Uman NUH | today: 01/19/2023

Development prospects of incentive taxation mechanisms of business entities in agricultural sector of the economy

Author(s) Nepochatenko Olena O., Doctor of Economics, Professor, Rector of Uman National University of Horticulture, Head of Department, Uman National University of Horticulture
Bechko P.K., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Vlasyuk S.A., , , Uman National University of Horticulture
Пономаренко О. В., , ,
Нагорна Ю. І., , ,
Category Economics
year 2021 issue
pages 132-143 index UDK 336.2:338.246.025.2
DOI 10.31395/2415-8240-2021-99-2-132-143 (Link)
Abstract In the contemporary world, the agricultural industry faces a system call, which priority is to resolve the problem of a new high-quality model of development with the use of state financial support, which main tool is tax incentives based on a differentiated approach depending on the specific amounts of direct state financial support that is received by each business entity. The contemporary nature of development mechanism for incentive taxation of economic entities in agricultural sector of the economy is under constant review of both theorists and practitioners who study the taxation problems of farmers. However, solution to this issue for national farmers in current situation has not yet been completely researched; they require further study, using both foreign and native experience in order to implement it in national tax system. To justify the theoretical aspects of the development prospects of tax incentive mechanisms, best practices have been used, developed by both international and native practice of the tax system and scientific progress of foreign and native scientists who researched the development of tax incentive mechanisms for business entities in agricultural sector of the economy. It was proved that in order to improve taxation and tax incentives for farmers, it becomes necessary to clarify the criteria for classifying business entities in the industry as agricultural manufacturers. Unreasonably, economic entities that process agricultural products are not included in the Tax Code. Considering this, within years, the number of imported agricultural products, including livestock products, has been increasing. The result was a new author’s approach to dealing with the development prospects of tax incentives mechanism for business entities in the agricultural sector of the economy. So, at the legislative level, it is necessary to make amendments to the Tax Code of Ukraine on taxation of agrarians with a single tax (fourth group), depending on their specialization, by providing preferences to agricultural producers for the production of livestock products and their processing.
Key words single (flat) tax (fourth) group, production specialization, Tax Code of Ukraine, profitability, minimization of tax liabilities, simplified taxation
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