DOI: https://doi.org/10.18371/fcaptp.v3i26.144117

TAX PREFERENCES AND THEIR INFLUENCE ON THE INVESTMENT IN UKRAINE

L. M. Akimova, V. B. Reinska, О. O. Akimov, M. I. Karpa

Abstract


The article characterizes the relationship between capital investments and corporate income tax preferences. It determines the low potential of the benefits from the corporate tax preferences in the financial investments of economic entities. The article proves that tax deduction of the personal income tax significantly affects the financial investments of individuals and investment in the development of human capital. Based on the calculation of correlation indicators, the article determines that it is worth paying attention to the mechanism of tax incentives for individuals' investment activity as to the only real incentive to invest for the population. The article emphasizes that the question of the effectiveness of preferential taxation has always been in the focus of theoretical research and practical measures, as it causes the non-receipt of certain sums to budgets of different levels and, at first glance, seems ineffective. The study expresses the view that it is unreasonable to cancel tax privileges. In particular, tax exemptions for VAT, in addition to mitigating its regressive impact on less affluent and socially vulnerable segments of the population, stimulate investment.

The article mathematically grounds and systematizes the indicators of regression dependence between the size of tax privileges and capital and financial investment, and investment in the development of human capital. The article determines that in general the size of tax privileges does not affect the volume of tax revenues and does not lead to the significant losses of the state budget. Taking this into account, VAT and land tax deductions for agricultural producers, aircraft, shipbuilding and other strategically important industries need to be preserved and optimized in order to eliminate tax evasion practices. The potential of corporate income tax benefits is not utilized and it does not stimulate the capital investment of legal entities. The article suggests the list of measures for its optimization.


Keywords


investment; tax preferences; corporate profit tax; development of human capital; tax regulation of investments; national economy; financial investments.

Full Text:

PDF

References


Ivanov, Yu. B. (2009). Funktsii podatkiv ta podatkove rehuliuvannia [Functions of taxes and tax regulation]. Formuvannia rynkovoi ekonomiky v Ukraini Formation of a market economy in Ukraine, 19, 36—43 [in Ukrainian].

Demydenko, L. M. & Sytnytskyi, M. V. (2010). Fiskalna polityka v zabezpechenni sotsialno-ekonomichnoho rozvytku ta konkurentospromozhnosti vitchyznianoi promyslovosti [Fiscal Policy in Providing Socio-Economic Development and Competitiveness of the Domestic Industry]. Retrieved from http://www.econom.univ.kiev.ua [in Ukrainian].

Elton E. J. , Gruber, M. J. , Brown, S. J., Goetzmann, W. N. (2015). Modern portfolio theory and investment analysis. Hoboken, NJ: Wiley. Retrieved from http://www.worldcat.org/title/modern-portfolio-theory-and-investment-analysis/oclc/1001427190?referer=di&ht=edition.

Evsey D. Domar, 82, Professor And Economic-Growth Theorist. (1997). The New York Times. Retrieved from http://www.nytimes.com/1997/04/11/business/evsey-d-domar-82-professor-and-economic-growth-theorist.html.

Kurowski, L. & Sussman, D. (2011). Investment Project Design: a guide to financial and economic analysis with constraints. New Jersey: John Wiley & Sons, Inc.

Laffer, A. The Laffer Curve: Past, Present, and Future. (June 1, 2004). Retrieved from http://www.heritage.org/taxes/report/the-laffer-curve-past-present-and-future.

Sharpe W. F. Investors and Markets: Portfolio Choices, Asset Prices, and Investment Advice. (2008). New Jersy: Prinston University Press.

Derzhavna sluzhba statystyky [State Statistics Service]. www.ukrstat.gov.ua. Retrieved from http://www.ukrstat.gov.ua [in Ukrainian].

