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.

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