Optimization of Corporate Profit Taxation in the Context of Stimulating Their Investment Activity: The Case of Ukraine
Optimization of Corporate Profit Taxation in the Context of Stimulating Their Investment Activity: The Case of Ukraine

Summary/Abstract: The article describes various methods of tax optimization in the implementation of corporate tax management of a business entity, in particular mechanisms for reducing the tax base, using tax breaks, and a special tax regime, changing the place of registration of taxpayers.The methodology of economic and mathematical modelling was used to optimize the tax burden of a business entity by balancing between the part of corporate income tax (investment tax credit), that an enterprise should use for investing, and the part paid to the budget.The developed economic-mathematical model of determining the proportion of «investment tax credit» entity has two objective functions – maximum value of the entity's profit and maximum of the accrued taxes sum. The offered economic-mathematical model will allow to define effective strategies of management of enterprise's profit and demonstrate advantages of preferential taxation for activation of investment activity of the enterprise.

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