Introduction. The National Revenue Strategy of Ukraine until 2030 states that due to existing contradictions, the preferential taxation system requires changes in order to support the development of micro and small businesses, eliminate the possibility of distorting the competitive environment due to the abuse of its advantages by unscrupulous payers. In view of this, the topic of the study has significant practical significance for the further formation of the state's tax policy. The purpose of the article is to comprehensively assess the trends in the development of the preferential taxation system in Ukraine, to analyze its impact on the economy, the state budget, entrepreneurship and society. Results. The trends in the development of the preferential tax system in Ukraine are studied based on the analysis of regulatory changes in tax legislation, the analysis of the dynamics of the number of business entities, their distribution by sectors of the economy and the impact on the economy, the state budget and the development of entrepreneurship. It is shown that the initial goals of creating the system have been achieved, but at the same time it is noted that the existence of the preferential tax system has not led to a noticeable, statistically significant change in the structure of the domestic economy and additional dynamics of its growth. Based on the analysis of the case of Diya.City, it is shown that the introduction of an additional preferential tax regime has not led to an increase in the export of computer services, a significant increase in capital investments or tax revenues to the state budget of Ukraine. The existing risks of using the preferential system and the need to bring it up to date are noted. Conclusions. The preferential taxation system needs to be brought into line with the realities of our lives and the socio-economic situation in Ukraine. The prospects for its existence depend on the state's ability to form a tax policy that meets the challenges of the time and will ensure adequate financing of the country's security needs.
SHVABII et al. (Wed,) studied this question.