TAXATION IN UKRAINE AND EUROPEAN UNION COUNTRIES: COMMON FEATURES AND DIFFERENCES

Abstract

The relevance of the study is driven by the need to improve the domestic tax system in the context of European integration processes. One of the key aspects is the harmonization of Ukraine's tax legislation with EU norms and standards, which will contribute to enhancing economic stability and attracting investments. Changes in Ukraine's tax policy should be aimed at increasing transparency, reducing the tax burden on businesses, and adapting the best practices of European countries. The methodological framework of the study is based on the use of comparative analysis, a systematic approach, and economic-statistical methods. Comparative analysis made it possible to highlight the main trends in the tax systems of the EU and Ukraine, including tax rate levels, the administration system, and the fiscal policies of states. The systematic approach facilitated the assessment of the impact of tax policy on the country's economic development, allowing for the identification of the interconnection between tax reforms and macroeconomic indicators. Economic-statistical methods enabled the determination of the dynamics of the tax burden, its impact on the investment attractiveness of countries, and the level of economic growth. The research findings indicate that EU countries predominantly employ progressive taxation systems that stimulate economic growth while ensuring a balance between fiscal stability and economic freedom. The tax systems of developed EU countries are characterized by a high level of public trust in tax authorities, which contributes to improved tax discipline and effective state budget revenues. At the same time, Ukraine’s tax system is characterized by a relatively low tax burden on enterprises but a complex tax administration system, creating additional barriers to doing business. The introduction of European taxation standards, along with the simplification of tax procedures, could enhance the competitiveness of Ukraine’s economy and improve its investment climate. The practical significance of the article lies in the potential application of the obtained results in the development of state tax policy aimed at creating a favorable business environment and ensuring stable budget revenues.