Sirko V. Fiscal regulation of income of enterprise

The thesis studies theoretical principles and methodical approaches to fiscal regulation in conditions of economical transformation. There was substantiated objective necessity of use of fiscal regulation for the sake of effective management of the process of income formation on the micro level that ensures increase of profitability of activity of entities of economic activity. We have analyzed space-time transformation of taxation of income of enterprise based on its influence on the level of profitability of entities of economic activity. There were analyzed main tendencies of development of tax systems of foreign countries to find out methods and instruments of regulation of the process of income formation. There was validated necessity of regulation of mechanism of income formation of enterprise. We have studied influence of taxes on profitability of enterprise using the method of critical point through justification of tax rates which enables one to determine a general level of taxation in Ukraineconditioned by the structure of the added value of enterprise. We have worked out a scale of barrier rates for VAT and income tax for some branches of national economy. For detection of influence of taxes on results of financial and economic activity of enterprise we have analyzed the meaning of net income of enterprise, total sum of accrued taxes, accrued value added tax, and taxes that are included into production costs. Calculations were made on the basis of financial statements of Open Joint-Stock Company "Energodarstroy" for the period since 1995 till 2004, using economical and mathematical model of matched linear regression. We have proposed a methodical approach to regulation of income of enterprise using regressive rate of income tax which stimulates increase of profitability of enterprise and ensures fiscal needs of a state. The proposed way of transformation of taxation system is of integral nature. It is aimed at effectivization of production that is achieved due to a gradual decrease of the general level of taxes while considerable cut of the latter is not used. There were formulated propositions on reformation of mechanism of functioning of income tax. Their essence is in a modified approach to determination of results of economic activity of enterprises. We propose taxation of a part of a realized profit for the sake of effectivization of functioning of a real sector of economy.