FINANCIAL AND ECONOMIC ACTIVITY AND CORPORATE INCOME TAX: CONTROVERSY OF INTERESTS

Abstract

The article is devoted to the research of the controversial nature of the impact of the corporate income tax on financial and economic activity. A theoretical analysis of tax payments, in particular income tax, was carried out. The share of corporate income tax in state budget revenues was determined. The controversial nature of direct taxation of entrepreneurial activity has been studied. The controversial nature of this process, which consists in the fact that the state seeks to fill the revenue part of the budget as much as possible, and enterprises want to reduce the tax burden on the positive financial result of their activities, represented by profit, is well-founded. A chronometric approach was used to study changes in the corporate income tax rate starting from 1995. It has been established that approaches to corporate income taxation in Ukraine have changed quite often, especially in terms of choosing the object of taxation. Considerable attention is paid to the analysis of the issue of modern approaches to the interpretation of corporate income tax in Ukraine as of 2023. Using the method of systematic analysis of the provisions of the Tax Code of Ukraine, corporate income tax payers were determined, namely: resident and non-resident legal entities. Entities that have the right not to pay corporate income tax in Ukraine have been identified. The general mechanism of influence of direct taxes on the results of financial and economic activity of enterprises has been studied and revealed. Based on this, it was concluded that, depending on the volume of production, direct taxes are divided into conditionally permanent and conditionally variable. This approach made it possible to establish that the state should be interested in increasing production volumes to increase the profitability of enterprises in order to increase income from income tax. The study of conflicting tax interests of the state and enterprises made it possible to determine that the state can sometimes apply an increase in the income tax rate. With the use of comparative analysis and the ranking method, it was determined that the corporate income tax rate depends on the type of its activity and on the category of payer of this tax to which it belongs. It is proposed to compare the positive and negative impact of income tax on the performance of enterprises. This will make it possible to direct efforts to the organization of financial work, which will lead to an increase in the efficiency of financial and economic activity.