Burkovska A., Candidate of Economic Sciences, Associate Professor of the Department of Finance, Banking and Insurance, Mykolaiv National Agrarian University, Mykolaiv, Ukraine

ORCID ID: 0000-0003-4158-1721
e-mail: burkovskaya@mnau.edu.ua

Yablunovska G., graduate of higher education, specialty 071 “Accounting and taxation”, Mykolaiv National Agrarian University, Mykolayiv, Ukraine

ORCID ID: 0009-0006-7636-8444
e-mail: annaablunovskaa476@gmail.com

Features of Taxation Systems of Different Countries

Abstract. Introduction. Taxation plays a pivotal role in the financial framework of any nation, serving as a primary source of government revenue. The unique characteristics of a country’s tax system significantly impact both its fiscal position and the well-being of its citizens. Comparative analysis of taxation systems enables a deeper understanding of their functionality, allowing for the identification of strengths and weaknesses inherent in each system.

Purpose. The purpose of this study is to conduct a comparative analysis of the taxation systems of Ukraine, Germany, and the USA, aiming to identify their specificities, advantages, and drawbacks. By examining key aspects such as tax structure, tax rates, tax incentives, and overall tax burden, the study seeks to understand how each system influences the economic, social, and political development of the respective countries. The study aims to shed light on the effectiveness of tax reforms and tax collection strategies in ensuring stability and prosperity amidst contemporary challenges in the global economy.

Results. The comparative analysis reveals significant differences in the taxation systems of the three countries. While Ukraine exhibits a moderate tax burden compared to some EU countries, Germany and the USA demonstrate distinct tax structures and policies. Germany’s tax system, for instance, is characterized by differentiated tax classes, aiming to provide varying levels of tax relief to different income groups. In contrast, the USA offers extensive tax incentives for technological innovation and job creation, fostering a business-friendly environment. Moreover, the analysis highlights the complexity of the US tax system, comprising federal, state, and municipal levels of taxation.

Conclusions. In conclusion, the study underscores the importance of understanding the nuances of taxation systems in shaping economic, social, and political landscapes. While each country’s tax system reflects its unique socio-economic context and policy priorities, there are valuable lessons to be learned from comparative analysis. The findings emphasize the need for effective tax reforms tailored to the specific needs and challenges of each country, aiming to optimize tax structures, enhance tax compliance, and promote sustainable development. Furthermore, the study underscores the role of taxation as a powerful tool for fostering innovation, economic growth, and social equity, urging policymakers to prioritize tax policies that contribute to long-term prosperity and well-being.

Keywords: tax burden, benefits, incentives, tax rate, tax system.

References:

1. Gaspar, , Mauro, P., & Medas, P. (2019, April 04). Tackling corruption in government. IMF Blog. https://www.imf.org/en/Blogs/Articles/2019/04/04/blog-fm-ch2-tackling-corruption-in-government.
2. Merezhko,, Usholik, N., & Lyzunova, O. (2021). Comparative analysis of tax systems of foreign countries and Ukraine. Economy and society, № 25, P. 25-76. DOI: https://doi.org/10.32782/2524-0072/2021-25-76.
3. Finevolution (2023, November 19) Features of sales tax in the USA. https://finevolution.com.ua/sales-tax-usa/.
4. Slovoidilo (2024, January 26) Maximum and minimum personal income tax rates in countries around the world. https://www.slovoidilo.ua/2024/01/26/infografika/ekonomika/maksymalna-ta-minimalna-stavka-podatku-doxody-fizosib-krayinax-svitu.
5. com.ua (n.d.) Consultation on taxes in the USA. https://prikhodko.com.ua/poslugy/migracziya-do-yevropy/ssha/konsultacziya-po-podatkah-v-ssha/#:~:text .
6. Sarakhman, O. M., Shurpenkova, R. K., & Kalaitan, T. V. (2021). Tax system in Germany: adaptation of experience in Ukraine. Economics and management organization, № 1, P. 95–105. DOI: https://doi.org/10.31558/2307-2318.2021.1.9
7. Wikipedia (n.d.) Tax system of Ukraine. https://uk.wikipedia.org/wiki/.
8. Ukrainian Institute of the Future (2023, January 12) Tax trap for the Ukrainian economy. https://uifuture.org/publications/podatkova-pastka-dlya-ukrayinskoyi-ekonomiky/.
9. Economic truth (2018, February 01) Trump’s Tax Reform: First Big Win or Defeat? https://www.epravda.com.ua/publications/2018/02/1/633528/.
10. Azola Legal Services (2023, June 27) Which countries have the most favorable tax rates? https://azolalegal.com/blog/kakye-strany-ymeyut-naybolee-vygodnye-nalogovye-stavky/.
11. UA migrant (2023, December 07) Tax classes in Germany. https://ua-migrant.pl/podatkovi-klasy-v-nimechchyni/.