Development of entrepreneurial initiatives of war veterans: legal aspects of state funding and tax incentives

Abstract

Problem setting. The stimulation of economic activity by veteran entrepreneurship entities is currently acquiring new features and increased relevance, including with the update of current legislation and strategic development directions in this area. State financing and support of veteran business is becoming a promising direction of state policy and has a direct impact on the renewal of the national economy. The development of veteran business in Ukraine has significant potential, it will contribute to economic growth by creating new industries and addressing societal needs, and will also ensure veterans’ active participation in civilian life. Therefore, it is extremely important to build an effective model for implementing veteran business with the help of an effective regulatory and tax framework. Analysis of recent research. Research on the issues of providing state support to war veterans has been conducted by many scientists. For example, O. Yu. Illarionov analyzed the legal principles of supporting and developing veteran business. V. I. Sheverdina conducted a study of domestic veteran policy on the protection of the basic constitutional rights of citizens who have the status of war veterans. V. P. Kokhan studied the issue of employment of war veterans and identified three areas of return of war veterans to work as a result of their professional adaptation: traditional employment in the form of hired labor in accordance with the Labor Code of Ukraine; employment under non-standard employment conditions and the establishment and development of veteran entrepreneurship. In the current conditions of martial law, the issues of developing entrepreneurial initiatives of war veterans are becoming particularly relevant and require additional scientific research. The article aims to conduct a legal analysis and scientific research on the issues of state financing and tax incentives for the development of entrepreneurial initiatives of war veterans in Ukraine. Аrticle’s main body. Russia’s long-running war against Ukraine has led to many important problems in supporting military personnel and war veterans. Despite the dynamic development of legislation in the field of supporting war veterans, legal and tax mechanisms for stimulating veteran entrepreneurship require continuous improvement and adaptation. The measures currently being taken to reintegrate veterans into society are insufficient; they take the form of state social payments and benefits, which are considered outdated and ineffective according to state authorities, local governments, civil society representatives, and veterans themselves. The Law of Ukraine «On Veteran Entrepreneurship » provides for the creation of a system of economic and social incentives to assist veteran entrepreneurship entities in carrying out entrepreneurial activities, increasing their level of competitiveness, social activity, and achieving financial stability; stimulating investment and innovation activity of veteran entrepreneurship entities and establishing the introduction of mechanisms to stimulate veteran entrepreneurship as a priority direction of state policy. However, the aforementioned law does not specify the components of the mechanisms to stimulate veteran entrepreneurship, in particular the tax one. Therefore, it is necessary to raise the issue of preferential taxation and lending for veteran entrepreneurship in the future: after the introduction of legal regulation of veteran entrepreneurship, the issues of its encouragement, determination of financial mechanisms for its stimulation and support arise. It is noted that despite the lack of legislative regulation of tax incentives, their main goal is to create favorable conditions for taxpayers, therefore tax benefits are an effective tool for encouraging veterans to open their own business. To ensure an effective model of implementation of veteran business, it is currently considered relevant to improve the incentive mechanisms of state support and introduce special tax benefits for veterans-entrepreneurs, which will contribute to the activation of their opening of their own business. Conclusions. The conducted scientific research on legal issues of state financing and tax incentives for the development of entrepreneurial initiatives made it possible to conclude that state support for the entrepreneurial activity of war veterans should be systemic and implemented at the national, regional and local levels. Tax incentives for the entrepreneurship of war veterans should be integrated into a comprehensive state policy aimed at supporting the development of veteran entrepreneurship, enhancing its competitiveness, facilitating the reintegration of war veterans into civilian life, and promoting the sustainable development of Ukraine’s national economy. The problem of the tax burden on war veterans engaged in entrepreneurial activity necessitates the improvement of legal regulation, including by updating the norms of tax legislation. Therefore, in the context of creating a regulatory framework for regulating veteran entrepreneurship, it is necessary to continue to improve current legislation and introduce effective instruments for tax incentives for veteran entrepreneurship, that is, to implement effective mechanisms for preferential taxation and lending to veteran businesses, which will increase the level of economic activity of war veterans.