Countrycomparison

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Countrycomparison

  1. 1. Comparison summary: Founding a companyCountry Taxes PermitsAustria - The corporation tax is 25 % but this duty has to be atleast € 1,750 per year.- Capital Returns Tax:For the profit which goes to the associates the businesshas to pay duty about 25 % ascapital.- Sales Tax:The sales tax accounts for 10 %, if somebody wants tostay in a hotel, another 10 %For passengers transport. The international flights arealways duty free- business license- After that you have to register your trade- Registry in the commercial register- Minimum share of a company with limitedliability = 35,000 €France Direct taxes:-depend on the turnover, the location of the company, andthe number of employees.Indirect taxes:“Normal” VAT rate is 19,6% and the reduced rate is 5,5%Germany “Normal” VAT rate is 19 % and the reduced rate is 7 % Requirements and responsibilities:- personal requirements- Compulsory registration- Business related qualificationsHolland The VAT in the Netherlands is 6% or 19% for a luxuryproduct- You don’t need an education to start acompany- The environmental permit are 25 permitstogether in one permit- Writing a business plan is not required,but writing a business plan is very advisable.
  2. 2. Comparison summary: Founding a companyItaly - There are no taxes for selling products in TravelAgencies.- Direct taxes:personal income tax (IRPEF): applied to revenues of soleproprietorships(43%);corporate income tax (IRES): applied to revenues ofbusiness corporations(27%);Italian regional tax on productive activities (IRAP):applied to sole proprietorships, partnerships and businesscorporations (3.9% ).- Indirect Taxes:VAT-rate is 21 %- The founder has to submit the D.I.A. to the“Province of Pisa”, our District Authority.The D.I.A. is a document stating that the person hasall the professional and personal qualifications andrequirements to set it up and the premises chosenhave all necessary requirements, as well.- As a qualification it is compulsory for a TravelAgency to have a Technical Director.- It is not compulsory to have a business plan.Slovakia - Corporate income tax is paid at a flat rate of 19 %- VAT rate is 20%Two stages:- establishment: documents required are:1. Memorandum of Association2. Articles of AssociationAfterwards you have to make an application for tradelicences, tax registration and health insurance and fora travel agency you need a graduation certificatefrom the University- Incorporation:Registration at the Commercial Registry plusregistration for pension, sickness and unemploymentinsurance- Business plan is not necessarySpain - On anything purchased in travel agencies, customerspay VAT at the rate of 8%.- Opening Permit.- Travel Agency License- QualificationThere is no special qualification to obtain a license- It is not necessary to present officially a businessplan.
  3. 3. Comparison summary: Founding a companyTurkey - no tax for foreigners if the invoice is addressed toabroad- VAT and Private Consumption Tax- 8% tax for accommodation, 18 % tax for transportationand 185 for alcohol consumptionThis are the procedures the company has to get:1. Make a petition to Culture and Tourism Ministrywith a name certification of the company.2.The person has to apply to TÜRSAB in 30 daysafter the approval with the seven documents in orderto have a Travel Agency Business Licence.3. Notary Procedures4. Trade Register Procedures5. Tax Administration Procedures6. Chamber of Commerce and Industry Procedures7. Municipality ProceduresThe owner has to:- Has to be over 18 years old.- Mustn’t be arrested because of infamous crime orfraudulent bankruptcy,- Has to have the efficiency of being a businessman- Mustn’t be fined for the 30th law clauseTime for getting the permits: 35 daysCosts for the permits: approx. 1.500.- € and the clubmoney to TÜRSAB 12615.- €- Business plan is necessary
  4. 4. Comparison summary: Founding a companycountry Finance Running costs Rights for employeesAustria Business loans have an interest rate of 3 %.If you need support, first you will get advicefrom a bank, for example. Also, you get 2 %subsidy on interest for loans or investments.For business formation you get 25 % of start- up cost at one point. The bottom line is €1,000 - and maximum € 20,000.- Initial capital for companiesThe primary deposit of a company is €35,000.Average income of a qualified travelagency worker: € 1,742 gross permonth (approx. € 1,450 net).The average starting salary is € 1,420up to € 1,690 gross per month.Regular costs for employers- Staff (salaries of employee)- Taxes (Wage tax)- Insurances (casualty insurancehealth insurance, social security,damage insurance)The corporation tax is 25 % but atleast € 1,750 per year.Capital Returns Tax:For the profit which goes to theassociates the business has to payduty about 25 % as capital.Income tax:The income tax varies from € 0 to €11,000 0%. From € 11,000,to € 25,000, the income tax is about20 %. From € 25,000 to € 60,000,thetax accounts to about 30 %. Above €60,000,it is 50 %.Sales Tax:The sales tax accounts for 10 %, ifsomebody wants to stay in a hotel,another 10 % for passengers transport.The international flights are alwaysduty free.Working HoursThe working hours include theworking time without breaks.The daily working time mustn’t bemore than 8 hours and the weeklyworking time mustn’tbe more than 40 hours.During the daily a weekly workingtime the employer doesn’t includeovertimeHoliday entitlement- If the length of service incompany is 25 years you have a holiday entitlement ofabout 30 workdaysIf you have worked in a companylonger than 25 years, you have aholiday entitlement of about 36days.But if you have worked in acompany under 6 months, youhave a holidayentitlement of about 2 days permonth
