2018 will be rich in tax changes

The revision to the income tax act has resulted in the most significant tax changes within the last 15 years.

Slovak cyclist Peter Sagan might be affected by changes to taxable persons.(Source: AP/TASR)

Tax experts believe tax changes that came into effect at the beginning of this year will be the most significant within the last 15 years since the introduction of the flat tax. These changes will affect individuals as well as corporate entities either in a positive or negative way.

Tax changes of private individuals

The definition of a taxable person has changed – the Finance Ministry extended the definition of a taxable person with an unlimited tax liability to include an individual residing in the Slovak Republic. An individual is considered to reside in the Slovak Republic if they have available accommodation, which is not only for occasional use, and their intention to remain permanently in the given place of residence is apparent, taking into account all related facts and circumstances, including the individual’s personal and economic ties to the Slovak Republic.

“The introduction of this criterion may change the tax residence, for example, in the case of athletes who have permanent residence in Monaco,” explained Silvia Hallová, tax consultant and partner at Grant Thornton Slovakia.

Introduction of the tax bonus on mortgages for young people – the tax bonus for paid interest on mortgages is replacing state contribution. The tax bonus represents 50 percent of interest paid in the respective tax period, but no more than €400 per year. Only applicants between 18 and 35 years of age with an average monthly income that does not exceed 1.3-times the average monthly wage can apply for a mortgage less than €50,000.

“This change will negatively affect people without employment and income who will have to pay instalments,” said Wilfried Serles, managing partner at Grant Thornton Slovakia, adding that these people would prefer state contribution. “This change was not thought over properly.”

Read more: What other tax changes concerning private individuals will come into force this year? What are the changes for corporate entities?

The rest of this article is premium content at Spectator.sk
Subscribe now for full access

I already have subscription - Sign in

Subscription provides you with:
  • Immediate access to all locked articles (premium content) on Spectator.sk
  • Special weekly news summary + an audio recording with a weekly news summary to listen to at your convenience (received on a weekly basis directly to your e-mail)
  • PDF version of the latest issue of our newspaper, The Slovak Spectator, emailed directly to you
  • Access to all premium content on Sme.sk and Korzar.sk

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Theme: Finances and Advisory


Top stories

Slovakia has another entry in the UNESCO – blueprint

It is not easy to create a perfect blueprinted fabric.

Russia expels Slovak military diplomat

He must leave the country within 48 hours.

Illustrative stock photo

Slovak airports have unused potential

But several obstacles prevent their growth.

The Transport Ministry will receive more funds from the 2019 budget to support the development of airports in Slovakia.

How can we improve the integration of foreigners in Bratislava?

Municipalities recognise there is a lack of outreach on the part of administrators to foreigners, but the problem goes both ways.

Several foreigners attended the latest round table hosted by the Human Rights League.