Mechanisms of the formation of a favorable fiscal climate: the efficiency experience of the Poland Republic

Abstract

Ukraine should find the ways of creation of a favorable fiscal climate within good experience of that states, which have had similar problems, but have managed to overcome them successfully. Poland Republic is one of the most interesting examples in this direction. It is single country in the EU, which hold positive trend of economic growth during the last global financial crisis. Moreover, Poland has become the state, which has achieved the most progress in the formation of favorable conditions for business. An efficiency tax system is a basis of a favorable business climate in Poland. Poland also has managed to get high position in the tax competition in Central and Eastern Europe. Polish experience in the creating of a favorable fiscal climate for business is a good example how to combine effectively the principle of neutrality of the tax system with the tax allowances and tax incentives. The article is dedicated to the analysis of Polish experience of the tax system reforms in the direction towards creation favorable climate to business. The measures, which ensured creation of favorable fiscal climate, which have determinated the transformation of post-socialist country in the most investment attractive economy in the Central and Eastern Europe is analyzed. The concrete effective mechanisms for creating a favorable fiscal climate that could be potentially useful for Ukraine are proposed in the article