Investors´ decision on the context of the effective taxation of agricultural companies


  • Alena Andrejovská Technical University of Košice, Faculty of Economics, Department of Finance, Boženy Němcovej 32, 040 01, Košice, Slovakia, Tel.: +421903950939
  • Veronika Konečná Technical University of Košice, Faculty of Economics, Department of Finance, Boženy Němcovej 32, 040 01, Košice, Slovakia, Tel.: +421918309843



tax, effectiveness, company, asset, agriculture


The analysis of the effective taxation combines two different effective tax rates which are crucial for placement and monitoring of the investment amount in the particular country. Both of these tax rates are important for investors who make a decision on the benefits, as well as the risks of corporate taxation in the country. The contribution deals with the problem of the effective taxation through effective average tax rates (EATR) and effective marginal tax rates (EMTR). Especially, it focuses on agricultural production companies. The effectivity of taxation was observed for selected intangible and tangible assets for a period of 2004 and 2018. Our analysis evaluated the influence of the change in the statutory tax rates (and the other taxes and indicators, as well) on the change in effective average tax rates on capital in the agricultural companies. Based on the results, the lowest EATR, ranging from 20.79% to 25.25%, reported agricultural lands in both reference periods and for both ways of financing. Analyzing EMTR we found out that the lowest value reported investments in intangible assets that have crucial significance for investors. Our results definitely made it clear that in the EATR ↔ EMTR relationship, a form of financing investments is decisive. This relationship is used when an investor decides between several mutually exclusive locations or types of investment in a given country. In equity financing, the most effective capital is investing in intangible assets, and when we consider financing from external sources it is investment into stocks. An increase in the statutory tax rate of 2% resulted in a 12% increase in effective average tax rates.


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How to Cite

Andrejovská, A., & Konečná, V. (2019). Investors´ decision on the context of the effective taxation of agricultural companies. Potravinarstvo Slovak Journal of Food Sciences, 13(1), 1040–1050.