Tax incentives of investment activity for legal entities: experience of EU countries and Ukrainian realities

Introduction. European and global experience in stimulating investment indicates the interest of states in increasing investment in the economy. Problem Statement. The state of war in Ukraine significantly affected the starte's economic condition and investment activity. In the current conditions, it is important to review the approach to stimulating investment activity in order to attract financial resources in order to restore the economy and infrastructure of Ukrainian cities in the post-war recovery period. The purpose is to develop recommendations for improving investment incentives in Ukraine based on the analysis of foreign experience and domestic practice of supporting investment activity with tax policy instruments. Results. The article examines the state of attraction of foreign direct investment in Ukraine. The analysis proved that in the period 2017-2021 foreign direct investments in Ukraine grew. The dynamics of foreign direct investment in the EU was volatile, and the figures for 2022 were among the worst for the EU in recent years. The main tax benefits used by France, Poland and the Baltic countries to stimulate and attract investments are considered. It was determined that the main emphasis is on stimulating scientific research and development, supporting energy efficiency, developing investment and free economic zones, stimulating the increase of objects of intellectual property rights and accelerated depreciation. It was determined that there are clear rules and restrictions in place during the provision of tax benefits for attracting investments in EU countries. The main instruments of tax stimulation of investment activity in Ukraine are considered. It was determined that such instruments have their stimulating effect, but at the same time they set certain restrictive measures. It has also been proven that some tax benefits do not provide for a clear formulation of the procedure for their application, which creates certain barriers for their full application by investors. Conclusions. On the basis of foreign experience, the main areas of tax incentives to attract investments in Ukraine are substantiated. Measures to improve the current instruments of tax incentives for investments in Ukraine are singled out.