The Slovak government recently approved several tax law changes, which will be effective as of 1 January 2013. The corporate income tax rate will be increased from 19% to 23%. Furthermore, the flat-rate personal income tax will be replaced by a progressive personal income tax regime.
Increase of corporate income tax.
The corporate income tax rate will be increased from 19% to 23% (the withholding tax rate remains at 19%). Corporate entities with a tax year starting in 2012 and ending in 2013 have to calculate their tax liability partially with the 19% rate (for the portion of profit which can be allocated to the year 2012) and partially with the 23% rate.
Introduction of progressive personal income taxation.
The 19% flat-tax will be abolished and a progressive income tax rate schedule will be introduced. A 19% tax rate will be applied to the portion of the tax base not exceeding a 176.8 multiple of the applicable subsistence minimum (currently amounting to approx. EUR 34,400) and a higher 25% tax rate will be applied to the tax base exceeding this amount.
Modified filing period for tax returns.
Taxable persons (except persons with foreign source income) with tax returns – which become due in 2013 – will only be able to extend the filing deadline by a maximum of three calendar months.
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