CURRENT STATE AND PERSPECTIVES OF TAX REGULATION OF INSURANCE ACTIVITIES IN UKRAINE

Taxation is one of the most effective instruments of governmental regulation during periods of economic crises and social instability. Tax regulation is an important mean of indirect state influence state on different aspects of social and economic development and taxpayers' activities and can act as a stimulating and restraining influence on insurance activity through taxation of its financial results. The effectiveness of such influence is indirectly, through positive or negative changes in the performance of insurance activity indicators. The vector of change of these indicators should correspond to the direction of tax regulation and correlate with the corresponding indicators of the tax payments amounts. The multidimensional impact of taxes on the results of insurance activities in a dynamic social, economic and institutional environment in Ukraine necessitates the continual updating of analytical researches on the effectiveness of tax regulation in order to enhance its stimulating effect on the insurance sector. The subject of the study is a set of indicators that characterize the impact of tax regulation on insurance activity in Ukraine through the mechanism of income taxation of its financial results. The aim of the study is to analyze the current state of tax regulation of insurance activity and update its perspectives in Ukraine. Methods of observation, analysis, comparison and logical generalization were used in the study. Financial indicators that characterize the effectiveness of insurance companies as well as tax liabilities on corporate income tax in terms of types of insurance activities are analyzed in the study. Also the analysis of macroeconomic indicators that characterize the tax burden on insurers on corporate income tax and theirs share in the corresponding revenues to the budget is conducted. On the basis of the correlation of the identified trends in the insurance activities and their taxation at the micro and macro levels, the regulatory impact of income taxation on insurance activities is assessed. According to the results of the study, it was concluded that there is no clear correlation between the indicators characterizing the payment of taxes by insurance companies and the financial indicators of their activities, which is explained by complicated, ambiguous and volatile mechanism of calculation of this tax. At the moment the actual mechanism of tax regulation can not be called effective either in the stimulus or in the fiscal aspect. However, the decision to cancel this mechanism should be based on systematic and long-term analytical observations. Taking into account the results of the study, an important direction for further research on the issues of tax regulation of insurance activities is the justification of such a mechanism of insurers' taxation, which will ensure the combination of adequate tax burden with the maximization of their financial results. The improvement of this mechanism should take place in terms of general stimulation of insurance activity and insurance investments as well as an increase in counteraction to the outflow of insurance capital in the offshore. The results of the study can be used in drafting amendments and additions to the Ukraine's legislation regulating insurance activity and the procedure for its taxation as well as in preparation government programs for the insurance market development.