CORPORATE INCOME TAXATION: FOREIGN EXPERIENCE AND LESSONS FOR UKRAINE
Main Article Content
Abstract
Introduction. In modern economic realities the question of increasing the efficiency of the mechanism of corporate income taxation is particularly acute since corporate income tax in the practice of developed countries is an effective tool for achieving balanced economic development and a stable source of filling budgets. The study of foreign experience of corporate income taxation will allow to identify and adopt to Ukrainian practice the most effective measures to stimulate entrepreneurial activity, increase competitiveness and ensure an innovative model of the national economy development.
Purpose. The article examines the peculiarities of corporate income taxation in foreign countries and determines the prospects for its implementation in Ukrainian practice.
Results. An analysis of the International Tax Competitiveness Index was carried out, the peculiarities of taxation in Estonia which allowed the country to take the first place according to the above-mentioned indicator were highlighted. The specifics of corporate income taxation in Estonia are characterized. The countries with the highest and lowest income tax rates in the world have been identified. An assessment of the average indicators of income tax was carried out in the regional section and in historical retrospect. It is noted that over the past four decades’ corporate income tax rates have been permanently declining around the world. The system of corporate income taxation in the world's leading economies: the USA, China and Germany has been studied.
Originality. The advantages provided by the introduction of the "Estonian" model of corporate income taxation have been identified. The measures taken by foreign countries to combat the tax base erosion have been studied.
Conclusion. The study of the modern practice of corporate income taxation showed a shift in emphasis from the fiscal to the regulatory function of this type of taxes. In Ukraine, the model of corporate income taxation is not able to have a stimulating effect on the business activity and ensure the structural restructuring of the economy aimed at innovative development, and therefore needs a fundamental revision. Therefore, it is considerednt to implement the Estonian experience of taxation of distributed income into the domestic tax system.
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