{"id":15164,"date":"2021-05-20T14:00:06","date_gmt":"2021-05-20T11:00:06","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=15164"},"modified":"2021-05-24T13:31:49","modified_gmt":"2021-05-24T10:31:49","slug":"tax-incentives-as-an-instrument","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/tax-incentives-as-an-instrument\/","title":{"rendered":"Savitska S. Tax Incentives as an Instrument of Tax Regulation of Ukraine"},"content":{"rendered":"

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JEL Classification<\/strong>: \u041d21, \u041d25, \u041d60, \u041d71<\/i>
\n<\/span><\/td>\n		DOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V26(2021)-20<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Savitska Svitlana<\/b>, PhD in Economics, Assistant of the Department of Accounting, Taxation and E-Business Technologies, State Agrarian and Engineering University in Podilya, Kamyanets-Podilsky, Ukraine<\/span><\/p>\n

ORCID ID:<\/strong> 0000-0003-1739-3536<\/a>
\ne-mail:<\/strong> ovcharss15@gmail.com<\/a><\/p>\n

 <\/p>\n

Tax Incentives as an Instrument of Tax Regulation of Ukraine<\/b><\/h2>\n

 <\/p>\n

Abstract. Introduction<\/b>. In modern economic theory, theoretical discussions constantly arise about the feasibility and effectiveness of tax incentives. Tax incentives, under certain conditions, are an effective tool for supporting national competitiveness and creating a new technological core of any economic system, especially a transformational one. At the same time, the conditions for the effectiveness of the benefits provided are their strict purpose, time constraints and constant comprehensive monitoring. In addition, benefits have a certain psychological effect on business entities and increase the investment activity of enterprises. On the other hand, the ineffective practice of preferential taxation contributes to the formation of significant losses of budgetary resources of the state, which leads to a violation of economic stability, a slowdown in economic development and a decrease in the level of financial security of the state. The above confirms the relevance of the study of the impact of tax incentives on the formation of budget revenues, as well as the search for ways to optimize preferential taxation in Ukraine.<\/span><\/p>\n

Purpose.<\/b> The purpose of the article is to summarize the theoretical aspects of the use of tax incentives as an instrument of tax regulation and to study the effect of preferential taxation on the formation of budget revenues in Ukraine.<\/span><\/p>\n

Results<\/b>. The theoretical foundations of the functioning of tax incentives are considered. Approaches to the interpretation of the concept of “tax incentive” are generalized and its economic essence is revealed. The advantages and disadvantages of tax incentives, the rights of taxpayers to use tax incentives have been identified. The types of tax benefits in terms of direct taxes have been investigated and systematized. The analysis of losses of the state and local budgets from the provision of tax incentives has been carried out. The main sectors of the economy have been identified and analyzed, where more tax benefits are directed.<\/span><\/p>\n

Conclusions.<\/b> It was found that the system of providing tax incentives in Ukraine is ineffective. Therefore, there is no doubt about the need to reduce the volume of tax benefits provided to business entities, mainly on non-transparent principles and lead to large-scale budget losses. Tax breaks are not directed to those industries that really need support, but to those that are lobbied in parliament. Therefore, it is necessary to introduce a clear mechanism for the provision of tax benefits, their monitoring, control of losses and benefits of each benefit. Proposals have been developed to improve the system of granting tax benefits and to strengthen control over their development.<\/span><\/p>\n

Keywords<\/b>: taxes; tax incentives; tax regulation; budget revenues; budget losses.<\/span><\/p>\n

