Trends in Personal Income Tax in Ukraine (original) (raw)
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Personal Income Tax in Ukraine: Determinants` Analysis
Financial and credit activity: problems of theory and practice, 2020
Further reforming of the Ukrainian tax system in order to improve the mechanism of personal income taxation (PIT) and filling local budgets points out the relevance of the research. The article considers the determinants of personal income tax as an important component of the tax system of Ukraine.The authors analyzed the PIT revenues to the consolidated budget of the country and identified a positive trend of its growth. Determinants and indicators of impact on PIT revenues are highlighted in the study. These factors are divided into following groups: economic, political and legal, demographic, socio-cultural and individual. The influence of main factors (GDP, Employment Rate, Inflation Rate, Average PIT Rate) on the PIT revenue component is considered.Regression and correlation analyses were performed using STATA program, and linear regression was calculated. In order to assess the dependence, countries were clustered according to key factors of their economic development for the ...
Retrospective Analysis of the Tax System Reform of Ukraine
Financial and credit activity: problems of theory and practice, 2021
The article analyzes the historical periods of development of the taxation system in Soviet times and during the independence of Ukraine. The stages of transformation of the country's taxation system and the deduction of the development of the national taxation system are outlined. It was found that during the years of independence there were five transformations of the tax system in 1991, 1995, 1999, 2011 and 2015, respectively. The preconditions of each of the specified stages of realization of transformation of system of the taxation are analyzed. Among the key preconditions for transformational changes in certain periods are: rapid deterioration of key macroeconomic indicators, implementation of laws and regulations on the establishment of the tax police and the transformation of the State Tax Administration into a central executive body as a controlling body for legal entities and individuals, changes in the composition and mechanisms of tax calculation, chaos and invalidity of the system of tax benefits, changes in the legalization of the wage fund and in the system of compulsory state social insurance. The functions of taxes as defining concepts of formation of the tax system of the country that were in each period defined above are investigated. The types and role of tax relief as a tool of state tax regulation and stimulation of socioeconomic processes are considered. The assessment of the process of transformation of the tax system identified the existing criteria for reform, including diversity, complementarity and consistency, compromise and evolution, the depth of transformation and innovation of the tax system of Ukraine. It is proved that the tools of transformation of the implementation of the taxation system of Ukraine used in these processes did not always correspond to the peculiarities of the socioeconomic situation of the country and the tax policy of the state goal and set of tasks of economic strategy. Existing shortcomings in the Ukrainian taxation system hinder economic growth and lead to high economic shadowing. Thus, the application of these tools in the process of transformation of the tax system has partially solved the existing problems, a significant number of identified tasks currently remain unresolved.
Modern Trends in Personal Income Taxation in Eu Countries and Ukraine
Baltic Journal of Legal and Social Sciences, 2024
The article is devoted to personal income taxation is a significant tax instrument to reduce population inequality. Categorizes personal income tax in types: comprehensive income tax, dual income tax, and flat income tax. Gives an overview of the multifaceted factors driving personal income tax reforms in EU countries and Ukraine and demonstrating how they are adapting tax systems to meet the demands of the modern era.
Improvement of tax policy within the harmonization of the tax system of Ukraine
European Scientific e-Journal, 2022
The article considers the essence and modern conditions of tax policy functioning in Ukraine and the directions of its optimization in the context of harmonization of the tax system are offered. The formation of the author's vision of the economic essence of tax policy was carried out on the basis of analysis of scientific opinion of scientists from different countries, as well as the official interpretation using the dialectical method. With the help of a group of analytical methods, the conditions for the functioning of Ukraine's tax policy in prewar and wartime were assessed. The use of abstract-logical method contributed to the generalization of key objectives of tax policy in the future and outline areas for its optimization. Based on the results obtained, in connection with the changing economic environment of the country, the need to develop a new model of tax policy, taking into account the demands of tax participants and budget needs, which would be an effective complement to the tax system.
