Resolving property taxation issues in Ukraine

Abstract

In conditions of martial law and post-war reconstruction, taxes play an important fiscal role in filling the revenue part of the budget. But in Ukrainian tax legislation, the emphasis is on other taxes that form the lion's share of tax revenues (value added tax, personal income tax, corporate income tax, excise tax). Since their introduction, property taxes have had a minor impact on the budget process, which is primarily due to the taxation conditions that differ significantly from foreign countries. In the process of research, existing problems that arise in the process of collecting property taxes in Ukraine were analyzed. To achieve the goal of the article, a theoretical generalization of the structure of property taxes in Ukraine was carried out, their role in the budget process was assessed, foreign experience of property taxation was studied, and key areas of property taxation reform in Ukraine were substantiated. In the process of scientific research, the following methods were used: theoretical generalization, systematization (to generalize theoretical aspects of property taxation in Ukraine and foreign countries), statistical and graphical methods of analysis (to assess the impact of property taxes on the state of budget policy in Ukraine and foreign countries); logical justification (to justify ways to improve the collection of property taxes in Ukraine). In the process of scientific research, it was found that property taxes in Ukraine account for less than 3% of tax revenues to the Consolidated Budget of Ukraine, which is almost half the indicators of leading EU countries. The approaches of foreign countries to the collection of real estate tax are summarized. It is found that in some countries, real estate tax is part of the wealth tax. The main problems of property taxation are outlined, which, among other things, constitute a drawback for increasing tax revenues. The conclusions substantiate the main ways to improve property taxation in Ukraine, which are related to the application of world experience in property taxation. The emphasis is on the need to transition to differentiated tax rates depending on the tax base and income of the taxpayer, as well as the differentiation of taxation rules for legal entities and individuals.