REFORM OF THE TAX SYSTEM: NEW REALITIES OF TODAY

Abstract

The article highlights the peculiarities of the tax system reform in terms of innovations caused by the introduction of martial law, the consequences of the ongoing Russian-Ukrainian war, and Ukraine's European integration processes. The author analyzes the key aspects of the National Revenue Strategy, which is to be developed under the International Monetary Fund program, and determines that improvement of tax policy is an important part of this program. The points of tax policy reform, the basis of which is set out in the program of cooperation with the International Monetary Fund, are highlighted, in particular, the following: changes in labor and personal income taxation; implementing measures to prevent the erosion of the tax base in accordance with the recommendations of the Organization for Economic Cooperation and Development; approximation of tax legislation to that of the European Union, including harmonization in the area of indirect taxes (excise tax and VAT). The author examines the changes introduced by the Law of Ukraine "On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Peculiarities of Taxation during the Period of Martial Law" No. 3219-IX dated 30.06.2023 and identifies such an innovation in tax policy as the abolition of single tax exemptions. It has been established that the preferential single tax system will be terminated as of August 1, 2023, as the application of the simplified single tax system with a tax rate of 2% and the possibility of non-payment by individual entrepreneurs - single taxpayers of the first and second single tax groups - will be canceled. The article reveals that under martial law, the State Tax Service's priority is to develop online services to meet the needs of taxpayers and ensure electronic interaction with the State Tax Service for easy and convenient tax payment. It is noted that the main vector of reforming the tax system is to establish the optimal level of tax burden in order to further stimulate economic growth under martial law. The positive effects achieved include the implementation of measures to improve the tax system, certain conditions that make it impossible to evade tax liabilities, the introduction of significant restrictions on the use of tax benefits, and the definition of an optimal methodology for ensuring the distribution of confiscated funds.