Tax Benefits as an Element of Supporting Economic Entities in the COVID-19 Fighting Period: Comparative and Legal Aspects

Abstract

This article provides an analysis of the tax system of Ukraine in comparison with its counterparts in foreign countries to determine the competitiveness of Ukraine in the world market of goods and investments and to choose the main directions of reforming the tax system in the conditions of economic crisis caused by quarantine measures. The influence and liberalization of the tax system on the socio-economic development of Ukraine and foreign countries is considered and analyzed. Comparisons were made in the following areas: by the level of the overall tax burden, its distribution between the main types of taxes and payer groups, and the fiscal efficiency of tax systems. Having analyzed the data of European countries, the authors of the study compared them from a number of parameters with such major economies of the world as the US, China, Singapore. It has been shown that the EU is somewhat inferior to the US in terms of preferential administration of tax calculation and payment processes, as well as filing tax reporting by taxpayers. However, the EU shows relatively low corporate tax rates (compared to China and the US). Even though China and Singapore have significantly reduced these rates, they remain above the EU average. In order to improve the functioning of the tax system of Ukraine, the authors consider it advisable to focus on the dynamic transformations observed in the new member states of the EU, which, in turn, are one of the main competitors of Ukraine in the world markets of goods and capital, taking their experience to improve the tax climate and improve fiscal and regulatory tax compliance. The authors conclude that the amendments to the tax legislation of Ukraine due to the need to protect economic entities in the period of the COVID-19 pandemic are effective, sufficient and consistent with the world’s legal practice. That is why the liberalization of the tax system is one of the determining factors in the socio-economic world development today. Formation of a modern competitive, social, market economy, integrated in the EU, guaranteeing stable economic growth, implementation of a balanced budgetary and social policy is impossible without the implementation of an effective tax policy to ensure support of the taxpayer.