What investors & companies need to know!
What tax changes will 2021 bring in Slovakia? What should investors pay attention to in the future – and which decisions will benefit them? TPA’s experts have summarized the most important tax news for Slovakia for you.
Income Tax modifications
The most important approved changes effective as of 1 January 2021 are as follows:
- the income tax rate of 15 % will be applicable for the “micro-taxpayers” – taxpayers with taxable income (revenues) not exceeding the amount of EUR 49,790;
- cancellation of obligation to settle the corporate income tax advances, which are paid from the beginning of the tax period to the deadline for filing the tax return in a lower amount than that based on the tax return filed for current taxation period;
- higher tax bonus for children from 6 to 15 years;
- more precise definition (extension) of the taxpayer of the non-cooperating state, to which higher income tax rate is applied.
Changes brought by the amendment to the VAT Act effective as of 1 January 2021 include:
- extension of the existing voluntary special arrangement MOSS to a single point of contact, the One Stop Shop (OSS), for digital services supplied by taxable persons, which are established in the EU territory but not established in the Member State of consumption, to other services provided by this taxable person, as well as to the distance selling of goods within the EU, and certain domestic supplies of goods;
- new voluntary special arrangement (the Import One Stop Shop – IOSS) for the sale of goods at a distance, which are imported from a third country if their own value does not exceed EUR 150 and these goods are not subject to excise duty; taxable persons may fulfil their obligations to file a tax return and pay tax in only one Member State of identification;
- introduction of the possibility to correct the tax base if the supplier did not receive payment and its receivable became uncollectible and, at the same time, introduction of the obligation to correct the tax base for the customer who did not pay for the supply and claimed input VAT.
With effect from 1 July 2021 the tax exemption on import of small consignments (not exceeding EUR 22) will be abolished.
Tax Administration Code modification
Tax Administration Code amendment introduces reduction in the annual interest rate on deferred tax and tax paid in instalments, from 10 % to 3 %, in order to give tax entities an incentive to use this institute at the time of coping with a temporarily difficult financial situation.
Abolition of the special bank levy
The obligation of selected financial institutions to pay a special levy, which they were obliged to pay from 1 January 2012 in the amount of 0.2 % and, from 1 January 2020, in the amount of 0.4 % of the value of banks’ liabilities reported in the balance sheet, will be abolished with effect from 1 January 2021.
DAC 6 obligations
Given the current situation regarding the spread of the dangerous contagious human disease COVID-19, amendment to Act No. 442/2012 Coll., which moves the original deadline for the notification of cross-border transactions carried out between 25 June 2018 and 30 June 2020 from 31 August 2020 to 28 February 2021, was approved and published in the Collection of Laws of the Slovak Republic. At the same time, a new deadline for the notification of measures resulting from cross-border transactions carried out between 1 July 2020 and 31 December 2020 is set for the period from 1 January 2021 to 31 January 2021.