Actual problems of innovative economy and law

Journal "Actual problems of innovative economy and law" is included in category B for specialties: in the field of knowledge "Management and administration": 073, 076 (order of the Ministry of Education and Science of Ukraine dated 23.08.2023 No. 1035) and 071, 072, 075 (order of the Ministry of Education and Science of Ukraine dated 12.20.2023 No. 1543); in the field of knowledge "Social and behavioral sciences" 051 (order of the Ministry of Education and Science of Ukraine dated August 23, 2023 No. 1035); in the field of knowledge "Law" - 081 and "Public management and administration" - 281 (order of the Ministry of Education and Science of Ukraine dated 12.20.2023 No. 1543).
Registration of an entity in print media: Decision of the National Council of Ukraine on Television and Radio Broadcasting No. 1390 dated 11/16/2023. Media identifier: R30-02018
The journal is indexed in the International Scientific Center of Index Copernicus International

Financial instruments for the development of territorial communities: optimization of tax revenues

# 23 100-104 Download/view the full text of the article

УДК: 336.142.3

DOI: https://doi.org/10.36887/2524-0455-2025-5-23

Pelekhatyi Andrii,
doctor of Economic Sciences, Associate Professor,
Ukrainian Catholic University, Lviv,
https://orcid.org/0000-0002-3022-852X
Uhryn Andrii,
Postgraduate Student of the
National University «Lviv Polytechnic»,
https://orcid.org/0009-0000-5822-5112

The article discusses modern approaches to strengthening the financial capacity of territorial communities in Ukraine in the context of military challenges and post-war recovery, with an emphasis on optimizing local budget tax revenues. It analyses the transformation of the role of territorial communities as key actors in socio-economic development, responsible for infrastructure reconstruction, provision of basic public services, and creation of preconditions for sustainable growth. Considerable attention is paid to the problem of asymmetry between the revenue and expenditure sides of local budgets, which is exacerbated by the decline in economic activity, migration processes, and the growth of social and recovery expenditures. The paper examines tax revenues as a basic tool for community financial autonomy, in particular the roles of personal income tax, land tax, and other local taxes and fees. It reveals the key problems in their administration, including inefficient use of land resources, outdated normative monetary valuation, shadow employment, and incomplete tax accounting. Separately, it analyses ways to increase the effectiveness of land tax by updating the normative monetary valuation, conducting a comprehensive inventory of land, integrating cadastral and tax registers digitally, and strengthening liability for violations of tax legislation. The article also examines the institutional and administrative aspects of improving the collection of personal income taxes, particularly the issue of its redistribution among communities, taking into account taxpayers’ actual residence, the de-shadowing of the labour market, and the introduction of incentive mechanisms to encourage communities to expand the tax base. It justifies the feasibility of introducing new local taxes, particularly a tax on the use of commercial real estate, as a tool for diversifying local budget revenues. Attention is paid to the transfer of powers to administer local taxes to local self-government bodies and the integration of tax policy with the strategic development goals of territorial communities in the post-war period.

Keywords: territorial communities, financial capacity, development, local taxes, local self-government bodies, management.

References.

  1. Biudzhetnyj kodeks Ukrainy: Zakon Ukrainy. (2010). [Budget Code of Ukraine: Law of Ukraine]. № 2456-VI dated July 8, 2010. (zi zminamy i dopovnenniamy).
  2. Podatkovyj kodeks Ukrainy: Zakon Ukrainy. (2010). [Tax Code of Ukraine: Law of Ukraine]. № 2755-VI dated December 2, 2010. (zi zminamy i dopovnenniamy).
  3. Pro mistseve samovriaduvannia v Ukraini: Zakon Ukrainy. (1997). [On Local Self-Government in Ukraine: Law of Ukraine]. № 280/97-VR dated May 21, 1997. (zi zminamy i dopovnenniamy).
  4. Diachenko,Ya. (2021). «Administration of Land Payment in the System of Local Finances of Ukraine». Finansy Ukrainy. № 6. рр. 45-58.
  5. Kravchenko,I. (2019). Mistsevi finansy Ukrainy. [Local Finances of Ukraine]. Znannia. Kyiv. Ukraine.
  6. Lunina,O. (2020). Finansy terytorial’nykh hromad: teoriia i praktyka rozvytku. [Finance of territorial communities: theory and practice of development]. NAN Ukrainy. Kyiv. Ukraine.
  7. Minfin Ukrainy. (2023). Analitychna dopovid’ schodo dokhodiv mistsevykh biudzhetiv v umovakh voiennoho stanu. [Ministry of Finance of Ukraine. Analytical report on local budget revenues under martial law]. Kyiv. Ukraine.
  8. Pavliuk,V. (2018). Finansove zabezpechennia rozvytku rehioniv Ukrainy. [Financial support for the development of regions of Ukraine]. KNEU. Kyiv. Ukraine.
  9. Pelekhatyj,O. (2019). Biudzhetna polityka u zabezpechenni rozvytku terytorij: kontseptual’ni dominanty ta napriamy modernizatsii. [Budgetary policy in ensuring the development of territories: conceptual dominants and directions of modernization]. LNU im. Ivana Franka. L’viv. Ukraine.
  10. (2020). Fiscal Decentralisation and Local Finance. OECD Publishing. Paris.
  11. (2022). European Commission. Strengthening Local Government Finance in Post-Conflict Recovery. Brussels.
  12. (2021). World Bank. Municipal Finance and Local Development in Post-War Economies. DC. Washington.

The article was received 30.08.2025

Quote article, APA style

Pelekhatyi A. , Uhryn A. 30.08.2025. Financial instruments for the development of territorial communities: optimization of tax revenues. Actual problems of innovative economy and law. 2025. №5. 100-104 pp. https://doi.org/10.36887/2524-0455-2025-5-23

Quote article, MLA style

Pelekhatyi A. , Uhryn A. Financial instruments for the development of territorial communities: optimization of tax revenues. Actual problems of innovative economy and law. 30.08.2025. https://doi.org/10.36887/2524-0455-2025-5-23