The role of individual income tax administration in managing the competitiveness of agricultural enterprises

  • Larisa Marmul Hryhorii Skovoroda University in Pereiaslav
  • Natalia Novak Novotroitska State Tax Inspection of the Henichesk Department of the Main Department of the State Fiscal Service in the Kherson Region
  • Edem Khalilov Kherson State Agrarian University
Keywords: agricultural enterprises, economy, management, competitiveness, administration, personal income tax, improvement, efficiency, automation

Abstract

The subject of research is theoretical, methodological and practical aspects of managing the efficiency and competitiveness of agricultural enterprises, taking into account the administration of personal income tax. The purpose of the article is to determine the role of personal income tax administration in managing the competitiveness of agricultural enterprises, identify its problems and justify proposals for their solution. The methodological basis of the article is historical, monographic, system-structural analysis and synthesis, statistical and economic, accounting, problem-target. The results of the article. It is determined that the administration of personal income tax as one of the most important in filling the state budget has a significant impact on the efficiency and competitiveness of agricultural enterprises, especially in terms of the tax rate on wages and other personal income; spending time and money on taxation processes. It was found that its rate of 18,0% on the wage bill is quite rational, but it can be optimized to the world average of 16,1% or less in order to stimulate employment and the formation of the middle class in rural areas. Other problems, which concern rather large (almost 2,0 times more than the world average) expenditures of time and money), should be solved by automating accounting processes, online consultations with tax authorities, internal control over timely payment of taxes. Field of application of results. In educational institutions of higher education, in managing the competitiveness of agricultural enterprises and corporations. Conclusions. The administration of personal income tax is an important factor in shaping the competitiveness of agricultural enterprises and its management. Its impact is directly through the amount or rate of tax; the procedure for its accrual and payment; time and money costs associated with administration. It should be noted that the share of PIT in relation to wages is quite acceptable and, on average, reaches 18,0% at 16,6% of the world average. However, together with the shares of SDRs and military dues, tax accruals increase significantly and exceed the 30% barrier, which is much higher than in the European Union. In general, high wage accruals do not motivate the work of the rural population. This is especially noticeable when rent for land shares is used as a source of passive income. The next problem that needs to be addressed is the significant cost and time spent on PIT administration. It allows automation to solve. Automation of personal income tax accounting is an important part of the automation of management processes and accounting of agricultural enterprises. It provides an opportunity not only to organize the automated workplace of each accountant, but also to improve the work by creating in the accounting department responsible for keeping records of inventory and other resources; labor and wages, taxes; production; product sales.

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Author Biographies

Larisa Marmul, Hryhorii Skovoroda University in Pereiaslav

доктор экономических наук, профессор, профессор кафедры экономики

Natalia Novak, Novotroitska State Tax Inspection of the Henichesk Department of the Main Department of the State Fiscal Service in the Kherson Region

chief

Edem Khalilov, Kherson State Agrarian University

student of the secondary (master’s) level of higher education

Published
2021-12-21
How to Cite
Marmul, L., Novak, N., & Khalilov, E. (2021). The role of individual income tax administration in managing the competitiveness of agricultural enterprises. University Economic Bulletin, (51), 25-32. https://doi.org/10.31470/2306-546X-2021-51-25-32
Section
Agrarian Еconomy