Political and Legal Issues with Business

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Political and legal issues
The current political situation is quite unfavorable for business generally. In Slovakia, we have one-party rule - SMER - social democracy. The government disadvantages entrepreneurs and make it more difficult situation by increasing taxes and social contributions for employees. Non-profit organization, such as Habitat for Humanity would be making a profit if they had to pay higher taxes based on the amount of profit. The primary activity of non-profit organizations is not making a profit. Non-profit entities are by the law on Income Tax defined as entities that are not founded or established for the purpose of business. This does not mean that these entities can not conduct business. You can find a special regulation which allows making business, but it is just in case, that it is only a secondary activity. No matter what type it is a non-profit entity, each has a main objective to set some kind of community service. Deciding which non-profit entity may carry on business and which not, is enshrined in the laws regulating the various types of non-profit entities. In Slovakia, many entrepreneurs also complain of poor enforcement of law. The judicial system is poorly set and the judiciary is controlled by the government. Not-appointing elected Attorney General by president also boost confidence of entrepreneurs in the functioning of the legal system in Slovakia. Conditions for business are worse than in the past. Many international companies establish subsidiaries or headquarters in Slovakia less and less because of the unfavorable political and legal situation.

Non- profit organisation such Habitat for Humanity is, has easier position compare to commercial businesses.


1. Law on Income Tax. (2013 February 2). General format. Retrieved from

Business enviroment in Slovakia. (2013, February 2). General format. Retrieved from News Sita. (2013, February 2.) General format. Retrieved from
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