The main purpose of the master's thesis was to analyse the effects of the tax reform adopted in 2019. We focused on relief allowances for annual leave with personal income tax and social security contributions and the effects of changes in income scales and general tax relief on increasing disposable net income in Republic of Slovenia.
The theoretical part presents a detailed overview and analysis of past research and literature. The design of the theoretical part is based on the method of descriptions, where it systematically describes a review of domestic and foreign professional literature, which studies the importance of the role of tax reforms and the impact of different tax systems on tax policy. The central part is intended for statistical collection and analysis of collected data, which shows the effects of tax changes on the increase in disposable net income of employees in the Republic of Slovenia.
Based on the presented results that we have prepared, our findings are as followed: the tax reforms in the last fifteen years have had a positive effects on the tax relief of labor in the Republic of Slovenia, nevertheless also with the inclusion of the latest tax reform they were not be radical enough to reduce the tax gap to such an extent, to be comparable to the EU and OECD average. Our deliverables show that the relief from annual leave allowances had a positive effect on the increase in the disposable net income of employees in the Republic of Slovenia.
The results and findings in the master's thesis will be useful for future policy decisions and planning tax reforms as well as for tax and accounting professionals. It represents a contribution to the profession in the field of labor taxation in the Republic of Slovenia and at the same time strengthens our recommendations to political decision-makers to continue with the tax reform, especially with tax reliefs, and thefore makes our business environment more comparable to the EU.
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