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IN SHORT

Eurofunds considered taxable income

NEW EU rules that govern the obtaining of money from Eurofunds will come into effect as of 2007, the daily SME reported.

The rules stipulate that organizations will have to begin paying tax on money they receive from Eurofunds, with the exception of the European Social Fund.

This may make the obtaining of funding for town and village projects and for non-profit organizations, more difficult. They could also block investment in the construction of roads and railways, and in projects to improve the environment.

Slovakia faces stiff competition from southern European countries for European funding. Slovakia's competitors have more experience in fighting for subsidies.

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