Amendment to the Tax Code

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At the end of November 2019, it was announced in Collection of Laws an amendment to Act No. 563/2009 Coll. (the Tax Code). The amendment to the act brings some changes and amendments, particularly in the following areas:

  • adding the mayor of the municipality to the definition of the tax authority employee to enable them to carry out the competence of a tax authority employee, such as local inquiry, tax audit or the tax assessment procedure;
  • in order to reduce the administrative burden, the tax administrator may, in agreement with the tax entity, waive requesting certified translation of documents into the national language;
  • adjustment of representation by power of attorney if the taxpayer submits more than one power of attorney on the same scope of operations; in this case, the new power of attorney replaces the previous to the extent in which they collide;
  • those taxpayers, that are required to communicate with the financial authority electronically, and that submit comments, although in a structured form, but other than by electronic means (e.g. in certificated form), will be requested to deliver these in a correct manner (through the financial authority portal); and, only when they fail to satisfy that request, the submission shall be considered unsuccessful;
  • the introduction of a summary record of interrelated transactions of taxpayers as a major source of information for criminal justice authorities;
  • allowing the extension of the deadline for conducting a transfer pricing tax audit, regardless of whether they are foreign or domestic related persons;
  • registration for income tax shall be, with effect from 1 January 2021, carried out by the tax authority ex officio (within 30 days from the date of entry in the register of legal entities, entrepreneurs and public authorities, or from the date of the first tax return). At the same time, it repeals the notification obligation of taxpayers to the tax authorities, if the taxpayer reported changed or new facts to that institution, which notifies them to the tax administrator; the same applies to the communication of bank account numbers, as those are regularly reported by financial institutions;
  • standard forms of tax returns will not be issued in the Collection of Laws of the Slovak Republic, but will be posted on the website of the Ministry of Finance of the Slovak Republic, indicating the date of publication;
  • submission of the tax return for the period for which the taxpayer was assessed by means of tax aids will no longer be possible;
  • decreasing the lower limit of fines for failure to fulfil the obligations imposed by the decision of the tax authority, and for failure to fulfil any of the obligations of a non-cash nature of the amount of EUR 60 to EUR 30;
  • non-collection of penalty if the taxpayer submits an additional tax return, by which it can reduce the claimed VAT overpayment, or applied claim under special regulations, prior to its return;
  • from 2021, the Financial Directorate of the Slovak Republic will publish an updated list of taxpayers and their Tax ID. This will happen for the first time by no later than 30 June 2021;
  • shortening of the period in which the tax authority may not authorise further extension of tax, or payment of tax in instalments due to a breach of conditions, from five to two years;
  • introduction of a new form of tax execution by confiscating a driver’s licence;
  • adjustments relating to bankruptcy, restructuring and debt relief.

Most of the changes shall take effect on 1 January 2020, but some no earlier than as of 1 January 2021.

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