Vorhach O. Income taxation methods to promote the human capital development

The objective of this study is to substantiate the theoretical provisions and develop a scientific and methodical approach and recommendations for encouraging human capital development in Ukraine using the means of personal income taxation. To achieve this goal in the research process the following tasks are set and solved: the importance of human capital in the development of modern industry is determined; theoretical concepts of personal income taxation are studied; based on the analysis of foreign experience, the application of income tax to stimulate the development of human capital is substantiated; conceptual provisions have been developed to stimulate the development of human capital by methods of income taxation; assessment of investment in human capital in Ukraine; the use of income taxation methods in stimulating the development of human capital in Ukraine has been studied; modeling the dynamics of GDP taking into account the factor of human capital; the influence of labor quality on the development of industry and the volume of GDP in Ukraine is substantiated; forecasting of tax expenditures to stimulate human capital development in Ukraine; the evaluation of the effectiveness of tax expenditures to stimulate the development of human capital was performed; developed and substantiated recommendations for stimulating the development of human capital to accelerate the growth of national industry. The subject matter of the study is the processes of state promotion of human capital development in Ukraine using the means of personal income taxation. The scope of the study is theoretical, methodical, and applied aspects of the personal income taxation methods’ impact on the promotion of human capital development in Ukraine for the needs of national industry. The scientific novelty of the results of this study lies in further development of scientific and theoretical provisions, development and implementation of scientific and methodical approaches as well as practical recommendations regarding substantiation of the use of personal income taxation methods for promoting the human capital development in Ukraine taking into account the particularities of local economic development and institutional environment. The practical importance of the results of this study lies in the fact that using the developed recommendations for promotion of the human capital development through personal income taxation means will facilitate resolving the urgent task of forming modern highly skilled staff in Ukraine. Completion of this task is critical for the implementation of breakthrough manufacturing technologies and the development of the national industry. The economic mathematical model proposed in the study allows determining the economic growth dependence on investments in higher education. Practical implementation of this model allows estimating the efficiency of personal income tax relief in facilitating human capital development.