Legal News and Articles

Law Firm Juhaniaková & Partners

Our dedicated lawyers publish articles on selected legal problems which contain precious advice and recommendations for business people and general public alike. Should you be interested in receiving up to date publications and brochures from us, please, contact us at office@legaladvisory.sk.

View all articles

Tax Licence

 

Limited liability or joint stock companies, regardless of whether or not they make a profit, will pay money into the state coffers beginning in 2015. While the government argues that its so-called tax licence will help rein in tax evaders, the opposition argues the policy amounts to little more than a new tax by another name.

The tax license fees will first be paid in 2015 for the 2014 taxation period.

The self-employed and newly established companies will be exempt from the tax license during the first year of running their business.

There will be three tax licence rates: companies that are not value added tax (VAT) payers will pay €480; the state will cash in from VAT payers €960 and all companies with revenues higher than €500,000 will pay a licence at €2,880.

As much as 25 percent of the companies have not paid over the past four years a single euro on taxes, according to the finance minister. Since 2006, the number of firms with zero tax liability has increased by 40,000, from 52,000 to 92,000 companies, the ministry said. The highest number of firms with zero taxes, 79 percent, operate in the accommodation and dining sector, while the fewest “zero tax” firms come from the category of information and communication at 45 percent, according to a ministry statement.

The finance minister expects that the tax licences will also “clean up the business registry” since there are 10,000 entities recorded, which are not responding”. He said the policy would motivate owners of such companies to liquidate the company and erase it from the registry.