Expenses on physical culture and recreation services: methodological and practical aspects of taxation

Under the macroeconomic circumstances of the period 2022–2023 the current tax system should be more aimed at providing not only social protection of the least well-off categories of the population. The article studies the effectiveness of the current tax policy with regard to the collection and payment of personal income tax. The author reveals the factors restraining the application of social tax deduction in relation to the expenses incurred for physical culture and recreation services. Practical examples are given which do not allow businesses to take into account compensation paid to employees for expenses incurred for sports activities in clubs or sections. In this regard, the current tax system is more aimed at ensuring not only social protection of the least welloff categories of the population, but also to take into account the individual (targeted) nature of its impact, influencing the increase of labor motivation for both individuals (wage earners) and businesses, taking into account the approved national goals and priorities of improving the welfare and health of the population on an equal basis.