SIMPLIFIED TAXATION SYSTEM: FISCAL SIGNIFICANCE AND DEVELOPMENT PRIORITIES

Abstract

The simplified taxation system is a priority lever for supporting the development of small businesses, which allows for optimal tax burden and tax administration. The article examines the criteria for applying the simplified taxation system in the context of individual single tax payers. It is established that the main amount of the single tax is paid by individual entrepreneurs (groups 1-3), although the share of the single tax paid by them has decreased. The war period saw an increase in the single tax paid by legal entities in Group 3. Changes in the structure of tax revenues from single tax payers are due to the preferential taxation regime. It is determined that tax innovations during the martial law period contributed to tax revenues from the single tax, but caused budget losses from other taxes - income tax and VAT. The introduced innovations and their subsequent cancellation during the martial law period have resulted in complications in the tax administration and tax reporting procedures for business representatives. The procedure for preparing tax reports requires the use of accounting information. It is noted that the increased tax consequences of doing business for individual entrepreneurs (IEs) are largely due to the peculiarities of accounting support for commodity and settlement transactions. The paper presents the main measures of reforming the simplified taxation system envisaged by the National Revenue Strategy until 2030. Most of the proposed positions will increase the risk of doing business, especially for IEs and farms. In the area of small business, individual entrepreneurs who provide socially important products, goods, services and agricultural producers - farmers - may be the most vulnerable to tax reforms. The additional burden on private entrepreneurs in terms of mandatory accounting for all commodity transactions and cash payments requires greater professional competence in accounting and taxation. Increasing the fiscal burden on small business entrepreneurs could lead to the shadowing of the national economy and a loss of tax revenues. Taxation optimisation should be aimed at stimulating strategically important small business activities, increasing tax revenues, reducing the shadow economy, and improving social welfare.