Uman NUH | today: 12/22/2024
| Author(s) |
Barabash L.V., , , Uman National University of Horticulture, Ukraine Щербань С. А., , , Куліченко Р. В., , , |
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| Category | Economics | ||
| year | 2023 | issue | Issue number 103. Part 2 |
| pages | 49-56 | index UDK | 336.2 (477) | DOI | 10.32782/2415-8240-2023-103-2-49-56 (Link) |
| Abstract | Personal income taxation is one of the oldest segments of taxation. The classics of financial science substantiated various approaches to its functioning: as a means of collecting funds on the basis of progressive rates with disregard for the social status of the payer (A. Smith), by means of general taxation in order to increase the number of payers (P. Boisguilbert), by the proportional method to ensure equal conditions for all payers (F. Kene). And it was the proportional mechanism of personal income tax collection that gained popularity in the late twentieth century. In Ukraine, the personal income tax has been developing in sync with the development of the country’s tax system over seven stages of its development. The first stage, which lasted from 1991 to 1994, saw the separation of Ukraine’s tax system from the post-Soviet economic space by the adoption of the Law of Ukraine "On the Taxation System". At that time, income taxation was carried out by levying income tax at progressive rates within the provisions of the Decree of the Cabinet of Ministers of Ukraine "On Income Tax from Citizens". During the second stage of development of the tax system (1995–1999), the personal income tax was included in the list of national taxes, and the foundations for its administration were laid and the State Register of Individual Taxpayers was established as part of the tax's functioning. Between 2000 and 2010, the tax system was actively preparing for the implementation of the Tax Code, and the personal income tax was replaced by the personal income tax by the adoption of the law of the same name. There was also a shift from a progressive to a proportional tax rate scale. Over the next decade, during which two stages of tax system development were implemented, the main features of which were the reduction of the number of taxes and the formation of a tax management system, including in the electronic dimension, the personal income tax was amended by increasing the rate from 15 % to 18 %, clarifying the list of taxable income and categories of taxpayers. The last two stages of the tax system’s development – the sixth (2021–2022) and the seventh (2022 to the present day) – have been distinguished due to complex but different types of financial and economic preconditions that lead to rapid changes in taxation in the direction of strengthening the regulatory function of taxes. As for the personal income tax, only clarifying adjustments to the tax bases are being made within this segment. However, the necessary preconditions for the transition from a proportional to a progressive tax scale already exist. | ||
| Key words | income tax, personal income tax, tax system of Ukraine, stages of development of the tax system of Ukraine, evolution of personal income taxation | ||