TAX INSTRUMENTS OF INVESTMENT DEVELOPMENT STIMULATION: INTERNATIONAL EXPERIENCE AND NATIONAL REALITIES


  • B.V BURKINSKYI
  • O.I. LAIKO
  • V.P TALPA

Abstract

Topicality. The urgency of the problem of tax instruments using in the role of means for stimulation of investment activity and of means for creating of a favorable investment climate nowadays grows due to the need for additional resources that are to be involved in the socio-economic development of Ukraine, as well as through the progress of administrative reform, which creates new opportunities for the use of taxes as tools for the stimulating of investment development.

Aim and tasks. The purpose of the article is to substantiate the expediency of studying tax instruments as means for the stimulating of investment development, identifying of active and effective mechanisms for the attracting of investment funds for the development of the Ukrainian economy, taking into account international experience.

Research results. The article thematically dedicated to the use of tax instruments for maintain of competitive investment policies at the regional, sub-regional, national levels, improving the investment climate in the region. The instruments are integrated into the mechanism with help of general conceptual idea - the ensuring of favorable conditions for the conducting of economic activity through the use of preferential indirect instruments that do not create differentiation between territories and entities, however, contribute to the renewal of capital of the entities. The European model of tax incentives for activation of foreign investments in Ukraine and the Black Sea region is considered and the main factors that have caused insufficient functional significance of tax instruments to stimulate investment development and to provide capital intensification are determined. There are also considered the American model of tax regulation of foreign investment, as well as the Asian model of tax regulation of foreign investment. The mechanism of combination of regulatory instruments in a single set, include measures of tax preferential support, organizational, guarantee-oriented support of investment projects realization on the territory of the Ukrainian Black Sea region, ways to increase the level of local budgets' self-incomes, to introduce the possibility of the determining and applying rates of taxes by local authorities self-governance within the limits set by the Tax Code of Ukraine.

Conclusions. Strategic directions for the stimulating of business activity at the national and regional levels are substantial, but for this purpose, appropriate institutional support is required, namely, the relevant changes to the articles of the Tax Code of Ukraine. The prospects for future research in the field of regulation of investment activities are related with the formation of an institutional environment for the implementation of the regulatory function of taxes, the justification of the investment-efficient structure of the tax system.

Author Biographies

B.V BURKINSKYI

Academician of the National Academy of Sciences of Ukraine,

Dr. Econ. Sciences, Professor

director

Institute of market problems and economic&ecological researches

of the National Academy of Sciences of Ukraine, Frantsuzkyi boulevard, 29, Odessa, 65044

O.I. LAIKO

Dr. Econ. Sciences, senior researcher

deputy head of department

Institute of market problems and economic&ecological researches

of the National Academy of Sciences of Ukraine, Frantsuzkyi boulevard, 29, Odessa, 65044

V.P TALPA

postgraduate student of the Department of Interregional Economic Development

of the Ukrainian Black Sea Region

Institute of market problems and economic&ecological researches

of the National Academy of Sciences of Ukraine, Frantsuzkyi boulevard, 29, Odessa, 65044

