ANALYSIS OF TAX SYSTEMS IN SLOVAKIA AND HUNGARY

Taxes are very important and significant economic and political tool in a market economy. Various definitions of taxes are known from the fiscal theory and practice. In general, the tax can be characterized as a mandatory, legally established, non-equivalent, usually recurring payment, which is paid by taxpayers to the State in a specified amount and within a specified period. Each country has its own tax system, which is the result of historical development. Tax systems have gradually changed, they have been adapted to the specificities and needs of each country. The aim of this paper is to examine the tax systems of two neighbouring Central European countries, namely Slovakia and Hungary, and to determine their position within the European Union. There will be made an analysis of tax revenues in these countries and also an analysis of trends in tax rates. The analyses will be focused mainly on personal income tax, corporate income tax and value added tax; a comparison of the tax burden will be made between Slovakia, Hungary and the European Union Member States. When examining the tax burden the indicator of the tax quota will be used, this is currently one of the most common indicators of measurement and comparison of the tax burden.