Section: economic sciences
Shunkina Anna, master's degree,
Orlova Valentina, candidate of economic sciences
Masiuk Liliya, senior teacher department of
foreign languages
Donetsk National Universityof Economics and
Trade
after M. Tugan-Baranovsky
Tax stimulation of foreign
investments
In
modern terms, for Ukraine as the country with limited free financial resources
and absence of its own investors, foreign investments have an enormous value.
It’s to notice that the level of material well-being and investment
attractiveness of economy of Ukraine is impossible without the tax regulation
of investment activity.
A
ponderable contribution in the research of theoretical and practical questions
of attraction of direct foreign investments was done by domestic economists:
[1-4]. At the same time the practice of reformation of economics on the modern
stage requires study and generalization of world experience of tax stimulation
of attraction of direct foreign investments in the economy of Ukraine.
Thus,
the research purpose is determination of the state, problems and prospects of
investment, study of world practice and development of directions of tax
stimulation of attraction in of direct foreign investments in the economy of
Ukraine.
The
level of wear of capital assets of Ukrainian enterprises at the mean today is 50%,
and in agriculture, industry, building, water and aviation transport — 60% and
more. According to expert estimations for acceleration of economic development
the requirements of Ukraine in investments in capital assets is about 172 bln.$,
that considerably exceeds the annual GDP of Ukraine [5]. Thus according to data
of state committee of statistics of Ukraine general volume of foreign
investments in economy on January, 1, 2007 was 21186,0 mln.dol. [6], that is
considerably below the necessary volume, (table 1).
Table
1. Direct foreign investments in the economy of Ukraine (beginning of the year;
mln.dol. the USA)
|
№ |
Index |
Year |
||||
|
2003 |
2004 |
2005 |
2006 |
2007 |
||
|
1 |
Foreign investments total, mln.dol. |
5471,8 |
6794,4 |
9047,0 |
16890,0 |
21186,0 |
|
2. |
Foreign investments in capital assets,
mln.dol |
388,7 |
526,6 |
507,5 |
915,6 |
907,5 |
|
3. |
Foreign investments in % |
7,10 |
7,75 |
5,61 |
5,42 |
4,28 |
So,
information, resulted in the table1, testify to insignificance of the share of
foreign investments in capital assets in the total sum of attracted
investments, namely 4,28%, on the background of the annual increase of general
volume of investments in the state. The negative dynamics of redistribution of
investments in the capital assets that is reason of low efficiency and
impossibility of production of goods increase should be noted.
The world
practice developed a few methods of calculation of state necessity in
investment resources. For example, the American model is based on the principle
of free competition and on regulation of international corporations market. The
orientation of technological development is carried out by selection to prior
industry. The Japanese model foresees providing state priorities by stimulation
of definite technologies [4]. In our view, for analysis of necessity of Ukraine
in foreign investments and determination of their role in the economy of the
state is expedient to conduct the calculation of index of investment provision:
, (1)
where Ii – an index of investment provision, FI is a general volume of foreign investments in a country [3].
Calculation of index of investment provision of Ukraine is conducted in
accordance with statistical information [6] in obedience to the method resulted
higher, (table 2).
Table 2. An index
of investment material well-being in Ukraine
|
№ |
Index |
Year |
||||
|
2003 |
2004 |
2005 |
2006 |
2007 |
||
|
1. |
GDP, mln.dol |
42393 |
50133 |
64881 |
86142 |
106469 |
|
2. |
General volume of foreign investments,
mln.dol |
5471,8 |
6794,4 |
9047,0 |
16890 |
21186,0 |
|
3. |
Index of investment provision, % |
12,91 |
13,55 |
13,94 |
19,61 |
19,9 |
|
4. |
Relation of index of investment provision in % to 2003 |
100 |
104,96 |
102,88 |
140,67 |
101,48 |
Foreign
experience of developed countries testifies that for the stable economic growth
of the country annual investments must be at the level 19-25% to GDP, and in
the period, when economy is in the stage of reformation – 25-30% [3]. At the
same time, as it follows from the table.2, index of investment provision is considerably
below base. Thus, for Ukraine in the conditions of economic reformation on the
stage of entry into WTO provision of investments must be at the level not below
25 % GDP.
The
theory and practice of stimulation of investments in modern tax systems testify
that the most effective instruments are: diminition of the level of tax load;
tax rates; tax capital investments allowance, customs duties and tariffs.
The
level of tax load is an important factor in stimulation of investment activity.
The considerable tax load on enterprises negatively influences on the development
of economy and does not strengthen the positions of a country in tax competition.
For the decline of tax load in Ukraine since 2004, the rate of profits tax was
reduced from 30% to 25% that is considerably below, than in the countries of
ES. In addition, according to Conception of reformation of tax system, accepted
on February, 19, 2007 № 56, the rate of
profits tax is planned 20%. However, the investor, investing fund, as a rule,
is oriented not on the amount of tax rate, but on stability, coordination and
clearness of tax legislation (in Ukraine tax legislation is presented by the
law 9701and certificate).
As
world experience testifies, the most actual direction of investment attraction are
privileges. Tax practice widely uses tax abatement, innovation-investment
credit, accelerated depreciation. Tax abatements during capital investments are
deduction from taxable base on income tax, calculated in a certain percentage
ratio to the volume of invested capital (acquired assets). Reformation of tax
system of Ukraine supposes the introduction of the special investment privilege
as innovation-investment tax credit which will be given for the period of
implementation of the program, but not more than on three years, by the
postponement of tax obligations under income tax.
It is
necessary to mark that customs duties and tariffs influence on the volumes of investments
attraction, because thus bring to the rise in prices of investment resources.
However diminition of tariff and nontariff limitations which are used in
Ukraine for defence of internal market with simultaneous reduction of state
support for separate industries of domestic economy during entry in WTO can negatively
influence on the conditions of ruthless international competition (agriculture,
motor industry).
Thus,
it is possible to draw the conclusion that system of taxation on this stage does
not effectively enough stimulate attraction of foreign investments. In our view
it is expediently, firstly, to bring tax legislation to conformity with
priorities of public policy in the field of investments attraction and socio-economic
development; secondly, it is necessary to coordinate tax legislation and accept
the Revenue code.
Literature:
1. Амитан В.Н./Промышленный и
интеллектуальный потенциал в системе-научно-технического развития Донецкого
региона/Экономист.-2001.- 312.с.32-35
2. Макогон Ю.В., АптекарьС.С.,
Абсаева Л.О./Инвестиционная политика в Украине:опыт, проблемы, перспективы./
Донецк, 2003.-292с.
3. Кащеева В.Ю., Карацева Н.З.,
Шатравка Е.А./Анализ инвестиционной привлекательности Украины на этапе
вступления в ВТО/ Економіка, фінанси, право. – № 4. – 2007. с. 16-19.
4.. Лемішко О.О./ Інвестиції в
основний капітал та їх вплив на економіку України/ Фінанси України. – № 7. –
2007. с.46-60.
6. Державний комітет статистики
України. Україна у цифрах і фактах у 2006 році. Статистичний довідник. К.: “Консультант” 2007 – 551 c.