Tax License - The Minimum Corporate Income Tax

The important part of state budget's incomes is created by the corporate income tax, whose amount has decreased over the last years in SR, despite the year over year growing number of corporate entities. The Slovak government has therefore decided to follow other European countries and introduced an obligatory minimum tax, known as tax license, with the intention to increase the state budget incomes coming from the corporate income tax. Amendment to the Act on Income Tax established a payment of corporate income tax also for the companies which had reported a zero tax liability. This paper also describes the tax license from its material point of view and deals with the analysis of its impact on the corporate entities in the Slovak Republic. Introduction of the tax license in Slovakia will influence many corporate entities, some to a greater and other to a lesser extent. We also analyse the impact of the tax license on the corporate entity from different aspects, to determine whether the introduction of the tax license has changed the business situation. The analysis applies the data from the financial statements of selected companies for the years 2013 and 2014. In this paper we concentrate on comparison of expected and real incomes of the state budget deriving from the tax license, as well as on the impact of introduced license on founding and dissolution of companies.