НАПРЯМИ ГАРМОНІЗАЦІЇ СИСТЕМИ МІСЦЕВОГО ОПОДАТКУВАННЯ УКРАЇНИ ІЗ ВИМОГАМИ ЄВРОПЕЙСЬКОГО СОЮЗУ, DIRECTIONS FOR HARMONIZING UKRAINE’S LOCAL TAXATION SYSTEM WITH EUROPEAN UNION REQUIREMENTS

<jats:p>Introduction. The tax system is one of the key elements of a country’s financial system, and its effectiveness determines the ability of budgets at all levels to accumulate optimal amounts of financial resources, the investment attractiveness of the country and its regions, as well as the ability of the state and local communities to adapt to contemporary challenges. The relevance of this study stems from the need to harmonize Ukraine’s tax system at both the macroeconomic and local levels with established European standards and principles, including the organization of tax accounting and reporting, in light of Ukraine’s acquisition of candidate status for membership in the European Union. The harmonization of Ukraine’s and the EU’s tax legislation depends on the ability of government agencies to effectively implement the adopted regulations. The purpose of this study is to analyze recent changes in Ukraine’s tax legislation, determine the extent to which they comply with European standards, and assess their impact on the local finance system. Research Methods. To achieve this objective, the study employs a combination of general scientific and specialized research methods: dialectical and systemic approaches, analysis and synthesis, formal and comparative methods, as well as abstract-logical, logical, and theoretical generalization. Results. This article argues for the need to bring Ukraine’s tax system into compliance with European Union norms and regulations as one of the requirements for Ukraine’s accession to the European Union. It identifies the main directions of tax reform that directly affect the revenue base of local budgets. It has been established that expanding the use of digital tools significantly improves the efficiency of administering property taxes and the single tax, thereby minimizing the shadow economy at the local community level. Conclusions. It has been established that the harmonization of Ukraine’s tax legislation with EU regulations and the implementation of international standards are significant factors in strengthening the financial autonomy of local communities and increasing the transparency of local finances. A matrix has been developed for harmonizing Ukraine’s local taxation system with EU standards and the European Charter of Local Self-Government. The prospects for the development of the local taxation system in the context of the use of modern digital technologies have been outlined.</jats:p>