Draft amendment to the Tax Code as of 1 January 2022

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A draft amendment to the Tax Administration Act (the “Tax Code”) was submitted to the National Council of the Slovak Republic on 11 August 2021.

We have already informed you about certain planned changes in the previous issue of our Newsletter. However, along with this draft was recently published also a draft Decree of the Ministry of Finance of the Slovak Republic on specific criteria of the Tax Reliability Index, on the basis of which the Financial Administration will identify taxpayers that should be eligible to certain tax benefits. These criteria include:

  • fulfilment of the obligation to file a tax return, VAT report and EC sales list within the statutory deadline ,
  • fulfilment of the registration and notification obligation within the statutory deadline,
  • fulfilment of the obligation imposed in a decision of the tax administrator,
  • stating the tax in the correct amount in the tax return or in the additional tax return,
  • application for claims according to special regulations,
  • payment of the tax or tax advance payment within the appointed deadline,
  • compliance with obligations if breach of such obligations would lead to determination of tax by using tools or imposition of penalties,
  • fulfilment of obligations if breach of such obligations would lead to the cancellation of registration.

The amendment also proposes changes in the Value Added Tax Act, which oblige taxpayers to disclose bank accounts used for business purposes to the Financial Directorate of the Slovak Republic. If the taxpayer discloses a bank account that belongs to another person, the taxpayer is obliged to simultaneously announce the first name and surname or business name of the person to whom that bank account belongs. At the same time, this person will be jointly liable for the tax on the supply of goods or services stated in the invoice if the supplier fails to pay that tax or part thereof within the due date and the consideration for that supply or part thereof has been paid to that bank account. If the taxpayer provides incorrect, false or incomplete bank account details, a fine of up to EUR 10,000 may be imposed.

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