FEATURES OF TAXATION OF SMALL BUSINESS ENTITIES IN UKRAINE: PROBLEMS AND DIRECTIONS OF IMPROVEMENT
small business, enterprise, budget, tax, tax incentive mechanism, taxation, simplified taxation system.
The article substantiates the need for state financial support for small business, in particular, through preferential tax instruments. In Ukraine, a simplified system of taxation, accounting and reporting is used for this purpose. However, the application of such a tax mechanism is causing increasing controversy regarding the violation of taxation principles and the inefficiency of the system. The types of preferential small business taxation applied in developed countries are considered. The programs of state aid to small businesses, the directions of reforming state policy in the field of small business taxation are analyzed using the example of more developed countries of the world, the status and problems of small business activity in Ukraine have been determined. The disadvantages of the simplified taxation system are: not unambiguous in the application of the taxation regime for individuals and legal entities; instability and underdevelopment of the tax system; the impossibility of applying a simplified system of taxation to businesses that go beyond the specified income limits; the lack of interest of enterprises in the use of simplified taxation in their activities. A set of measures has been proposed to address the disadvantages of the simplified tax system, in particular: to increase the limits of the amounts of income and revenue from the sale of goods (goods of works of services) for the wider use of the simplified tax system; to increase the confidence of entrepreneurs to tax authorities by providing information and advisory support to small businesses on taxation; reduce the tax burden on newly created small business entities and, subsequently, gradually increase the amount of tax payments; to set differentiated tax rates depending on the tax base; attract small business investment; strengthen the existing and impose new sanctions for punishment for violation of tax legislation; specify a list of activities for which they do not apply a simplified tax system to minimize tax evasion.
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