The Slovak Parliament on Friday last week opened a debate on the draft amendment to the Income Tax Act, which, among other things, reduces the corporate income tax rate next year from 23 percent to 22 percent and introduces so-called tax licenses. The price of tax licenses will depend on the level of sales of the company and whether the entity is or is not a payer of value added tax.
Overall, the Finance Ministry plans to introduce three rates of tax licenses and proposes that non-payers of value added tax pay the minimal tax license of €480. Finance Minister Peter Kazimir introduced the draft amendment in Parliament by reasoning with numbers, claiming that up to 70% of joint stock companies in Slovakia “pay” zero taxes. This amendment will probably find itself at the Constitutional Court soon as parliamentary opposition parties criticise the changes, namely the hike of the corporate income taxes as well as the legislative way of introducing these new measures.
