The article is devoted to the study of the current state of small business development and the need to reform the simplified taxation system, as well as to identify areas of stimulation of small business methods of state tax policy. It is considered that the taxation of small business is carried out in two forms - general or simplified. There is also found a single tax being the best way to tax small businesses because the general system of taxation is unclear and burdensome. It is determined that the system of simplified taxation promotes the development of small business by simplifying tax accounting and offers recommendations for improving the simplified taxation system in Ukraine.
The rates of the single tax by groups, as well as the dynamics of tax revenues to local budgets from both legal entities and individuals are analyzed. It is found that the development of small business is possible only by combining and coordinating different forms, methods, means of regulation and state support, and the system of taxation of small businesses should be aimed at stimulating the development of small business and further filling budgets. Deficiencies in the legal framework related to the development and state support of small business in Ukraine are identified and ways to address them are proposed.
It is substantiated that the most important method of influencing the activities of small business is the fiscal mechanism, which needs to be reformed in the direction of providing favorable conditions for doing business and attracting investment by building an incentive tax system. Experience of small business taxation in developed countries and new methods of state support that can be implemented in the tax policy of our state are studied.
It is proved that if you exempt companies from taxation for a period of one to three years, provided they reinvest half of the net profit has a positive effect on the development of the company and the growth of tax revenues from its activities to the budget. The introduction of this tax regime in Ukraine will promote the development of small business, expand production, increase employment, increase competition, grow small businesses into medium and large and, as a consequence, increase tax revenues.
The Indicators and Algorithm for Estimating Target Efficiency of the System of Small Business Taxation in the Region