Unified income and payroll tax collection plan

THE SLOVAK government approved a Finance Ministry plan for a unified collection system for income tax and compulsory social and health insurance fees on March 8.

Finance Minister Ivan Mikloš said the new system could allow payroll tax rates to be cut by 2 percentage points, the SITA news agency wrote.

If tax offices are given the added task of collecting payroll taxes, administrative costs could be reduced and claims recovery increased, the minister said.

"Tax offices have better tools to recover claims," he argued.

The minister estimates it might take two or three years to prepare and implement the transfer of payroll tax collection to tax offices. "If the next cabinet decided to go ahead, this process will take place during its term in office," he said.

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