TAXATION OF BANKING ACTIVITY IN UKRAINE AND MAIN DIRECTIONS OF ITS IMPROVEMENT

Abstract

The article is devoted to topical issues of banking taxation in Ukraine. The role of banking institutions in the tax system is considered, possible directions of improvement are offered, the complex of the basic operations of banking activity is defined. Banking institutions play an important role in the economy of each country, their activities have their own specific features and risks. Because banks are businesses, the goal of their operations in a market environment is to maximize profits. Due to this, the mechanism of taxation of banking institutions has certain features, despite the fact that now their tax regulation is in accordance with the requirements of the law. An unstable economic environment only reinforces the importance of the banking system's taxation system because it is complex and interconnected. The value of taxes and features of the taxation system of banks is due to the functions of taxes, the main of which are two – fiscal and regulatory. In terms of influencing the activities of banks, the regulatory function of taxes is of paramount importance, because it is through it that the state balances its interests with the interests of taxpayers. As a direct factor, the taxation system of banks affects the following indicators of their activities – the cost of products and services, costs and financial results, which affect the liquidity of the bank and the amount of own funds, because taxes, like any costs, reduce profits, and hence the capital of the bank. Banks are intermediaries in the transfer of taxes and fees of legal entities and individuals to the budget, they perform the functions of tax agents – withhold and transfer to the budget income tax, tax on the purchase of cash foreign currency and other taxes, fees and charges. Taxes, regardless of the source of their payment, are expenses for the bank. At the same time, the price of a banking product is formed from costs and profits. Hence, reducing the tax burden should help achieve the following goals: increase the attractiveness of banking products; reduction of production costs of the bank's clients and increase of their business activity, as well as receipts of tax payments to the budget; reduction of bank rates and tariffs for services; stimulating the development of competition in banking.