Finance Ministry wants to tax digital companies

It also wants to introduce a new tax on insurance policies and tax cryptocurrencies.

Illustrative stock photoIllustrative stock photo(Source: TASR/AP)

The Slovak Finance Ministry plans this year to tax internet giants, bitcoin and other cryptocurrencies as well as impose a new insurance premium tax that will be a more advanced measure.

The Finance Ministry plans to submit a definitive bill on the insurance premium tax, which will replace the current special insurance levy of 8 percent, to the cabinet as soon as April. Parliament might approve the bill by the summer, informed Finance Minister Peter Kažimír during a discussion programme on the TA3 news channel on February 11. The ministry proposes a rate from 2 to 18 percent depending on the type of the policy while the new legislation should become effective as of October 2018. The final wording of the bill is open to discussion with the insurance sector.

“The insurance premium tax is a civilised tool that has been implemented in most European countries,” he said. “Revenues from this tax are part of the plan leading to a balanced budget in Slovakia.”

Kažimír does not expect the new tax to increase prices of insurance policies.

“If we look at insurance companies’ profitability, we can still claim the new tax does not have to increase the price of their policies,” said Kažimír, adding that insurance companies already pay the 8-percent special levy on non-life insurance products while the new tax will also apply to life insurance products.

Jozefína Žáková, general director of the Slovak Insurance Association (SLASPO), pointed out the low insurance penetration in Slovakia. It is one of the lowest in Europe.

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

Get daily Slovak news directly to your inbox

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

Read more articles by the topic

Top stories

Two years after the murders: We should never forget Ján and Martina

Slovakia commemorated the murders of Ján Kuciak and Martina Kušnírová. The organisers called on people to attend elections.

Freedom Square in Bratislava on February 21, 2020.

Will protection of the Morské Oko nature reserve be reduced?

Activists from VLK have handed 62,000 protest signatures to the Environment Ministry.

Morské oko in the Vihorlat Mountains, eastern Slovakia.

Foreigners: Slovakia’s city of tolerance has a lot to offer

Košice is not only about St Elisabeth Cathedral and ice hockey.

Wintertime in Košice.

Ján Kuciak and Martina Kušnírová remembered by diplomatic community

The investigative journalist and his fiancée were murdered two years ago, on February 21.

The diplomatic community lights candles in memory of Ján Kuciak and Martina Kušnírová near the Visitation of Virgin Mary Church on SNP Square.