INCOME-TAX IN THE SLOVAK-REPUBLIC AND IN AUSTRIA (A COMPARATIVE-ANALYSIS OF THE TAX DUTY AND THE TAX INCOME BASIS DETERMINATION)

Taxation of individuals and legal entities making business in Slovakia is regulated by a single act - the Act on Income Tax. In Austria the taxation of individuals is regulated by the Act on Income Tax, taxatio n of legal entities is regulated by the Act on the Legal Entities Taxa tion. The comparison of the legal regulation of tax-duty in Austria an d in Slovakia shows that a legal entity of public trading company is e xcluded from income tax in both countries, capital companies, on the o ther hand, are not. A clear difference is evident in the case of limit ed partnership companies. Rules of the determination of unrestricted a nd restricted tax duty are similar in both countries as for individual s and there are some differences in case of legal entities. There is a different approach to the definition of the volume of taxable incomes in each country. In Slovakia, as well as in Austria, there are certai n incomes that are tax exempted. In Austria, incomes are classified in to enterprise and non-enterprise incomes which is an important factor since the income volume is in the case of enterprise and non-enterpris e incomes determined differently. There is no similar classification i n Slovakia. In both countries there are three ways of tax-basis calcul ation (Slovakia) or profit determination (Austria), respectively, name ly in the case of tax-payers accounting in the double-entry system, th ose using single-entry system and in the case of tax-payers using the so-called lump-system.