Glossary
Surety/Guarantor
A third party involved in a contract with a credit institution, who guarantees with all their assets the repayment of the debt if the borrower fails to fulfil their obligations.
Survivor's Pension
A social payment granted under the Social Security Code, regardless of inheritance rights, and linked to the deceased’s entitlement to a personal pension for length of service and old age or disability. To receive a survivor’s pension, an application must be submitted to the National Social Security Institute, and the amount is determined according to the number of eligible heirs. The payment is a monthly sum provided to certain close relatives of the deceased insured person: children up to 18 years of age, or up to 26 if they are studying, including in case of disability; surviving spouse – the pension starts 5 years before the standard old-age retirement age or earlier if the spouse is unable to work; parents – if they have reached retirement age and do not receive their own personal pension (with exceptions, e.g., parents of a military service member who died in service).
Systematic Investing
A popular passive investment strategy based on the principle of dollar-cost averaging (DCA). It involves investing the same amount at regular intervals in selected assets.
Systematic Investment Plan (SIP)
A structured program that allows an investor to regularly invest fixed amounts into a chosen investment fund over a long period. This approach encourages disciplined and gradual capital accumulation by mitigating the impact of market fluctuations through averaging the investment cost. A systematic investment plan is suitable for investors with long-term goals who wish to spread risk and benefit from compounded returns over time without investing large sums at once.
Tax
A gratuitous, non-refundable, and compulsory levy in favour of the state, which it imposes unilaterally. It is an element of budget revenues, which are allocated for financing public needs. Through taxes, it is ensured that all those who use public goods participate in their financing.
Taxable Income
The total income earned from all sources during the tax year, excluding income that is exempt from taxation by law, after deducting expenses allowed by law.
Tax Base
The total amount of units subject to taxation—such as income in national currency, square meters of area, horsepower, etc.—which is subject to tax.
Tax-Deductible Expenses
Represent a percentage of the gross income that is deducted to determine the tax base on which social security contributions and taxes are calculated. These are not actual expenses that need to be substantiated, and their amount varies depending on the type and size of the income.
Tax - glossary for children
Money that people and businesses pay to the government so it can provide services for everyone.
Taxi Passenger Transport Tax
A local, annual, one-off tax payable for conducting taxi passenger transport activities in accordance with the Local Taxes and Fees Act. The tax is payable by persons registered as carriers who operate taxi passenger transport – natural persons (including sole proprietors), legal entities, or sole traders. The amount is determined by an ordinance of the respective municipal council. The carrier submits a declaration to the municipality where the activity will be carried out and pays the tax prior to obtaining the permit. The tax is fixed, regardless of the actual turnover. It is a condition for conducting the activity and replaces the patent tax for the same activity.
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