TAX DETERMINANTS OF FORMATION OF REVENUES OF TERRITORIAL COMMUNITIES IN THE CONDITIONS OF POST-WAR RECONSTRUCTION

Abstract

The purpose of the study is to identify and systematize the tax determinants of the formation of income of territorial communities of Ukraine in the conditions of post-war recovery, assess their dynamics for 2020–2025 and substantiate the directions for improving state tax policy at the local level. Research methods - general scientific and special: system analysis (identification of relationships between the components of the mechanism for the formation of income of territorial communities); comparative analysis (assessment of dynamics); structural and functional analysis. As a result of the study, systemic contradictions in the functioning of local finances during martial law were identified, in particular, the imbalance between centralized fiscal redistribution and the growth of expenditure responsibilities of communities. The dynamics of tax revenues in 2020–2025 were assessed, which confirmed the dominant role of taxes in ensuring the financial capacity of territorial communities. A three-component classification of tax determinants is proposed, which distinguishes basic, institutional and incentive determinants according to their nature, functions, and level of managerial influence. The emphasis is on the dual impact of tax incentives, in particular within industrial parks, on the fiscal sustainability of communities and it is noted that although such instruments generate long-term multiplier effects through attracting investment and increasing employment, they simultaneously create short-term fiscal losses for local budgets. The lack of methodological tools for assessing deferred fiscal effects at the community level is identified. Key contradictions in the current financial policy are outlined, including discrepancies between state and local fiscal interests, and the lack of flexibility of tax instruments to meet differentiated regional needs is noted. The directions for improving tax policy in the context of post-war recovery are substantiated, including the introduction of tax incentives based on performance results, mechanisms for compensating for losses in local budgets, expanding the real tax autonomy of communities, and integrating tax planning with strategic local development.