The Impact of Preferential Taxation on the Stimulation of Investment Processes in Ukraine in the Context of the Experience of Eu Member States

Abstract

In modern conditions, one of the main tasks of the fiscal mechanism is to create favorable conditions for maintaining and activating investment processes at the micro level. Thanks to tax incentives as a leading element of the fiscal mechanism, the state influences the amount of financial resources that are at the disposal of taxpayers − legal entities and individuals - and can be used for investment. Therefore, the purpose of the study was to evaluate the use of tax incentives to ensure the investment development of enterprises and households in EU member states and in Ukraine; to conduct SWOT analysis of investment tax incentives, and to find opportunities to further improve their management. The study substantiates the content of tax incentives and the conditions of their use to activate investment processes at the micro level. The experience of EU member states in the use of different ways of tax stimulation of investments of legal entities and individuals has been generalized. The tax incentives introduced in Ukraine have been considered and the key problems of their existence have been described in the context of stimulating the investment activity of taxpayers. SWOT analysis of investment tax incentives has been carried out, which helped to identify the positive and negative impact of the external and internal environment on their implementation. The necessity and principles of management of investment preferential taxation have been established. It has been proposed to improve the management of the provision of investment tax incentives in Ukraine based on the experience of the EU member states. The authors argue that the purposeful use of tax incentives stimulates the investment activity of households and economic entities. Therefore, the use by Ukraine of the experience of the EU countries to solve the problems of providing tax incentives to individuals and legal entities will eventually lead to the intensification of investment processes at the micro level. The research was conducted as a logical process, covering two main stages - theoretical and empirical. The theoretical stage of the research consisted in the collection, systematization and generalization of facts regarding the impact of preferential taxation on the investment activities of enterprises in the EU countries and in Ukraine. The authors considered the domestic and European practice of using tax benefits to ensure the investment development of enterprises and households. The experience of EU member states regarding the use of various methods of tax incentives for investments of legal entities and individuals has been summarized. The article considers the tax benefits introduced in Ukraine and the key problems of their existence in the context of stimulating the investment activity of taxpayers. The empirical stage of the study included a SWOT analysis of investment tax incentives and the search for opportunities for further improvement of their management. According to the results of the SWOT analysis, the positive and negative influence of the external and internal environment on the implementation of tax benefits was revealed.