especially topical. Statistical indicators are provided, an analysis of the tax and non-tax revenues to the Consolidated Budget of Ukraine is carried out in the context of three budget periods according to the reports on the implementation of budgets of the State Treasury Service of Ukraine; their dynamics are analyzed; appropriate generalizations, conclusions and proposals have been made. The need for further development and improvement of the taxation system, solving the problems of optimization of tax offenses in the current unstable conditions of functioning of the domestic economy are substantiated. Measures to increase the economic efficiency of the tax system of Ukraine and the directions of reforming this system at the present stage of its existence are proposed.

ВЛИЯНИЕ НОВОЙ КОРОНАВИРУСНОЙ ЭПИДЕМИИ НА РОССИЙСКУЮ ЭКОНОМИКУ И ПРОТИВОЭПИДЕМИЧЕСКИЕ МЕРЫ В РОССИИ

The article presents Chinese political scientists' analysis of the coronavirus epidemic in Russia and its impact on the Russian economy. The article reviews and characterizes the main stages in the development of the coronavirus pneumonia epidemic in Russia , the measures taken by the Russian government with regard to air travel regime, visa regime, and border crossing, as well as various restrictive measures taken by the subjects of the federation. The article analyzes the consequences of the coronavirus epidemic for Russian society: crisis of the national economy, GDP decline, inflation growth, plummeting state budget revenues, crisis of federal finances, growth of unemployment, decline in production, etc. The article describes the main anti-epidemic measures to prevent the large-scale spread of the new coronavirus in Russia: strengthening centralized management, establishing an information center to monitor the epidemic, blocking areas of high epidemic rates, and providing paid leave, returning Chinese citizens home, establishing specialized centers for treating coronavirus pneumonia, designing reagents and vaccines, creating intelligent diagnostic systems, large-scale testing and universal vaccination, expanding international anti-epidemic cooperation and strengthening healthcare diplomacy. The author examines the measures taken by the Russian government to stabilize the national economy during the pandemic: using a multifaceted approach to finance, taxation and social security, assistance to small and medium enterprises and individuals, allocating funds to create special funds to stabilize the economy, granting soft loans to small and medium enterprises seriously affected by the epidemic; deferment of tax and levy payments, suspension of creditors' bankruptcy petitions against debtors, increase in unemployment benefits, etc.

ДЕРЖАВНА ЗАБОРГОВАНІСТЬ ЯК ЗАГРОЗА ЕКОНОМІЧНІЙ БЕЗПЕЦІ КРАЇНИ

The article is devoted to the analysis of absolute and relative indicators of Ukraine’s public debt in order to identify threats to its economic security. A critical analysis of the “Guidelines for calculating the level of economic security of Ukraine” in terms of assessing external threats and substantiated proposals for their improvement. The dynamics of total public debt in general and external debt, in particular, has been specially studied; the ratio of public debt to GDP and the state budget; public debt service costs. Particular attention is paid to the IMF composite index, which allows to assess the adequacy of official gold and foreign exchange reserves to cover the needs of external debt. According to the analysis, most of Ukraine’s public debt indicators exceed the established thresholds, which poses a real threat to the country’s economic security. If the ratio of public debt to GDP in recent years has been reduced to the upper limit of the safe level, the parameters of the ratio of external debt to the state budget and the share of expenditures on servicing government debt are twice the Ukrainian values. This situation can create a problem with timely repayment of debts, which will reduce the confidence of creditors and increase the cost of new borrowing and will push Ukraine to enter the debt spiral. This necessitates the development of a system of special measures to stabilize the situation both by reducing debt and maintenance costs, and by increasing state budget revenues. At the same time, such an important indicator as the composite index of the IMF for the last 6 years has not only seen a positive trend, but also the achievement (and even a slight excess) of the normative value. This is evidence of the potential of the Ukrainian economy to solve the problem of debt without particularly negative consequences, both internal and external.

