Amendment to the Income Tax Act

Act No. 561/2001 Coll. amending and supplementing the Act No. 366/1999 Coll. on Income Tax, as amended and amending and supplementing the Act of the Slovak National Council No. 323/1992 Coll. on Notaries Public and Notarial Activity (Notarial Code), as amended

The amendment to the Income Tax Act, inter alia, reduces a tax burden of individuals by regulation of tax rate and tax ranges as follows:

Tax paid by individuals (natural persons) is from the tax basis decreased pursuant to Sec. 12, rounded for whole hundreds of SKK downward the following:

The advance payment from a taxable salary rounded up to SKK 100.00 for whole crowns upward and above SKK 100.00 for whole hundred crowns upward, cleared and paid for the calendar year, is under the amendment to the Income Tax Act as shown in Table 2.

In order to simplify performed reorganisations (dissolution) of companies with a legal succession, the amendment regulates the manner of taxation in case of these reorganisations so that taxation is not applied in course of amalgamation, change, merger or split of companies (similarly as in the EU countries).

The amendment also stipulates in detail requirements for the use of a portion of paid tax for special purposes, in accordance with which it is possible to transfer the amount corresponding to 1% of paid tax (which is not less than SKK 20.00) to a civil association, foundation, non-investment fund, non-profit organisation providing generally beneficial services, specific institution of church and religions association, eventually to an organisation with an international component or to the Slovak Red Cross, provided that their activities are beneficial for the public and are exactly stipulated in the Act (e.g. development and protection of pastoral values, protection of human rights, protection and creation of environment and protection and support of health and education).

This Act is in force from 1 January 2002, save for the Article I, points 61, 63, 64, 67 to 71, which will become effective from 1 January 2003.

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