Comparison of Salary Taxation Between Slovenia, Italy and Austria

The purpose of the diploma thesis was to demonstrate and compare the manner in which salaries are taxed in Slovenia, Austria and Italy. The thesis also aimed to show the difference in salary taxation when a Slovenian works in Austria and Italy. Here, great emphasis was placed on comparing the differences in the payment of contributions that are deducted from salaries. ** In the second part**, the focus was on the differences in salary calculation according to individual countries.

Problem

The purpose of the diploma thesis was to demonstrate and compare the manner in which salaries are taxed in Slovenia, Austria and Italy. The thesis also aimed to show the difference in salary taxation when a Slovenian works in Austria and Italy. Since taxes are mandatory for every taxpayer, the state must design them in such a way that tax collection will proceed reliably, efficiently and with the least possible interference in individual decisions and the economic process of each country, which is expressed less in some countries and more in others.

Slovenia has also been forced to intervene in the field of taxation several times due to competitiveness. Especially in recent years, many changes in the field of taxes have been witnessed. After all, this shows that the system in Slovenia is far from stable.

Even if we look at the labour market, it is among the weaker ones both in Slovenia and in other countries. Jobs are available, but due to all this tax legislation and the lack of regulation in the field of monetary social assistance and education (some professions are being abolished), there is a shortage of workers. Consequently, many workers are migrants, especially from the former Yugoslavia.

Consequently, what all this has brought about is that work in Slovenia is among the most highly taxed in Europe (despite the fact that Italy and Austria are taxed more than Slovenia), which hinders its competitiveness with the rest of the economy, and ultimately reduces companies' opportunities to invest in development and research. Ultimately, the safety of employees is also jeopardised. The content of the diploma thesis is presented in several sections. In the first part, the calculation of salaries in Slovenia, Italy and Austria was presented.

Results

Here, great emphasis was placed on comparing the differences in the payment of contributions that are deducted from salaries. In the second part, the focus was on the differences in salary calculation according to individual countries. ** In the third part**, the definition of a resident in Slovenian legislation was explained and the convention on the avoidance of double taxation with Italy and Austria was explained. Part of this topic was also devoted to the taxation of a foreign worker when posted to work abroad. The aim of this diploma thesis is to show how Slovenia follows the trend of salary taxation in comparison with Italy and Austria.