Planning of State Budget Revenues

Planning of State Budget Revenues

Теоретичні аспекти визначення сутності фіскальних інструментів

The main aim of this article is to research the existing scientific concepts for considering the essence of the category of «fiscal instrument» and substantiate the essence of this definition. It is noted that there is an urgent issue of deepening the provisions formed and also developing further provisions in the field of functioning of the fiscal system, searching for the optimal model when developing such a system. Thus, there is a need for the implementation of new researches in this sphere to deepen the theoretical aspects of the functioning of the fiscal system, including the need to substantiate the content of certain scientific categories and specify existing ones. The article considers the essence of the category of «economic instrument», analyzes the existing concepts of research of this definition. It is determined that this type of instruments is an integral part of the whole mechanism of the State regulation of the national economy, stimulation of the development of certain sectors of the economy, management of the State property. This allowed us to continue to study the role of various types of economic instruments in ensuring the efficient functioning of the national economy, in particular fiscal ones. It is also determined that in the vast majority of cases, using the category of «fiscal instrument», scientists often identify it with the definition of «tax instrument». In a significant number of works when considering derivative scientific concepts from the word «fiscal», it is also not enough attention to specify the content of fiscal instruments. Thus, the article proposes to consider the content of the category of «fiscal instrument» as follows: fiscal instrument – a means used to save financial resources of economic entities in order to generate the State budget revenues.

ВПЛИВ ТІНІЗАЦІЇ ЕКОНОМІКИ НА РИНОК ПРАЦІ В УКРАЇНІ

The article examines the shadow economy as a phenomenon and its features. The shadow economy is a phenomenon that accompanies almost every economy, both developed and undeveloped. There is no common and clearly defined understanding of the essence and classification of the concept of shadow economy. The country's shadow economy exists as a result of the interaction of psychological and cultural factors that cannot be influenced in the short term. A feature of the shadow economy is a significant adaptability to external factors, a certain flexibility and ability to self-regulate. Indicators are indicated that have a significant impact on the dynamics of the size of the shadow economy. Approaches to determining the reasons for the existence of the shadow economy are given. Separately, the main reasons for the growth of the shadow economy in the developed countries of the world are indicated in percentage terms. The level of shadowing of the economy is investigated using various methods. The features of the shadow labor market and its components are considered. The shadow market is provided by the discrepancy between the actual and formal conditions for hired workers. The concept of shadow employment, the number of informally employed population in general and by type of economic activity and the reasons for the existence of the shadow labor market are analyzed. Shadow employment hinders the normal formation of state budget revenues. In order to estimate the size of the shadow economy, methods are used that can be divided into three groups: direct, indirect and mixed. There has been a decrease in the actual number of informally employed people, which is associated with the COVID 19 pandemic, which forced the economies of countries to reduce the number of both formal and informal workers. Non-observance of social norms and non-payment of taxes completely violate a kind of agreement between the population and the state, leading to a crisis of governance and distrust in the mechanism of state regulation and a significant decrease in macroeconomic indicators. Measures are recommended to reduce the level of the shadow economy.

СУЧАСНИЙ СТАН СИСТЕМИ ОПОДАТКУВАННЯ ПРИБУТКУ ПІДПРИЄМСТВ УКРАЇНИ

Taxes are used as a way of government influence on social production, its dynamics and structure, and are also a source of government revenue. To the greatest extent, this applies to corporate income tax, since it is one of the most important sources of budget revenue. Difficult political and economic conditions, instability and complexity of domestic legislation, a significant tax burden on business highlight the need to study the peculiarities of corporate income taxation not only as a powerful fiscal tool, but also in terms of its regulatory functions. In Ukraine, the possibilities of using corporate income tax as a regulatory factor are somewhat limited by its large budgetary value, so there is a need to study also a foreign experience of corporate income taxation in order to find the best ways for our country to improve the collection and administration of corporate income tax. To stimulate entrepreneurial activity, ensuring its stable development, it is necessary to create an optimal effective tax system that would provide stable revenues to the state budget, without burdening entrepreneurs. This issue is extremely acute, because the corporate income tax can be used as an effective tool for balanced dynamic economic growth on the basis of innovative development, and as a reliable source of state budget revenues. This article defines theoretical questions concerning the economic essence and place of the corporate profit tax in the taxation system. Determined main reasons for the fluctuations of revenues from corporate income tax in the budget of Ukraine, namely: the loss of income tax of the dominant fiscal role in the formation of tax revenues of Ukraine is due to lower rates and changes in the procedure for determining the object of taxation, as well as general negative trends in economic development of Ukraine. The main areas of improvement of corporate income taxation mechanism in Ukraine at the present stage of economy development are investigated. Conclusions are drawn about introducing a progressive system of corporate income taxation, harmonization of accounting and tax legislation on the calculation of corporate income tax, reviewing the list of tax incentives and using the accelerated depreciation method that reduces the tax base.

