CHANGES IN THE STRUCTURE OF PERSONAL INCOME TAX DURING THE WAR AND THE POST-WAR PERIOD

Abstract

The article shows the evolution of the regulatory framework for personal income taxation in independent Ukraine. Taking into account our own and foreign experience of personal income taxation, today, the object of taxation with this tax is the aggregate income of citizens, and not only their wages. The results of the study confirm that the expansion of the object of taxation by the personal income tax contributed to the increase in the role of the personal income tax in the formation of financial resources of the State and local budgets.Thus, in 2023, income from personal income tax relative to the gross domestic product of Ukraine amounted to 7,59%, against 6,93% in 2019. During the same period, tax revenues from personal income taxation to the Consolidated Budget of Ukraine increased by 80,1%. Also, during this period, personal income tax receipts to the State budget increased by 88,3% compared to 2019, and to local budgets by 74,8%.The share of personal income tax in tax revenues to the State budget in 2023 was 17,19%, against 13,74% in 2019, respectively, in local budgets 66,61% and 61,18%. In 2019, in the structure of the personal income tax of local budgets, 84% was the tax on wages and 7% was the tax on the financial support of military personnel. In 2023, as a result of an increase in the monetary support of military personnel, the share of personal income tax in its total amount increased to 27%.On the other hand, the share of the tax from the payroll tax in 2023 decreased to 64%. In 2020, in the structure of the personal income tax, the wage tax paid to the State budget was 63%, and the military levy, respectively, 20%. In 2023, the composition of the personal income tax was affected by the war, the result of which is a decrease in the share of tax from payroll taxation to 40% and an increase in the share of tax from taxation of military personnel and military levy, respectively, to 33 and 18%.Based on the results of the study, it is recommended to change the approach to income taxation in the form of wages by introducing a progressive tax scale.Also, an increase in income from personal income taxation can be achieved by maintaining the trend towards the growth of the minimum wage and attracting the so-called "domestics and homemakers" to income taxation.