State contributions supporting employment won't be taxed

Contributions for maintaining employment during a declared state of emergency in connection with the COVID-19 outbreak will not be taxed and will be paid in the full amount to employers and self-employed persons, Finance Minister Eduard Heger said at a briefing on Tuesday. He pointed out that contributions provided under active labour market policy are subject to tax by law. According to Heger, the Finance Ministry will prepare the necessary legislative amendments so that this change will already be taken into account when filing income tax returns next year. The Labour Minister Milan Krajniak added that entrepreneurs will not even record already paid contributions as revenues. As he added, companies have already received around €7 million as contributions for approximately 60,000 employees and sole traders.