Where an employee is in receipt of employment income not exceeding 3,000 Sk per month and has not claimed personal allowances and certain deduction a special rate of withholding tax, amounting to 10%, may be applied in full settlement. A proposal has been made to increase this limit to 5,000 Sk per month.
In addition, some income will also become exempt from taxation and, for administrative reasons, the category of "one off incomes" will be cancelled. Tax allowances for children and disabled people may be increased too.
One of the changes is also the taxation of income of members of statutory bodies. The proposals indicate that this type of income will be taxed at progressive tax rates.
Regarding the taxation of income from the sale of property used by tax contributors for business and applying the expenses for its input value, the value taken into consideration will now only be its residual value. There will be also changes in the periods of depreciation and values of input price.
From the administration point of view the penalties for unpaid taxes will be decreased and, at the same time, the penalization period will be unified to 3 years.
Some terms will be more specifically defined in the amendment, for example the difference between the agreed price and usual price, offset of a bad debt, etc.
The content of this article is intended to provide a general guide to the subject matter. It is therefore not a substitute for specialist advice.
For further information contact Ruth Clamp, Arthur Andersen Bratislava on tel: +42 7 5340 545, fax: 42 7 5340 542 or e:mail directly to ruth.a.clamp@ArthurAndersen.com or enter text search 'Arthur Andersen' and 'Business Monitor'.
