International Experience in Reforming Tax Systems to Ensuring Fiscal Sustainability

In the context of growing global economic instability and increased fiscal pressures, strengthening fiscal sustainability has become a strategic priority for many countries. This article explores the international experience of tax system reform, with a particular focus on the practices of Germany and Sweden, to identify the most effective approaches for enhancing Ukraine’s fiscal stability. The research is based on comparative and system analysis, quantitative evaluation of official statistics, and logical generalization. The study highlights that effective tax reforms in EU countries are driven by the principles of transparency, administrative simplicity, and fiscal discipline. Germany has focused on reducing the tax burden for businesses, implementing electronic tax procedures, and supporting innovation through tax incentives. Sweden, meanwhile, has emphasized progressive income taxation, digitalization, and support for environmentally responsible businesses and startups. The article also examines the current state of Ukraine’s tax system, identifying its administrative complexity, insufficient support for small and medium-sized enterprises, and low levels of tax discipline as major obstacles to sustainable development. A comparison of key tax indicators, including VAT, personal income tax, and corporate tax rates, reveals significant differences between the systems of Ukraine, Germany, and Sweden. The practical value of the study lies in proposing evidence-based recommendations for transforming Ukraine’s tax policy. These include improving tax administration, introducing incentives for innovation and green technologies, diversifying tax revenues, and fostering tax culture. The research concludes that adapting successful international practices could significantly contribute to enhancing Ukraine’s fiscal resilience and economic growth.