Taxation of sole proprietorship in European Union: case study of Poland, Lithuania, Ukraine

Abstract

The aim of the study is to determine in which of the compared countries the conditions of sole proprietorship are most favorable and what are the reasons for this phenomenon, mainly from the point of view of economic and taxation realities. The purpose of this study is to analyze the tax solutions adopted in some European countries in order to determine the most favorable jurisdiction for running a sole proprietorship under the indicated assumptions. The authors decided to analyze sole proprietorship only, as it is the most common form of business activity and, at the same time, the most accessible for business people. On the other hand, sole proprietorship is a flexible form of business. It can combine various taxation options with an employment contract (or other contracts). The choice of countries was dictated by the authors' experience and the similarity of economic and legal conditions found in these jurisdictions. The article has the character of a comprehensive analysis, both in theoretical and practical terms, which will undoubtedly determine its readability and usefulness. The article will use comparative and comparative law approach in relation to the legislations of the analyzed jurisdictions. Preliminary research indicates that the most favorable conditions for sole proprietorship are found in Lithuania, however, in order to draw comprehensive conclusions it is also necessary to refer to other aspects that may deviate from the assumptions made