Lex consolidation – a law aimed at improving public finances

Lex Consolidation – Act No. 530/2023 Coll., amending and supplementing certain acts in connection with the improvement of the state of public finances of 19.12.2023 brings the following changes:

Higher tax rate on the serving of alcoholic beverages

The Act amends the VAT Act and excludes alcoholic beverages with an alcohol content of more than 0.5% by volume from the reduced VAT rate of 10% in the case of supply in the context of restaurant services. The 20% rate applies to the serving of alcoholic beverages from 1 January 2024.

Higher dividend tax

The law increases the dividend tax for individuals from 7% to 10%. The higher tax rate will apply for the first time to dividends paid out of the profit or loss reported for the taxable year beginning on or before 1 January 2024.

Minimum corporate income tax

After six years, the minimum corporation tax is reintroduced.

For taxpayers who employ at least 20% of disabled persons, the minimum tax is halved.

The minimum tax will be creditable against tax liability in three consecutive tax years, provided that the tax after crediting must be at least equal to the minimum tax.

There will be exceptions, e.g. new taxpayers will not be required to pay the minimum tax. The minimum tax will apply for the first time for tax years beginning no earlier than 1 January 2024.

Conditions for micro-taxpayers will be improved

The turnover for micro-taxpayers on which the lower tax rate of 15% can be applied is increased from EUR 49,790 to EUR 60,000. The new limit for the application of the 15% tax rate will apply for the first time for the tax period starting on 1 January 2024 at the earliest.

Increase in health insurance contributions for employers and self-employed persons from 1 January 2024
Health levies paid by employers on behalf of employees will increase from 10% to 11% from 1 January 2024. For employers with employees with disabilities, the levies increase from 5% to 5.5%.

For the self-employed, the levy has increased from 14% to 15%. For persons with disabilities, an increase from 7% to 7.5% applies.

Extension of the special levy in regulated sectors to banks

From 1 January 2024, banks have been included among those subject to the levy in regulated sectors. They will have to pay the levy if they achieve an economic result of EUR 3 million. Banks will have a higher levy than other persons, up to 30% per year, while the rate of the levy will gradually decrease until 2028 to the level of other regulated entities (to 4% per year).

The levy that banks paid under the law on the levy on selected financial institutions was abolished back in 2020.


Milan Černák

Managing Partner RSM SK
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