From 2022, the taxation of labour in Slovakia should decrease while consumption and property taxes should increase as a part of the reform plan summed up in the document named Modern and successful Slovakia. The exact figures are to be released in December this year.
At the moment, personal income tax in Slovakia is at the level of 19 percent for an income of up to 37,163.36 euro per year and 25 percent for an income above this sum. In addition to this currently an employee contributes 13.4 percent of her or his gross monthly wage in mandatory health and social levies while the employer pays another 35.2 percent for that employee. Property taxes vary depending on the individual policies of local municipalities.
The planned changes in taxes should increase the motivation to work and employ workers, especially people with a low income and the long-term unemployed. Moreover, the increased property taxes, based on the value of individual properties, should increase the revenues of local municipalities. "The changes will be designed to contribute as little as possible to potential distortions, injustices and inequalities in society," reads the material.
The government also plans to support productive investment and innovation through a super-depreciation for Industry 4.0 technologies and increase tax neutrality in deducting tax losses.
Environmental taxes and charges should also be adjusted. Motor vehicle taxation should take into account the amount of CO2 emissions emitted. Moreover, visual smog from outdoor advertising should also be taxed.
The document also recommends addressing the taxation of individuals who transfer profits to mailbox companies in tax havens. Changes are also to take place in criminal law, which, according to the material, currently does not motivate the voluntary payment of taxes through effective remorse, but in fact provides irresponsible entities with an unlimited tax amnesty.
