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MPs vote to pass tax & levy reform to second reading

Slovak MPs on Tuesday, September 13, voted to pass the draft amendment related to tax and payroll-levy reform to its second reading, the SITA newswire wrote.

Slovak MPs on Tuesday, September 13, voted to pass the draft amendment related to tax and payroll-levy reform to its second reading, the SITA newswire wrote.

As of next year, the so-called super-gross wage is to become the calculation base for taxes and health and social insurance contributions. The super-gross wage will be the employee's gross wage increased by payroll contributions paid by the employer, except for accident insurance contributions. The changes will bring about one health-insurance and one social-insurance contribution and a unified calculation base for taxes and health- and social-insurance contributions.

The health insurance contribution was set at 9 percent for everyone except beneficiaries of disability pensions, who will pay half the rate. The social-insurance contribution was set at 19 percent for employees, 13 percent for self-employed people, and 10 percent for contract employees. Unreceipted tax deductible expenses for self-employed people, currently set at 40 percent of gross income, are to be capped at the subsistence level, €200 a month.

The legislative change was supported on Tuesday, September 13, by 86 votes, including those of the opposition Slovak National Party (SNS), the TASR newswire wrote. The reform has many critics who hope the wording approved recently in parliament can still be changed in the next six months.

Sources: SITA, 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.

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