4. Limit on tax return

Tax return is the document FO, PO. Its purpose is to grant income that is subject to tax. The result is a quantification of the tax, which can be compared with the tax advances paid. The resulting tax arrears FO, PO will transfer the state through the tax office. Tax return always refers to a certain period, calendar year, marketing year and specific tax, income tax, value added tax (Table 5) [9].


Table 5. Tax return limit in Slovakia.

attitudes toward taxation. Tax harmonization exists where taxpayers face similar or equal tax rates regardless of whether they are working, buying, buying or investing. Harmonized tax rates eliminate budget competition. Tax harmonization can be achieved in two different ways: explicit and implicit tax harmonization. Explicit tax harmonization occurs when countries agree to set minimum or equal tax rates. The EU requires its Member States to apply a minimum standard rate of 15% VAT. The EU has harmonized taxes on fuels, spirits and tobacco, and efforts to harmonize corporate and personal income taxes. In such a direct form of tax harmonization, taxpayers are not able to benefit from better tax policy in other countries, and governments are not under the pressure of competitive discipline. Tax competition is desirable for many reasons. The most important thing is that it underpins eco-

Tax return is the document FO, PO. Its purpose is to grant income that is subject to tax. The result is a quantification of the tax, which can be compared with the tax advances paid. The resulting tax arrears FO, PO will transfer the state through the tax office. Tax return always refers to a certain period, calendar year, marketing year and specific tax, income tax, value

nomic growth by encouraging policy-makers to make a meaningful tax policy.

4. Limit on tax return

Figure 2. Tax rates of income. Source: Ref. [9].

46 Taxes and Taxation Trends

added tax (Table 5) [9].

For tax purposes, two types of tax returns are available: type A and type B. Type A is intended for taxpayers who have income only from dependent activity under Section 5 of the Income Tax Act. Type B is intended for taxpayers who have income, which are subject to tax according to §5 to §8 of the Income Tax Act. Tax returns are required to be paid by natural persons whose income for the taxable period exceeds 50% of the amount of the taxable amount of tax to the taxpayer if the income derived from the non-taxpayer receives income from abroad, the revenue for which tax cannot be deducted and also if the taxpayer did not ask the employer to perform the annual

Figure 3. Trend of limit value of tax returns. Source: Ref. [9].

settlement of deductions for tax on dependent activity. The tax return is required to be paid by an employee who has income from dependent activity from several employers or other types of taxable income. Tax returns are required to be filed by natural persons whose earnings for a taxable period do not exceed 50% of the taxable amount of tax on the taxpayer but show a tax loss. The tax return is also filed by a lawyer, a PO person (Figure 3).

lower than the amount of the taxable amount of the taxable amount of the taxable amount, the taxpayer is entitled to claim only the difference between the non-taxable portion of the taxable

Taxes and Their Impact on the Business Sector in Slovakia

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

49

• Non-taxable portion of the tax base for contributions to supplementary retirement savings

In this type of non-taxable part, the income of his wife, husband is assessed in addition to the taxable person's tax base, which fulfills at least one of the following conditions during the period: she takes care of a child living in common household, she was unemployed, she is a person with a disability, she tooks a care allowance. Include every income, including income tax, maternity and sickness benefits, all kinds of pensions and prizes, between the wife's (our husband's) incomes. This revenue is reduced by compulsory premiums paid and contributions to health and social insurance. We do not include an employee's bonus, tax bonus, retirement pension, state social benefits in our wife's (our husband's) income. State social benefits include childbirth allowance and surcharge for birth grant, contribution to parents who are simultaneously born with three or more children or who have been repeatedly born twins or more children over the course of 2 years at the same time, a funeral grant, parental allowance, child allowance and surcharge for baby allowance, Christmas contribution to pensioners, retirement

5.2. Non-taxable portion of the tax base for contributions to supplementary retirement

applies to all taxpayers (domestic and foreign employees, tradesmen, etc.) as well.

conditions laid down by the law on supplementary retirement savings (Figure 4).

It is a part of the taxpayer's contribution to supplementary retirement savings (up to the third pillar). The non-deductible part of the tax base also includes contributions to supplementary pension savings abroad of the same or similar type. The maximum amount of this non-taxable portion is €180 for a taxable period. This amount is fixed by the Income Tax Act. The limit

In order to claim this taxable amount, the taxpayer has to meet the following conditions: the participant under which he paid contributions for supplementary pension savings was concluded after December 31, 2013 or was amended and the change in the plan was canceled, the taxpayer has not entered into a contract with another participant who does not meet the

The development of a non-taxable portion of the tax base is based on the development of the subsistence level. The minimum age has not changed for the last 4 years, and therefore there has been no change in the taxable portion of the tax base. The non-taxable portion of the tax

amount of the taxpayer and the retirement pension (Table 6).

• Non-taxable portion of the taxable income of the spouse (spouse)

• Non-taxable portion of the tax base of the taxpayer

5.1. Non-taxable portion of the tax base on wife, husband

Non-taxable portion of the tax base

allowance by political prisoners.

savings (third pillar)

(third pillar)
