BRATISLAVA, August 18, (WEBNOVINY) – The announced changes in taxation rules do not have to be final. As Prime Minister Iveta Radicova stated after Cabinet session on Wednesday, this topic will be further discussed at next sessions. Most people working on work contract earn only up to EUR 166 per month, or the sum equaling minimal wage. “We are still considering whether the changes will touch these people at all,” said Radicova. The aim of the Cabinet is to find solutions which will not affect “regular citizens”. Concrete solutions will be the topic of discussion of the Coalition Council next week on Tuesday, said the Prime Minister.
The prepared changes will help restore broken down public funds and improve the systems of taxes and compulsory health and social security insurance, said Finance Minister Ivan Miklos on Monday. According to one of the proposals, self-employed people will be able to deduct from their tax base flat-rate expenditures in the volume of thirty percent of their gross income as of next year. Presently, they can deduct 40 percent while craftsmen can deduct sixty percent. The ministry wants to limit the application of the non-taxable, deductible portion of the tax base to just ‚active’ income, which is income from an employment contract, income from business activities, and income of self-employed persons. Another major change will be scrapping non-taxable deductible portions of the tax base for savings with a purpose, life insurance, and supplementary pension saving. New taxation rules should apply also to income from a sale of apartment or house, as well as other real estate acquired after the new rules take effect.
SITA