The tax system in Ukraine is facing serious issues due to frequent changes in tax laws, leading to instability and complexity for businesses. The main goal is to analyze these problems and find solutions to improve the tax system. The researchers used various scientific methods to study the development of an effective tax system in Ukraine. They found that the tax system needs to be more flexible to adapt to the market economy, simplify tax rules for businesses, and reduce costs for taxpayers and the government. Key objectives include increasing competitiveness, legalizing the shadow economy, and modernizing tax processes using technology.