Changes in tax laws from 1.1.2022

Two-way electronic communication

As we have already informed in the article The Financial Administration is switching to two-way electronic communication, from 1.1.2022 documents are delivered to taxpayers via the slovensko.sk portal.

Tax Reliability Index

The tax reliability index is an assessment of the tax entity by which the entrepreneur is registered for income tax. This assessment reflects how the taxable person fulfils its obligations under the Tax Code or other special regulations such as the Accounting Act, the Income Tax Act, the Value Added Tax Act, etc.

The tax reliability index is especially of an incentive nature and is not intended to serve as a basis for obtaining contracts or entering into public conditions of procurement.

The tax reliability index shall be received by the tax entity no later than by the end of the month which follows the end of the two year period in which the tax entity was registered for income tax. In particular, the notification shall indicate the benefits for which the taxable person was qualified and what was assessed in that classification.

The benefits to which a highly reliable taxpayer will be entitled are:

• a partial declaration in the framework of the exercise of tax control
• a time limit of at least 15 days for compliance with the obligation sent to the tax entity or set out in the minutes in connection with carrying out a tax audit or carrying out a local investigation and many others.

For taxable persons who, on the basis of the index, will be considered unreliable, the tax administrator shall set a time limit of 8 days for the fulfilment of the specified obligation in relation to the performance of a tax audit, assessment procedure or the conduct of a local investigation.

The aim of the 'malus' is to motivate unreliable taxable persons to enter into a group of reliable taxable persons through their proper fulfilment of their legal obligations, thus gaining preferential access by the tax administrator.

Lists published by the tax administrator

In the context of the new tax liability legislation in the VAT Act, the tax administrator is obliged to publish updated data focusing on the reported bank account numbers of vat payers. In addition to the reported bank account numbers, an updated list of account numbers led by the tax administrator for individual tax entities (so-called OÚD) is also published. Together with the introduction of the public tax reliability index, the Financial Directorate of the Slovak Republic will also publish a list of tax entities together with their tax reliability index.

Payment for a binding opinion

In order to allow taxpayers to make more frequent use of the possibility to request a binding opinion of Financial Directorate, it is proposed to reduce the amount of the payment to EUR 1 000 for giving a binding opinion. The opinion fee for a highly reliable entity according to the tax reliability index is reduced by 50 % to EUR 500. The amount of the payment is linked to the provision of a binding opinion on one business case and one piece of legislation.

Implementation of joint actions

In order to relieve taxpayers, it is possible for tax authorities to carry out joint acts, such as, in particular, oral hearings, hearing of witnesses, questioning of experts, getting familiar with the content of the operative facts established with other taxable persons and knowledge of the evidence. At the same time, the act of one tax administrator in several tax entities is considered to be a joint act at the same time. Also, the possibility of interviewing a witness or expert by videoconferencing or other means of communication is introduced.

Opportunity for the taxpayer to look at the file

On the basis of a telephone, electronic or documentary request received by the tax administrator, the taxable person has the opportunity to look at the file the following business day after the application has been submitted.

Revocation of registration certificates

Newly, the tax administrator will no longer send registratio certificates to the taxpayers so-called "cards". These had to be delivered to the tax administrator at all times when making changes in order to register them in the certificate and return them to the tax administrator after the end of the business. The tax administrator will only send the registration decision to the taxable persons. However, in situations where there is a change in the data in the already issued "card", the taxpayer is obliged to return it to the tax administrator within 10 days. However, a new "card" with corrected data will no longer be issued.

Registrations ex-offo

In order to ensure the technical functioning of the financial administration, the registration of taxable persons is transferred to 2023. It is registration where entities do not submit an application for registration, but due to registration e.g. in the Commercial Register or the Trade Register, this obligation arose to them. Tax administrator will register these entities automatically, without submitting an application form.

Deduction of expenditure (costs) on investments

Amendment of the Income Tax Act, enables the taxable persons to an additional deduction (15 % to 55 %) of expenditure on investments from the tax depreciation of assets. The amount of the deduction depends on the amount of reinvestment of the average value of investments in % and euro compared to the average of the previous three tax periods. The minimum amount of the investment is EUR 1 million. The minimum reinvested average value is 700 %. It is a temporary instrument aimed at promoting investments with higher added value, i.e. productive investments linked to industry 4.0.

Reduction of R&D deduction

Super deduction of R&D costs is decreased from the original amount of 200 % to 100 %. The reduction will be applied for the first time in tax period, starting no earlier than 1 January 2022.

Other changes to tax laws that entered into force on 15.11.2021 were mentioned in the previous article.