CONVERGENCE OF THE TAX SYSTEMS OF THE EU AND UKRAINE AS AN INSTRUMENT OF INTEGRATION POLICY: ANALYTICAL DISCOURSE ON CONTEMPORARY CHALLENGES AND STRATEGIC PROSPECTS OF FISCAL UNIFICATION

Abstract

This article examines the issue of adapting Ukraine’s tax policy to the standards of the European Union in the context of European integration. The authors emphasize the need to establish imperative approaches to corporate taxation that align with European practices to avoid artificially reducing tax revenues to the budget. The article highlights mechanisms for information exchange and control over transfer pricing, which are implemented in EU policy to combat aggressive tax planning, as well as their impact on financial flows between countries. Special attention is given to Ukraine’s cooperation with non-EU countries to prevent the use of offshore zones and enhance the sustainability of tax revenues. The author analyzes specific components of national experience in harmonizing tax mechanisms and the role of Ukraine in adapting its national tax legislation to European standards. Recommendations are discussed regarding reducing the tax burden on individuals, rational allocation of tax obligations for legal entities, and improving tax administration mechanisms.The article underscores the importance of synchronizing tax and customs policies in accordance with the strategy of aligning with EU standards and the need to build administrative capacity for the effective implementation of adopted legislation. The research results provide valuable recommendations for improving Ukraine’s national tax policy in the context of European integration.The article also emphasizes the importance of approaching the formulation of tax policy as a diplomatic art, requiring a balance between national interests and common European standards. It is noted that Ukraine needs to ensure adequate adoption and implementation of EU standards to successfully integrate into the European economic space. Additionally, the article discusses key aspects of direct and indirect taxes within the EU framework, which form a balanced taxation system for individuals and legal entities, aimed at preventing tax evasion and avoiding double taxation.The author stresses the necessity of creating effective administrative cooperation mechanisms between Ukraine’s tax authorities and those of EU member states, which are critical for ensuring tax compliance and preventing tax abuses. The article also emphasizes that simply implementing legislation is not enough; Ukraine should systematically develop its administrative capabilities and establish a trained workforce for the successful application of European norms. The article also examines the role of cooperation with the European Union in shaping national taxation practices that align with European standards. The importance of adapting tax policy to EU requirements is viewed through the lens of Ukraine’s strategic goals in the context of European integration, which involves aligning national legislation with EU norms. The authors highlight the need for developing a dynamic tax policy that addresses both the specific needs of the Ukrainian economy and EU standards. The article also discusses modern approaches to tax administration, including proposals for reducing the tax burden on individuals, rational distribution of tax obligations for legal entities, and enhancing administrative mechanisms that prevent tax avoidance.