Application for capital: international experience and ukrainian realities

Kovalenko Artem
master`s student, Zaporizhzhia National University. E-mail:art.kovalenko.95@gmail.com

Babmindra Dmitry
doctor of economic sciences, professor, Zaporizhzhia National University. E-mail:art.kovalenko.95@gmail.com

Cite this article:

Kovalenko A., Babmindra D., (2018) Application for capital: international experience and ukrainian realities. Ed.: М.D. Baldzhy (ed.-in-ch.) and others [Systema pensiinoho zabezpechennia Ukrainy ta yevrointehratsiini protsesy; za red.: М. D. Baldzhy (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 9(261), pp. 44-61.

Abstract

The purpose of the article is to analyze the reform of the tax legislation of the country. The article describes the functioning of the capital increase tax in the world. The peculiarities of the application of capital tax on the basis of international experience in individual countries as part of their financial policy are considered. The analysis of tax collection in Ukrainian realities, the level of its revenues to the state budget and problems related to its administration are analyzed. The preconditions and prospects of the transformation of the income tax into the tax on the withdrawn capital in the conditions of economic decline and loss-making of enterprises in Ukraine are considered. The basic problems, which may be after introduction of the tax on the withdrawn capital, are revealed. The advantages, drawbacks and risks of introducing the tax on the withdrawn capital were analyzed. It was found that the imposition of a tax would not be a step in order to increase revenues in the budget, or, conversely, reduce them. Conducted an analysis of the results of the introduction of capital tax in countries that have already worked with it. The introduction of this tax in many countries has reduced revenues to the budget from taxes. However, such a step has helped countries to increase their investment growth. They have argued that the introduction of the tax on withdrawn capital may be more workable for the state economy than the income tax. Namely, the tax on withdrawn capital will help the country to bring the business out of the shadows. This tax will allow companies to publicly publish their revenues, since more will not be taxed. This method gives enterprises incentives to get more profit. Earned funds of the company can be used to improve equipment and quality of goods. This step will not only enable the international level of trade, but also overcome one of the main problems of Ukraine - the shadow economy. Most scientists have long said that businesses need to be upgraded. Improving the quality of goods can attract not only domestic investment, but also foreign.

Keywords

financial policy, income tax, tax on withdrawn capital, draft law, income, investment, benefits, risks.

JEL classification: H290; K340

UD classification: 338

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