Corporate taxes cut for smaller companies

Corporate taxes in Slovakia for companies with an annual turnover of below €100,000 will be cut from 21 percent to 15 percent as of 2020, Parliament decided in a vote on Wednesday. As many as 131 lawmakers among the 143 present in the chamber voted for the legislation. The co-ruling Slovak National Party, which initiated the bill, believes that the lower tax rate will stimulate new investment and "generate domestic innovation potential". The new tax should affect two thirds of Slovak companies. According to data from 2018, more than 180,000 Slovak companies (67.6 percent of all) had sales below €100,000. In the next year's tax return, however, all companies will still pay the 21 percent tax rate, as these concern the year 2019. Lower corporate taxes will be introduced in 2020.