SaS Wants Limit for Advanced Income Tax Payment Upped to €5,000

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SaS proposes changes to advance income tax payment (photo by TASR)

Bratislava, April 25 (TASR) – Opposition Freedom and Solidarity Party (SaS) suggests increasing the limit for advanced income tax payments to €5,000 from the current €2,500, according to a draft amendment to the Income Tax Act that the party intends to submit during May’s parliamentary session. 

The reason for the proposed increase in the limit is to boost the volume of resources that are available to entrepreneurs and companies during a calendar year and to contribute to at least partial improvement of the business environment, SaS MPs say.

At the same time, SaS wants to scrap tax licences. The current wording of the income tax law also governs tax licences for corporate entities ranging between €480-2,880 annually. SaS legislators believe that tax licences increase the risk and make the business environment in Slovakia less attractive. Nevertheless, they admitted that their introduction had a kind of remedial function in case of tax evasions.

SaS legislators believe that the current setting of tax licences might be liquidating for plenty of small firms that found themselves in the red for objective reasons, while it will not hit frauds that much, since they have saved sufficient sources to settle licences. “For the above reason, we found the current setting of tax licences bad and we suggest they be scrapped,” explained SaS MPs.

According to SaS legislators, scrapping of tax licences would have a short-term impact on the state budget in the form of a shortfall in revenues amounting to about €70 million. On the other hand, it would prevent the collapsen of firms that would keep paying value-added tax or employ people. They suggest that the amendment should be effective as of January 1, 2017.

Meanwhile, the new Government declared to scrap tax licences as of 2018 and to reduce the corporate income tax from 22 percent to 21 percent as of 2017.