• Nataliia Ivanchuk The National University of Ostroh Academy
Keywords: military contribution, payroll taxation, personal income tax, single social contribution.


Consideration of all expenses incurred by the entity due to the hiring of labor is a significant factor in the objective assessment of the level of tax burden and rational management decision making.

Theoretical and legal framework of the formation of the enterprise payroll has been explored as a tax basis of personal income tax, military contribution, and single social contribution in Ukraine.

The study of scientific approaches has enabled to determine that the payroll of economic entity is a specific fund of financial resources with a clear target that consists in the implementation of payments to employees for their participation in the economic activity of the entity with mandatory state regulation of these relations.

In accordance with Ukrainian legislation, enterprise payroll as tax basis includes the amount of accrued wages (by types of payments) due to the terms of employment agreement (contract), as well as amount of remuneration to individuals due to the terms of a civil contract. At the same time, tax allowance is also taken into account while calculating single social contribution and amount of tax benefit while charging personal income tax.

The author has found out that payroll taxation is a subsystem of the general system of labor cost taxation at the enterprise. At the same time, the costs of enterprise incurred due to the hiring of labor are not limited with the payroll and compulsory charges on it. They also include payments to employees that do not belong to enterprise payroll, relative social charges as well as the amount of value added tax related to direct labor costs and social accruals in the production price.

Author Biography

Nataliia Ivanchuk, The National University of Ostroh Academy

PhD, Senior Lecturer, Head of Department of Economic Theory, Management and Marketing