Candidate of Sciences (Economics), Head of the Department of International Economic relations and Finance of Kharkov Trade and Economic Institute of the Kiev National University of Trade and Economics
Ph. D. in Economics, associate professor, associate professor of the Chair of International Economic relations and Finance of Kharkov Trade and Economic Institute of the Kiev National University of Trade and Economics
PROFIT TAXES IN STIMULATING INVESTMENT ACTIVITIES OF ENTERPRISES
Background. Transformation of the tax system of Ukraine is due to the need to overcome the crisis phenomena in the economy. Despite lowering the tax rate on profit, changing the order and terms of payment of taxes, the negative phenomena in the process of capital formation has not been overcome yet.
Analysis of recent research and publications has shown that despite the availability of certain scientific developments, the problem of finding reserves to increase the financial potential of investment activity on the basis of tax policy reform remains insufficiently researched.
The aim of the paper is the study of the impact of tax reform on the level of tax burden and own financial resources of non-financial corporations in order to stimulate investment activity.
Materials and methods. In the process of research the following methods were used: comparison, graphical, tabular, economic-statistical.
Results. Scientific hypotheses about the main reasons that negatively influenced the financing of investment activity of enterprises of the real sector, as well as their empirical examinations were made. The statement of certain researchers about the excessive deduction of net profit in the budget of the country was disproved. A set of proposals has been developed, in particular: refusal to further reduce the tax rate on profit; strengthening the taxation of dividends and financial investments of enterprises in the real sector. The implementation of these proposals will increase the financial resources of the enterprises of the real sector of the economy and their transformation into real investments.
Conclusion. The taxation of profits of the non-financial sector did not have any significant restrictive effect on the formation of own sources of financing for enterprises. The calculations showed a decrease in the tax burden on the profit of non-financial corporations. Increase in unproductive use of profits and the growth of financial investmen are among the factors limiting the accumulation of real capital. The need for stimulation by the state of accumulation of fixed capital stipulates the introduction of changes to the tax legislation on the introduction of tax privileges on investments. The expansion of investment incentives will encourage non-financial corporations to invest in capital investments, which will facilitate the renewal of fixed assets.
Keywords: profit tax, financial resources, capital investments, real investments, financial investments, depreciation, tax revenues, effective rate, non-financial corporations, dividends.
FREE FULL TEXT (PDF)