Agrarian Economy 2020 Т. 13 № 1-2:14-22

Peculiarities of taxation and social insurance of farming enterprises

Skupeiko V., Doctor of Economics, Associate Professor
0000-0003-0098-8357
Lviv University of Business and Law
Khomka V., Ph.D., Associate Professor
0000-0003-3640-7905
Lviv National Agrarian University
Vozniuk O., Ph.D.
0000-0002-3726-6051
Lviv University of Business and Law
Hrytsaiko A., Postgraduate Student
0000-0003-2280-5099
Ivan Franko National University of Lviv
https://doi.org/10.31734/agrarecon2020.01.014

ANNOTATION

The article studiesthe peculiarities of farming enterprises in the current conditions. It is stressed that taxation of small business entities in the agrarian sphere needs legislative improvement and integration in the EU legislature, considering the current economic realities of Ukraine. It is necessary to transform the essence of the simplified taxation system by reducing the tax burden to simplify accounting and reporting of taxpayers. The simplified system should be an intermedium to introduction of the general taxation system also for small business with application of effective methods of the state support. The analysis of legislative acts demonstrates that the Law of Ukraine “On introduction of amendments to the Tax Code of Ukraine and some laws of Ukraine concerning stimulation of establishment and performance of family farming enterprises” № 2497-VIII of July 10, 2018 secures arrangement of activities of theself-employed people, who produce agricultural products, as well as supplies additional revenues for the communities of local government due to employment of land plots, which are located on their territory. The research considers a system of taxation for self-employed people and for farming enterprises, i.e. legal persons, which have both advantages, disadvantages and restrictions. It is noted that in each definite case, it is necessary to make approximate calculations and compare the obtained results with one another. The preference is given to the system, which will result in the least tax payments. The authors of the article propose the appropriate measures concerning creation of a favorable economic climate for development of farming enterprises. According to the actual tax law, farming enterprises can perform by the generaltaxation system, or they can be payers of a single tax of the 4th group. The payment of a single tax is beneficial for farming enterprises, because it substitutes several taxes, reduces the tax burden, and saves time for preparation and submitting of tax reports.

KEY WORDS

farming enterprises, general taxation system, simplified taxation system, single tax

FULL TEXT

LINK

  • Hnatyshyn, L. and Prokopyshyn, O., 2017. Institutional environment of farming enterprise development. Agrarian Economics, 10, 1–2, pp. 81–88. https://doi.org/10.31734/agrarecon2017.01.081
  • Demchak, I.M., Svynous, I.V., Mykytiuk, D.M. et al., 2016. Farming enterprises: current conditions and problems of development. Efficiency of Agro-Industrial Complex, 28, pp. 43-49.
  • Kalmykov, O.V., 2016. Taxation system for small business entities in the agrarian sphere. University Economic Journal / H. Skovoroda State Pedagogical University in Pereiaslav-Khmelnytskyi, 31/1, pp. 229-234.
  • Karpenko, Ye.A., 2017. Accounting and taxation of labour payment for employed workers and members of farming enterprises. Economic Journal of Zaporizhzhia State Academy of Engineering, 2(2), pp. 112-116.
  • Koval, N.I. and Mandybura, V.V., 2015. Improvement of theaccounting system at farming enterprises: foreign experience. Global and National Problems of Economics,3, pp. 877–882.
  • Malik, M.Y., Shpykuliak, O.H. and Mamchur, V.A., 2018. Institutional formalization of family farms development in Ukraine. Economics of AIC, 10, pp.72–85. https://doi.org/10.32317/2221-1055.201810072
  • Panasiuk, O.V., 2014. Conditions and peculiarities of farming enterprise taxation in Ukraine. Scientific Bulletin of the National University of State Tax Service of Ukraine (economics, law),1, pp. 246–252.
  • Pidopryhora, I.V., Kharina, I.V. and Kiriushkina, Yu.M., 2018. Peculiarities of accounting and ways of its improvement at farming enterprises. Black Sea Economic Studies,34, pp. 195–197.
  • Sadovska, I.B., Babich, I.I. and Nahirska, K.Ye., 2019. Organization of accounting and taxation at farming enterprises in the context of professional accounting judgement. Accounting and Finance, 4, pp. 45–53. https://doi.org/10.33146/2307-9878-2019-4(86)-45-53
  • Cherevko, H., 2017. Farming in Ukraine: myth or reality. Journal of Lviv National Agrarian University: Economics of AIC,24(1), pp. 3–8.
  • Chupeta, A. A., 2018. Peculiarities of taxation of the farming enterprise activities in Ukraine. Economics. Finance. Law,5(2), pp. 8–11.

Article received 31.03.2020.