Prokopyshyn Oksana, PhD (Economics), Associate Professor, Associate professor of the Department of Accounting and Taxation, Lviv National University of Veterinary Medicine and Biotechnology named after S.Z. Gzytskyi, Lviv, Ukraine

ORCID: 0000-0002-7027-3499
e-mail: os378@ukr.net

Dranus Valentyn, PhD (Economics), Associate Professor, Associate professor of the Department of Finance and Credit, Petro Mohyla Black Sea National University, Mykolaiv, Ukraine

ORCID: 0000-0001-5617-6740
e-mail: drval8@ukr.net

Transformational Changes in the Tax System and Their Impact on Corporate Tax Management

Abstract. Introduction. Enterprise taxation systems undergo significant changes in regulatory priorities, institutional frameworks, and policy instruments in conditions of economic instability. During periods of heightened uncertainty, traditional tax approaches become ineffective, necessitating adaptive and flexible solutions, including transforming tax management practices at the enterprise level.

Purpose. This study aims to analyze the peculiarities of enterprise taxation systems’ functioning and transformation under economic instability, focusing on the Ukrainian experience from 2022 to 2025. Additionally, it seeks to determine the role of tax management in helping businesses adapt to these changes.

Results. It has been established that economic instability transforms the functional role of the tax system, shifting it from a predominantly fiscal mechanism to a combined model that incorporates fiscal, regulatory, and anti-crisis instruments. This study identifies the staged transformation of Ukraine’s tax system, which includes crisis mitigation measures in 2022, the partial restoration of standard taxation mechanisms in 2023, and the subsequent strengthening of fiscal components in 2024–2025. The instruments applied at each stage — such as tax relief, deferrals, the restoration of tax control, and increased fiscal pressure — have been systematized, as have their effects on businesses and the state budget. Initial tax policy measures were found to contribute to maintaining business liquidity and preventing economic decline. Later stages resulted in an increased tax burden and enhanced administrative control, necessitating improvements in tax management practices, particularly in tax planning, tax risk management, and compliance. The study also emphasizes the importance of digitalization in enhancing tax administration and ensuring the continuity of the tax system under crisis conditions. Additionally, it explores the impact of digitalization on the evolution of tax management strategies within enterprises.

Conclusions. It has been concluded that Ukraine’s modern tax system demonstrates a hybrid and adaptive nature, combining structural transformations with gradual changes. Its effectiveness during periods of economic instability hinges on balancing fiscal sustainability with supporting economic activity and on the development of tax management as an integral part of enterprise management. These findings underscore the importance of flexible tax policies and risk-oriented tax management approaches in ensuring the resilience of the tax system and business entities during times of crisis.

Keywords: enterprise taxation; tax management; economic instability; tax system; martial law; tax policy; tax transformation; tax administration.

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