Being able to transfer one’s earnings to some tax havens thus avoiding taxation in Slovakia will no longer be so easy. As of next year, the state is going to impose a new tax on payments made to certain countries at 35 percent.
This means that if a Slovak company pays for a service to a company in Belize, it will have to pay more than a third of that amount to the state. “It is common practice to prevent tax frauds across Europe. It will be helpful in some situations but more sophisticated companies will start using countries like Malta and Cyprus for similar transactions where the new tax will not be paid,” said economist at the Slovak Academy of Sciences Vladimír Baláž.
Gavin Shoebridge
