Lushko S. M., Senior Lecturer of the Department of Finance and Credit, Petro Mohyla Black Sea National University, Mykolayiv, Ukraine

ORCID ID: 0000-0003-4598-1319
e-mail: sveta.lushko@gmail.com

Cherniuk T. I., Lecturer of the department of foreign languages, Petro Mohyla Black Sea National University, Mykolayiv, Ukraine

ORCID ID: 0009-0005-1991-2303
e-mail: tatianka.cherniuk@gmail.com

Personal Tax Management: Theoretical Aspects and Practical Implementation

Abstract. Introduction. In modern economic literature, tax management is considered at three levels: macro-, micro- and sub-micro levels. Each of the levels has its subjects, object of management, structure, purpose, methods, tasks and tools. State and corporate tax management are actively researched by domestic scientists, while personal tax management is practically unresearched and needs a more thorough study of theoretical and practical aspects.

Purpose. The purpose of this study is to determine the theoretical aspects of personal tax management and to study its practical implementation in our country.

Results. The authors gave and analyzed the definitions of domestic scientists and proposed a number of clarifications. In particular, consider personal tax management not from the perspective of an individual citizen, but from the perspective of a household. Also, it is proposed to consider as an object not the management of personal income, but the management of the tax burden, which is calculated as the ratio of the amount of taxes paid to the amount of income. Based on the analysis of the definitions of domestic scientists, an own definition was proposed. In addition, a description of the main elements of the personal tax management system was given. Subjects, object, purpose, methods and tools, stages and blocks of personal tax management are defined. The main reasons for insufficient theoretical justification and practical application of personal tax management in Ukraine are described.

Conclusions. As a result of the study, the authors came to the conclusion that personal tax management is an integral part of the financial literacy of the population and consists in the application of tax planning and tax optimization methods. The goal of personal tax management is to reduce the tax burden on the household and maximize their net income.

Regarding the prospects for the development of personal tax management in Ukraine, taking into account the extremely unfavorable demographic situation, which has worsened even more due to the war and the crisis of the solidarity pension insurance system, it is extremely necessary at the state level to introduce various mechanisms for increasing the level of financial literacy of the population. The state should encourage households (including through tax instruments) to plan their future incomes, retirement by participating in non-state pension and health insurance, as well as effectively manage savings by using financial market instruments.

Keywords: personal tax management; tax optimization; tax planning; income taxation; tax benefits; tax discounts.

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