Advantages and disadvantages of registering a Slovenian sole trader X in Austria from the point of view of taxation in the country of the tax residence

Študent: Ana Štuhec

Ana Štuhec is a graduate of the programme Economist at Academia, College of Short-Cycle Higher Education. She successfully defended her thesis paper in May 2021.


Thesis paper Ana Štuhec

Slovenian companies and entrepreneurs are moving their businesses abroad, because of a highly unfavourable taxation system at home.

Activities are being moved mainly to Austria, since it is believed that Austria has a simpler bureaucracy, a friendlier taxation system, a more flexible economic environment and better payment discipline. But is this really the case?

The main focus of every company is to create profit, and the level of taxation is the main reason why smaller companies do not strive for the highest possible profit but instead work towards for the lowest possible level of taxation.

They are, therefore, constantly looking for a more favourable tax environment even if that means moving their activities abroad.

I begin this thesis with the presentation and definition of an independent entrepreneur. This chapter describes the process of their registration in Slovenia and Austria.

A shorter chapter is dedicated to the explanation of what it means to be a tax resident of a certain country, what the rules are, that allow for such residency and what are the obligations that follow.

Through the study of domestic and foreign legislation I made an account of the economic result, tax result, social security contribution and tax based on Slovenian and Austrian legislation.

The comparison was based on data from an independent entrepreneur X. The account is based on an independent entrepreneur who determines his taxable base on his real income and outcome.

Based on the calculations I present in this thesis the differences in the economic result and the differences in the accounting and payment of the independent entrepreneurs social security contributions.

With this thesis I pondered and determined which country is more favourable for an independent entrepreneur with the predisposition that they remain a tax resident of Slovenia.

The main hypothesis of this thesis was, that for an independent entrepreneur who determines their taxation base on actual income and outcome, Slovenia is less favourable that Austria.

Thesis paper Ana Štuhec


Thesis paper Ana Štuhec

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