CONCEPT AND ESSENCE OF PROFIT AS AN OBJECT OF TAXATION

Abstract

The article examines the concept of profit as an object of taxation, with an emphasis on its economic and fiscal essence. The author analyzes various approaches to the interpretation of profit in modern scientific literature and legal acts, including its accounting and tax definitions. V. Okrenets proposes to consider profit as a comprehensive financial indicator reflecting the results of an enterprise's activities, as well as an information tool for making managerial decisions. O. Podolianchuk focuses on the problems of distinguishing between accounting and tax profit, pointing out the need to adjust financial indicators for taxation in accordance with tax legislation. Levchenko and Novoselova emphasize the role of profit in the economy, focusing on its dual meaning - economic and fiscal, as well as its impact on the financial stability of enterprises. Mulyk and Steblovsky add to this discussion the importance of adequate reflection of profit in financial statements, taking into account accounting standards and tax legislation requirements. O. Vovk and other researchers emphasize the need for in-depth analysis of the profit structure to make effective management decisions and reduce tax risks. The article also discusses aspects of harmonization of approaches to profit calculation in international practice. The authors note that there is a need to improve the methods of accounting and taxation of profits in Ukraine in order to reduce the tax burden on enterprises and prevent the risks of double taxation and transfer pricing. The scientific discussion particularly emphasizes the problem of double treatment of profits, which can lead to different results in financial and tax reporting. The absence of uniform standards that would take into account the specifics of both approaches complicates tax planning and increases the risk of tax disputes. The author of the article also formulates his own definition of profit as an object of taxation, emphasizing the need to integrate the economic content of transactions with the requirements of tax legislation. Profit is defined as the financial result of an enterprise's activities adjusted for tax differences in accordance with regulatory requirements, with a view to ensuring a balance between taxation fairness and economic efficiency. The author proposes approaches to harmonization of accounting and tax accounting, which would ensure transparency of financial statements, fair calculation of tax liabilities and contribute to the efficiency of the tax system. In conclusion, the article offers recommendations for improving the tax system of Ukraine aimed at reducing tax risks and stimulating business development.