Optimization of Corporate Profit Taxation in the Context of Stimulating Their Investment Activity: The Case of Ukraine

Lesia Tkachyk, Mariya Rubakha and Nataliia Ilkiv

Economic Studies journal, 2020, issue 4, 28-51

Abstract: The article describes various methods of tax optimization in the implementation of corporate tax management of a business entity, in particular mechanisms for reducing the tax base, using tax breaks, and a special tax regime, changing the place of registration of taxpayers.The methodology of economic and mathematical modelling was used to optimize the tax burden of a business entity by balancing between the part of corporate income tax (investment tax credit), that an enterprise should use for investing, and the part paid to the budget.The developed economic-mathematical model of determining the proportion of «investment tax credit» entity has two objective functions – maximum value of the entity's profit and maximum of the accrued taxes sum. The offered economic-mathematical model will allow to define effective strategies of management of enterprise's profit and demonstrate advantages of preferential taxation for activation of investment activity of the enterprise.

JEL-codes: C02 G30 H25 H32 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.iki.bas.bg/Journals/EconomicStudies/20 ... bakha-Mariya_f-f.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bas:econst:y:2020:i:4:p:28-51

Access Statistics for this article

More articles in Economic Studies journal from Bulgarian Academy of Sciences - Economic Research Institute Contact information at EDIRC.
Bibliographic data for series maintained by Diana Dimitrova ().