We bring you an overview of changes in the Tax Code, which were approved by the Parliament of the Slovak Republic in 2019 by Act No 369/2019 Coll. of 15 October 2019 and which we have already informed about in previous editions of our Newsletter, but which will take effect from 1 January 2021:
- The Financial Directorate of the Slovak Republic will publish an updated list of tax entities registered for income tax on its website. Data such as the tax identification number, name and surname of a natural person or the name of a legal person, address of permanent residence, place of business or registered office of a legal person will be published. For the first time, the Finance Directorate will publish this list no later than 30 June 2021.
- Registration of tax entities ex officio by the tax administrator. The tax administrator shall register an entity within 30 days from the date of entry in the register of legal persons, entrepreneurs and public authorities. If the entity is not registered in the mentioned registers, the tax administrator shall register such entity within 30 days from the date of filing the first tax return. With this method of registration, the tax entity will also be assigned a tax identification number and a taxpayer’s personal account number. If the same reporting obligation towards another institution arises for a tax entity and that institution is obliged to notify new or changed data to the tax administrator, the taxpayer is no longer obliged to notify these facts to the tax administrator again. By the end of February 2021, the tax administrator was to register ex officio all entities that are entered in the above-mentioned registers as of 31 December 2020, but were not registered with the tax administrator. The Parliament of the Slovak Republic approved a government draft Act that postponing the effect of this change until 1 January 2022.
- Change concerning the notification obligation on the use of payments by the tax administrator. These notifications will only be sent to tax entities if the amount of the payment used is more than EUR 5.
In addition to these changes, the National Council of the Slovak Republic approved, on 2 December 2020, a draft amendment to the Tax Code Act with effect from 1 January 2021, which proposes the following:
- reduction in the annual interest rate on deferred tax and tax payed in instalments, from 10% to 3%, in order to give tax entities an incentive to use this institute at the time of coping with a temporarily difficult financial situation, the interest on deferred tax lower than EUR 5 is not applied;
- possibility to allow deferral or payment in instalments also retroactively to the tax due date;
- application of the reduced interest rate also to those deferrals and payments in instalments that were allowed before the entry into effect of this amendment, but the decision on interest of which will only be issued after the effective date of this amendment.
