Abstract
Tax incentives are specific and targeted tax instruments in the economic and social policy of the state. With appropriate tools, the state can support the creation of new jobs and also the sustainability of human resources in existing companies. The article deals with the issue of stimulation of companies in Slovakia and the suitability of the applied incentives in connection with the business environment. The aim of the paper is to approach and analyze the impact of tax incentives applied in the Slovak Republic and evaluate them based on their impact on business entities, respectively business environment. The analysis of the overall development of provided tax incentives in the Slovak Republic is focused on the period from 2002 to 2018. The paper uses the method of analysis and synthesis together with the methods of tabular and graphical representation. Mathematical and statistical methods are used in individual calculations. On the one hand, it can be stated that tax incentives are important, even necessary, for countries, given the inflow of foreign capital, but on the other hand, domestic businesses are disadvantaged by which foreign investors disrupt the domestic business environment.
Highlights
The business environment includes the country's tax system, which should be simple and transparent in order to create favorable conditions for doing business
The aim of the paper is to approach and analyze the impact of tax incentives applied in the Slovak Republic and evaluate them based on their impact on business entities, respectively the business environment
The analysis of the overall development of provided tax incentives in the Slovak Republic is focused on the period from 2002 to 2018
Summary
The business environment includes the country's tax system, which should be simple and transparent in order to create favorable conditions for doing business. Harumová [1] examines how the tax system affects work as well as business activity, the amount of savings and investor decision-making. Incentives are often provided to large companies, but many authors point out that small and medium-sized enterprises (SMEs) are considered globally to be the driving force behind economic growth, enabling job creation and increased productivity [3]. Gajdová [7] sees the cluster as a joint union of independent, regionally unified, jointly supporting companies and institutions that have the potential to be competitive within EU regions. In this way, the merged companies can achieve a synergistic effect
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