SLOVAK LEGISLATIVE UPDATES

October 2014 – January 2015

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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 (10/2014 – 01/2015)

Taxes

The major revision on Income Tax changes depreciation rules and it expands the number of

depreciation classes from four to six. Selected technologies will be depreciated over 12 and not 8 years

as previously, real estate will be depreciated over 40 years. Car value for depreciation will be capped at

€48,000 for companies in the red. The speedy depreciation method will only be allowed for

technologies.

Pharmaceutical companies will pay 19% withholding tax from marketing expenses spent on doctors.

Some types of goods that could serve for personal consumption are only 80% tax deductible. The

revision also introduces a tax benefit for research spending – 125% of such expenses will be tax

deductible and it improves the working of the Closing Accounts Registry, via improved control of data by

the tax authority. It imposes mandatory cash registers for doctors, lawyers, hotels, and taxis.

The New motor vehicle tax Act cuts the tax rate and unifies it throughout Slovakia. It adopts also more

discounts to environmentally friendly vehicles. The tax will be the state budget’s revenue and not the

regional VU Cs’, as previously.

Whistleblowers

The Act on the Protection of Whistleblowers obliges state institutions and companies with over 50

employees to create internal systems for dealing with whistleblowers. It bans discrimination against

whistleblowers. Their reward is capped at 50-times the minimum wage (€20,000).

Business

The approved revision to Act No. 513/1991 Coll. Commercial Code cuts the minimum basic capital of

limited liability companies to €1. Ltd. companies with basic capital under €25,000 will be allowed to

have a maximum of three owners, will have to pay out the entire basic capital upon establishment, state

the basic capital value in all communication (orders, invoices, mails, etc.), and will be allowed to

distribute dividends only after their own capital tops €6,250.

It introduces a new term, “company in crisis”, when it faces bankruptcy (the share of equity to liabilities

is less than 4:100) or has an annual loss of over €2,500. It also introduces a new Registry of Disqualified

Persons, who will be banned from serving on corporate boards due to past violations of law. It tightens

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conditions on Bankruptcy Act settlements and assigns responsibility for the delayed initiation of

bankruptcy proceedings.

Courts

As it is mentioned in the approved revision to Act on Arbitration, the changes improve consumer

protection in consumer disputes resolved by arbitration. They outline the jurisdiction of the ordinary

courts to issue preliminary measures in cases that will be settled by arbitration. Only chambers of

commerce, professionals, or legal entities – and not firms – will be allowed to set up a court of

arbitration. Courts of Arbitration will no longer be allowed to settle consumer disputes.

Energy

In accordance with the Act on Energy Efficiency, the revision sets out requirements for energy efficiency

in the production and distribution of energy in buildings and industry. It outlines the rules for the new

profession of energy auditor. It regulates the process of licensing of power producers. Large companies

will have to undertake an energy audit every four years.

Jobs

Parliament approved a revision to Act on Social Insurance, which abolishes the various caps for payment

of social levies by students working on agreements (a form of part-time job contract), unifying them at

€200. Students will not pay payroll levies if they earn less.

According to the revision on Employment Services, there will be a new subsidy for employers who

create jobs for fresh graduates. The subsidy will cover up to 80% of total labor costs for up to one year.

Statistics

The new approved revision to Act on State Statistics clarifies the electronic communication between

businesses and the Statistical Office. It also aligns the Slovak legislation with the EU directive 223/2009.

Real Estate

Parliament approved a revision to Act on State Property Management, which aims to streamline the

management of state property by centralizing the administration and registration of state property. The

revision also improves the existing information systems and mandates the publication of the sale of

state real estate on one website. Any sale of property worth over €10,000 will only be possible via

electronic auction.

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Rates

The government approved a revision that implements provisions in the Commercial Code regarding the

calculation of late fees. These are being set at the ECB base rate plus 8 – 9 points.

Levies

The revisions cut payroll levies for low earners. Workers earning minimum wage (€380) will pay no

health levies. The health levies will grow alongside wages, and will reach their full extent (14% of gross

wages) at a wage of €570.

Financial Market

Revision to Act on Supervision over the Financial Markets promises greater consumer protection. The

NBS will license all non-banking credit providers, and will be able to fine those breaking the law. The

new powers will be funded by contributions from the financial market institutions themselves.

In accordance with the Act on Dealing with Crisis Situations on the Financial Market if a bank runs into

problems, the losses should be primarily borne by its shareholders and creditors. The Act sets out rules

for preparing recovery plans and state intervention. It also establishes a new National Fund for Dealing

with Crisis Situations, funded by banks and stock brokers.

Land

When the state land fund SPF renews land leases, it must allocate 3 – 10% of the land to young farmers

(if they show an interest). There are also further measures facilitating the access of young farmers to

land.

The government approved a revision to its directive No. 238/2010 Coll. on the conditions for the lease,

sale, exchange and acquisition of land by the state land fund. It aims to facilitate the access of small

farmers to the fund’s land.

Procurement

The revision on Public Procurement bans companies with owners hiding behind shell companies from

taking part in public tenders. Slovak and foreign firms with owners based in tax havens or more than

10% owned by public officials will be banned from taking part in public procurement. Companies listed

on EU or OECD stock exchanges will be exempt.

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Farmers

The new directive on the provision of subsidies in agriculture implements changes brought about by the

new EU Common Agriculture Policy. Direct payments to farmers remain based on acreage, not on

production levels, and increased emphasis is placed on environmental aspects.

Research

The revisions to Act on Research and Innovation Stimuli and to the Act on Income Tax expand the scope

of research and innovation activities that can be subsidized, in line with new EU regulations.

Farming

The revision on Animal Welfare abolishes certain provisions in the directive since they relate to areas

already covered by European Commission Decision 2006/778/EC. The abolished areas concern

minimum requirements for information collection in production facilities.

Labor

As it is mentioned in the revision to Act No. 311/2001 Coll. Labor Code, the law expands the protection

of temporary agency workers. Their conditions will be improved to the level of internal employees. It

bans sending agency workers on business trips, as some employers were abusing to avoid paying

payroll levies. The maximum placement of a temporary agency worker at a given firm is being capped at

two years.

Investment Assistance

The revisions on Investment Assistance and on Income Tax bring the Slovak legislation into compliance

with EU directive, which reduces the maximum amount of investment aid from 50% to 35% of an

investment. Firms that receive state assistance will not have to increase employment by at least 10%.

Supported firms must create at least 40 new jobs.

Education

The government approved a new Act on Vocational Education, which offers firms tax breaks and covers

part of their costs if they educate high school students. If a firm provides 400 hours of on-site training to

a student, it is entitled to a €3,200 tax break annually.

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