WORLD EXPERIENCE OF INDIVIDUAL INCOME TAXATION AND REALITIES OF TAXATION IN UKRAINE

Abstract

Currently many of the problems that foreign countries have to solve in relation to the transformation processes which affect the financial stability of their economies are similar in nature to the problems that exist in Ukraine. Therefore, studies of foreign practices of personal income taxation are extremely relevant. The article analyzes the experience of foreign countries in the field of personal income taxation and presents the author's views on the possibility of its implementation in domestic tax practice. Methods of personal income taxation in different countries of the world are considered. The experience of foreign countries in the taxation of personal income is rich in positive examples. The analysis showed that the lowest income tax rates are characteristic of countries with lower rates of economic development and usually without the use of progressive taxation. High - inherent in the developed due to the presence of a progressive scale of taxation, which allows you to shift the tax burden from the poorer to the more affluent. Therefore, one of the priority areas in the development of tax policy in Ukraine should be its gradual socialization, which focuses not only on the fiscal function of the tax, which leads to increased tax revenues to the budget of Ukraine, but also the social function of the tax aimed at universal values. The main direction of further improvement of the domestic legal framework in this area should be to reduce the tax burden on socially vulnerable groups and increase the responsibility of taxpayers for tax evasion. One of the priority areas in the development of tax policy in Ukraine should be its gradual socialization, which focuses not only on the fiscal function of the tax, which leads to increased tax revenues to the budget of Ukraine, but also the social function of the tax aimed at universal values. The practice of taxation of individuals in foreign countries cannot be an absolute basis for copying taxation in Ukraine.