References:<\/strong><\/p>\n

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  1. Verkhovna Rada of Ukraine (1996). Constitution of Ukraine (No 254\u043a\/96-\u0412\u0420, June 28). Retrieved from <\/span>https:\/\/zakon.rada.gov.ua\/laws\/show\/254%D0%BA\/96-%D0%B2%D1%80#Text<\/span> [in Ukrainian].<\/span><\/li>\n
  2. Aranchiy, V. (2017). Podatkovi vidnosyny subiektiv pidpryiemnytstva: upravlinnia ta administruvannia. Poltava: PGAA. 473 p. [in Ukrainian]<\/span><\/li>\n
  3. Verkhovna Rada of Ukraine (2010). Tax Code of Ukraine (\u2116 2755-IV, December 12). Retrieved from https:\/\/zakon.rada.gov.ua\/laws\/show\/2755-17[in Ukrainian].<\/span><\/li>\n
  4. Malko, A. (2004). Lhotnaia y pooshchrytelnaia pravovaia polytyka. St. Petersburg: Legal Center Press. [in Russ.].<\/span><\/li>\n
  5. Krinitskiy, I. (2012). Tax privilege as an element of the legal mechanism of tax payment. <\/span>Finansove pravo, <\/span><\/i>3, 16-19 [in Ukrainian].<\/span><\/li>\n
  6. Sokolovskaya, A.V & Lunina, A.S. (2005). Definition of the category “tax benefit” and its practical significance. <\/span>Ekonomika Ukrayiny<\/span><\/i>, 9, 21-30 [in Ukrainian].<\/span><\/li>\n
  7. Dubovik, O. (2011) Benefits as an instrument of state tax regulation. <\/span>Visnyk sotsialno-ekonomichnykh doslidzhen<\/span><\/i>, 3 (43), 61-66 [in Ukrainian].<\/span><\/li>\n
  8. Theoretical and applied aspects of the inventory of tax benefits provided by Ukrainian legislation (2013). Irpen: Research Institute of Financial Law.<\/span><\/li>\n
  9. State Tax Service of Ukraine (2021). <\/span>Official web-site.<\/span><\/i> Retrieved from\u00a0 <\/span>https:\/\/tax.gov.ua<\/span> [in Ukr.]<\/span><\/li>\n
  10. The volume of losses to the state budget through the provision of tax incentives is constantly growing (2020). Retrieved from https:\/\/www.epravda.com.ua\/news\/2020\/05\/25\/660917\/<\/span><\/li>\n
  11. Marchak, D. & Markuts, Y. (2020). Invisible subsidies. Who loses and how much, and who gets in Ukraine from tax benefits? Retrieved from <\/span>https:\/\/www.promoteukraine.org\/uk\/nevidimi-subsidii-hto-i-skilki-vtrachae-a-hto-otrimue-v-ukraini-vid-podatkovih-pilg\/<\/span><\/li>\n
  12. Egoricheva, S., & Timoshenko, O., & Sergeev, D. (2016). Injection of p\u0456lg for direct tribute to the form of budget revenues in Ukraine. \u0415fektyvna ekonomika<\/i>, 9. Retrieved from http:\/\/www.economy.nayka.com.ua\/?op=1&z=5137. [in Ukrainian]<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received: <\/strong>07\u00a0March 2021<\/span><\/strong><\/p>\n

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    Savitska S. (2021). Tax Incentives as an Instrument of Tax Regulation of Ukraine. Modern Economics<\/em>, 26(2021), 135-140. DOI: https:\/\/doi.org\/10.31521\/modecon.V26(2021)-20.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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    [vc_row][vc_column][vc_column_text] JEL Classification: \u041d21, \u041d25, \u041d60, \u041d71 DOI: https:\/\/doi.org\/10.31521\/modecon.V26(2021)-20 [\/vc_column_text][vc_column_text] Savitska Svitlana, PhD in Economics, Assistant of the Department of Accounting, Taxation and E-Business Technologies, State Agrarian and Engineering University in Podilya, Kamyanets-Podilsky, Ukraine ORCID ID: 0000-0003-1739-3536 e-mail: ovcharss15@gmail.com   Tax Incentives as an Instrument of Tax Regulation of Ukraine   Abstract. Introduction. In modern
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