The Effect of Corporate Income Tax of Agricultural Companies on National Budget ? the Case of the Slovak Republic

Cheben Juraj,Krajcirova Renata,Ferenczi Vanova Alexandra,Michal Munk

doi:10.24818/ea/2021/57/466

Abstract

The Effect of Corporate Income Tax of Agricultural Companies on National Budget ? the Case of the Slovak Republic

Highlights

Taxation is one of the most important ways of increasing government earnings of tax revenues in which developing countries can mobilise own resources for sustainable development (OECD, 2008)
The tendencies of accounting result development for the assessed sample of legal entities operating within SK NACE Rev. 2, section A – Agriculture, forestry and fishing are contingent on total income and expenses, while both the former and the latter depend on subsidies and the price level of agricultural commodities
The results show that in 2015 the corporate income tax of the assessed sample of legal entities classified in SK NACE Rev. 2 in Section A – Agriculture, forestry and fishing represented less than 1.6% of the total tax revenue in the Slovak Republic (Figure no. 2)

Summary

Introduction

Taxation is one of the most important ways of increasing government earnings of tax revenues in which developing countries can mobilise own resources for sustainable development (OECD, 2008). The corporate taxes are collected by the government as primary source of direct income taxes. Many research studies focus on macroeconomic indicators and concluded that the amount of tax revenues is influenced by many macroeconomic indicators (Jones et al, 1997; Stejskal, 2008; Sobotovičová and Blechová, 2017; Andrejovská and Puliková, 2018), but surprisingly, these studies that would explore the variables affecting the determination of corporate income tax in the companies are missing. This research study is the first in that assesses the relationship between the corporate income tax, variables that play a significant part in the determination and calculation of corporate income tax of the Slovak companies and input to the transformation of accounting result into the income tax base

Methods

Results

Conclusion