ZADOROZHNIA L. Regulatory Efficiency of Personal Income Tax: the Case of Ukraine.

Dissertation is devoted to the broadening of the theoretical base of the study of the regulatory efficiency of personal income tax and the development of scientific and practical recommendations for the modernization of the personal income tax in Ukraine. The essence of taxable income for the purposes of personal income taxation and the main factors that affect the regulatory effectiveness of the personal income tax were scrutinized. Also the comparative analysis of tax bases of personal income tax in the EU Member States and Ukraine was conducted, allowing to assess its situation and prospects of improvement of tax base of personal income tax in Ukraine. The system of taxation of incomes in Ukraine and its development were considered in this dissertation. Changes in legislation concerning personal income tax were analyzed and the standpoint that they are not sufficiently focused on the implementation of the regulatory potential of the tax was substantiated. It was established that the only complex personal income tax reform was carried out in 2004. The recent trends in personal income tax were examined and it is determined that in OECD countries they are to some extent coordinated. The dynamics of statutory rates of personal income tax is studied and its divergence is verified. And also the dynamics of the average wealth in some countries as the basis for taxation is covered. Last reforms in personal income taxation abroad were analyzed. In this context, the situation in Ukraine was investigated as well as the proposal for amendments to legislation in order to improve fiscal and regulatory effectiveness of personal income tax in the conditions of tax competition was formulated. The existing privileges from individual income tax in Ukraine were examined. The lack of their regulatory efficiency is revealed, that is due to the application of the tax social privileges and tax relief exclusively to income from wages. In the context of the necessity to increase incentives to work and to improve the finances of households, it is suggested to improve the mechanism of individual income tax. The structure of population and the gap between the size and the structure of average income of households, and the households with a member who is a PM were identified. It is instantiated that the consideration of these factors, as well as referendums on tax issues can help to increase the efficiency of tax reforms