Tax Law (Slovakia)

In Slovakia, tax law is a branch of financial law , and thus public law .

The current Slovak (and Czech ) tax law was created after the Velvet Revolution of 1989 in principle based on the German and Austrian model, but was designed much simpler from the start and then learned in 2004 in the course of a major tax reform, with which some taxes were abolished and a flat rate Tax was introduced, further simplifications.

Tax system

The Slovak tax system currently (since 2005; status 2008) includes the following taxes:

• State taxes:
  • Direct taxes :
    • Income and corporation tax (daň z príjmov)
  • Indirect taxes :
    • Sales tax (daň z pridanej hodnoty; literally " sales tax")
    • Excise duties (ieS):
      • Mineral oil tax (spotrebná daň z minerálneho oleja)
      • Wine tax (spotrebná daň z vína)
      • Beer tax (spotrebná daň z piva)
      • Alcohol tax (spotrebná daň z liehu)
      • Tobacco tax (spotrebná daň z tabakových výrobkov)
• Local taxes:
  • Real estate tax (daň z nehnuteľností; until recently this was a state tax):
    • Property tax (daň z pozemkov)
    • Building tax (daň zo stavieb)
    • Housing tax (daň z bytov)
  • Dog tax (daň za psa)
  • Tax for the use of public spaces (daň za užívanie verejného priestranstva)
  • Accommodation tax (daň za ubytovanie)
  • Vending machine tax (daň za predajné automaty)
  • Tax on non- gaming machines (daň za nevýherné hracie prístroje)
  • Tax on entering and leaving a vehicle in the historical part of a city (daň za vjazd a zotrvanie motorového vozidla v historickej časti mesta)
  • Motor vehicle tax (daň z motorových vozidiel; this replaced the state "road tax" - cestná daň) in 2005 (?)

In the last few years the following direct taxes have been completely abolished:

• as of January 1, 2004:
  • Gift tax (daň z darovania)
  • Inheritance tax (daň z dedičstva)
• as of January 1, 2005 (?):
  • Real estate transfer tax (daň z prevodu a prechodu nehnuteľností)

tax rate

Slovak tax law has a flat tax of 19 percent for income tax and corporation tax . The flat tax was introduced on January 1, 2004 in connection with a tax reform. The standard sales tax rate was increased to 20% from January 1, 2011, the reduced sales tax rate is 10%.

Tax reform 2004

The tax reform caused major changes in Slovak tax law. The income tax has been simplified and the five sets of control 10, 20, 28, 35 and 38 percent is reduced to a single set of 19 percent. The corporation has also been reduced from 25 to 19 percent. The previous two tax rates of 14 and 20 percent have also been replaced by 19 percent for sales tax . In addition, the abolition of a large number of exceptions and deduction options as well as the complete abolition of dividend, gift, inheritance tax and real estate tax were an important cornerstone of the reform.

With the increase in sales tax and the elimination of tax breaks , the losses were offset by the reduced income tax. In 2006 and 2007 income tax revenues were far higher than expected.

Further development since 2006

Since the lower sales tax rate of 14% was abolished in the course of the 2004 tax reform, the taxation of u. a. Groceries, books and medicines considerably, which noticeably increased the cost of living. This is one of the reasons why the then opposition leader Robert Fico was able to win the parliamentary elections in 2006 with the promise to make taxes more socially fair. However, only moderate changes were made until 2007.

The new government reintroduced a reduced tax rate of 10% for sales tax. For drugs, this took effect on January 1, 2007 and for books on January 1, 2008.

At the same time, the tax-free allowance in income tax for gross monthly incomes of over SKK 47,900 has been reduced, which is intended to result in a tax increase for taxpayers with higher incomes.

Income and corporation tax

In Slovak law, corporate tax and personal income tax are dealt with together in a single law entitled "daň z príjmov" (literally "personal income tax"). Both taxes are formally referred to as "income tax" in Slovakia. In the text of the law, however, is precisely between an income tax of a natural person and an income tax of a legal entity (the d. H. Corporation ) distinguished.

Income tax

As described above, income tax has been reduced from five tax rates to one. In addition to the increased VAT, this would actually be very disadvantageous for the financially weak, but the increase in the tax allowance has eliminated this problem. The maximum tax-free amount for 2010 is set at EUR 4,025.70 per year. The full amount can be claimed up to an annual gross income of EUR 15,387.12. The tax-free allowance is then gradually reduced up to an annual income of EUR 31,489.92 and no longer applies if the income exceeds 31,489.92. The tax allowance is adjusted every year to the statutory subsistence level (which is increased every year).

The following important information is missing from this article or section:

Slovakia has also had the euro for some time

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Example (employed persons in 2007; employer contributions are ignored here):

Bruttolohn pro Jahr:	                             480.000,00 SKK
abzgl. Pflichtversicherungen (13,4 %*):	              − 64.320,00 SKK
abzgl. Steuerfreibetrag (=19,2 × Existenzminimum 2007*): − 95.616,00 SKK
= steuerbares Einkommen:	                        320.064,00 SKK
abzgl. Einkommensteuer (19 %):	                       − 60.812,16 SKK
zuzgl. Steuerfreibetrag (=19,2 × Existenzminimum 2007*):   95.616,00 SKK
= Einkommen nach Steuern:	                        354.868,00 SKK

(*) The percentage of compulsory insurance as well as the tax-free amount decreases from a certain limit (with above-average income)

Corporation tax

The automotive industry, which has flourished since 1991, is an essential pillar of the Slovak economy . The cornerstone of the automotive industry was laid by an aggressive subsidy policy . Due to the very low wage level and an investment subsidy (which, according to estimates, amounted to 50% of the investment costs), Slovakia was able to convince VW in 1991 to set up a production facility. Another success was the recruitment of a Toyota Peugeot manufacturing facility in 2003 on similar terms. Since the granting of subsidies has become more difficult since joining the EU, a flat tax with a tax rate of 19% was introduced in 2004 , which reduced taxes for companies. The aim is to continue to attract investment. The corporation tax is levied on the net profit of a company. Any losses over the past 5 years can be deducted from net profit.

In international comparison, there are relatively short depreciation periods for the depreciation of assets: 4 years (e.g. trucks, cars, computer systems), 6 years (e.g. factory and office equipment, machines), 12 years (e.g. for electric motors) and 20 years for buildings. Low-value assets d. H. Assets with a value of up to € 750 are fully depreciable in the year of acquisition.

The business expense deduction is not subject to any restrictions. The only exceptions are promotional gifts, entertainment and entertainment expenses.

swell

• Dr. Wassermeyer, Rolf and Röhle, Helmut. Investments and taxes in Slovakia. Berlin; Herne: Publisher of new business letters, 2004
• Králik, Jozef and Jakubovič, Daniel. Finančné právo. Bratislava; VEDA vydavateľstvo SAV, 2004 [financial law]
• Flückiger, Paul (2007). Slovakia: Radical wake-up call for neighboring countries [1]
• TPA Horwath. Tax exemption for natural persons [2]
• PDF at www.os-echo.cz (56 kB)

Individual evidence

1. ↑ Christoph Thanei: Slovakia: One year Fico: What he promised - and what he kept . The press. July 6, 2007. Retrieved November 8, 2019.
2. ↑ Price Waterhouse Cooper Taxation of natural persons in Slovakia  ( page no longer available , search in web archives )  Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.