DIRECT TAXATION AS A COMPONENT OF MANAGEMENT ACCOUNTING AND A MEANS OF FISCAL REGULATION

Abstract

The article examines the economic essence of Ukraine’s tax system with a particular focus on direct taxation as a key instrument for generating budget revenues and as an integral element of management accounting. The role and functions of the tax system are analyzed in the context of ensuring financial stability and supporting socio-economic development. The study explores the structure and dynamics of direct tax revenues in 2018–2024, emphasizing personal income tax and corporate income tax as the primary sources of budgetary inflows. Special attention is given to the challenges of tax administration, the impact of direct taxation on enterprise financial performance, and the broader implications for social fairness and fiscal sustainability. An important contribution of the study is the analysis of the integration of direct taxation mechanisms into the management accounting system. The research highlights that tax expenditures constitute a significant component of production costs, influencing profitability and strategic decision-making. Management accounting, in this regard, provides relevant analytical information for planning, monitoring, and optimizing tax payments, thereby reducing fiscal risks, enhancing internal control, and improving the transparency of financial flows. Such an approach strengthens the role of direct taxes not only as fiscal instruments but also as managerial tools that support rational resource allocation and business adaptability in a volatile environment. The article concludes that the current system of direct taxation in Ukraine faces a number of persistent challenges, including legislative instability, high tax pressure on businesses, and low transparency of fiscal procedures. Addressing these issues requires further reforms aimed at improving the efficiency and fairness of the tax system. Particular emphasis should be placed on the development of management accounting practices that integrate tax information into decision-making processes, which would enhance the effectiveness of tax administration, support long-term economic growth, and foster greater resilience of the public finance system.