CHALLENGES OF INVESTMENT ATTRACTION AND TAX SUPPORT IN UKRAINE

Abstract

Introduction. The development of a market economy is impossible without systematic and significant foreign investments in all sectors of the national economy. External and internal investments provide a reliable source of funding for current and future projects and overall economic development. Creating clear and stable conditions for attracting and engaging foreign investors in Ukraine is an urgent need and task for the current government. One significant problem in attracting foreign investments at this stage is the complex and convoluted taxation system. The state provides preferential conditions for certain sectors of the economy, which undermines the principle of equal rights for all economic entities and creates competitive advantages for selected business participants. These privileges are granted through reduced tax rates or budgetary compensation. Purpose. The objective of this article is to highlight the problematic aspects of attracting and providing tax support for foreign investments and to explore ways to address them in the current context and post-military state. Methods. To write this article were utilized certain methods such as abstraction, comparison, and analytical. Results. The article presents a detailed analysis of Ukraine's investment attractiveness for foreign investors. It highlights the legislative and managerial issues involved in attracting foreign investments. The real state of investment inflows during 2017-2022 is depicted. The impact of tax incentives on the volume of foreign investments is characterized. The taxation administration process for foreign investments is analyzed. Conclusion. The research reveals a lack of stimulating factors for investment activities. It is observed that the reduction of the tax burden did not affect the volume of foreign investments during the research period. It is recommended to implement an effective mechanism for reforming state institutions that hinder the investment attractiveness of the country.