Annotation

The article studies the tax system of different countries. The tax paid for real estate objects, rented with the purpose of trade, business, professional activity, can be a ground for a tax charge-off from a company's income. An important index of influence on real estate is caused legislation, which is prone to change. The laws about taxes and housing are greatly changeable.

The foreign experience of management of local tax system is considered in the present work. Local taxes and collections in some European countries make the basis of the revenuues of local budgets. Therefore, it is of urgent importance to study the experience of foreign countries on the issue, and to implement it in the sphere of local taxes in Ukraine.

The research examines tax powers of local government bodies. If a land plot is assigned to the building, the building is the object of taxation (profitability of the building). At any rate, the local government plans the tax rate basing on the envisaged budget expenses (when defining the budget for the next year) and on the size of the existing base of taxation. The rates cannot exceed the legislatively fixed maximum.

Tax competition, directed at creating of the most favourable conditions for involvement of direct foreign investments, is One of the factors, defining directions of reforming income taxes in post-social countries, i.e. new members of the EU.

The experience of formation of local budgets in foreign countries testifies the fact that the role of the inner sources of the budget filling must necessarily be growing.

In the practice of foreign countries, the tax on personal property is levied on property of physical persons, deducing obligations arising from ownership of this property.

However, there are countries, where tax on real estate amounts to a small part of incomes in local budgets, such as Denmark, Finnland, Greece and Luxembourg, where it accouts for up 10 percent of the amount of personal incomes.