BRATISLAVA, May 18, (WEBNOVINY) — The Cabinet on Wednesday approved with some changes a concept of reform of taxes and payroll levies. The approved changes have not yet been made public. Based on the draft, which the Cabinet discussed, the calculation base for taxes and payroll levies will be a super gross wage as of next year, i.e. the current total labor costs [wage + part of employee’s social and health insurance contributions paid by the employer – SITA note]. The reform is also to introduce a single health and single social security payment, as well as a uniform calculation base for payment of taxes and health and social security contributions.
The health insurance contribution is to be 9 percent of the calculation base with the exception of persons with disabilities, who will pay a half of the rate. The rate for paying social security contributions for employees is to represent 19 percent, for self-employed tradesmen 13 percent, and for contract agents 10 percent. Flat-rate expenditures of 40 percent of income that the self-employed can deduct from their tax base should be replaced by a cap of approximately EUR 200 a month, which is a sum on the level of the minimum subsistence level. The coalition agreed on a gradual reduction of the payroll levy burden of employees by a total of 4 percentage points over four years.
The Civil Conservative Party (OKS), whose four deputies are members of the MOST-HID deputy caucus, objects to the planned reform. According to the party, the concept does not take into account any relevant proposals of the public, the National Association of Employers, tradesmen organizations, or contract agents. OKS wants to present its own reform draft that will not have negative impacts on large groups of tradesmen and contract agents. OKS representatives added that they will offer their proposal for a public debate and to the Coalition Council, as they believe that positive changes of the reform are in the interest of the ruling coalition, in line with its reform plans and the government’s promise not to increase taxes and payroll levies.
SITA
