The Ministry of Finance has submitted legislative amendments for inter-ministerial comment. If the amendments are approved, they will become effective either on 1 January 2017 or 1 January 2018. Income tax Tax rate The main changes being prepared in taxation of income include a clear reduction in the corporate tax rate to 21%, which will…
In the fight against tax evasion, a global problem requiring global solutions, the European Union is responding in connection with its base erosion and profit shifting (BEPS) project with a package of measures to which the Ministry of Finance has already expressed its agreement. In early 2016, the EU introduced the Anti Tax Avoidance Package…
Starting in June 2016, the Slovak Republic Financial Directorate is publishing a more expansive list of tax debtors. While more than 5,200 taxpayers have appeared on the list in the past, new rules will raise that number to more than 80,000. According to new provisions in force since 1 May 2016, the Slovak Republic Financial…
The new Union Customs Code, which entered into force on 1 May 2016, calls for economic operators and customs authorities to communicate with each other electronically. If relevant electronic systems are not yet operating, other means of exchanging and storing information can be used, however, this exemption is available only until 31 December 2020. Any…
Financial institutions (banks, branches of foreign banks, building societies and other entities covered by the Act on automatic exchange of financial account information for the purpose of tax administration and on amendments to certain laws) have been required since 1 January 2016 to determine and report the tax residence of their customers to the Slovak…
Starting on 1 July 2016, the Slovak Republic Financial Directorate has increased the number of receipts VCR users can issue. Where previously only a maximum 1,000 receipts could be issued a month, the limit was raised on 1 July to 3,000 receipts monthly. This new, more advantageous threshold for issued receipts also applies to new…
Two separate amendments to the Commercial Code have brought new corporate arrangements in an effort to promote doing business in Slovakia: Simple joint-stock company and Joint-stock company with variable capital. Simple joint-stock companies can be formed starting 1 January 2017 and would be especially suitable for start-ups, while investment funds with variable equity would be…
When are the foreign VAT payers are required to register? Foreign VAT payers are required to register in Slovakia under Sec. 5 of the VAT Act as well as if they are paid for construction or engineering work done in Slovakia or are supplied goods with installation and mounting in Slovakia by another foreign entity…
On 1 May 2016, the new Union Customs Code (Regulation of the European Parliament and the Council No 952/2013) and Commission Delegated Regulation No 2015/2446 came into force alongside Commission Implementing Regulation No 2015/2447, which together form the new foundation for customs law applicable throughout the EU. The amended law’s main objective is mainly to…
Act 222/2004 on value added tax, as amended (the VAT Act) imposes certain duties on non-VAT payers. Even if not liable to pay VAT, businesses should still be monitoring their revenues to know whether they have exceeded the threshold for mandatory VAT registration. Unless a business has been paying attention to its accounting during the…