PROFIT TAX IN THE FORMATION OF BUDGET REVENUES IN MARTIAL LAW CONDITIONS

Abstract

Corporate income tax is a significant source of budget revenue, the effectiveness of the state’s fiscal influence on economic activity in the country depends on the mechanism of its collection. There are two main concepts for calculating income tax: European and Anglo-American. The European concept is characterized by the absence of separate tax accounting, the Anglo-American concept provides for the simultaneous calculation of accounting and taxable income, with a stable connection between them. Ukraine has introduced a classic European model for calculating income tax. According to the Tax Code of Ukraine, income tax is a state tax paid by legal entities that carry out economic activities both in Ukraine and abroad, as well as non-residents who are established in any organizational and legal form and receive income with a source of origin in Ukraine. Among the sources of budget funding, the income tax ranks third, behind the value added tax and the personal income tax. Over the analyzed period, there has been a tendency to reduce the share of this tax in the structure of tax revenues. At the same time, the amount of tax  ransferred from banking institutions and insurance companies, enterprises with the participation of foreign investors and private enterprises is growing. The main amount of the tax goes to the state budget. To increase the efficiency of income taxation, it is advisable to conduct a tax audit in the event that an enterprise declares losses for more than two years and apply the practice of determining tax liabilities by indirect methods. Reducing the shadow sector can be achieved by minimizing cash payments. It is necessary to review the system of tax benefits. The system of administration of this tax also needs to be simplified. The reform of the mechanism of taxation of corporate income should be aimed at limiting the tax burden for payers, stimulating capital investments in production, attracting foreign investment and modern foreign technologies. It should also contribute to the renewal of the material and technical base of production,  increasing the competitiveness of Ukrainian goods, and creating conditions for the production of means of labor and final consumer goods.