Decentralized principle of the tax system: the state and prospects of the development of the single tax institute

Ukraine has to reform the organization of public and local power, which involves alteration of the administrative-territorial division in very difficult socio-economic and political conditions. So, there is the theoretical substantiation of observance of the decentralized principle of construction of tax system on an example of institute of the uniform tax in the article. Moreover, decentralisation signifies local powers over certain areas of decision-making. The study is based on the systematization of scientific works of domestic and foreign scientists in the aspects of small business development, decentralization and tax system. The local self-governments are now responsible for budgets and attracting investment for small business development, and will answer to their own local voters. But the important fact is the devolution of authority to the communities, rather than the oblasts or raions. Noting the functions of the current tax mechanism, the expediency of taking into account the allocative function of the tax policy, which is actualized in the conditions of decentralization, is justified. Consequently it consist the systematization of research by scientists about targets for the appropriateness of decentralization when using public resources; expected effects to improve the efficiency of the public sector, the rate of economic growth and reduce inter-territorial inequality in the levels of existence of the middle class and the functioning of small businesses; a sufficient number of arguments for the formulation of political will and the accumulation of political resources to resolve the current imbalance; risks of interterritorial asymmetry of net fiscal benefits; conditions for the introduction of optimal financial (including fiscal) decentralization in Ukraine. The article shows the factor changes in the formal norms of the single tax institute in Ukraine in 2014, 2015 and 2017. The decentralization reforms have already brought significant change to Ukraine. But in this case, hromady have financial problems with prospects and plans autonomy development and implementation of incentive policies for small businesses. The newly merged communities in this way will be rendered sustainable. Against all the odds, the technical implementation of decentralization reforms has moved forward. Fiscal decentralization has set new rules for the allocation of taxes to local budgets.  But it it does not solve the whole complex of problems that confront the small business in the current moment. As a result, the study has drawn on the prospects for the development of the single tax institute in conditions of decentralization in Ukraine.