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The Investment Component of Tax Policy under Wartime
Poliakov M. Y.

Poliakov, Mykhailo Yo. (2024) “The Investment Component of Tax Policy under Wartime.” Business Inform 7:402–413.
https://doi.org/10.32983/2222-4459-2024-7-402-413

Section: Finance, Money Circulation and Credit

Article is written in Ukrainian
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UDC 336.14

Abstract:
The aim of the article is to summarize scientific approaches to the investment component of the State’s tax policy and develop recommendations for the formation of an investment-friendly tax environment in Ukraine during the wartime. The article examines the relationship between investment and economic growth in the EU countries in 1992–2022. It is determined that investments are one of the drivers of economic growth. An analysis of the measures taken by the authorities of countries with developed and transforming economies to intensify investment flows is carried out. In particular, considerable attention is paid to tax instruments to stimulate investment. The main ones are: a) reduction of the tax burden in the field of capital taxation; b) use of investment tax incentives; c) improving the conditions for cross-border capital movements; d) provision of targeted tax benefits for the payment of other taxes – for example, social deductions for newly created jobs in compliance with the conditions established by the State. The features of investment processes during the wartime and intended for the post-war recovery are studied. For example, in Japan in the post-war period, the emphasis of the State policy was shifted in favor of attracting private investment to the country’s economy. This country successfully applied «technology transfer», while technological developments of the United States and European countries were imported for the development of the main branches of the national industry. In the post-World War II period, European states improved the institutional environment for attracting foreign investment, including deregulation of entrepreneurship and liberalization of trade relations. It is substantiated that due to the current significant needs for financing military operations, Ukraine cannot yet implement a system of investment tax benefits. It is determined that the priority measures of tax policy, which will contribute to increasing the confidence of economic agents and strengthening their investment activity, are the following: compliance with the stability and predictability of this policy, systematic measures in the field of de-shadowing the economy; simplification and further digitalization of the tax administration mechanism; transition to European taxation practices that will directly or indirectly promote investment in the innovative production.

Keywords: tax policy, investment, taxes, tax incentives, tax administration, institutional environment, economic growth.

Fig.: 1. Bibl.: 31.

Poliakov Mykhailo Yo. – Candidate of Sciences (Economics), co-chair, Tax Committee, American Chamber of Commerce in Ukraine (12 Mykoly Amosova Str., Kyiv, 03038, Ukraine)
Email: [email protected]

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