Taxation of Municipal Enterprises in the Period of Crisis Management

Abstract

The article examines theoretical and applied aspects of the taxation of municipal enterprises under crisis management conditions. The purpose of the study is to substantiate directions for improving tax regulation of municipal enterprises in periods of economic instability and martial law. The methodological framework is based on general scientific and special methods, including analysis and synthesis, a systems approach, comparison, generalization, as well as methods of economic and financial analysis used to assess the tax burden and financial performance of enterprises. The study determines that municipal enterprises operate under specific conditions, combining commercial activity with the performance of socially significant functions, which defines the peculiarities of their taxation. It is established that in crisis conditions the tax pressure on enterprises increases simultaneously with a decline in their solvency, which negatively affects financial stability and the quality of public services. The current mechanism for the collection of key taxes, particularly corporate income tax and value added tax, is analyzed, revealing its limited adaptability to crisis management conditions. The results of the study indicate the necessity of introducing flexible tax regulation instruments, including tax incentives, deferrals, and restructuring of tax liabilities for municipal enterprises. The expediency of improving information support for tax management and enhancing the efficiency of tax administration is substantiated. Directions for harmonizing tax policy with the objectives of ensuring the financial sustainability of the municipal sector and improving the efficiency of public resource use are proposed. It is proved that improving the taxation system of municipal enterprises under crisis management conditions requires a comprehensive approach that balances fiscal interests with the need to support socially important entities. The implementation of the proposed measures will contribute to strengthening the financial stability of municipal enterprises, stabilizing their activities, and ensuring the continuity of essential public services.