EUROPEAN VECTORS OF TAXATION: EXPERIENCE OF THE BALTIC COUNTRIES

Abstract

The Baltic countries constantly support Ukraine in the international arena. From the first days of the full-scale invasion of Russia on the territory of Ukraine, mass actions in support of Ukraine took place in Lithuania, Latvia and Estonia. The presidents and other politicians of the three countries repeatedly visited Ukraine during the war to show support. Even before the start of the full-scale Russian attack on Ukraine, Lithuania and Latvia provided Ukraine with military aid. And in the first weeks of the fighting, the Baltic countries emptied their military reserves to help Ukraine. In addition, Lithuania, Latvia and Estonia constantly support Ukraine with financial and humanitarian aid and have accepted tens of thousands of Ukrainian refugees. In their development, the Baltic countries have not gone through an easy path to becoming independent. Gradually, year after year, Lithuania, Latvia and Estonia developed under the conditions of integration into the European Union. To date, the Baltic countries, being in the single European space, demonstrate high indicators of socio-economic development. In addition, Lithuania, Latvia and Estonia demonstrate a fairly favorable climate for doing business in their markets. The tax system of these countries is of great importance in this regard. Countries that seek to attract investment into their own economy and create a favorable climate for existing enterprises must continuously improve their fiscal policy. In this regard, taxes in the Baltic countries are rightly considered to be among the most attractive in the territory of modern Europe. After all, the creation of transparent rules for conducting economic activity and taxation, as well as ensuring uniform and fair approaches to all subjects of tax relations, contributes to the strengthening of partnership relations between citizens, economic subjects and the state. And this, in turn, leads to an increase in revenues to the budgets of all levels, an increase in the profits of enterprises and the incomes of citizens.