Peculiarities of taxation of dividends and investment potential impact of Ukraine

Abstract

The article describes the features of the taxation of dividends in Ukraine. There has been determined their impact on the movement of capital out of the state. There has been shown the dynamics of capital investment and foreign direct investment in Ukraine. There have been identified such major investor countries as Cyprus, Germany, the Netherlands and the Russian Federation. The estimation of the investment potential of the country through the introduction of the Tax Code of the preferential taxation of reinvested profits and income tax exemption for entities received dividends from resident is carried out. The growth and a decrease in investment are considered in the article. Existing tax laws according to income tax and calculation of the object of taxable income tax are analysed. The deficiencies that can lead to a loss of tax revenue in state revenue that can lead to the failure of state tasks are identified. The ways to improve investment climate by improving the administration of withholding tax are offered.