The Impact of Fiscal Decentralization on Income United Territorial Communities.

Abstract

Personal income tax in Ukraine by its attributes is similar to income taxes in most developed foreign countries. Each country has its own mechanism for taxing the incomes of the population, but the theoretical basis remains common. The intensive evolution of PIT in Ukraine was characterized by its peculiarities and was accompanied by frequent changes in the legal framework. The functioning of the PIT as the main source of replenishment of community budgets has become a key to adhering to the principles of subsidiarity and autonomy of the budget system, which in turn has led to an increase in the fiscal importance of this tax in Ukraine. It is worth noting the stimulating nature of PIT. Thus, the reform of fiscal decentralization and the inclusion of PITs in the budget of united territorial communities contributed to the faster formation of communities and their active development. The important role of the PIT is also that according to the Budget Code of Ukraine this tax is the basis for calculating the taxability index of local budgets. The fiscal role of this tax has increased significantly, especially for united territorial communities.