Sybirianska, Y. V. & Volochai, A. S. (2014). Teoretychni ta prykladni aspekty podatkovykh pilhv Ukraini [Theoretical and Applied Aspects of Tax Benefits in Ukraine]. Retrieved from http://www.irbis-nbuv.gov.ua/cgi-bin/irbis_nbuv/cgiirbis_64.exe?C21COM=2&I21DBN=UJRN&P21DBN=UJRN&IMAGE_FILE_DOWNLOAD=1&Image_file_name=PDF/econom_2014_1_11.pdf [in Ukrainian].

Horyn, V. (2013). Problemy pidvyshchennia fiskalnoi efektyvnosti podatku na dodanu vartist [Problemy pidvyshchennia fiskalnoi efektyvnosti podatku na dodanu vartist]. Halytskyi ekonomichnyi visnyk — Galician Economic Journal, 2 (41), 118—126 [in Ukrainian].

Rekova, N. Y. (2014). Instrumenty rehuliuvannia investitsiinoi diialnosti v ramkakh podatkovoi polityky [Instruments for regulating investment activity within the framework of fiscal policy]. Ekonomichnyi chasopys XX stolittia — Economic Journal of the XX Century, 12 (2), 2—15 [in Ukrainian].


GOST Style Citations


Іванов Ю. Б. Функції податків та податкове регулювання / Ю. Б. Іванов // Формування ринкової економіки в Україні. — 2009. — № 19. — С. 36—43.

Демиденко Л. М. Фіскальна політика в забезпеченні соціально-економічного розвитку та конкурентоспроможності вітчизняної промисловості [Електронний ресурс] / Л. М. Демиденко, М. В. Ситницький. — Режим доступу : http://www.econom.univ.kiev.ua.

Elton E. J. Modern portfolio theory and investment analysis [Electronic resource] / E. J. Elton, M. J. Gruber, S. J. Brown, W. N. Goetzmann. — Hoboken, NJ : Wiley, 2015. — Available at : http://www.worldcat.org/title/modern-portfolio-theory-and-investment-analysis/oclc/1001427190?referer=di&ht=edition.

Evsey D. Domar, 82, Professor And Economic-Growth Theorist [Electronic resource] // The New York Times. — 1997. — Available at : http://www.nytimes.com/1997/04/11/business/evsey-d-domar-82-professor-and-economic-growth-theorist.html.

Kurowski L. Investment Project Design: a guide to financial and economic analysis with constraints / L. Kurowski, D. Sussman. — New Jersey : John Wiley & Sons, Inc., 2011. — 458 р.

Laffer A. The Laffer Curve: Past, Present, and Future [Electronic resource] / A. Laffer // The Heritage Foundation. — 2004. — June 1. — Available at : http://www.heritage.org/taxes/report/the-laffer-curve-past-present-and-future.

Sharpe W. F. Investors and Markets: Portfolio Choices, Asset Prices, and Investment Advice / W. F. Sharpe. — New Jersy: Prinston University Press, 2008.  — 232 p.

Державна служба статистики [Електронний ресурс]. — Режим доступу : http://www.ukrstat.gov.ua.

Сибірянська Ю. В. Теоретичні та прикладні аспекти податкових пільг в Україні [Електронний ресурс] / Ю. В. Сибірянська, А. С. Волочай. — Режим доступу : http://www.irbis-nbuv.gov.ua/cgi-bin/irbis_nbuv/cgiirbis_64.exe?C21COM=2&I21DBN=UJRN&P21DBN=UJRN&IMAGE_FILE_DOWNLOAD=1&Image_file_name=PDF/econom_2014_1_11.pdf.

Горин В. Проблеми підвищення фіскальної ефективності податку на додану вартість / В. Горин // Галицький економічний вісник. — 2013. — № 2 (41). — С. 118—126.

Рекова Н. Ю. Інструменти регулювання інвестиційної діяльності в рамках податкової політики / Н. Ю. Рекова, Г. О. Талан // Економічний часопис ХХ століття. — 2014. —
№ 1—2 (2). — С. 2—15.





Copyright (c) 2018 L. M. Akimova, V. B. Reinska, О. O. Akimov, M. I. Karpa

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

ISSN (print) 2306-4994, ISSN (on-line) 2310-8770