Comparison of payroll taxation between Slovenia, Italy and Austria

Accounting & Finance

Študent: Vanja Šeruga

Vanja Šeruga is a graduate of the Economics - Accounting module study programme at Academia, College of Short-Cycle Higher Education. She successfully defended her thesis paper in September 2022.


Diploma paper Vanja Šeruga

The aim of the thesis was to show or compare how salaries are taxed in Slovenia, Austria and Italy. With the assignment, I also wanted to show the difference in salary taxation if a Slovenian works in Austria and Italy.

Since taxes are mandatory for every taxpayer, only the state must design them in such a way that the collection of taxes will take place reliably, efficiently and with as little interference as possible in the individual decisions of the individual and the economic process of the individual country, which is expressed less in some countries, in others and more.

Due to competitiveness, Slovenia was also forced to intervene in the area of ​​taxation several times. Especially in the last couple of years, we have witnessed many changes in the field of taxes. Ultimately, this shows that the system in Slovenia is far from stable.

Even if we look at the labor market, both in Slovenia and in other countries, it is among the weaker ones. Jobs are available, but because of all this tax legislation and the mess in the field of social assistance and education (some professions are being abolished), there is a shortage of workers. As a result, there are many migrant workers, especially from the former Yugoslavia.

As a result, what all this has brought about is that work in Slovenia is among the highest taxed in Europe (regardless of the fact that Italy and Austria are taxed more than Slovenia), which inhibits its competitiveness with the rest of the economy, and ultimately reduces the possibility for companies investment in development and research. Ultimately, the safety of employees is also at risk as a result.

The content of the thesis is presented in several sections. In the first part, I presented the payroll in Slovenia, Italy and Austria. Here, I put a lot of emphasis on comparing the differences in the payment of contributions, which are deducted from the salary.

In the second part, I focused on the differences in payroll.

In the third part, I explained the definition of a resident in Slovenian legislation and explained the convention on avoiding double taxation with Italy and Austria. Here, I devoted part of the topic to the taxation of foreign workers when work is sent abroad.

The aim of this thesis is to show how Slovenia follows the trend of salary taxation compared to Italy and Austria.

Diploma paper Vanja Šeruga


Diploma paper Vanja Šeruga

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