References

1. Harberger, A. (1974). Taxation and Welfare [Taxation and Welfare]. Chicago: Midway reprint, Little, Brown. www.econ.ucla.edu. Retreived from: http://www.econ.ucla.edu/harberger/ TaxAndWelfareIntro.pdf [in English].
2. Official site "The Center for Tax Competition" [Official site "The Center for Tax Competition"]. www.taxcompetition.org. Retreived from: http://www.taxcompetition.org/pages/mission [in English].
3. Ukaz Prezydenta Ukrainy «Pro Zatverdzhennia Stratehii staloho rozvytku «Ukraina – 2020» [Decree of the President of Ukraine "On Approval of the Strategy of Sustainable Development" Ukraine-2020"]. zakon2.rada.gov.ua. Retreived from: http://zakon2.rada.gov.ua/laws/show/ 5/2015/print1382595773372069 [in Ukrainian].
4 . Postanova Kabinetu Ministri Ukrainy "Pro zatverdzhennia Prohramy «Vidnovlennia Ukrainy: plan dii» [Resolution of the Cabinet of Ministers of Ukraine "On Approval of the Program" Restoration of Ukraine: Action Plan"]. www.kmu.gov.ua. Retreived from:http://www.kmu.gov.ua/document/ 247648260/plan_ua.pdf [in Ukrainian].
5 . Warren, G. (2015). The European Unions Investment Services Directive Manning [The European Unions Investment Services Directive Manning]. Journal of International Law - Journal of International Law, Volume 15, Issue 2. Retreived from: http://scholarship.law.upenn.edu/cgi/viewcontent.cgi?article= 1509&context=jil [in English].
6. Official site "Common Consolidated Corporate Tax Base (CCCTB)" [Official site "Common Consolidated Corporate Tax Base (CCCTB)"]. ec.europa.eu. Retreived from: http://ec.europa.eu/taxation_customs/taxation/company_tax/common_tax_base/index_en.htm [in English].
7. Busarieva, T.H. (2015). Hlobalizatsiinyi vymir transformatsii natsionalnykh podatkovykh system. economy.nayka.com.ua. Retreived from: http://www.economy.nayka.com.ua/?op=1&z=964 [in Ukrainian].
8. Podatkovyi kodeks Ukrainy: № 2755-VI vid 02.12.2010 [Tax Code of Ukraine] zakon4.rada.gov.ua. Retreived from: http://zakon4. rada.gov.ua/laws/show/2755-17 [in Ukrainian].
9. Proekt Zakonu Ukrainy "Pro stvorennia konkurentnykh umov v opodatkuvanni ta stymuliuvannia ekonomichnoi diialnosti v Ukraini" [Draft Law of Ukraine "On Creating Competitive Conditions in Taxation and Stimulation of Economic Activity in Ukraine"]. http://195.78.68.18:. Retreived from: http://195.78.68.18/minfin/file/link/428106/file/2015%2011%2030%20Draft%20Law%20Taxation.pdf [in Ukrainian].
10. Laiko, O.I. (2010). Postkryzove rehuliuvannia finansovoho stanu pidpryiemstv kharchovoi promyslovosti Ukrainy [Post-crisis regulation of the financial situation of food industry enterprises of Ukraine] / O.I. Laiko, V.M. Lysiuk, I.V. Reznik // Ekonomika kharchovoi promyslovosti. - The economy of the food industry. 1. - 5-11. - Retreived from: http://nbuv.gov.ua/UJRN/echp_2010_1_2 [in Ukrainian].
11. Laiko, O.I. (2014). Transformatsiini protsesy v investytsiinii systemi ekonomiky Ukrainy. [Transformation processes in the investment system of the Ukrainian economy]. Odesa : IPREED NAN Ukrainy [in Ukrainian].
12. Official site "Next generation innovation policy. The future of EU innovation policy to support market growth" [Official site "Next generation innovation policy. The future of EU innovation policy to support market growth"]. www.ey.com. Retreived from: http://www.ey.com/Publication/vwLUAssets/Next generation innova tion policy/$FILE/Next generation innovation policy.pdf [in English].
13. Innovation Union Scoreboard 2011 [Innovation Union Scoreboard 2011]. ec.europa. eu. Retreived from: http://ec.europa. eu/enterprise/ policies/innovation/files/ius- 2011 _en .pdf [in English].
14. Dani Derzhavnoi sluzhby statystyky Ukrainy. Naukova ta innovatsiina diialnist 1990-2012 [Data from the State Statistics Service of Ukraine. Scientific and innovative activity of 1990-2012]. www.ukrstat.gov.ua. Retreived from: http://www.ukrstat.gov.ua/operativ/operativ2005/ni/ind_rik/ind_u/ 2002.html [in Ukrainian].
15. World bank. High technology-products export at US dollars, current prices [World bank. High technology-products export at US dollars, current prices]. data.worldbank.org. Retreived from: http://data.worldbank.org/indicator/TX.VAL.TECH.CD/countries/1W-UA-US-MD-RU?display=default [in English].
Published
2018-03-20
How to Cite
BURKINSKYI, B., LAIKO, O., & TALPA, V. (2018). TAX INSTRUMENTS OF INVESTMENT DEVELOPMENT STIMULATION: INTERNATIONAL EXPERIENCE AND NATIONAL REALITIES. Economic Innovations, 20(1(66), 32-43. https://doi.org/https://doi.org/10.31520/ei.2018.20.1(66).32-43