Businesses are calling for simpler taxes and stable rules. Uncertainty is holding back investment, according to a Grant Thornton survey

Business leaders across Europe expect governments, above all, to provide a simpler tax system, predictable rules and a lower administrative burden. Uncertainty, meanwhile, directly affects their investment decisions.

This is according to a survey by the consultancy firm Grant Thornton of 500 representatives of British businesses. The fact that these demands affect the competitiveness of the whole of Europe, including Slovakia, is also demonstrated by the European Commission’s plan to simplify business regulations, which aims to reduce the administrative burden on companies across the EU by at least a quarter by 2029. 

Businesses prefer simpler taxes to new tax reliefs 

A Grant Thornton survey shows that entrepreneurs consider tax changes to be the most important issue, as these prevent them from planning their business more effectively and for the long term. 44 % of respondents call for a simplification of the tax system and a reduction in the administrative burden, whilst 39 % want more stable and predictable taxation of corporate income. Support in the face of rising energy prices is a priority for 38 % of firms, better investment incentives – including support for research and development – for 37 %, and preventing further increases in business taxes for 34 %. 

The results suggest that it is not just the level of taxation itself that is decisive for businesses. The complexity of legislation, frequent changes to the rules and the obligations associated with compliance also impose significant costs on them. A complicated tax system entails additional expenditure on administration, accounting and consultancy, which businesses could otherwise invest in their own development.  

Differing priorities are also evident depending on the size of the business. Whilst smaller firms emphasise energy costs and taxes, large corporations place the greatest emphasis on the stability of the tax system and investment incentives. 

Similar challenges apply to the Slovak economy, which in recent years has undergone several rounds of tax and levy increases, as well as the introduction of new taxes and administrative obligations. According to Silvia Hallová, managing partner and tax expert at the consultancy firm Grant Thornton, economic policy should focus more on creating conditions that support investment and entrepreneurship. 

What Slovakia needs most of all today is a simpler, more stable and more predictable tax system, not an excessive tax burden and complicated legislation. It is important that entrepreneurs do not have to devote a disproportionate amount of energy to tax optimisation and administrative obligations at the expense of their actual business activities. 

Tax policy is driving companies abroad 

One of the most serious findings of the survey is the direct impact of economic policy on business decision-making. As many as 65 % of British firms are postponing investment decisions until the forthcoming measures on taxation and administrative obligations are unveiled. 

If the UK government does not ease tax and cost pressures, 39 % of firms plan to increase the prices of their products or services. A further 35 % would postpone or cancel investment projects, 32 % would freeze recruitment or reduce working hours, and 28 % would proceed with staff cuts. As many as 30 % of respondents admit to considering moving investments or part of their operations abroad. 

Such developments also highlight the risks facing smaller open economies such as Slovakia. In the competition for new investment, it is no longer labour costs that are the deciding factor, but primarily the overall tax burden, the stability of legislation and the predictability of costs. Companies operating in multiple markets may prioritise investment in other countries if business conditions deteriorate. This year, Slovakia has seen significantly more companies relocating to neighbouring countries than in the past.

Simplifying regulations is becoming a priority across Europe 

The European Union is also aware of the need to reduce administrative costs. The European Commission has set a target to reduce the administrative burden on businesses by at least 25 % by 2029, and by 35 % for small and medium-sized enterprises. It expects these measures to yield savings of €37.5 billion a year. The initiative also includes a proposal to simplify tax rules, due in June 2026, which aims to reduce the costs of tax compliance and facilitate cross-border business. 

For Slovakia, labour costs are also an important factor, alongside the reduction in the administrative burden. According to the latest OECD analysis, ‘Taxing Wages 2026’, the total tax and social security burden on labour for a childless employee on an average wage in Slovakia stood at 42.7 % of total labour costs, whilst the OECD average was 35.1 %. This high cost of employment thus increases companies’ costs and may weaken their ability to compete in international markets. With the advent of AI technologies, this may become an even bigger problem, as companies will be much more inclined to replace human labour with AI technology. This could have a significant impact not only on employment but also on state budget revenues.

The tax expert also points out that the problem with the Slovak tax system lies not only in the rates, but also in its overall structure. The current system contains unnecessary exemptions, imposes high taxes on income and also places an enormous burden on the cost of labour. 

About the survey 

The survey, commissioned by the UK member firm Grant Thornton, was carried out by Censuswide between 28 August and 8 September 2026 amongst 500 representatives of UK businesses with at least 25 employees. It included business owners, finance directors and managers responsible for tax matters. Respondents represented small businesses, medium-sized firms and large corporations. The results can be found here.