VECTORS OF INFLUENCE OF THE TAXATION SYSTEM ON THE DEVELOPMENT OF ENTREPRENEURIAL ACTIVITY IN UKRAINE

Abstract

The taxation system is an important tool for regulating the national economy, as it stimulates the development of business activities. Tax revenues form the financial content of the state budget for the state to perform its functions. The article is focused on determining the impact of the national tax system on the dynamics of entrepreneurship development. The article reveals the theoretical essence of the main concepts of the research topic. It is noted that stimulation of entrepreneurial activity is a relevant and priority direction of the State policy of economic development. The study uses general scientific methods: statistical, graphical, analytical, systematisation and comparison methods. The systematisation of business entities is carried out depending on the number of employees and income received from any activity for the year. The structure and dynamics of operating enterprises by the size of the business entity are analysed. The structure of tax revenues to the Consolidated Budget of Ukraine and their impact on the country's economic development are studied. The indicators of the tax burden coefficient in Ukraine at the macro level are considered. It is determined that the tax burden in Ukraine reaches the upper limit, which negatively affects both the country's economy as a whole and each taxpayer separately. The article analyses the dynamics of the number of changes in the Tax Code of Ukraine, which indicates the instability of tax legislation in terms of enhancing the development of entrepreneurial activity. It is noted that for the effective operation of enterprises, it is necessary to ensure the stability and permanence of tax regulations over a certain period. This will allow enterprises to plan their activities for several years ahead, which will have a positive impact on increasing the profit of enterprises. It has been determined that one of the current directions of the country's economic development is tax incentives for small and medium-sized businesses and creating conditions for improving the tax culture of the population. The directions of improvement of the taxation system in Ukraine are proposed, which should form a more effective policy of the State on taxation of enterprises. It is concluded that the creation of an effective and fair taxation system, the formation of a favourable investment climate and the provision of guarantees for the business sector will help to intensify business activity and economic development of the country.