CORPORATE INCOME TAX
For corporate income taxation, the following provide areas of consideration for planning:
- timing of fixed asset acquisition and disposals
- creation of tax deductible reserves (repairs and maintenance, bad debts, etc.)
- low value inventory or fixed assets planning
- foreign exchange taxation
- differential tax rates on certain forms of investment income
- matching of taxable profits and losses in the situation of Slovak groups of companies
- review of effects of debt to equity rules.
- financial transactions planning
EMPLOYEE INCOME TAX
Areas for consideration and planning regarding the structuring employee remuneration include;
- the possibility to use foreign share schemes such as options
- setting up of accrued bonus schemes and general tax deferral schemes, which also take advantage of reducing tax rates in the future.
Expatriates coming to or leaving the Slovak Republic may also be able to obtain a Slovak tax benefit by accelerating or deferring payments of remuneration.
VAT
Certain financial activities (e.g. purchase and sale of securities) may significantly influence the level of input VAT which may be recovered. There exist some relatively simple planning techniques which can significantly reduce the amount of irrecoverable VAT.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Ruth Clamp, Arthur Andersen Bratislava on tel:+42 7 5340 545, fax: +427 5340 542 or e-mail directly to ruth.a.clamp@ArthurAndersen.com, or enter a text search 'Arthur Andersen' and 'Business Monitor'.