  5. 5. Comparison summary: Founding a companyFrance - Banking Loan to Firms (Prêt Bancaire auxEntreprises in French). This loan is given tocompanies which their turnover does notexceed 80 millions €. It can finance 70 % ofan investment and the borrower has from 5to 12 years to pay back. The interest rate isfixed by the bank.- Loan to Company Creation (Prêt à laCréation d’Entreprise in French). This loanis given to firms in creation, created or takenback for less than 3 years, with less than 10employees and which haven’t got anotherloan. It must be associed with a bank loanbetween 2000 € and 7000 €, payed back inmore than 2 years. The Loan to CompanyCreation has the same interest rate as thebank loan and the borrower has to pay theloan back in 54 monthly payments (5 years).- Employees costsThe salary of the 3 administrativeofficers: from 1100€ to 1800€ permonth- The book keeping: approximately1750€- The agency’s director: from2270€ to 3180€ per month- The team leader: 1400€Taxes45% of the agency’s turnover goesto the taxesRent:the price of a commercial premiseis 66€ per square meter per year,before tax.Advertising:for the launching of the agency:2000-3000€for the running : 2000€ per yearFixed term contract- a contract of employment which:- has a definite start and end date,or terminates automatically when aparticular task is completed, or- terminates after a specific eventLong term contractcontract to perform work foranother over an extended period oftime.Working time:If an employee works over 35hours per week, he does extrahours.Paid LeaveEmployees have got paid leave, ifthey have worked for the sameemployer about ten days. Eachmonth of work gives two days anda half paid leave. During the paidleave :- the employer gives some moneyaccording to the period of paidleave.- If the employees become sick,they can’t extend their paid leave.-If during the paid leave, there is abank holiday, he can extend hispaid leave of one day.
  6. 6. Comparison summary: Founding a companyGermany - private costumer credits- secured credit :1 – 4 years 2,42 %5 years 2,63 %10 years 3,04 %commercial credits until 4 years = 3,05 %Tax:Depending on the type of enterprise:business tax , corporate tax or income taxCapitale necessary depends also on thetype of enterprise, but it is not more than25.000 EuroCosts for employee:Gross payment per month 2750Euro.Tax:406 Euro per monthInsurance:Health insurance: 15,5 %(employee´s contribution 8,2%,employer´s contribution 7,3 %)Rent:620€ bei 69m³in the city ofStuttgartDuring the probationary period theemployer and employee areallowed to fire or to quit withoutreason.Probationary period1 till 6 monthsAfter the probationary period:- in mutual agreement- for a good cause (for example:allergies)Cancelation period (until ending ofthe calendar week), depending onthe period of the employer-employee relationship between 1month and 7 monthsHolland Base rate for a business loan is 4.5%Maximum grants from the government,50,000 euros and credit counseling for a newbusinessRequired an initial capital for startingbusinesses is 18,000 euros.The taxes in Holland are in theseboxes0 to 18.945 Euro 33.10%tax18.945 to 33.863 € 41.95% tax33.863 to 56.491 € 42.00% tax56.491 -... . .. € 52.00% TaxCost insurance / pension for a newemployee is about 30% of grosswagesCosts for renting business premisesare 144-136 euro for a square meter.Cost to advertise in magazinesranging between 1,000 and 10,000 fora page in color. A radio spot of 25seconds costs between 250 and 1,000eurosEvery employee has the right toget a number of vacation daysNormally it is between the 23 and25 days(5 workdays times 4 +holidays like Christmas, New Yearand EasterEvery employee has the right ofwage payment by illnessEmployees can ask to work less ormore hours. Employers can onlyrefuse this when there is notenough or too much staff
  7. 7. Comparison summary: Founding a companyItaly - The average interest rate is high and it isabout 7% or 8%.- The rules to get subsidies differ fromregion to region and from province toprovince. In order to get funds from thegovernment the people who want to set up aTravel Agency have to apply to the Regionalor the District Authority.- The capital necessary to set up a TravelAgency is generally from 8.000 € to 10.000€, but it depends on the type, the size and thelocation of the agency.Costs for employee (1 high-trainedperson):The costs for a high- trained person is1,560 € according to the CollectiveLabour Agreement for the TourismSector.The average income of a TourismSector employee is about 1,200 €.Tax:the rate that the employer has to payis about 33%.The employee pays a rate of 9% takenfrom his salary and paid by theemployer to the INPS (the NationalInstitute of Social Security).Insurance:in case of accidents, diseases,invalidity, old age, and involuntaryunemployment.Employers pay two-thirds ofcontributions while employees paythe remaining third.Rent:about 18 € a month (per m²).Advertising:Two options for Internet:-Standard web page: 450 per yearPlus hosting fee 168 Euro-AdvertisementThe price for an advertisement in amagazine ranges from 30 to 100 €.Fixed/Unlimited ContractsEmployment contracts can be executedfor a fixed-term or for an indefinite periodof time.Trial PeriodDuring this period each party is free toterminate the contract without notice andwithout the payment of any indemnity(maximum duration being 6 months).Working TimeAveragely, 8 working hours per day areestablished.Holidays & VacationIn Italy there are 11 religious and nationalholiday days.Employees are entitled to an annualvacation period of 4 weeks.Fire:Under the Italian Law an employee isdismissible for:1) Just Cause :a serious breach by the employee ofhis/her duties or other behaviour thatmakes continuation of the workingrelationship unfeasible;2) Justified Grounds:failure to follow important instructionsgiven by the management,low performance3)An objective reason,whereby the employer needs to re-organise production or labour force.