AZERBAYCAN CUMHURİYETİNİN PETROL DIŞI SEKTÖRÜNÜN GELİŞİMİ VE BU SEKTÖRDEKİ STRATEJİK ÖNEMİ

Azerbaijan has succeeded in ensuring economic security through the successful implementation of integration into the world community. It is known in recent years that the Republic of Azerbaijan has changed from a borrowing country to a lending country and this process has been quite successful since the era of globalization. The development of the non-oil sector is considered important both in terms of the effectiveness of socio-economic development of the regions, as well as in terms of increasing state budget revenues and its formation from various sources. The development of the non-oil sector also has a direct impact on increasing export earnings. Taking this into account, the implementation of issues aimed at the development of the non-oil sector by the head of state is given more priority.

СИСТЕМА ПОДАТКОВОГО СТИМУЛЮВАННЯ ІННОВАЦІЙНОЇ ДІЯЛЬНОСТІ: СТАН І ПЕРСПЕКТИВИ

The article examines the mechanisms of tax incentives for innovation of economic entities, which should focus on the development of national production and ensure sustainable macroeconomic growth. It was found that the main problems of the domestic economy, which create barriers to its innovative renewal, are the weak links between science and industry, lack of demand from industry and research and development, very low level of technical equipment of the economy, lack of market motivation for the development of knowledge-intensive production, worn-out equipment and, as a result, low efficiency of the economy as a whole. It is proved that among the main reasons for the reduction of budget revenues in the economy of Ukraine, in addition to the crisis, there are also tax benefits. For certain areas of business, this is one of the most attractive types of government support, as it means that some businesses are starting to pay less taxes. The rest, respectively, must be paid by other business structures or the state receives less money to finance its expenditures. As a result, inequality between taxpayers and a simultaneous reduction in the amount of funds that can be collected by the Ministry of Finance. Thus, in 2019 alone, due to the provision of tax benefits, the state budget did not receive budget revenues equivalent to 1.3 billion US dollars. Total budget losses from this source during 2015-2019 amounted to 6.4 billion dollars. It was found that in Ukraine there is almost no system for monitoring the impact of tax benefits, and this does not allow to assess the future effect of the introduction of such measures. Of course, this has important negative consequences for both public finances and the economy as a whole. The influence of granting tax benefits on the loss of state budget revenues is analyzed. Specific measures aimed at tax incentives for the development of innovation in Ukraine, the introduction of innovations by economic entities of all sizes are proposed. The need to rethink the criteria for granting tax benefits is noted. Foreign practice of tax incentives for innovation and investment activities, the cost of innovation is time-tested and quite diverse. Undoubtedly, it can be useful in the development of this area of tax incentives in Ukraine.

Evaluation the impact of the personal income tax reform in the Czech Republic in 2021 on effective tax rate and tax progressivity

Legislation governing personal income taxation is often subject to changes. A significant personal income tax reform was carried out in the Czech Republic in 2021. The reform implements a progressive tax rate, changes the way the tax base is determined, and increases the tax relief for the taxpayer. The aim of the article is to evaluate the impact of the personal income tax reform on the effective tax rate and tax progressivity. To that end, methods of regression analysis have been used. The source of information for analysis was the data published by the Czech Statistical Office. It was found that in 2021, in comparison with 2020, the tax burden represented in this study by the effective tax rate, in all cases became lower, approximately by 5%. The main reason for this decline is the adjustment of the method of construction of the tax base, which, for the first time in the history of the Income Tax Act, is gross wages. Until the end of 2020, the tax base was a super-gross wage, or the gross wage increased by social security contribution borne by the employer at his costs. The second factor that reduces the tax burden is a CZK 3,000 increase in the deduction per taxpayer per year. This fact increases the degree of tax progressivity, as confirmed by the results of the progressivity analysis and the regression analysis. The changes that have taken place in the personal income tax this year have a positive impact on the taxpayer, but from the point of view of the state, this reform has reduced the state budget revenues.