Amendment to the Income Tax Act

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On 8 November 2021, the President of the Slovak Republic approved an amendment to Act No. 595/2003 on income tax and on amending certain acts, as amended.

The main changes adopted by this amendment effective from 1 January 2022 include:

  • Reduction of the super-deduction for research and development from the current 200% to 100%.
  • Introduction of the possibility of deducting expenditure (costs) on investments. The taxpayer may deduct from the tax base a specified percentage (from 15% to 55%) of the tax depreciation for assets. The amount of the deduction depends on the planned investment percentage of the average value of the investments and on the invested value of this planned average value of investments specified in the investment plan. Such a deduction can only be claimed for assets used for new production or a logistics system, which is specifically listed in Annex 3 to the amendment. In order to claim the deduction for expenditures and investments, the taxpayer must meet a number of legal conditions, such as: prepare an investment plan, the assets used for the investment must not be procured from public funds, and the super-deduction for research and development must not be claimed for such assets. The entitlement to this deduction ceases, and the taxpayer must return any tax benefit achieved, for example, if the taxpayer is dissolved with or without liquidation, where it is being restructured or is bankrupt, or if the taxpayer has otherwise disposed of the asset during the depreciation period.
  • Equal taxation of meal vouchers and financial contributions for meals. Both types will be exempt from personal income tax only up to 55% of the sum of the meal allowance provided for business trips lasting between 5 and 12 hours, i.e. currently up to EUR 2.81. In this case, there is a change in the taxation of meal vouchers, which have so far been fully exempt from tax for the employee.

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