INDIVIDUAL INCOME TAX IN UKRAINE: NATIONAL AND REGIONAL DIMENSION

doi:10.26565/2786-4995-2023-1-04

Olesia Totska Lesya Ukrainka Volyn National University https://orcid.org/0000-0003-4748-2134
Iryna Dmytruk Lesya Ukrainka Volyn National University

DOI: https://doi.org/10.26565/2786-4995-2023-1-04

Keywords: personal income tax, Consolidated budget of Ukraine, local budgets of Ukraine, Consolidated budgets of regions, rating

Abstract

The country’s tax system plays an important role in the formation of budget revenues at all levels and is the basis of the financial and credit mechanism of state regulation of the economy. Personal income tax is one of the most effective sources of income for Ukrainian budgets. However, the indicators of income from its payment have regional differences. The purpose of the study is to determine the fiscal role of personal income tax in Ukraine at the national and regional levels. Analysis methods were used to study the absolute and relative indicators of income from the personal income tax in the structure of the consolidated and local budgets of Ukraine; rating evaluation – for grouping regions of Ukraine according to relative indicators of tax payment; theoretical generalization – to form conclusions.

The essence of the personal income tax has been revealed. The dynamics of its shares in the GDP of Ukraine, tax revenues to the Consolidated Budget of Ukraine are analyzed. A rating matrix of the grouping of regions of Ukraine according to the levels of tax shares in total revenues and tax revenues of the consolidated budgets of the regions was built.

It was revealed that during 2019–2021, the share of personal income tax in the structure of tax revenues and revenues of the Consolidated Budget of Ukraine amounted to more than 20%; in the structure of tax revenues of local budgets – more than 60%. It was determined that in 2021, Mykolaiv, Vinnytsia, and Kirovohrad regions had clearly defined positions in terms of the levels of tax shares in the total revenues and tax receipts of the Consolidated budgets of the regions of Ukraine, all other regions fell into the zones of imbalances. Recommendations on improving the mechanisms of taxation of citizens’ incomes in Ukraine have been formulated.

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Author Biographies

Olesia Totska, Lesya Ukrainka Volyn National University

Professor at the Department of Finance, Doctor of Economic Sciences, Professor Faculty of Economics and Management

Iryna Dmytruk, Lesya Ukrainka Volyn National University

graduate of the second (master’s) level of higher education Faculty of Economics and Management

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