Comparason of Employee Mandatory Payroll Tax Deductions in the Czech Republic and in the Federal Republic of Germany

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F21%3A89539" target="_blank" >RIV/60460709:41110/21:89539 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Comparason of Employee Mandatory Payroll Tax Deductions in the Czech Republic and in the Federal Republic of Germany

Original language description

For work performed, employees are entitled to gross pay which is subject to a number of deductions, such as income tax and other deductions. However, the payroll deductions system is not exactly the same in every country, it usually reflects the history, politics and culture of the specific country. This paper deals with the comparison of payroll deductions systems of two neighbouring countries - the Czech Republic and the Federal Republic of Germany. Based on a comparison of model situations with calculating the mandatory payroll deductions of employees in a selected company with branches in the Czech Republic and in the Federal Republic of Germany, it can be stated that the burden rate (income tax + social security and medical taxes) in Germany is significantly higher (reaching almost 60% of gross pay) in comparison with the Czech Republic where - after the abolition of the methodology of calculating the net pay from the so called super-gross pay - it does not even reach 25% of gross pay with low p

Czech name

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Czech description

For work performed, employees are entitled to gross pay which is subject to a number of deductions, such as income tax and other deductions. However, the payroll deductions system is not exactly the same in every country, it usually reflects the history, politics and culture of the specific country. This paper deals with the comparison of payroll deductions systems of two neighbouring countries - the Czech Republic and the Federal Republic of Germany. Based on a comparison of model situations with calculating the mandatory payroll deductions of employees in a selected company with branches in the Czech Republic and in the Federal Republic of Germany, it can be stated that the burden rate (income tax + social security and medical taxes) in Germany is significantly higher (reaching almost 60% of gross pay) in comparison with the Czech Republic where - after the abolition of the methodology of calculating the net pay from the so called super-gross pay - it does not even reach 25% of gross pay with low p

Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50205 - Accounting

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2021

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Opportunities and Threats to Current Business Management in Cross-border Comparison

ISBN

978-3-86367-067-2

ISSN

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e-ISSN

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Number of pages

9

Pages from-to

199-207

Publisher name

GUC - Chemnitz

Place of publication

Germany

Event location

Železná Ruda

Event date

Nov 11, 2021

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

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