CONCEPTUAL FOUNDATIONS OF THE TAX REGULATION DEVELOPENT OF BUSINESS IN UKRAINE

Abstract

The article examines the practical aspects of tax regulation of business in Ukraine. It emphasizes that tax policy is a powerful regulatory instrument at the disposal of the state, through which it determines the proportions of financial resource distribution. Hence, tax regulation plays a leading role as a component of the macro-financial environment for business activity. The starting point of the study is the contradictory nature of tax policy in Ukraine, which partly determines its destructive impact on business. Numerous surveys and rankings indicate that the business environment generally assesses the government’s activity in the field of taxation negatively. Total distrust of tax policy leads Ukrainian entrepreneurs to reject numerous and constant tax changes. We can convincingly claim that Ukraine now has an entire industry offering “services” for tax evasion. It has been operating for decades, and the consequences are catastrophic for the national economy and public finances. In conditions of a persistent and large-scale resource deficit, the state focuses primarily on the fiscal aspects of tax policy. Issues of the regulatory impact of taxes are often not treated as a priority. Today, numerous measures aimed at tax incentives for business in Ukraine have been implemented; however, overall, this aspect of tax policy remains fragmented. At the same time, it should not be overlooked that an appropriate tax culture has not been formed in Ukraine. Many business entities perceive paying taxes solely as an unnecessary financial burden that should be avoided as much as possible. As a result, numerous tax risks emerge, contributing to a chronic budget deficit. One of the key problems is the uneven distribution of the tax burden: some enterprises fully experience tax pressure, while others use various schemes to minimize tax payments. Accordingly, there is an urgent need to update existing tax incentives and transform tax regulation into a powerful «driver» of post-war recovery and development of the state. At the same time, both Ukraine’s European integration trajectory and the need for a fundamental change in the architecture of the domestic economy toward innovation and digitalization must be taken into account.