  8. 8. Comparison summary: Founding a companySlowakia - Interest for business loans - between 4,6% and 8 %- Funding from governmentPeople who are unemployed last 3 monthscan get maximum 3700€ for starting ownbusiness. It is necessary to have a businessplan and present it to the professional board.Costs per employee ( 1 hightrained person)- Income average 765 € brutto- Tax 19%Minimal wages – 327 €Insurance - both employers andemployees are subject to socialsecurity taxes on an employeesgross monthly pay. The rates are35.2% for employers and 13.4%for employees. However,contributions are capped at amaximum of 825.41€ foremployers and 308.04 € foremployees per monthRent:- An office per m2 around 10€Advertising costsMonthly: Billboard ca 200€Journal, newspaper - 23€/ 1 cm2Employment is based on a writtenemployment contract between theemployer and employee, whichmay be concluded for a fixed orindefinite period.It is also possible to agree otherterms in an employment contract,such as material benefits or a trialperiod. A trial period may last upto three months and may not beextended.An employment contract may beterminated by agreement, by theserving of notice, by immediatenotice or by termination during atrial period.Employee can work up to 40 hoursa week. Employees working a two-shift system may work up to 38 ¾works a week. Employees workinga three-shift system or who areinvolved in uninterrupted workmay work up to 37 ½ hours aweek.The minimum basic holidayallowance is four weeks.
  9. 9. Comparison summary: Founding a companySpainLoans: interest can be from 9% to 12%approximately, depending on the loan ratesand the repayment schedule.- Loans to young businessmen have beenoffered by the Ministry of Industry, Energyand Tourism (ICO). The aim is to encourageyoung people to start their own companyand give them better access to credit.Average salary:Basic wage is 1.220,24 € * 16payments for a worker with civilresponsibility at level 2, i.e. amanager of a branch, mainoffice…- Tax:The employer must deduct apercentage of the employee´ssalary for tax purposes and pay itinto the local Inland Revenueoffice account according to thefollowing (between 24,75% and 52%)- Insurance:Travel agencies should subscribeto an insurance against workers´invalidity or death insurance of27.000 €- Rentthe average price is 18 €/m2Advertising:Different kind of costs dependingon the advertisementThe employee will be offered anindefinite contract to promoteemployment and to allow us applyfor subsidies to pay the NationalInsurance contributions.- In case of a worker´s dismissalthe company must pay the worker20 days’ pay for each workingyear calculated proportionally withrespect to those who have beenemployed for less than a year.Turkey Interest for business loans: 1,39%minimum loan 1500.-€ maximum loan21.600.-€- SubsidiesThere is not any subsidy for TravelAgencies. Subsidies are mostly for hotels,Costs per employee ( 1 hightrained person)Income average 1082.- €1082.- € net gain per month meansgross salary is about 1640.- €That means 19680.- € a year grossEmployer and the employee make acontract.All employees must have a SocialSecurity Insuarance.All employees have the right to takemedical service.Private medical insuarance can be
  10. 10. Comparison summary: Founding a companyholiday villages and holiday resorts.Capital necessary for founding the company:28025.- €salary plus 4212.- € a yearinsurance.-Cost to rent an office( per m2)The average cost to rent an officeis 50,- €Advertising CostsInternet: costs per click 0,20 Europer clickNewspaper: 1 line /cm is 35.- €done by the employer if necessary.Employer has to set up good workingconditions for employees.Employer gives bonus, if it is agreedon the contract.Annual pay vacation.Employer decides the date ofholidays.Employee can not go on a holidaybefore completion of 1 year.After completion of 1 year employeecan go on a holiday for 2 weeks.After completion of 5 year employeecan go on a holiday for 3 weeks.After completion of 15 year employeecan go on a holiday for 4 weeks.If the employee takes sick leave for acouple of days it cannot be deductedfrom annual pay vacation.FireIf employee has worked for 6 months,he has to inform employer 2 weeksbefore.If employee has worked between 6months and 1,5 year, he has to informthe employee 4 weeks before.If employee has worked between 1,5year and 3 years, he has to inform theemployee 6 weeks before.If employee has worked 3 or morethan 3 years, he has to inform theemployee 8 weeks before.If employee quits the job before 1year at work, he has no right to askfor severance pay.
  11. 11. Comparison summary: Founding a company

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