SLOVAK LEGISLATIVE UPDATES

October 2013 – January 2014

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This publication has been developed in the framework of the Magyar-Szlovák Közös Inkubációs

Központ Pócsmegyer implemented through the Hungary-Slovakia Cross-border Co-operation

Programme 2007 – 2013 co-financed by the European Regional Development Fund (ERDF).

www.husk-cbc.eu

The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect

the opinion of the European Union. Neither the EASME nor the European Commission are responsible for

any use that may be made of the information contained therein.

January 2015

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SLOVAK LEGISLATIVE UPDATES (10/2013 – 01/2014)

Taxes

As it is stated in the new revision of the Income Tax Act, the corporate income tax rate will be changed

from 23% to 22%.

The revision introduces new tax licenses, a form of minimum tax payment. Firms in the red or with

small profits will pay beginning in 2015; the licenses will cost €480 (for firms with sales under €0.5m

not registered at VAT payers), €960 (for VAT payers with sales below €0.5m), or €2,880 (for companies

with sales over €0.5m). The tax license will be deductible from future tax payments made within three

years. New firms will not have to pay for them in their first year of existence. It shortens also the period

for amortizing tax losses from the current seven to four years. Losses will have to be amornized

regularly. Payments to firms based in select offshore locations will be subject to a 35% withholding tax.

The value of a car that serves as a basis for calculating non-monetary income for employees with a

company car will be reduced by 12.5% every year. It introduces an option for businesses to deduct

either their actual fuel costs, or 50% of fuel based on the cars’ tachometers, with no receipts necessary.

It simplifies the recording of revenues and expenditures for sole traders, and abolishes notification

duties for cash payments and exchange rate differentials. It also unifies the bottom limit for making

advance income tax payments for legal and physical entities, and make it simpler to allocate 2% of paid

income taxes to NGOs.

The revision unifies conditions for the inclusion of liabilities and receivables in arrears in the tax base. A

debtor will have to increase its tax base by 20% of its debt due one year after due date, and by 50% after

two years. The entire debt will be put into the tax base three years after due date.

MPs also approved halving the maximum base for paying the 14% health levies from dividends. The new

maximum base is 60-times the average wage, and the maximum payment is €6,602. The new cap will

apply to dividends paid from 2013 profits.

Consumer Protection

The new revision requires sellers that entice customers to call a phone number to get a product to state the true

cost of the phone call in their marketing materials.

Consumer Rights

The government approved a new Act on Protecting Consumer Rights when Selling Goods or Services in

Respect of Distant Contracts or Contracts Negotiated Away from Business Premises. This Act should protect

consumers by imposing information obligations on sellers, and giving rights to consumers, such as the right to

withdraw from the contract within 14 days.

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Toll

The owners of more environmentally friendly trucks will pay lower tolls, while older and less

environmentally friendly cars will pay more. It also introduces discounts for trucks that drive a certain

number of kilometers within one calendar year. Cars up to 12 tons will be entitled to a 3% discount from

the toll rate after 5,000 km. After 20,000 it will be 7% and after 50,000 11%. Cars heavier than 12 tons

can gain a 3% discount after 10,000 and 9% after 50,000 km.

Food

The new revision defines in more detail the labeling of food with information about contents and origin.

It also refines the way individual stores display information about the share of Slovak-made food in their

overall sales. Repeat offenders will be fined up to twice the regular sanction. Following another breach,

the fine increases to €1-5m.

Agriculture

Parliament approved revisions to Acts No. 220/2004 Coll. on the Protection of Agricultural Land and No.

245/2003 Coll. on the Integrated Pollution Prevention and Environment Protection on January 28. They

aim to prevent a reduction in the acreage of vine-yards, which are often being turned into construction

land. When changing the land status of vineyards, approval from expert institutions and self-ruling

regions’ VU Cs will be necessary.

Financial Services

The Concept for Consumer Protection on the Financial Market envisages expanding the supervisory

powers of the central bank NBS to cover all non-banking consumer credit providers, who will have to

apply for a NBS license. It also foresees the establishment of contact points to deal with all client

complaints regarding financial service providers.

Tourism

The government approved a “significant investment” status for Metropolis, a project of Hungarian

developer TriGra nit, which will be able to build this project in Jarovce near Bratislava under special

conditions, such as: the land and construction permit will be issued by the state and not by the

municipality. At the beginning, TriGra nit will invest €223m in a water park, sports and culture arena,

and convention center.

The approved Letter of Intent between Slovakia and TriGra nit also mentions a project called Kos ice New

City Center. The government might declare this project significant too. However, the investor has yet to

buy the land for the Kos ice project.

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Energy

The key change the revision on energy efficiency introduces is the duty for all blocks of flats, including

those with a central heating source, to install smart heating meters by December 31, 2016. It makes it

harder to switch off the central heating source, and strengthens the position of renewable energy

sources. It retains the current broad powers of the regulation authority, U RSO. Heat producers called for

greater market liberalization, but the government kept U RSO’s price-setting powers intact, aiming to

protect consumers.

Retail

According to the approved revisions to Acts No. 178/1998 Coll. on the Sale of Goods in Marketplaces and

No. 455/1991 Coll. on Sole Traders, the changes aim to improve state supervision of the marketplaces

and improve consumer protection. They also give municipalities more powers in licensing the

marketplace.

Real Estate

A new Act on the Short-term Lease of Flats strengthens the rights of flat owners at the expense of

tenants. The state wants to foster the renting of flats, for instance, by making it easier to evict non-

paying tenants.

Land

The government approved revisions to Acts on Land Alterations and on Measures to Settle Land

Ownership. They increase the protection of agricultural land and make it harder to build on such land.

The government approved a new directive on compensation for restricted land usage.

Farming

As it is stated in the revision of the Directive No. 152/2013 Coll. on Conditions for the Provision of

Farming Subsidies, the law extends the 2013 regime of flat payments per hectare to 2014. The

government approved also a revision to its Directive No. 488/2010 Coll. on Direct Farming Subsidies,

which aligns the subsidies with new EU rules.

Source: Symsite Research

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Contact information

The content of this publication was created by the Italian-Slovak Chamber of Commerce. For more

information contact:

Italian – Slovak Chamber of Commerce

Michalska 7, 81101 Bratislava, Slovak Republic

www.camit.sk

Tel: +421 (2) 541 31 290

project@camitslovakia.sk