2. Macroeconomic indicators of taxes

Taxes in Slovakia

42 Taxes and Taxation Trends

Source: Refs. [2, 3, 4, 8, 9, 12].

Table 1. Taxes in Slovakia.

Source: Eurostat.

Table 2. Taxes quota in Slovakia.

Direct taxes Asset taxes Local taxes Indirect taxes Income tax Property tax Tax of dog Value added tax

Vehicle tax Tax of non-winning game machines Consumer tax of alcohol

Tax of using historical part of town

Years DK I (%) DK II (%) 24.8 39.6 23.0 38.7 21.9 36.6 21.5 36.2 21.2 35.1 19.8 33.8 18.7 32.9 18.4 32.9 19.0 32.7 18.6 31.6 18.8 31.4 17.5 29.2 17.4 29.0 17.1 28.8 16.3 28.8 15.8 28.1 16.3 28.6 15.7 28.2 16.7 30.2 17.5 31.1 18.1 32.1

Tax of using public area

Local income tax Consumer tax of tobacco Tax of vending machines Consumer tax of mineral oil Tax of nuclear facility Costumer tax of electricity, coal, gas

> The tax-deductible burden expresses how high the rate of taxation is or what part of GDP is made up of paid taxes and levies. How many resources are available to the country for redistribution through public finances? The Paying Taxes study 2017 shows the tax burden on companies in Slovakia, which is 10% higher than the global average and EU/EFTA average. Basic macroeconomic indicators associated with fiscal burden measurement include tax quota 1, tax quota 2, tax multiplier, expenditure multiplier, and multiplier of balanced budget. The tax quota is a macroeconomic indicator that does not reflect the impact of tax and levy on economic entities and individuals but pursues the country's priority objective of achieving the highest tax revenues that form the fiscal policy instrument and is the main source of revenue for the state budget (Table 2, Figure 1).

Figure 1. Trend of tax quota in Slovakia. Source: Eurostat.

The World Bank Group and the consulting firm PwC have released a study aimed at simplifying and reducing tax liabilities in business around the world. The study involved 190 countries of the world. The study highlighted the global most common element of tax reforms over the period under review for the introduction of an electronic system for filling in and paying taxes.

the taxpayer is a value added taxer at the last taxable date and has an annual turnover not exceeding EUR 500,000, he pays a tax license of EUR 960. If the taxpayer attains an annual turnover of more than EUR 500,000 at the last taxable date, regardless of whether or not he is a

Taxes and Their Impact on the Business Sector in Slovakia

http://dx.doi.org/10.5772/intechopen.74383

45

The natural reaction of each business entity to taxing is the search for tax optimization within legal procedures. In order to minimize the indirect tax liability, entrepreneurs may consider the decision on voluntary registration as a value added tax payer. In order to minimize the tax burden on local taxes, entrepreneurs consider regional differentiated tax burdens. In the case of income tax, entrepreneurs consider decisions of long-term nature, including choosing a suitable form of business, choosing the way to apply tax expenses, choosing the way to procure long-term tangible and intangible assets, choosing the depreciation method and using the possibility of aborting the depreciation, non-taxable and deductible items from the tax base, the possibility of applying the tax deducted as a tax advance. Income tax in the Slovak legal system is a common denomination for two types of taxes: the income tax of a natural person and the corporate income tax. Many EU countries complain that some Member States have an unfair advantage from low corporate tax rates. Their aim is to determine the minimum rate of tax within the European Union. In Switzerland, Spain, Italy, England and Austria, income tax has always been relatively high. Taxes have set these countries virtually exclusively on the basis of their national needs. The tax rates in Bulgaria, Cyprus, Romania, Hungary and the Czech Republic had to be set to motiv-

Taxation of the economic activity of business entities can be judged at a double level. One is the effort of the state and the self-government to maximize revenue into public budgets that needs to be taken into account in the context of the impact of individual taxes on the behavior of taxpayers and the entire society. The second is the interests of taxpayers and their

Years TAX rate for company (%)

taxable person, he has a tax license of EUR 2880 (Table 4).

ate Western European companies to shift production (Figure 2).

2007 19 2008 19 2009 19 2010 19 2011 19 2012 19 2013 23 2014 22 2015 22 2016 22 2017 21

Source: Ref. [9].

Table 4. Tax rate for company in Slovakia.
