Peculiarities of Determining the Optimal Taxation of Income Tax

Objective - The aim of the study is to determine the optimality of taxation based on a comparative analysis of income taxation in developed and developing countries.Methodology/Method - The theoretical and methodological basis of the research is the main provisions of the market economy, classical and modern tax theories, legislative and regulatory acts of Georgia and foreign countries, instructions of the Ministry of Finance of Georgia, statistical data of Georgia, government bodies and business structures in this field. In the process of analysis of the actual material, together with the general scientific method of research, is used: systemic analysis, analogy, statistical data monitoring and other methods.Findings - Developed countries emphasize the importance of fairness, while developing countries are mainly focused on mobilizing budget revenues and lesser consideration of fair taxation principles, since the tax system performs a fiscal function more effectively than developing countries. In our opinion, the main idea of income tax should be the optimal distribution of tax literacy on the basis of a direct definition of income of taxpayers or progressive taxation.Practical Value - Practical implementation of the proposed proposals will facilitate further improvement of the social climate in the country, revitalize small and medium businesses, and solve the problem of employment in the country