№ 4/2019

№ 4/2019

Nauk. pr. NDFI 2019 (4): 108–124https://doi.org/10.33763/npndfi2019.04.108

ACCOUNTING AND TAXATION

OLEYNIKOVA Liudmyla ¹, TOCHYLINA Iryna ²

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0001-8204-4434
²SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-1176-4252

Simplified small business taxation in Ukraine as a form of public support

Small and micro business, including self-employed individuals, is a category of business entities facing the most urgent challenges in terms of instability and therefore need state support. In Ukraine, the support for SMEs takes place, among other methods, through a simplified tax regime, that has a significant impact on doing business at the micro-level. However, a simplified tax regime has some constraints, which does not stimulate the development of micro-business, and in current circumstances does not take into account the tendencies for rapid digitalization of economic processes and changes in the paradigm of doing business in the new environment. Therefore, the purpose of the article is to study the efficiency and suitability of applying a simplified tax regime as a form of state support to small and micro business entities in the context of creating the conditions for their further development and changing the paradigm of entrepreneurs' problems within the country and in the global economic space. Differences in the institutional base of small and micro business operating are identified, based on a retrospective analysis of the most important problems facing entrepreneur activities in European countries and Ukraine. It has been established that the range of problems for domestic SMEs is much wider, and the problems of tax administration and accounting, along with access to finance, corruption, unfavourable economic and political situation, are the most significant for domestic SMEs as far. There is quite a large gap between the intentions of governments and their understanding of the needs and challenges SMEs face. The discrepancy established between the expectations of entrepreneurs and the measures implemented according to the regional state support programs is based on the aggregation and systematization of the main state support measures provided for by the Regional Small and Medium Enterprises Development Programmes in Ukraine. Approaches to the transformation of the taxation system for small and micro business are formulated taking into account the existing problems and changes in the economic paradigm of doing business in terms of digitalization. It is proposed to consider the simplified tax regime of small and microbusiness as the main instrument of state support in the conditions of significant budget constraints and the lack of an institutional environment for the use of non-tax instruments of state aid in the country.

Keywords:simplified tax regime, single tax, state support, small and micro business, barriers to SME development, regional SME development programs

JEL: М21, Н21, Н25, H32

OLEYNIKOVA L. . Simplified small business taxation in Ukraine as a form of public support / L. . OLEYNIKOVA, I. Tochylina // Наукові праці НДФІ. - 2019. - № 4. - C. 108-124.

Article original in Ukrainian (pp. 108 - 124)

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