Tax simulation of private enterpreneurs based on generic bi-layered net model

Abstract

In the past 10-15 years in Hungary, the sphere of the private enterpreneurs is more and more important in our economic conditions due their growing number. Therefore it is a substantial question to analyse and plan their taxation. Our goal is to optimize the enterpreneur’s receipts and to give assistance by choosing the right tax category. To achieve the purpose of our study we apply a new method, simulation based on generic bi-layered net model. First of all we adapted the concerning orders of the benefits and taxes in our net model and determined the passive and active elements. The built model is communicating with a framesoftware and calculates in monthly timesteps. The simulator calculates very effectively the needed outputs (taxes, benefits and net income) from a few inputs (returns, costs, income) and helps by choosing the right tax category (Enterpreneur income tax, Flat-rate tax or Simplified enterpreneur income tax) with the simulation of the full taxyear in one timestep. The result of the study is the generic tax-calculator based on the generic bi-layered net model, which contains the actual legal orders in a simple Excel worksheet, therefore it is easy to swap the tax- and benefitrates – by the user - in case of changed rules. Based on the results we came to the conclusion that the generic tax-calculator can be applied for every individual case by enterpreneurs, bookkepers or financial advisors.