The Ministry of Economy of the Slovak Republic has introduced a proposal for an action plan to promote the development of family businesses in Slovakia with a view of creating more favourable conditions for the effective development of family enterprise through the 10 proposed measures.
The draft action plan also foresees changes in the tax area. It could support the ongoing generational change (transfer of family businesses) by exempting income from the sale of property owned by an individual – entrepreneur to direct family members. Administrative streamlining could be achieved by setting an exemption from the rules for transfer pricing with regard to domestic controlled transactions between family members or for low-value domestic controlled transactions (e.g., of up to EUR 10,000).
The expert community considers the proposed action plan insufficient, in particular, with regard to the specifications of the tax-related measures concerning family businesses, which makes it impossible to assess the practical applicability of the proposals. According to the Ministry of Economy, the measures, currently debated by experts, can be implemented either as part of a more comprehensive effort to improve the tax system or as part of other packages aimed at reducing the administrative burden.
