Changes in VAT, income tax, social security and other

 VAT rate as of 1st April 2023

Amendment to the Act no. 9/2023 Coll. on Excise

Duty on Alcoholic Beverages, effective from 1st April 2023, prolongs applicability of reduced VAT rate of 10% for selected recreation services and restaurant and catering services.

Changes in income tax

The EU Directive – minimum income tax The EU approved minimum corporate income tax at the level of 15% for multinational corporations with the turnover of 750 million EUR and more. Member states must implement the Directive by the end of the year 2023. The aim is to prevent profit shifting to the countries with lower tax burden and to implement minimum taxation for large multinational corporations.

Ex offo income tax registration

As of the 1st January 2023 the financial authorities will perform ex offo registration of persons registered in the Trade Register and in the Commercial Register. On the contrary, individuals not registered so far which will start with business or rental aktivity (except rental of land) in Slovakia will have to apply for registration.

New tax-deductible write-off of receivable and new tax-deductible provision to receivable, as of 1st January 2023

Write-off of receivable which ceases to exist as a result of total or partial relief within public or nonpublic preventive restructuring under Act no. 111/2022 Coll. on Solving Impending Bankruptcy will be considered as tax deductible. Creation of provision to receivable towards debtor in public or non-public preventive restructuring will be also considered as tax deductible.

Tax bonus

We recommend application of tax bonus on a monthly basis to individuals. The person may meet the conditions for a tax bonus on a monthly basis, but not on annual basis. This may be the case of persons with lower income. If the tax bonus applies during the year and if the annual entitlement is lower based on annual figures, the person does not lose its entitlement to previously applied monthly tax bonus. Individuals with business activities shall consider that they apply tax deductible expenses which may cause that their tax base is low and their entitlement to tax bonus is reduced. We recommend application of the tax bonus by the spouse with higher tax base.

Qualified electronic signature

On 31st December 2022 the qualified electronic signatures were invalidated on electronic ID cards with the chip (eID) and electronic foreigners´ documents issued in the territory of Slovakia before 20th June 2021.

Amendment to the Employment Services Act effective as of 1st January 2023

Local employers will have new reporting obligation with respect to assigned person from other EU member state. The period for announcing selected information is 7 working days from the start of assignment/from the end of assignment. The penalty for non-compliance with the obligation maybe levied up to the amount of 100,000 EUR.

Meal allowance

As of the 1st January 2023 the meal allowance will be as follows. 6.80 eur for time range from 5 to 12 hours; 10.10 eur for time range over 12 to 18 hours and 15.30 eur for time range over 18 hours.

Minimum health insurance contributions of employees

As of the 1st January 2023 the minimum amount of health insurance contributions is based on the minimum living wage. 14% of 234.42 eur represents 32.81 eur. If the contribution does not achieve 32.81 eur (10% is paid by the employer and 4% is paid by the employee), the employee shall pay the rest in order that the total contribution amounts to 32.81eur.