BRATISLAVA, August 13, (WEBNOVINY) – The new center-right government wants to cancel the existing exceptions defined in the Income Tax law claiming it does not see any reasons justifying their continued existence. Changes should be implemented also to the non-taxable deductible portion of the tax base, which will be applied according to new rules only to income from an employment contract, income from business activities and income of self-employed persons. The Cabinet plans to remove as well discrimination in application the possibility of self-employed persons to deduct from their income-tax base flat-rate expenditures at 40 percent of their gross income. Self-employed craftsmen can deduct 60 percent. The amendment to the Income Tax Act should be submitted for an interdepartmental review soon.
“We consider this change a step towards completion of the reform of direct taxes,“ said Prime Minister Iveta Radicova after an unscheduled sitting of her Cabinet on Friday morning. She added that the Income Tax Law should also guarantee support of the family and low-income groups of inhabitants, which is why the Cabinet has prepared the changes. The amendment is the result of initial works on the priorities of the new government formulated in its program statement. The prime minister says that changes to the tax law should enhance justice and solidarity of the system.
SITA
