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In modern conditions, one of the main tasks of the fiscal mechanism is to create favorable conditions for maintaining and activating investment processes at the micro level. Thanks to tax incentives as a leading element of the fiscal mechanism, the state influences the amount of financial resources that are at the disposal of taxpayers − legal entities and individuals - and can be used for investment. Therefore, the purpose of the study was to evaluate the use of tax incentives to ensure the investment development of enterprises and households in EU member states and in Ukraine; to conduct SWOT analysis of investment tax incentives, and to find opportunities to further improve their management. The study substantiates the content of tax incentives and the conditions of their use to activate investment processes at the micro level. The experience of EU member states in the use of different ways of tax stimulation of investments of legal entities and individuals has been generalized. The tax incentives introduced in Ukraine have been considered and the key problems of their existence have been described in the context of stimulating the investment activity of taxpayers. SWOT analysis of investment tax incentives has been carried out, which helped to identify the positive and negative impact of the external and internal environment on their implementation. The necessity and principles of management of investment preferential taxation have been established. It has been proposed to improve the management of the provision of investment tax incentives in Ukraine based on the experience of the EU member states. The authors argue that the purposeful use of tax incentives stimulates the investment activity of households and economic entities. Therefore, the use by Ukraine of the experience of the EU countries to solve the problems of providing tax incentives to individuals and legal entities will eventually lead to the intensification of investment processes at the micro level. The research was conducted as a logical process, covering two main stages - theoretical and empirical. The theoretical stage of the research consisted in the collection, systematization and generalization of facts regarding the impact of preferential taxation on the investment activities of enterprises in the EU countries and in Ukraine. The authors considered the domestic and European practice of using tax benefits to ensure the investment development of enterprises and households. The experience of EU member states regarding the use of various methods of tax incentives for investments of legal entities and individuals has been summarized. The article considers the tax benefits introduced in Ukraine and the key problems of their existence in the context of stimulating the investment activity of taxpayers. The empirical stage of the study included a SWOT analysis of investment tax incentives and the search for opportunities for further improvement of their management. According to the results of the SWOT analysis, the positive and negative influence of the external and internal environment on the implementation of tax benefits was revealed.

The fiscal mechanism, which serves as a means of implementing fiscal policy, through the organization of fiscal relations by changing the mechanisms for the formation of budget revenues and expenditures, directs established fiscal relations, manages the channels of passage and directions of fiscal flows, clarifies the proportions of the distribution of financial resources and, thus, ensures the regulation of investment development of economic entities. For Ukraine, in the context of its European integration aspirations, the study of the influence of key elements of the fiscal mechanism on the implementation of investments of enterprises in the EU countries is of particular relevance. Therefore, the article is aimed at forming a holistic view of the elements of the fiscal mechanism that lead to changes in investment processes at the micro level in the EU countries and in Ukraine, as well as conducting a correlation-regression analysis to identify the quantitative impact of the fiscal mechanism on the investment development of economic entities. In the course of the research, both the national and the European practice of taxation of enterprises was considered, the total tax burden on legal entities was calculated, the scale of capital transfers and government guarantees for enterprises in the EU countries and in Ukraine was assessed. Also, a correlation-regression analysis of the influence of elements of the fiscal mechanism on the investment development of economic entities in the EU and Ukraine was carried out, which showed that the greatest influence on the implementation of investments of enterprises was carried out by the scale of taxation of enterprises, as well as their generalized tax burden. Since capital transfers and government guarantees were provided only to individual legal entities, they did not have a significant impact on the total investments of enterprises in the EU countries and in Ukraine. As a result of the research, it is determined that in Ukraine, in order to ensure the investment development of economic entities, it is necessary to take into account the experience of the EU countries and improve those elements of the fiscal mechanism that have the greatest regulatory impact on investments. Such a component of the fiscal mechanism are taxes, especially in terms of effective provision of tax benefits.

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