THE WAYS TO BRING UKRAINE'S TAX LEGISLATION TO EUROPEAN STANDARDS
Authors:   Institute of Law and Public Relations, Open International University of Human Development "Ukraine", Kyiv, Ukraine, Baklan Oleg , Fedorenko Tetiana ,   Institute of Law and Public Relations, Open International University of Human Development "Ukraine", Kyiv, Ukraine, Zaverukha Yuliia ,   Kyiv Metropolitan University named after Boris Grinchenko, Kyiv, Ukraine
Published: February 2025

In the course of the study, the research was conducted to find ways to solve urgent current problems in the field of taxation of monetary payments to non-resident companies for services rendered by them. The main purpose of the study is to analyze and initiate a discussion on the rules regarding the taxation of payments to non-residents for consulting; engineering; engineering; legal; attorneys'; accounting; auditing; software development, supply and testing services; freight forwarding services; cargo and passenger transportation services; telecommunications and other services. Based on the systematization of the sources used and processed in the course of the research, as well as scientific approaches to solving this problem, it should be noted that the materials of the article do not deal with the taxation of passive income such as interest, dividends, and royalties. The relevance of solving this scientific problem lies in the fact that in the course of the study, the author takes into account and analyzes such an unexplored circumstance as cooperation with foreign companies, which requires additional time and money from domestic businesses,both for paying taxes and obtaining additional certificates and other documents from their foreign partners confirming the tax presidency of a non-resident counterparty.The article examines the taxation of monetary payments to non-resident companies for services rendered by them in the following logical sequence: analysis of the practice and tax legislation of Ukraine; reference to foreign experience on the issues outlined; and formulation and expression of the author's own thoughts and recommendations based on his own scientific and practical experience. The methodological tools of the study were the methods of scientific cognition, primarily, the methods of formal logic, comparison, analysis, philosophical method, etc. The research period is the present time. The object of the study is certain taxation processes related to monetary payments to non-resident companies for services rendered by them, since they are a unique and specific indicator of harmonization of Ukrainian tax legislation with European standards. The article presents the results of an empirical analysis of the implementation of certain taxation rules with respect to monetary payments to non-resident companies for services rendered by them, which shows that the system of taxation of such payments is imperfect and similar to the taxation of similar payments in such post-Soviet countries as Russia and Belarus. The study empirically confirms and theoretically proves that currently certain taxation rules regarding cash payments to non-resident companies for services rendered by them are not in line with the tax and legal norms of most EU countries and need to be improved.The author also offers his own alternative recommendations for solving the problems with taxation of services received from non-residents, in particular, he formulates and substantiates proposals similar to those contained in the draft law developed by the Cabinet of Ministers of Ukraine on the Exit Capital Tax, which was planned to replace the corporate income tax. Therefore, theresults of this study may be useful for developing theoretical provisions on the outlined issues and improving the current legal acts regulating certain taxation processes with respect to non-residents and bringing some of the analyzed provisions of the Ukrainian tax legislation in line with European standards.