The economic essence of tax regulation of small business entities development in the conditions of the need for modernization of the sphere of public finances and globalization of the economy, which consists of a set of methodological principles, methods, coordination and use of a complex of tools, levers and mechanisms of the tax system in order to compensate for regulatory costs, influence on the dynamics of domestic demand and the activity of business entities, which will help ensure macroeconomic stabilization and create conditions for sustainable economic growth.
The further development of the provision on a simplified system of taxation of small businesses, the introduction of a proportional system of taxation of income, the application of tax rebates, the use of digital technologies, which will facilitate the construction of an effective system of taxation for small business, income reduction, restoration of confidence in fiscal institutions, and economic development; classification of tax regulation stages in the sphere of small business.
Summarized and systematized the experience of tax regulation of the development of small business entities in developed and transformational economies, which will facilitate the use of tax incentives for attracting investment resources, enhancing the competitiveness of goods and services, and the level of social welfare.
The approaches to the instruments of tax regulation of development of small entrepreneurship development are envisaged, which involves the use of tax credits for investment purposes, the regulation of tax rates in the implementation of innovations, which will enable the technological update of fixed assets on an innovative basis, the creation of favorable conditions for investment, stimulation of the production of innovative products; the provisions on the system of tax regulation of the development of small businesses in order to promote the increase of their financial resources, improve the quality of factors of production, increase the contribution to the gross domestic product,
development of human capital, ensuring employment of the population; approaches to justify the priority directions of state financial support for the development of small business on the basis of a socially oriented model of the economy, with the introduction of innovative and fiscal levers in the field of tax regulation, using tools such as streamlining accounting and reporting, lowering tax rates, improving advisory services for subjects of small business and the introduction of a fairer taxation of their income, which will enable the effective development of small business.
