The Amendment to the Tax Code in Slovakia (Tax & Fiscal Alert)
The Amendment to the Tax Code effective starting from January 2014 introduces some crucial changes. The goal of the amendment is the to create a better and more attractive business environment, make the administration of taxation more effective and continue in the process of decreasing of administrative burden of the entrepreneurs.
The Amendment to the Tax Code introduces the following changes and amendments:
Binding statement of the Financial Directorate
Possibility to remove the tax entities from so-called Blacklist of VAT payers
Transferring of payment paid by mistake on the other tax entity´s account by tax administrator
Leaving out some information in the application for registration
Regulations of the provision on tax secret
Consulting company Accace brings you more information about one of the most crucial changes introduced by the Amendment to the Tax Code:
Binding statement includes a statement concerning the application of specific regulations and is binding for tax administrator and the second instance authority. It is not binding only in the following cases:
tax entity, to whom the binding statement was issued, have not applied the process mentioned in the binding statement,
or in the case it is proven, that the crucial information based on which the binding statement was issued, are not fulfilled,
or if the binding statement is not actual any more for instance in the case of some legal regulation.
Payment for issuance of binding statement
Tax entity pays for the issuance of binding statement a fee in the amount of:
1% from the amount of the specific business transaction; the fee shall be at least in the amount of EUR 4 000 and shall not exceed the amount of EUR 30 000; if the tax entity requires the binding statement regarding application of only one legal regulation,
2% from the amount of the specific business transaction; the fee shall be at least in the amount of EUR 5 000 and shall not exceed the amount of EUR 30 000; if the tax entity requires the binding statement regarding application of two or more legal regulations,
3% from the amount of the specific business transaction; the fee shall be at least in the amount of EUR 6 000 and shall not exceed the amount of EUR 30 000; if the tax entity requires the binding statement regarding application of legal regulations by repeated business transactions.
If the Financial Directorate does not issue the binding statement, it will pay back the paid fee as well as the annual interest (in the amount of 1% for the period starting from the day of notification about not issuing the binding statement).
„We consider the height of the fee of the binding statement relatively high. By many transactions in the practice it is also difficult to estimate the amount of the business transaction. We also believe that issuance of binding statement will be often connected to exercise of subsequent tax audit in order to verify the application of the statement. This may result in avoiding of the request of the binding statements by tax entities,“ stated Peter Pašek, Managing Director Accace Slovakia.
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