On February 11, the Slovak parliament unanimously passed an amendment to the Income Tax Act to its second reading. The bill, which mainly increases the tax-deductible minimum by almost €600 per year, was approved by the government on February 10 as part of its package to deal with the effects of the global financial and economic crisis, the TASR newsier wrote.
Members of the opposition parties supported the government’s anti-crisis measures but criticised the cabinet for introducing them too late. It also considers the measures to be insufficient.
The tax-deductible minimum will increase to 22.5 times the subsistence level from the current level of 19.2, raising it from €3,435 to €4,027 per year as of April 2009. This measure is expected to reduce state-budget revenues by almost €150 million.
A measure intended to help small enterprises is the introduction of so-called tax evidence to replace normal accounting. “An entrepreneur ... who doesn't employ any employees with an income that doesn’t exceed €170,000 per year will be granted an exception in bookkeeping,” reads the Finance Ministry document.
The parliament also passed to its second reading on February 11 a bill that would shorten the period for returning excess VAT payments from 60 days to 30. The amendment to the VAT should also help tackle the effects of the global economy crisis. It is being dealt with in fast-track legislative procedure, the TASR newswire wrote.
The bill also introduces several other measures designed to simplify the tax system, including the option of calculating VAT in any tax period of the calendar year. The Government expects that the change will lower the number of additional tax returns and the number of penalties imposed by the tax administration. TASR
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
12. Feb 2009 at 14:00