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Parliament passes tax licences

RULES for companies operating in Slovakia will change again as parliament passed the amendment to the law on income tax, which includes the reduction of corporate taxes from 23 to 22 percent and the introduction of so-called tax licences. The opposition has criticised the changes, calling them unconstitutional, the SITA newswire reported on December 3.

RULES for companies operating in Slovakia will change again as parliament passed the amendment to the law on income tax, which includes the reduction of corporate taxes from 23 to 22 percent and the introduction of so-called tax licences. The opposition has criticised the changes, calling them unconstitutional, the SITA newswire reported on December 3.

The state claims that through the changes it plans to increase income from tax collection. Though income will drop after the corporate tax is reduced, the state will receive tens of millions of euros per year thanks to the tax licences, SITA wrote. The amount will depend on the revenues of the company. Companies which pay VAT will see the amount of their tax licence double.

Limited liability or joint stock companies, regardless of whether or not they make a profit, will pay money into the state coffers starting in 2015. Self-employed and newly established companies will be exempt from the tax licence during the first year of running their business, said Finance Minister Peter Kažimír, as quoted by SITA on November 11.

While the government argues that its so-called tax licence will help rein in tax evaders, the opposition argues the policy amounts to little more than a new tax by another name. It has also criticised the way in which the government introduced the changes. The Finance Ministry originally submitted only a short law, which was later extended through various additional amendment proposals. This means that the government avoided standard legislative procedures, the opposition claims, as reported by SITA.

Daniel Lipšic, chair of the New Majority – Agreement (NOVA) movement, even called the amendment unconstitutional, pointing to its retroactivity. He plans to summon negotiations with other opposition parties over submitting a complaint to the Constitutional Court, SITA wrote.

Source: SITA

To read more about this story please see: Tax licence compromise reached

Compiled by Radka Minarechová from press reports

The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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