Development of Income Taxes in Slovakia and the European Union in the Light of Recent Economic Changes in Europe
DOI:
https://doi.org/10.18096/TMP.2021.03.06Keywords:
Tax, Tax system, Direct taxes, Personal income tax, Corporate income tax, Tax base, Tax rate, Tax harmonization, Income taxes, ClustersAbstract
Political, economic, and social developments in the world have undergone relatively turbulent changes over the last two decades. The European Union has not avoided them either. Naturally, any such change directly or indirectly affects the national economies of individual countries. Governments adapt to the new conditions through measures in the areas of employment, production, taxes, levies, and the like. This paper aims to examine the development of income taxes in Slovakia and other countries of the EU. Personal income tax and corporate income tax are the most significant direct taxes in all Member States in terms of collection volume. Their development varies from one region of Europe to another. Therefore, the idea of greater tax harmonization in the Union regularly runs into the arguments of countries in favor of maintaining tax competition. The paper seeks the similarity of individual tax systems and suggests a possible procedure in their further convergence.
References
ABONYI, J. & BALÁZS, F. (2007). Cluster Analysis for Data Mining and System Identification. Basel: Birkhäuser. https://doi.org/10.1007/978-3-7643-7988-2
DOUMA, S. & KARDACHAKI, A. (2016). The Impact of European Union Law on the Possibilities of European Union Member States to Adapt International Tax Rules to the Business Models of Multinational Enterprises. INTERTAX, 44(10), 746-754. Retrieved: December 2020: https://kluwerlawonline.com /journalarticle/Intertax/44.10/TAXI2016064
EUROPEAN COMMISSION (2020). Taxation Trends in the European Union, 2020 edition. Directorate-General for Taxation and Customs Union, European Commission, Publications Office of the European Union. Retrieved: December 2020: https://op.europa.eu/en/publication-detail/-/publication/c0b00da7-c4b1-11ea-b3a4-01aa75ed71a1/language-en?WT.mc_id=Selectedpublications&WT.ria_c=51677& WT.ria_f=6180&WT.ria_ev=search
EUROSTAT (2021). Current taxes on income, wealth, etc. Retrieved: January 2021: https://ec.europa.eu/eurostat/databrowser/view/tec00018/default/table?lang=en
FIĽARSKÁ, J., KOTULIČ R., KRAVČÁKOVÁ VOZÁROVÁ, I., IVANKOVÁ, V. & VAVREK, R. (2018). Pension reform in Slovakia and its influence on the future income of the population in the post productive age. Journal of Applied Economic Sciences, 13(3), 685-692.
FINANCIAL ADMINISTRATION OF THE SLOVAK REPUBLIC (2020). Výročné správy FS (Financial reports of the Financial Administration). Retrieved: December 2020: https://www.financnasprava.sk/sk/financna-sprava/vyrocne-spravy
FRALEY, CH., RAFTERY, A. E., MURPHY, B. T. & SCRUCCA, L. (2012). mclust Version 4 for R: Normal Mixture Modeling for Model-Based Clustering, Classification, and Density Estimation Technical Report No. 597. Department of Statistics, University of Washington. Retrieved: January 2021:
GENSCHEL, P. & JACHTENFUCHS, M. (2018). How the European Union constrains the state: Multilevel governance of taxation. European Journal of Political Research, 50(3), 293-314. https://doi.org/10.1111/j.1475-6765.2010.01939.x
HAKALOVA, J., PALOCHOVA, M., PSENKOVA, Y. & BIELIKOVA, A., (2018). Regulation of Czech Accounting and Taxes in the Context of European Accounting, Taxes and Ongoing International Harmonization. Proceedings of the 4th International Conference on European Integration 2018, 388-395.
JAKÚBEK, P. & TEJ, J. (2015). Reform of financial administration in the Slovak republic: reviews of participants. Economic Annals – XXI. No. 5-6 (2015), s. 33-36.
KOREČKO, J., BAČÍK, R. & VOZŇÁKOVÁ, I. (2019). Public administration in EU: harmonization of income taxes. Marketing and Management of Innovations, 2019(4), 280-291.
KOREČKO, J. & SUHÁNYIOVÁ, A. (2019). História, vývoj a regulácia daňového systému v Slovenskej republike (History, development and regulation of the tax system in the Slovak Republic). Prešov: Bookman.
LEGISLATIVE AND INFORMATION PORTAL OF THE MINISTRY OF JUSTICE OF THE SLOVAK REPUBLIc (2020). Income Tax Act no. 595/2003. Retrieved: December 2020: https://www.slov-lex.sk/pravne-predpisy/SK/ZZ/2003/595/
MARECA, R. (2018). 25 rokov daňového systému SR – podnikatelia kedysi platili 60 % dane (25 years of the Slovak tax system – entrepreneurs formerly paid taxes at the level of 60 %), Retrieved: December 2020: https://www.danovecentrum.sk/aktuality/25-rokov-danoveho-systemu-sr--podnikatelia-kedysi-platili-60--percent-dane-aktualita-dc-3-2018.htm.
MINISTRY OF FINANCE OF THE SLOVAK REPUBLIC (2020a). Taxes, Customs and Accounting. Retrieved: November 2020: https://www.mfsr.sk/en/taxes-customs-accounting/
MINISTRY OF FINANCE OF THE SLOVAK REPUBLIC (2020b). Verejná správa – konsolidované výsledky (Public Administration – Consolidated Results). Retrieved: November 2020: https://www.mfsr.sk/sk/financie/statne-vykaznictvo/specialny-standard/verejna-sprava-konsolidovane/
MINISTRY OF FINANCE OF THE SLOVAK REPUBLIC (2020c). Výsledky rozpočtového hospodárenia – príjmy a granty (Budgetary management results – income and grants). Retrieved: November 2020: https://www.mfsr.sk/sk/financie/statne-vykaznictvo/specialny-standard/verejna-sprava-konsolidovane/
MINISTRY OF LABOUR, SOCIAL AFFAIRS AND FAMILY OF THE SLOVAK REPUBLIC (2020). Životné minimum (Subsistence minimum). Retrieved: December 2020: https://www.employment.gov.sk/sk/rodina-socialna-pomoc/hmotna-nudza/zivotne-minimum
NERUDOVÁ, D. (2004). Tax competition and tax harmonization in the European Union. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 52(6), 135-144. https://doi.org/10.11118/actaun200452060135
NIAZI, S.U.K. (2016). Tax Harmonization in the EU: Insights on Political and Legal Fusion under Neofunctional Rationale. Journal of Politics and Law, 9(4), 15-29. http://dx.doi.org/10.2139/ssrn.2716904
PÎRVU, D. (2012). The Tax Harmonization in the European Union. In: Corporate Income Tax Harmonization in the European Union. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, London. pp. 8-24. https://doi.org/10.1057/9781137000910_2
PSENKOVA, Y. (2016). Comparison of tax burden of incomes from the dependent activity of employees in the Czech Republic and Slovak Republic in the context of globalization trends. 16th International Scientific Conference on Globalization and its Socio-Economic Consequences, 1832-1839.
WARD, J.H., Jr. (1963). Hierarchical Grouping to Optimize an Objective Function. Journal of the American Statistical Association, 58, 236-244. https://doi.org/10.1080/01621459.1963.10500845
Downloads
Published
How to Cite
Issue
Section
