Slovak News - Dec 96 - 1997 State Budget

The State Budget Law was approved by the National Council of the Slovak Republic on 7 December 1996 including a number of amendments to the Income Tax Act.

Until the law is published in its final form the full impact of these changes will not be known.

The information below is a summary of the key expected tax changes and is based upon a preliminary review of Parliamentary drafts.

PERSONAL TAX RATES

No changes have been implemented in respect of rates or personal allowances.

CORPORATE TAX CHANGES

The corporate rate is 40%, no changes implemented.

PENALTIES AND INTERESTS

It is proposed that the penalty regime for taxes unpaid or paid late be reduced. The penalty for not paying tax prepayments on time will decrease from 0,3% to 0,1% of the amount liable for every day of delay.