BRATISLAVA, September 2, (WEBNOVINY) — The European Commission’s proposal to introduce a common consolidated corporate income tax base does not have the support of the Slovak Ministry of Finance. By the tax base unification proposal, the European Commission wants to ensure consistency of national tax systems, but without harmonizing tax rates. The Finance Ministry presents its opposition in a preliminary draft opinion on the new draft directive on a common consolidated corporate income tax base (CCCTB) which it submitted for interdepartmental review.
„Although a certain degree of progress has been achieved in work to prepare the CCCTB draft and the proposed system in some parts contains elements comparable with national income tax systems applied in EU member states, Slovakia is so far not yet convinced of advantages of the project,“ stated the Finance Ministry. The Slovak Ministry of Finance is not convinced that the benefits ensuing from introduction of such unified system outweigh the costs necessary for its implementation and operation. It further adds if the system is introduced, those to benefit are in particular member states where companies have their head offices. „Therefore, we believe that risks associated with introduction of CCCTB are larger than the real benefits and effects of harmonization of tax bases, “ said the ministry.
Furthermore, according to the Ministry of Finance, the European Commission’s proposal is in direct contradiction with to the program statement of the government in Slovakia. This states in the chapter on taxes, among others, that the government will not agree with European tax harmonization in the income tax area.
SITA
