Legal Status, Taxation, and Accounting Regulation of Farmers 'participation in Profit Distribution: Conceptual Approaches and Practical Implementation

Abstract

The modern taxation and accounting system in Ukraine’s agricultural sector necessitates a comprehensive examination of the specific features of farm operations as a distinct organisational and legal form of economic activity, combining elements of private enterprise with intra-family participation in management. The subject of this study is the taxation and accounting framework for farm activities in the context of contemporary economic transformations. The aim of this study is to identify deficiencies in the regulatory and legal framework, as well as in the accounting and taxation of income received by members of farming enterprises, and to substantiate directions for their improvement. The methodological basis includes analysis and synthesis, comparative legal research, the generalisation of scientific findings and practical experience, and economic-legal modelling, which together enable an assessment of the effectiveness of accounting and taxation procedures. The findings indicate that the absence of a unified approach to classifying the income of farming enterprise members, the complexity of determining the base for calculating the unified social contribution for individuals without employee status, and shortcomings in the documentation of economic transactions and tax administration procedures generate risks of non-compliance, reduce the transparency of financial reporting, and impede effective resource management. A number of improvement measures are proposed, including the adoption of modern accounting methods, the optimisation of tax procedures, the digitalisation of accounting processes, and the integration of ESG (environmental, social, and governance) principles into agricultural business practices. The findings can be applied in the operations of farms and agricultural enterprises, by tax administration authorities, and in the preparation of methodological guidelines. Implementing the proposed measures will enhance management efficiency, minimise tax risks, and promote the sustainable development of agricultural production.