Firms complain of high payroll taxes

HIGH PAYROLL taxes and red tape are the main obstacles to starting and expanding a business in Slovakia, according to the Business Alliance of Slovakia (PAS).

Most business people support a general reduction in payroll taxes, which are 38.5 percent surcharges on salaries that must be paid by employers to the state, even if it means raising corporate taxes, according to a recent survey carried out by the PAS.

The PAS also criticized the fact that the new government's programme makes no mention of reducing payroll taxes. The Alliance says the country needs a simpler payroll tax scheme that is less bureaucratic and that motivates businesses to pay rather than evade taxes.

In the survey, entrepreneurs labeled the current payroll taxes as the third greatest obstacle to business in Slovakia.

"Entrepreneurs regard the frequent changes that business people must keep abreast of, the duplication of information in reporting, and the risk of fines for failure to meet duties as even greater negatives than payroll taxes," the PAS stated.

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