Corporate Income Tax: Effectiveness in the Context of Public Fiscal Policy and Entrepreneurship Support
Abstract
The article analyzes the approaches to the definition of the essence and quantitative assessment of the fiscal effectiveness of the income tax. According to the results of the study, it was found out that the fiscal effectiveness of the income tax can be estimated through the indicators of fiscal importance of the tax in the tax revenues of the state (consolidated) budget; tax burden of the tax (in relation to GDP); elasticity of income tax; effective tax rate and tax productivity, etc. The analysis of the dynamics of these indicators over the past few years in Ukraine has allowed us to confirm the low level of fiscal effectiveness and regulatory potential of this tax for Ukraine. One of the possible ways to improve the fiscal effectiveness of the income tax is to use indirect channels of influence, which are represented by the general state of the country's economic development, labor market efficiency, level of welfare of the population, investment attractiveness, and performance of enterprises. The empirical study of determining the most significant channels of influence on the indicators of fiscal effectiveness of the income tax has made it possible to find out: 1) growth of absolute amounts of income tax revenue can be achieved through the use of the investment channel, budget channel and labor market channel; 2) increase in the tax burden on income tax is contributed by the increase in the revenues of the Consolidated Budget, index of industrial producer prices and consumer price index, and increase of the employment rate, while the improvement of the indicators of the overall economic development of the state and investment climate leads to reduction of the tax burden; 3) increase in the fiscal significance of the income tax is contributed by the increase in growth rate of direct investment, level of employment and real wages. Thus, the analysis conducted allowed to identify the channels through which authorities can influence the fiscal effectiveness of the income tax.
Downloads
References
Khomutenko V. P. (2017). Fiskalna efektyvnist podatku na prybutok pidpryiemstv v Ukraini.[The fical effctiveness of the corporate income tax in Ukraine], Economy and the state, 2, 61-65.
Dalievska T. A. (2015). Podatok na prybutok pidpryiemstv yak instrument napovnennia biudzhetu. [Corporate income tax as a tool for filing the budget], Global and national problems of the economy, 5, 363-366.
Iaroshevych N. B. Podatok na prybutok u dokhodakh derzhavnoho biudzhetu Ukrainy: problemy ta perspektyvy [Tax on income in the revenues of the state budget of Ukraine: problems and prospects]. Available at: http://www.nbuv.gov.ua/portal/chem_biol/ nvnltu/21_7/288_Jar. pdf.
Vyshnevskyi V.P. Nalohooblozhenye: teoryy, problemy, reshenyia [Taxation: theories, problems, solutions], Donetsk: DonNTU, YEP NAN Ukrainy, 2006, 504.
Bezverkhyi K. (2015). Oblik i zvitnist rozrakhunkiv za podatkom na prybutok v umovakh zakonodavchykh zmin. [Accounting and reporting of payments for income tax in the conditions of legislative changes], Accounting and auditing, 4, 34-43.
The Tax Code of Ukraine dated 02.12.2010 No. 2755-VI. Available at: http://zakon5.rada.gov.ua/laws/show/2755-17.
Modern economic dictionary: Available at: http://www.ebk.net.ua/Book/Ses/index.htm
Paderin I.D. (2003). Naukovi i praktychni aspekty pidvyshchennia ekonomichnoi efektyvnosti suchasnoho pidpryiemstva [Scientifi and practical aspects of improving the economic effiency of a modern enterprise], Visnyk akademii ekonomichnykh nauk Ukrainy, 1, 89-95.
Ozerchuk O. V. (2014). Fiskalna efektyvnist nepriamykh podatkiv [Fiscal effiency of indirect taxes], Naukovi pratsi NDFI. 2 (67), 59-70.
Piskova Zh. V. (2016). Formuvannia systemy pokaznykiv fikalnoi efektyvnosti podatkiv: teoriia i praktyka [Formation of the system of indicators of fical effctiveness of taxes: theory and practice], Naukovyi visnyk Mukachivskoho derzhavnoho universytetu. Ser. : Ekonomika, 2, 174-180.
Rymar O. H. (2011). Fiskalna efektyvnist podatkovoi systemy v konteksti antykryzovoho rehuliuvannia. [Fiscal effctiveness of the tax system in the context of anti-crisis regulation], Actual problems of the economy, 4 (118), 224-227.
Pyslytsia A. V. (2008). Fiskalna efektyvnist aktsyziv: systema pokaznykiv, faktory vplyvu. [Fiscal effctiveness of excise duties: a system of indicators, factors of inflence], Actual problems of the region’s economy development, 4, 101-111.
The State Fiscal Service of Ukraine. Receipt of taxes and fees. Available at: http://sfs.gov.ua/diyalnist-/pokazniki-roboti/nadhodjennya-podatkiv-i-zboriv–obovyaz/nadhodjennyapodatkiv-i-zboriv/
Offial website of the National Bank of Ukraine. Available at: https://bank.gov.ua/control/uk/index
Offial website of the State Treasury Service of Ukraine. Available at: http://www.treasury.gov.ua/main/uk/index
Budgetary monitoring: Analyzing the budget for 2011-2016. Available at: http://www.ibser.org. ua/publications/monitoring categories/ richnyy
Offial website of the State Statistics Service of Ukraine. Available at: http://www.ukrstat.gov. ua/
Offial website of the Organization for Economic Cooperation and Development. Available at: http://www.oecd.org/tax.
Copyright (c) 2018 FEB Universitas Lampung
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The objectives of International Journal of Economics, Business, and Entrepreneurship (IJEBE) are to establish an effective communication between policy makers, government agencies, academic and research institutions and professional’s person concerned with business, entrepreneurship and Small Medium Enterprise (SME) in a community.
Written application must be made to the Managing Editor for permission to reproduce any of the contents of the journal for use in other than course of instruction—e.g., inclusion in books of readings or in any other publications intended for general distribution. In consideration for the grant of permission by the journal in such instances, the applicant must notify the author(s) in writing of the intended use to be made of each reproduction. Normally, the journal will not access a charge for the waiver of copyright.
International Journal of Economics, Business, and Entrepreneurship (IJEBE) publishes original papers, literature reviews, empirical studies, theoretical frameworks, case studies, and book reviews.
International Journal of Economics, Business, and Entrepreneurship (IJEBE) is licensed under a Creative Commons Atribusi-noncommercial 4.0 Internasional License
