Factors of the Tax Reporting Compliance of the Slovak Residents
Journal of Applied Economics and Business, Vol 4, No 4, 43-62. (2016).
20 Pages Posted: 10 Jan 2017
Date Written: December 30, 2016
Tax revenues collected from personal income tax represent important portion of the government budget tax revenues. International mobility of individuals enables individuals to earn income abroad. Most developed countries apply resident principle of taxation meaning that residents who earn foreign income have worldwide tax liability in their country of residence. However, application of this principle requires residents to submit tax return where they disclose their worldwide incomes. Income tax reporting compliance is important part of a broader topic of the tax compliance of taxpayers. This paper investigates factors that determine tax compliance of individuals, resident of Slovakia, who earn income abroad. We employed survey method and by application of factor analysis we identified the most important factors. Obtained knowledge about factors that influence individuals' tax compliance can be used by tax administration to enhance efficient collection of personal income tax.
Keywords: Foreign Income, Tax Compliance, Individuals, Slovakia, Factor Analysis
JEL Classification: J61, H26, C91, C38
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