1996 State Budget approved
The Parliament approved the 1996 state budget on December 13, 1995. The budget deficit is projected to be Sk 27 bn. Revenues should amount to Sk 162 bn and expenditures to Sk 189 bn. Compared to 1995, this represents an increase of 11 and 13% respectively. The budget calculates with the following macroeconomic parameters:
* 5% GDP growth
* 6-8% inflation
* 13% unemployment
Insurance Law amendment approved
The Insurance Law amendment approved by the parliament, harmonizing Slovak legislation with EU law, introduces the obligation of insurance companies to prove their solvency.
Bank Law amendment proposed
The Bank Law amendment proposal introduces provisions regarding mortgage banking. According to the proposal, mortgage banks will be allowed to issue mortgage bonds and communal bonds secured by real estate and to provide long-term mortgage and communal loans for up to 60% of real estate value. The government proposal has not yet been approved by the parliament.
State-owned property transfers
According to government regulation, state owned enterprises will be allowed to conclude assignment contracts without a Fund of National Property (FNP) approval only if approved by the appropriate ministry. However, the FNP approval will still be required for transfer of fixed assets with net value of more than Sk 5 m and/or capital contribution of more than Sk 100,000.
Proposed amendment of Social Insurance laws
The government proposes to adopt a law, which would amend several laws regarding social insurance. The proposed law increases the maximum amount of daily salary for health insurance calculation purposes from Sk 200 to Sk 250 for employees, from Sk 143 to Sk 179 for armed forces members and from Sk 107 to Sk 179 for self employed and cooperating persons.
Proposal of Supplementary Pension Insurance Law
The government prepared a proposal of the Supplementary Pension Insurance Law. Based on the proposal, the additional pension insurance should be a supplement to the current compulsory pension insurance scheme and should represent around one third of income of the retired.
The proposal is expected to be approved by the parliament in January 1996.
Proposed Advertising Law
The governmental legislation board proposed a new Advertising Law . The law will include general requirements for advertising, rights and duties of legal and physical persons, etc.. The law determines the supervisory bodies and sets sanctions.
The advertising of tobacco products, forbidden up to now, should be regulated more liberally in the new law. The law harmonizes Slovak legislation with EU law.
Exemption of foreign capital contribution in-kind from custom duty
The new decree extends the earlier decree (261/1993 Coll.). deadline relating to the duty exempt importation of foreign capital contribution in-kind to December 31, 1997.
Presentation of Bank Statements
The announcement 296/ 1995 Coll. states the new forms, contents, terms and procedures for bank statements presentation to the National Bank of Slovakia.
The information is correct to the best of our knowledge and belief at the time of going to press. Specific advice should be sought, however, before investment and other decisions are made.
Please address any questions to:
Tax and business advisory services:
Ruth Clamp/Antonin Masaryk
Audit and accounting services:
Santiago Pardo/Alexander Koprda, Arthur Andersen Czech Republic, tel+42 7 5340 545, or enter text search 'Business Monitor' and 'Arthur Andersen'.
The Parliament approved the 1996 state budget on December 13, 1995. The budget deficit is projected to be Sk 27 bn. Revenues should amount to Sk 162 bn and expenditures to Sk 189 bn. Compared to 1995, this represents an increase of 11 and 13% respectively. The budget calculates with the following macroeconomic parameters:
* 5% GDP growth
* 6-8% inflation
* 13% unemployment
Insurance Law amendment approved
The Insurance Law amendment approved by the parliament, harmonizing Slovak legislation with EU law, introduces the obligation of insurance companies to prove their solvency.
Bank Law amendment proposed
The Bank Law amendment proposal introduces provisions regarding mortgage banking. According to the proposal, mortgage banks will be allowed to issue mortgage bonds and communal bonds secured by real estate and to provide long-term mortgage and communal loans for up to 60% of real estate value. The government proposal has not yet been approved by the parliament.
State-owned property transfers
According to government regulation, state owned enterprises will be allowed to conclude assignment contracts without a Fund of National Property (FNP) approval only if approved by the appropriate ministry. However, the FNP approval will still be required for transfer of fixed assets with net value of more than Sk 5 m and/or capital contribution of more than Sk 100,000.
Proposed amendment of Social Insurance laws
The government proposes to adopt a law, which would amend several laws regarding social insurance. The proposed law increases the maximum amount of daily salary for health insurance calculation purposes from Sk 200 to Sk 250 for employees, from Sk 143 to Sk 179 for armed forces members and from Sk 107 to Sk 179 for self employed and cooperating persons.
Proposal of Supplementary Pension Insurance Law
The government prepared a proposal of the Supplementary Pension Insurance Law. Based on the proposal, the additional pension insurance should be a supplement to the current compulsory pension insurance scheme and should represent around one third of income of the retired.
The proposal is expected to be approved by the parliament in January 1996.
Proposed Advertising Law
The governmental legislation board proposed a new Advertising Law . The law will include general requirements for advertising, rights and duties of legal and physical persons, etc.. The law determines the supervisory bodies and sets sanctions.
The advertising of tobacco products, forbidden up to now, should be regulated more liberally in the new law. The law harmonizes Slovak legislation with EU law.
Exemption of foreign capital contribution in-kind from custom duty
The new decree extends the earlier decree (261/1993 Coll.). deadline relating to the duty exempt importation of foreign capital contribution in-kind to December 31, 1997.
Presentation of Bank Statements
The announcement 296/ 1995 Coll. states the new forms, contents, terms and procedures for bank statements presentation to the National Bank of Slovakia.
The information is correct to the best of our knowledge and belief at the time of going to press. Specific advice should be sought, however, before investment and other decisions are made.
Please address any questions to:
Tax and business advisory services:
Ruth Clamp/Antonin Masaryk
Audit and accounting services:
Santiago Pardo/Alexander Koprda, Arthur Andersen Czech Republic, tel+42 7 5340 545, or enter text search 'Business Monitor' and 'Arthur Andersen'.
