Peculiarities of Local Taxation as a Basis for the Formation of Income of United Territorial Communities in Ukraine

The scientific article is devoted to the peculiarities of the formation of the system of tax revenues as sources of income of the budgets of the united territorial communities. The system of local and national taxes and fees, which are credited to local budgets, is analyzed in order to determine their "weight" in budget revenues. The Budget Code of Ukraine establishes the share of national taxes that is credited to local budgets of territorial communities. According to Art. 64 of the Budget Code of Ukraine to the general fund of the local community budget includes 60 percent personal income tax, 10 percent corporate income tax, corporate income tax and financial institutions, as well as part of the rent for the use of certain natural resources. These norms are well-founded and aimed at encouraging local governments to create new jobs and new enterprises. After all, the deduction of 60 percent of personal income tax to the local budget determines the interest of local governments in creating new jobs. Local governments cannot influence the determination of the national tax rate. Also, they can not establish any benefits for the payment of this category of taxes. At the same time, the determination of the conditions for the payment of local taxes belongs to the competence of the OTG governing bodies. The norms of legislative acts that establish the system of local taxes and fees have been studied. The peculiarities of local taxation were studied on the example of the budgets of territorial communities of Kharkiv region and the powers of local self-government bodies to establish the conditions for accrual and payment of local taxes and fees were clarified. Proposals have been developed to increase the financial independence of local governments at the level of territorial communities through tax tools, as well as to improve the legal regulation of taxes and fees at the level of budgets of united territorial communities. To improve the economic and legal mechanism of taxation of the united territorial communities, it is proposed to: 1) introduce a local fee for advertising and holding mass entertainment events in public places and other.