Imputed salary adjustment

Salary adjustment is an imputed item that does not affect the enterprise's solvency or cash flow, the item is returned before the result for the financial period. Depending on the company form, the owner's salary is handled differently in taxation. The salary of a private practitioner of trade is never included in the profit and loss account and in partnerships, the owner's salary can only in exceptional cases be treated as expenses. This non-uniform practice makes it difficult to compare small enterprises in particular with one another. The salary adjustment is made for micro enterprises, i.e. enterprises employing fewer than 10 persons. The basic data used is the enterprise's entrepreneur work input and enterprise-specific average pay of the hired employees. The entrepreneur work input is defined by the Register of Enterprises and Establishments based on payments made under the Self-employed Persons' Pensions Act, i.e. imputed salary adjustment = entrepreneur work input * average pay.