Tax breaks boost self-employment in Slovakia.

By bne IntelliNews December 17, 2010
Self-employment could be preferred to regular employment because of financial advantages, a recent analysis by the Financial Policy Institute (IFP) at the finance ministry suggests. Self-employed were more than 15% of the total workforce in the country in 2009, more than twice than in 1998. Moreover, the share of entrepreneurs that do not have employees was 77% in 2009 compared to 57% on average in the EU. The analysis points at three possible reasons for this development. Self-employed owe lower income tax and social contributions because of the reduced by 40% tax base. Employers have incentives to hire self-employed because of the less strict regulations for individual entrepreneurs compared to the employment protection legislation. Finally, a person could receive a subsidy for two years if he/she starts an entrepreneurship. Since the high share of self-employed results in lower tax revenues and social and health insurance contributions, that increases the burden on the budget, the incentives schemes should be changed in order to give greater weight on non-financial advantages, the analysis concludes. Otherwise, the report by the IFP reveals that the labour market responded to the economic crisis not only by decreasing the number of employed but also by changing the working hours. As a result, the companies could retain some of their workers.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Slovakia one of possible locations for new BMW plant.

German car maker BMW considers building a new plant in eastern Europe and Slovakia is one of the potential locations, Hospodarske Noviny business daily reported citing BMW's board member Ian ... more

Slovakia jobless rate edges down to 14.7% in February 2013.

Slovakia's unemployment rate in February 2013 fell for the first time in six months going down to 14.7% from 14.8% in January when it reached its highest level in more than 8.5 years, data from ... more

Frances CCN Group considers new plant in Slovakia - report.

France-based CCN Group, a supplier of components for turbines and automobiles, considers building a new plant in Slovakia in the town of Belusa, Hospodarske Noviny daily reported citing unnamed ... more

Follow Us On

Most Read

  1. Iran vs Israel: Who is better equipped for war?
    5 days ago
  2. Saudi Arabia to scale back plans for Neom city
    8 days ago
  3. BREAKING: Iraq, Syria and Jordan close airspace amid Iranian strike on Israel
    5 days ago
  4. PANNIER: Caspian military drills that exclude Russia and Iran have some people in Moscow asking questions
    6 days ago
  5. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    5 months ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    19 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    23 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. UBN: Russia could take the Baltic states in 48 hours
    28 days ago
  5. BRICS announce a blockchain-based payment system to create a common currency
    21 days ago

Reports

Dismiss