Global

Details

  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/9/2012

Slovakia - Proposed increases to corporate, individual income tax rates 

October 9: The government’s bill to amend Slovakia’s income tax law includes measures that would:


  • Increase the rate of corporate income tax to 23%
  • Increase the rate of individual (personal) income tax to 25% on a tax base amount in excess of 176.8 times the minimum subsistence level

Individual taxation

Other proposals affecting individual taxpayers would:


  • Apply “progressive taxation” to all individuals with a tax base of approximately €2,867 (which corresponds to a gross income of approximately €3,311 in 2013)
  • Impose a special tax rate of 5% on the income of selected state officials

Individuals applying lump-sum expenses would be subject to a ceiling of €5,040 per year. They would no longer be able to deduct lump-sum expenses from rental income.


In addition, the criteria for applying a “tax allowance” with respect to spouse and a tax credit for a dependent child under the age of 19 years would be tightened.

Effective date

The proposed effective date is expected to be 1 January 2013).


The draft amendment contains relatively few transitional provisions. Thus, it is not clear what tax rates would be applied when filing tax returns after 1 January 2013 for tax periods ending / beginning before that date. It is expected that these items would be clarified further during the legislative process.



For more information, contact a tax professional with KPMG in Slovakia:


Branislav Ďurajka

+421 (0)259 98 43 03


Michaela Stachová

+421 (0)259 98 43 04




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