How Should the Personal Income Tax be Shared with Ukrainian Local Governments
Journal of Local Public Economies, 2021
Ukraine is currently debating whether personal income tax (PIT) should be shared with local governments according to where taxpayers work, live, or some combination of the two. This brief argues that Ukraine should share PIT with local governments on the basis of where taxpayers live and vote. The first part explains why contrary to popular belief Ukraine is not currently sharing PIT with local governments according to where people work. The second, reviews why virtually all European countries that share significant amounts of PIT with local governments do so according to where taxpayers live and vote. The conclusion explains why the national government needs to build an information system that it currently does not have to allocate PIT by either place of work or residence. And it argues that given that the costs of moving to either system are similar, there should be little question that Ukraine should adopt one based on where taxpayers reside. Finally, we outline the steps that would need to be taken to move to a residency-based system arguing that this can be done by FY 2023 so long as PIT is-at least initially-allocated according to a simple declaration of the local government in which a taxpayer lives, and not their legally registered addresses.
Management priorities of tax reform in Ukraine: implementation of international experience
Investment Management and Financial Innovations, 2020
The paper proves that the Ukrainian economy’s systematic structural crises stipulated the necessity of choosing the effective forms of tax mechanism for its regulation. Systemic and institutional methods have been used to study the peculiarities of Ukrainian tax regulation. The methods of coefficient and relative values have been used to assess certain parameters of the tax burden. The dynamics of statistical data have been studied by the method of trend analysis. To determine the impact of the current tax system of Ukraine on economic growth, the authors tested several hypotheses about the dependence of the tax system and: GDP (1), industrial production (2), exports (3), investment dynamics (4), and unemployment rate (5) using econometric analysis with the package-statistical module EViews. The existence of a directly proportional relationship between the growth of tax revenues to the budget of Ukraine and the change of certain macroeconomic indicators is substantiated. It was foun...
2015
The article deals with the issue of evaluation of local taxation effectiveness in Ukraine. Efficiency and amount of public services of local authorities depend on the sufficient level of local financial resources. The purpose of the article is to evaluate the effectiveness of local taxation in Ukraine and find directions of its increase. To achieve the purpose mentioned above the following tasks have been fulfilled: analysing conditions of local taxation, evaluating the local tax role in the local budgeting, evaluating fiscal efficiency of local taxation and suggesting directions for increasing local taxation effectiveness under the today’s Ukrainian conditions. To fulfil these tasks the following methods have been applied: general scientific methods of knowledge, system analysis, dialectical method of cognition and statistical analysis. Under the circumstances of tax revenues and GDP reduction problems of increasing effectiveness of local taxation are becoming more and more topical...
2017
The strategy of reforming the country’s tax system should consider the real effect that taxpayers receive in response to their tax payments, that is, the level of financing public services. The article formalizes the links between the tax burden and financing public services since multifactor dependencies using the panel regression method with fixed effects for Ukraine and 10 countries – its tax competitors (Bulgaria, Georgia, Latvia, Lithuania, Romania, the Czech Republic, Estonia, Slovakia, Moldova, Serbia). Based on the calculations, it was found that the existing level of tax burden in Ukraine is overstated, while the optimal level in 2012 was: 1) the total tax burden – 14.39-18.09% of GDP; 2) the burden on legal entities – 45.99-48.32% of the profits of enterprises; 3) the burden on individuals – 11.92-28.75% of wages. These values correspond to the actual amounts of government spendings on financing public services.
Analysis of Fiscal Efficiency of Taxation in the System of Filling Budget Funds in Ukraine
2021
The article aims to identify the analysis of the fiscal efficiency of income tax. The growth of public expenditures and the need to fill the budget leads to the need to ensure effective management of tax revenues. At the same time, the overall efficiency of the operation of the tax mechanism for corporate income tax involves the formation of an effective fiscal system. Since the management of tax revenues should provide a balance between the needs of the state in taxes and the need of enterprises to increase profits, it is necessary to develop effective approaches to the fiscal efficiency of income tax. It is determined that the peculiarities of the analysis of fiscal efficiency of this tax are specific efficiency criteria, which reflect different approaches to the principles of formation of public funds.