Modern system of income taxation of legal entities in Ukraine meets international standards, but however, is characterized by stable decrease in fiscal efficiency, wide field of discretionary capabilities exists, there is a lack of investment attractiveness and fiscal incentives to upgrade the material and technical base of native enterprises. In addition, part of the classic income tax payers has a significant amount of the overpayment due to these advance payments, while the other part uses methods of “optimization” and declares a loss-making activity, without paying taxes at all. All this proves the need to begin a radical transformation in the system of income taxation of legal entities in Ukraine.
The aim of this research is a comprehensive assessment of the fiscal efficiency dynamic in the modern system of income taxation in Ukraine, the analysis of the connection between the classic income taxes rate for the profit and the level of fiscal efficiency in the countries of the world, noting of the peculiarities of the application in the classic form of income taxation of legal entities in Ukraine and the reporting about the appropriate adjustment of the taxation system for the profit in the direction of the tax application on the withdrawn capital derived on the basis of the conducted SWOT-analysis of the transformation of the system of profit taxation in Ukraine towards the introduction of a tax on the withdrawn capital.
In the course of the study the following conclusions were made:
1. It was analyzed that the classical system of income tax in Ukraine is pretty standard both in relation to the tax base and rate, however, there are significant problems such as big amount of loss in previous periods, the systematic decrease in fiscal efficiency of the tax, heavy administrative burden on enterprises and regulatory authorities. All these factors justifies the appropriateness of adjusting the current system of income tax in the direction of introduction the tax on the capital and development of financial mechanism for transforming the system of income taxation of legal entities in Ukraine in the conditions of fiscal decentralization.
2. It is proved that the set of advantages of transformation in the income taxation system by introducing a tax on the capital is more significant than the disadvantages because the updated model of income taxation will contribute to a significant simplification of administration, reduction discretionary opportunities and corruption component, consolidation financial resources to upgrade the material-technical base of economic entities, formation system of grounds for the recovery of the state economy.
Key words: tax system, profit tax, tax on capital raised, tax reform, tax.