Features of banking institutions’ taxation in 2015

Abstract

Introduction. The issue of improving the tax legislation on the taxation of banking institutions, analysis of forecasting the tax burden of banks and the formation of the priorities in the process of implementation of tax control of such taxpayers are relevant and require profound scientific justification. In addition, there is an urgent need to analyze the impact of tax changes on the terms of providing services by a bank to its clients: the cost and amount of such services, as it may significantly in the future affect business activities, the availability of funding sources, which are required by enterprises to provide current and investment activity.

Purpose. Investigation of legislative changes on taxation of banking institutions in the context of major taxes, as well as analysis of the impact of these changes on the condition of banks’ activity, their tax burden and compliance with key regulations have become the purpose of the study..

Method (methodology). The study used general scientific and special methods of cognition: dialectical and systemic-functional (to summarize theoretical approaches to taxation of banking institutions); analysis and synthesis (to detail the legislative requirements in the context of separate taxes); comparison (to assess the dynamics of indexes of the banking sector’s activity); logic synthesis (to justify approaches and proposals for improving conditions of taxation of banks and optimizing the tax burden).

Results. The results of the research allow to make a general conclusion that the overall tax burden on payment of corporate income tax for banking institutions will expectedly decline, but additional risks are caused by the fact that authorities of the State Fiscal Service now are given the right to audit the accuracy of accounting, determination of income, costs and financial results in accordance with International Financial Reporting Standards. Banks are also recommended to strengthen control over the correct calculation and withholding of Personal Income Tax and Military Tax from passive income which are paid to individuals.