The Income Tax on Legal Bodies and Its Modern Alternative

Abstract

The paper presents two normative constructions which eliminate the drawbacks of the hitherto income tax on legal bodies: the German project of company taxation and the Croatian law about profit tax. The project of company taxation, being part of the tax code, treats company taxation on its profit as part of the uniform taxation system along with income tax, to whose regulations it draws on in many places. The regulations of the Croatian law about profit tax are considerably dependent on the constructions used in income tax. The author puts forward a thesis that in the process of further reconstruction of the Polish tax system the Croatian solutions should be used. They are less complicated than German solutions and to a greater extent take into account a particular payment capacity of the enterprise.