BRATISLAVA, November 18, (SITA) — Profit from the sale of capital participation in commercial companies should be exempt from taxes, opines the American Chamber of Commerce in Slovakia (AmCham), adding that such a move would foster Slovakia’ ability to attract investors and the country’s competitiveness. The Finance Ministry will also deal with taxation of capital gains from the sale of equity stakes, since Minister Ivan Miklos admitted that there is a certain degree of double taxation, and several surrounding countries apply different rules and thus, many companies operating in Slovakia are registered somewhere else. This puts Slovakia at a disadvantage, Miklos said after the meeting with AmCham members on Thursday.
AmCham suggested exempting gains from the sale of equity stakes from the income tax within a series of measures aimed to improve the local taxation system. The minister noted that “the concerned proposals are very inspiring; we will certainly deal with them and I believe that some of them will be introduced into the tax system”. A working discussion on some of these measures is already underway and they could be incorporated into the legislation in the course of next year but the department wants to evaluate all potential changes first.
Among other measures, entrepreneurs could get the opportunity to ask the respective tax authority for a binding interpretation of the law in case of a large transactions, if the law does not exactly stipulate its evaluation from the tax point of view. The ministry also wants to set clearer rules for sanctions and bolster stability of the tax system. The improvement of the system will have a positive influence on all citizens. By upgrading its taxation system, Slovakia could foster its competitiveness, attract more investors and boost its economic growth, opines Miklos. Also, the minister expects positive reflection in higher salary growth, employment and overall living standard. Representative of AmCham’s committee for tax matters Christiana Serugova said that the tabled blueprints are expected to stabilize the business environment in Slovakia, not only for new investors but also for local businesses.
SITA