PERSONAL INCOME TAX BENEFITS: PROBLEMS AND PROSPECTS

Abstract

The article is devoted to the study of tax benefits from personal income tax. Tax and fee benefits are summarized in accordance with the Handbook of Benefits. It is proven that not all types of benefits are regulated in tax legislation. Existing contradictions between tax legislation and the Handbook of Benefits of the State Tax Service of Ukraine are identified. It is found that there is no unified reporting document that systematizes the amounts of benefits provided to taxpayers. The problems of applying certain types of tax benefits from personal income tax are considered, in particular, a reduced tax rate, tax exemption, tax social benefit, tax discount. It is established that the number of persons who enjoy the right to a tax social benefit and tax discount is decreasing. The need to introduce a progressive wage tax scale in Ukraine to implement the strategic goals of the National Income Strategy is proven. The need to stimulate young people to find employment in Ukraine by exempting them from personal income tax (based on the experience of Poland) for the period of martial law is outlined. It is established that restrictions for students who receive a scholarship from the budget on the application of tax social benefits are discriminatory and should be abolished. It is proven that some types of expenses included in the tax discount do not provide equal conditions for their inclusion (expenses on reproductive technologies, expenses for paying the state duty for the adoption of a child). Proposals for changing tax benefits on personal income tax are summarized and substantiated: exemption from personal income tax for participants in World War II, setting the limit for the application of tax social benefits at the level of the minimum wage or in euros, application for the period of martial law of the right to a tax discount for persons who are citizens of Ukraine but have lost the status of a resident of Ukraine as a result of leaving the temporarily occupied territories abroad. It is proposed to mandatory include tax benefits in the Handbook of Benefits of the State Tax Service of Ukraine, which should be correlated with tax legislation.