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Slovak parliament approves reduction in corporate tax to 21 pct

Xinhua, November 24, 2016 Adjust font size:

Slovak firms will pay less taxes as of next year.

The Slovak parliament approved a reduction in corporate tax from 22 to 21 percent and the scrapping of mandatory health insurance contributions from dividends and replacing them with a tax totalling 7 percent on Wednesday.

"The amendment is aimed at improving the business environment and increasing the motivation to pay taxes," stressed Slovak Finance Minister Peter Kazimir.

The amendment also increases the ceiling for the flat rate expenditures of self-employed people. In line with the new rules the self-employed will be able to claim for flat rate expenditures reaching up to 60 percent of total costs, with a maximum of 20,000 euros (21,200 U.S. dollars) annually.

Moreover, the amendment is set to toughen sanctions if the result of a taxpayer's activities is deliberate circumvention of a tax obligation. Conversely, sanctions for taxpayers should be eased if they pay their fines on time.

Kazimir explained the adoption of these measures by pointing to the need to fight tax evasion.

"These are measures aimed at combating tax evasion and letterbox companies," stated Kazimir. Endit