DEVELOPMENT OF UKRAINE’S TAX SYSTEM UNDER THE TRANSFORMATION OF THE ECONOMIC AND INSTITUTIONAL ENVIRONMENT

Main Article Content

Olena LAVROVA-MANZENKO

Abstract

Introduction. The transformation of the economic and institutional environment in Ukraine has substantially changed the functional role of the tax system. Under conditions of war-related instability, digitalization, structural shifts in business activity, European integration, and growing requirements for fiscal sustainability, the tax system can no longer be interpreted only as a mechanism for collecting mandatory payments. It increasingly performs broader regulatory, stabilizing, controlling, and institutional functions. This makes the issue of the development of Ukraine’s tax system highly relevant both in theoretical and applied dimensions.


Purpose. The purpose of the article is to substantiate the theoretical and applied foundations of the development of Ukraine’s tax system under the transformation of the economic and institutional environment and to determine the main directions for improving its efficiency.


Methods. The study is based on a combination of general scientific and special methods. The methods of theoretical generalization, comparison, systematization, institutional analysis, and logical abstraction were used to clarify the essence of the tax system, tax policy, tax burden, and tax control in their interrelation. The systemic approach made it possible to consider the tax system as an institutionally organized set of legal, economic, administrative, and information instruments.


Results. It has been established that the development of the tax system should be understood not only as a modification of taxes, rates, or fiscal instruments, but as a complex transformation of tax administration, control procedures, information interaction, and institutional trust. It has been proved that the current functioning of Ukraine’s tax system is significantly influenced by war challenges, digitalization, changes in the structure of business activity, European integration processes, the persistence of shadow practices, and the growing need for adaptive fiscal regulation. It has been substantiated that tax burden should be interpreted not merely as a quantitative indicator of tax withdrawals, but as an integrated indicator of the effectiveness of tax policy and the quality of the economic and institutional environment. It reflects the balance between fiscal needs of the state, tax capacity of taxpayers, economic incentives, and the degree of legitimacy of tax relations. The study also demonstrates that the effectiveness of the tax system increasingly depends on the institutional quality of fiscal authorities, the spread of risk-oriented tax control, digital tools of administration, and the service-oriented model of interaction with taxpayers.


Originality. The scientific originality of the study lies in the substantiation of an expanded interpretation of the development of the tax system as a multidimensional institutional process that combines fiscal sufficiency, regulatory capacity, digital maturity of administration, adaptive tax control, and institutional trust. The category of adaptability of the tax system has been specified as its ability to preserve fiscal effectiveness, internal coherence, and regulatory functionality under conditions of economic instability and institutional change. The paper further develops the approach according to which tax burden is treated not only as a fiscal category, but also as an institutional indicator revealing the quality, fairness, and structural balance of the tax system.


Conclusion. It has been concluded that improving the efficiency of Ukraine’s tax system requires coordinated modernization of tax policy, optimization of tax burden, expansion of digital administration, strengthening of risk-oriented tax control, and enhancement of institutional trust in fiscal authorities. The most promising model for Ukraine is a tax system that combines fiscal sustainability with fairness of tax distribution, transparency of administration, predictability of tax decisions, and adaptability to structural economic changes. Such an approach creates the institutional basis for strengthening tax discipline, reducing shadow practices, and ensuring the long-term stability of public revenues.

Article Details

Section
Статті

References

Tax Code of Ukraine. (2010). Law of Ukraine No. 2755-VI of December 2, 2010. Retrieved from https://zakon.rada.gov.ua/laws/show/2755-17#Text

Liakhova, O. O., & Sadovyi, D. Yu. (2023). Problematyka rozvytku systemy opodatkuvannia subiektiv biznesu v Ukraini [Problems of development of the taxation system of business entities in Ukraine]. Suchasni tendentsii rozvytku finansovykh ta innovatsiino-investytsiinykh protsesiv v Ukraini [Current trends in the development of financial and innovation-investment processes in Ukraine]: Proceedings of the VI International Scientific and Practical Conference, 195-198. Vinnytsia: VNTU. Retrieved from https://dspace.uzhnu.edu.ua/server/api/core/bitstreams/48c3f0b7-1cba-4dfc-9f22-204e8be04f2b/content (in Ukr.)

Melnyk, V. M., & Koshchuk, T. V. (2016). Podatkova polityka Ukrainy v umovakh implementatsii uhody pro asotsiatsiiu z Yevropeiskym Soiuzom [Tax policy of Ukraine under implementation of the Association Agreement with the European Union]. Finansy Ukrainy (Finance of Ukraine), 7, 7-25. Retrieved from https://finukr.org.ua/docs/FU_16_07_007_uk.pdf (in Ukr.)

