Siiushov D. Tax incentives for enterprises in the provision of state aid: economic and legal aspects

The paper investigates the economic and legal aspect of tax benefits for enterprises in the provision of state aid. The complex analysis is carried out regarding the economic and legal bases of tax stimulation of business activity, features of granting tax benefits and incentives in the context of the legislation of Ukraine on the state aid, normative regulation of the state aid concerning tax inventives in the European Union legislation and practice of its application by the CJEU. In the paper it is proved that there exists a need for recognition at the state level, along with fiscal and regulatory functions, stimulating and de-stimulating functions of business taxation, which shall allow the state to more effectively differentiate the direction of tax policy measures and, accordingly, implement such measures depending on the оbjectives. The main attention is paid to elucidating the socio-economic content of tax incentives, their legal nature, attributes, forms of existence, the grounds for their provision and determining their impact on entrepreneurial activity. A distinction is made between tax benefits and tax incentives based on term structure, target group of recipients, the presence of state enforcement, monitoring / control by the state over their application, etc. The domestic and foreign practice of the implemented forms of tax incentives in the context of the provision of state aid is investigated in order to establish their advantages, disadvantages and the ability to achieve a stimulating effect for entrepreneurship and promote investment attraction.