Taxation of income from employment: Real Impact of Legislative Changes - case study
| Author: | Mgr. Diana Marková |
|---|---|
| Year: | 2014 - summer |
| Leaders: | Ing. Irena Kemény |
| Consultants: | |
| Work type: | Finance, Financial Markets and Banking Masters |
| Language: | Czech |
| Pages: | 82 |
| Awards and prizes: | |
| Link: | https://is.cuni.cz/webapps/zzp/detail/138315/ |
| Abstract: | This paper discusses the development of income tax of employees. The aim of this work is to model the real impact of legislative cha nges in the Czech Republic on the actual tax burden of employees with different incomes and prop ose optimal solution of tax calculation. The modelling is based on data containing gross sal ary, applicable tax allowances and tax reliefs for each employee of concrete production co mpany in 2012. For the other years, the data are modelled from the given set using inflatio n. For comparison of the actual tax burden I use the effective tax rate, implicit tax rate and n et implicit tax rate. The results of the calculations show that the tax deductions and the m inimum and maximum base for social and health security contributions have the biggest effe ct on the tax rate. In the absence of tax deductions, the real tax burden for most employees according to the effective tax rate would have been almost constant over time. In fact, in te rms of the effective tax rate the tax burden has declined slightly thanks to an increase in tax deductions. The results also show that the biggest differences in tax burden among employees a re due to the (non) application of tax deductions |
