THE INFLUENCE OF TAXATION AND CERTAIN SOCIAL DETERMINANTS ON THE DEVELOPMENT OF BUSINESS STRUCTURE SUBJECTS IN UKRAINE

Abstract

The article deals with a comprehensive research of the influence of taxation and individual social determinants on the development of business structures subjects (business entities) in Ukraine. The methodological basis of the study consists of general scientific methods and methods of cognition of objective reality and processes associated with the functioning of business entities (analysis and synthesis; induction and deduction; scientific abstraction, historical and logical; comparative analysis, generalization; modeling; statistical methods, as well as system approach and method of expert assessments). The information base of the research is the current regulatory and legal acts on taxation of business entities in Ukraine, official analytical and statistical materials of the World Bank, European Business Association, State Committee of Statistics of Ukraine, Ministry of Finance of Ukraine, monographs and periodicals of domestic and foreign scientists. The essence of the concept of “subjects of business structures” is revealed; identified international institutions that conduct ongoing and annual monitoring of the modern business environment. The study disclosed the types of economic crimes that contemporary entrepreneurs in Ukraine and in the world often encounter. The positions of Ukraine in the ranking of Doing Business 2006-2019 are presented. The results of monitoring the tax system in Ukraine and in the world are analyzed. The destimulating effect of the current tax system on the activities of business entities is proved, factors of a social nature that slow down the further development of business in Ukraine are mentioned; a critical assessment of the simplified single tax model is given; problematic issues requiring urgent solutions and barriers that impede the development of business entities in Ukraine are identified. As a result of the study, the authors came to the conclusion that Ukraine’s position in international ratings in recent years has remained mediocre, and the progress achieved does not bring it closer to the optimal level. All reform changes in the business taxation system led to its superficial improvement. Namely, it is a decrease for taxes paid by entrepreneurs and the level of tax burden remains burdensome and amounts to 42.24%. It is noted that the new reform measures proposed by the Government of Ukraine (the abolition of the maximum base for calculating the unified social contribution to the wage fund, the introduction of tax on the withdrawn capital) remain highly controversial, are not perceived positively by business entities and are not supported by foreign experts. The scientific and practical significance of the presented research lies in the possibility of using it in the further practice of improving the legal framework for taxation of business entities in Ukraine.