Objectives:
In a market economy, allocation decisions are more or less visibly related to the monetary savings of entities. The tendency of entities to save depends on both the interest rate on deposits and inflation, as well as the tax rate on income from capital (monetary savings). Also, the willingness of business entities to invest depends on the income from invested capital. Tax policy, its nature, implemented solutions, instruments in the form of reliefs and exemptions, and, above all, stability and predictability are an important element of effectively influencing taxpayers' behavior.

Material and methods:
Induction was used as the main research method. It involves drawing general conclusions or establishing regularities based on the analysis of empirically identified phenomena and processes. Moreover, the work uses two general research methods, i.e. analytical and synthetic methods, characterized by a specific approach to the study of reality.

Results:
To ensure economic growth and development, it is necessary to develop favorable tax solutions. Taxes should not affect the taxpayer's assets to an extent that prevents their further development. Therefore, it is important to balance the amount of tax collected from the company.

Conclusions:
A simple consequence of the fiscal function of income taxes is a direct impact on the allocation of resources in the economy, because when the tax is paid, there is a final flow of income between the taxpayer and the state. The fiscal function of income taxes is always related to the allocation of resources, as it reduces the incomes of households and businesses, which limits their ability to invest, consume and save.