Tax Optimization Model for Agricultural Cooperatives

The article is devoted to theoretical grounding and practical implementation of tax optimization modeling for agricultural production and service cooperatives in Ukraine. It studies foreign experience of taxation of agricultural cooperatives. Agricultural cooperatives are determined to require special approaches to taxation, since they are the economic entities that aim for social and economic benefits. Cooperatives, especially those that offer services, are vulnerable economic entities compared to the other ones, for their aims are connected, first and foremost, with meeting the needs of their members, and only after that ? with making a profit and achieving competitive advantages on the market. The study offers necessary tax measures to be applied while setting cooperatives up; the simplified system of taxation that is required; special tax regime for agricultural producers; introduction of free trade zones for the cooperatives. The article provides recommendations on the specific ways of improving taxation mechanisms for agricultural cooperatives, as well as it offers a correspondent model and determines the main impacts of its implication.