PRINCIPLES AND FUNCTIONS OF BUSINESS PROFIT TAXATION

Abstract

Taxation is one of the primary issues of the internal policy of any state. Any administration in developed countries has a constant priority of improving the tax system. It is this discrepancy in the demand for increasing tax fees and the demand for creating favorable conditions for domestic entrepreneurship that is the main reason for changes in tax legislation. Anywhere and everywhere, regardless of the chosen model of economic development, taxation is a mandatory part of the financial system. The problem is that tax is a complex category. Taking into account the tax categories in Ukraine, we can conclude that it is difficult to separate them from the composition of deductions in other countries. Therefore, it is important to determine their main functions, principles, elements and processes of influence on the formation of state budget policy. At the current stage of development of the national economy, its important position in long-term effective growth depends on the quality of management in the national and local fiscal spheres. As the main financial plan in Ukraine today, the state budget is an important mechanism for redistributing financial resources, ensuring the smooth functioning of the national economic system on the one hand, and the appropriate level of social security on the other. The effectiveness of the revenue component of the state budget is of great importance, taking into account the current external and internal negative influences (economic and political). Given that the majority of budget revenues are tax revenues, the analysis of these trends determines the relevance of the topic of scientific research. The purpose of the article is to study the principles of taxation, their characteristics and highlight the fundamental principles and foundations of the tax system of Ukraine. Research methods. To solve the tasks set in the work at the scientific level, the following research methods were used: historical (when studying the history of the formation of corporate income taxation); comparative analysis (when studying economic categories, income taxation procedure); statistical and economic methods (when studying trends in the development of taxation, factors affecting the amount of tax revenues). Research results. The article very clearly defines the nature of corporate taxes and their main advantages and disadvantages. The author presented classical approaches to the essence of the principles of taxation and added his own, supplementing it with the principles of liquidity, solvency, financial stability and the principle of extended reproduction. I substantiate the expediency of allocating the investment function of direct taxes from enterprises. Originality of the research: A new approach to the classification of taxation principles is proposed, including the principles of liquidity, solvency, and financial stability. This allows for a more comprehensive assessment of the impact of the tax system on the financial condition of enterprises and the economy as a whole.