Features Of The Use Of Tax Preferences In The Taxation Of Small Business Entities In Ukraine And Some Foreign Countries: A Comparative Analysis

Abstract

The scientific article analyzes the performance indicators of small business entities in Ukraine and certain foreign countries. The differences between some performance indicators of small business entities in the member states of the European Union and Ukraine are identified. The low indicators of small business activity in Ukraine are emphasized. Attention is focused on the low indicators of employment of the population in small businesses and sales of products by Ukrainian small business entities, compared to EU member states. The peculiarities of the taxation of small businesses in some foreign countries are summarized. A flexible system of tax benefits and peculiarities of using special tax regimes for small businesses in some foreign countries are established. Three groups of tax benefits with their characteristic features in foreign countries are identified and characterized. The first group includes tax benefits that allow you to reduce the amount of income through various deductions. The second group is made up of tax benefits that allow you to reduce the amount of income tax on taxable income. The third group is made up of tax benefits that provide exemption from the obligation to pay a certain type of tax. The simplified taxation system in Ukraine is identified as the main form of state support for small businesses. It is proposed that the performance of small businesses in Ukraine be improved through the use of a flexible system of tax benefits in taxation, taking into account the generalized experience in the studied foreign countries. The generalized range of benefits includes introducing differentiated tax rates on profit tax for newly established small businesses under the general taxation system. The necessity of preserving the simplified taxation system in the post-war period of Ukraine’s reconstruction is proven.