Financial Transaction Tax – will it cut the red tape and reduce the tax burden?
The draft amendment to Act No. 279/2024 Coll. on Financial Transaction Tax (hereinafter referred to as “FTT”), currently being discussed in the National Council of the Slovak Republic, will significantly change how FTT is levied.
The aim is to cut the red tape
For smaller entities with less economic activity, and to ensure more efficient tax collection.
Key takeaways
- Natural persons – entrepreneurs – excluded from taxpayers.
- Exemption for legal entities and organisational units of foreign companies with an annual income up to EUR 100,000. Legal entities which do not meet this threshold will be exempted from the FTT.
- The definition of transaction accounts has been clarified.
- The rules of tax liability obligation and extinction have been modified.
- The obligations to report to taxpayers have been extended.
These modifications aim to cut red tape and reduce the tax burden for smaller entities with less economic activity.
