INDIVIDUAL TAXATION OF INDIVIDUALS: PROBLEMS AND PROSPECTS OF DEVELOPMENT

Personal income taxation is an integral part of the financial mechanism of the state. As a result of the redistribution of income (payments) of individuals, on the one hand, the economic doctrine of the level of welfare of various segments of the population is implemented, and on the other - the financial base of the state is formed. The personal income tax focuses on the social justice of tax systems, as it makes the level of taxation directly dependent on the amount of income of the payer. This tax is one of the most stable and effective sources of forming the revenue side of the budget. PIT ranks second in the tax revenues of the Consolidated Budget of Ukraine after internal taxes on goods and services (VAT and excise tax). Individual income tax has both fiscal and regulatory properties. From a fiscal point of view, this tax is one of the important sources of budget revenues. The tax base and, accordingly, tax revenues depend on the cyclical fluctuations of the economy, as well as the development of the industrial potential of the regions.