Slavkova, A. A., & Vatamaniuk, O. S. (2018). Podatkova polityka Ukrainy v umovakh yevrointehratsii: problemy i perspektyvy [Tax policy of Ukraine in the conditions of European integration: problems and prospects]. Finansy, oblik i audyt (Finance, Accounting and Audit), 1(31), 119-136. Retrieved from https://ir.kneu.edu.ua/server/api/core/bitstreams/9c1340ac-4008-40d8-a58d-fc32bc55abe9/content (in Ukr.)

Proskura, K. P. (2014). Podatkove administruvannia v Ukraini v postkryzovyi period: efektyvnist ta napriamy modernizatsii [Tax administration in Ukraine in the post-crisis period: efficiency and directions of modernization]. Kyiv: Emkon (in Ukr.). Retrieved from https://ir.kneu.edu.ua/server/api/core/bitstreams/d2bb5ba4-e942-4615-a705-53280e88b1c5/content

Tsiutsiak, A., Tsiutsiak, I., & Tsiutsiak, V. (2023). Tsyfrovizatsiia podatkovoi systemy: suchasnyi stan, problemy i perspektyvy [Digitalization of the tax system: current state, problems and prospects]. Halytskyi ekonomichnyi visnyk (Galician Economic Bulletin), 4(83), 124-131. Retrieved from https://galicianvisnyk.tntu.edu.ua/pdf/83/1188.pdf (in Ukr.)

Tatianchenko, O. A. (2023). Problemy podatkovoho zakonodavstva v umovakh voiennoho stanu [Problems of tax legislation under martial law]. Naukovyi visnyk Uzhhorodskoho universytetu. Seriia: Pravo (Scientific Bulletin of Uzhhorod University. Series: Law), 1(80), 582-587. Retrieved from http://visnyk-pravo.uzhnu.edu.ua/article/view/297185/290101 (in Ukr.)

Oleinikova, L. H. (2017). Formuvannia informatsiinoho prostoru administruvannia podatkiv i zboriv v Ukraini [Formation of the information space of tax and fee administration in Ukraine]. Finansy Ukrainy (Finance of Ukraine), 10, 43-62. Retrieved from https://nbuv.gov.ua/j-pdf/Fu_2017_10_5.pdf (in Ukr.)

Cabinet of Ministers of Ukraine. (2023). Pro skhvalennia Natsionalnoi stratehii dokhodiv do 2030 roku [On approval of the National Revenue Strategy through 2030]: Order of the Cabinet of Ministers of Ukraine No. 1218-r of December 27, 2023. Retrieved from https://www.kmu.gov.ua/npas/pro-skhvalennia-natsionalnoi-stratehii-dokhodiv-do-2030-s1218-271223 (in Ukr.)

Tymchenko, O. M. (2020). Naslidky podatkovykh transformatsii u krainakh YeS ta SShA [Consequences of tax transformations in the EU and the USA]. Finansy Ukrainy (Finance of Ukraine), 1, 50-68. Retrieved from https://ir.kneu.edu.ua/server/api/core/bitstreams/e3f3f9e2-f3ad-4f3a-87a7-7715804988dc/content (in Ukr.)

Saienko, O. R. (2019). Podatkove navantazhennia yak otsinka efektyvnosti systemy opodatkuvannia v Ukraini [Tax burden as an assessment of the efficiency of the taxation system in Ukraine]. Ahrosvit (AgroWorld), 11, 30-34. Retrieved from http://www.agrosvit.info/pdf/11_2019/6.pdf (in Ukr.)

Main Department of the State Tax Service in Cherkasy region. (n.d.). SAF-T UA: efektyvnist kontrolno-perevirochnoi roboty ta tsyfrovizatsiia podatkovoho administruvannia [SAF-T UA: efficiency of control and audit work and digitalization of tax administration]. Retrieved from https://ck.tax.gov.ua/media-ark/news-ark/911934.html (in Ukr.)

State Tax Service of Ukraine. (n.d.). DPS: tsyfrovizatsiia u sferi opodatkuvannia ye vazhlyvoiu skladovoiu rozvytku tsyfrovoi ekonomiky [STS: digitalization in the field of taxation is an important component of the development of the digital economy]. Retrieved from https://tax.gov.ua/media-tsentr/novini/568593.html (in Ukr.)

State Tax Service of Ukraine. (n.d.). Zvit pro stan vykonannia Natsionalnoi stratehii dokhodiv do 2030 roku u 2024 rotsi [Report on the status of implementation of the National Revenue Strategy through 2030 in 2024]. Retrieved from https://surl.li/ssnhko (in Ukr.)