TOPICAL ISSUES OF PERSONAL INCOME TAXATION: NATIONAL AND INTERNATIONAL EXPERIENCE

Abstract

Personal income tax is one of the few taxes that has a rich history. In many European countries this type of tax appeared at the turn of the 18th–19th centuries. Personal income taxation occupies a key place in the tax system of most countries. Personal income tax is the most widespread tax in the world practice, which is paid from personal income of the population. This tax is in the center of any tax system, and is one of the main sources of formation of the revenue part of the budget system. This paper presents the results of the analysis of various approaches to the definition of the elements of personal income tax abroad, as a result of which modern trends in the development of taxation systems in different countries. It was emphasized that in order to achieve social justice in taxation, the governments of the countries with the highest standard of living apply a progressive income tax rate, where the rate depends entirely on the amount of income received during the tax period. Taking into account foreign experience, the article formulates proposals for reforming the personal income taxation scale to solve the existing problems of taxation. It is substantiated that improvement of taxation is possible only with the introduction of a progressive income tax scale. It is noted that for the effectiveness of the progressive scale it is necessary to legalize the income of citizens of the country, to overcome corruption, to create an effective mechanism of tax control in Ukraine and, finally, to increase the authority of tax authorities. It was proposed to reduce the tax base, taking into account the expenses of citizens and social status. According to the results of the study, the ways to improve the taxation of personal income tax in Ukraine are proposed.