Abstract for: Small Business Taxation in Ukraine as a Factor of Labor Market Regulation

The problem of functioning of small business in Ukraine is topical for many years. According to the information provided by national Ukrainian statistics committee, the amount of self-employed people in Ukraine varies between 17-19%, which means that each 5th person out of total emloyment is a small business owner. But the actual situation on labor market is different, and very often registered self-employed people do not conduct any business activity. The point of creation of the individual entrepreneurship is to reduce the tax burden for both employers and employees. The creation of fictitios self-employed people helps to reduce the tax burden, but on the same time it reduces the government revenues, which can lead to even higher tax rates in the future. The current study has an aim to show the risks connected with such activities and to find the optimal solution.