Formation of the object of taxation by income tax in the context of the development of accounting in ukraine

The article examines the organizational and methodological aspects of forming the object of taxation by corporate income tax in the context of the ongoing development and modernization of accounting practices and standards in Ukraine. It emphasizes the dual role of financial reporting as both an essential information base for managerial decision-making and as a regulator of fiscal relations between the state and business entities. The regulatory framework is thoroughly analyzed, focusing on inconsistencies between national accounting standards, International Financial Reporting Standards (IFRS), and current tax legislation, which significantly hinder the proper integration of accounting data for taxation purposes and increase the administrative and compliance burden on enterprises. Special attention is given to temporary and permanent tax differences affecting the formation of deferred tax assets and liabilities, as well as methodological shortcomings in their recognition, evaluation, and reporting. These issues are especially relevant in the agricultural sector, where production seasonality, variable market conditions, and state support mechanisms create specific challenges in tax accounting. The article proposes improvements in accounting methodology, including the detailing of accounts, the introduction of off-balance sheet registers, and the development of unified procedures to ensure a more accurate, reliable, and transparent determination of tax liabilities. Such measures are expected to enhance financial reporting transparency, strengthen analytical capacity, and provide an objective and consistent basis for fiscal control. Prospects for further research include the digitalization and automation of accounting processes, the harmonization of accounting and taxation standards, and the development and application of innovative reporting tools. The findings can be applied to optimize corporate income tax administration, particularly in the agricultural sector, contributing to improved efficiency, transparency, and full regulatory compliance. Keywords: taxable object, financial result before tax, tax differences, deferred tax assets, income tax.

Authors

Publication Details

Journal
Ukrainian Journal of Applied Economics and Technology
Published
2024-08-30
DOI
https://doi.org/10.36887/2415-8453-2024-3-79
Citations
2
Primary Topic
Economic Issues in Ukraine
Type
article
Field-Weighted Citation Impact
1.66
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article

Formation of the object of taxation by income tax in the context of the development of accounting in ukraine

Hanna Kovtseniuk
2 citations
Ukrainian Journal of Applied Economics and Technology
Economic Issues in Ukraine
1.66
article

Formation of the object of taxation by income tax in the context of the development of accounting in ukraine

Hanna Kovtseniuk
article en
2 citations

Abstract

The article examines the organizational and methodological aspects of forming the object of taxation by corporate income tax in the context of the ongoing development and modernization of accounting practices and standards in Ukraine. It emphasizes the dual role of financial reporting as both an essential information base for managerial decision-making and as a regulator of fiscal relations between the state and business entities. The regulatory framework is thoroughly analyzed, focusing on inconsistencies between national accounting standards, International Financial Reporting Standards (IFRS), and current tax legislation, which significantly hinder the proper integration of accounting data for taxation purposes and increase the administrative and compliance burden on enterprises. Special attention is given to temporary and permanent tax differences affecting the formation of deferred tax assets and liabilities, as well as methodological shortcomings in their recognition, evaluation, and reporting. These issues are especially relevant in the agricultural sector, where production seasonality, variable market conditions, and state support mechanisms create specific challenges in tax accounting. The article proposes improvements in accounting methodology, including the detailing of accounts, the introduction of off-balance sheet registers, and the development of unified procedures to ensure a more accurate, reliable, and transparent determination of tax liabilities. Such measures are expected to enhance financial reporting transparency, strengthen analytical capacity, and provide an objective and consistent basis for fiscal control. Prospects for further research include the digitalization and automation of accounting processes, the harmonization of accounting and taxation standards, and the development and application of innovative reporting tools. The findings can be applied to optimize corporate income tax administration, particularly in the agricultural sector, contributing to improved efficiency, transparency, and full regulatory compliance. Keywords: taxable object, financial result before tax, tax differences, deferred tax assets, income tax.

Ukrainian Journal of Applied Economics and TechnologyVol. 2024(3)
Openalex Percentile: Top 12%
Economic Issues in Ukraine
1.66
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