Optimization of Corporate Profit Taxation in the Context of Stimulating Their Investment Activity: The Case of Ukraine
Optimization of Corporate Profit Taxation in the Context of Stimulating Their Investment Activity: The Case of Ukraine
Author(s): Lesia Tkachyk, Mariya Rubakha, Nataliia IlkivSubject(s): Economy, Business Economy / Management
Published by: Институт за икономически изследвания при Българска академия на науките
Keywords: optimization model; tax burden; preferential taxation; tax investment loan; profit; corporate profit tax
Summary/Abstract: The article describes various methods of tax optimization in the implementation of corporate tax management of a business entity, in particular mechanisms for reducing the tax base, using tax breaks, and a special tax regime, changing the place of registration of taxpayers.The methodology of economic and mathematical modelling was used to optimize the tax burden of a business entity by balancing between the part of corporate income tax (investment tax credit), that an enterprise should use for investing, and the part paid to the budget.The developed economic-mathematical model of determining the proportion of «investment tax credit» entity has two objective functions – maximum value of the entity's profit and maximum of the accrued taxes sum. The offered economic-mathematical model will allow to define effective strategies of management of enterprise's profit and demonstrate advantages of preferential taxation for activation of investment activity of the enterprise.
Journal: Икономически изследвания
- Issue Year: 2020
- Issue No: 4
- Page Range: 28-51
- Page Count: 24
- Language: English