On 28th November 2024 the Parliament approved the amendment of the Act no. 279/2024 on Financial Transaction Tax (“FTT”) approved by the Slovak Government in October 2024. The Act was approved as the part of the consolidation package with the aim to improve the state of public finances. FTT will be effective from 1 January 2025, however the first taxation period will be April 2025.
When computing the tax base for the year 2024 it is necessary to consider a new interest cost limitation rule in line with Art. 17k of the Slovak Income Tax Act (“SITA”) which is applied in preference to the still valid thin capitalization rules (Art. 21a SITA).
The government of the Slovak Republic has approved and filed to the Slovak Parliament for further proceeding the so-called “lex consolidation” representing a set of measures amending the particular acts. Please note that these changes have not yet been approved by the Slovak Parliament, they represent only the proposed measures and during the process of negotiation may be subject to further changes. The following changes are proposed by the government:
The return to sustainable public finances and the stabilization of public debt in relation to GDP is a priority of the Slovak government defined in the National reform program of the Slovak Republic for 2024. In this program, the Government of the Slovak Republic provides an overview of already implemented and planned measures based on specific recommendations of the Council of the European Union for the Slovak Republic, such as more effective tax collection using the potential of environmental and property taxes. The interdepartmental comment procedure ended on April 8, 2024 and comments are currently being evaluated. The proposal mentions the following measures related to the tax area.
The government of the Slovak Republic has approved and filed to the Slovak Parliament for further proceeding the so-called “lex consolidation” representing a set of measures amending the particular acts. Please note that these changes have not yet been approved by the Slovak Parliament, they represent only the proposed measures and during the process of negotiation may be subject to further changes.
The government of the Slovak Republic has approved and filed to the Slovak Parliament for further proceeding the so-called “lex consolidation” representing a set of measures amending the particular acts. Please note that these changes have not yet been approved by the Slovak Parliament, they represent only the proposed measures and during the process of negotiation may be subject to further changes.
The government of the Slovak Republic has approved and filed to the Slovak Parliament for further proceeding the so-called “lex consolidation” representing a set of measures amending the particular acts. Please note that these changes have not yet been approved by the Slovak Parliament, they represent only the proposed measures and during the process of negotiation may be subject to further changes.
In relation to the coming year end of 2023 we would like to bring to your attention the new provisions of Art 17k of the Slovak Income Tax Act („SITA“) related to the limitation of interest costs tax deductibility which will be effective from 1 January 2024.
What is new in the Slovak legislation?
• New e-VAT evidence form from July 1, 2023
• Income from corporate bonds paid to SK non-residents will not be subject to tax
• Important news in personal income taxation
• EU framework agreement for cross-border teleworkers
• Unification of the limit for cash payment to TEUR 15 from July 2023
• Increase of the basic compensation for use of private motor vehicle during a business trip
Provisions currently in discussion
o Re-increasing of meal allowance in 2023
o More favourable exemptions of income from the sale of real estate
