More tips of the month
New payment of contribution on social insurance - Self employed persons
Year clearance of health insurance
Tax returns for real estate tax
Unrealized foreign exchange differences
Submit the monthly statements electronically
Leasing of land from 1 January 2006
In the year 2008 the payer of the motor vehicle tax does not submit any tax return. The motor vehicle tax return for the year 2008 should be filled by 31 January 2009. The tax payer is obliged to pay tax prepayments for the year 2008 on the basis of the expected tax. The expected tax is calculated as the sum of the annual tax rates for all motor vehicles which are subject to tax as at 1 January 2008 and which are not exempt from the tax.
The tax payer is obliged to submit the real estate tax
return to the competent tax administrator by 31 January 2008. The tax
liability arises according to the status as at 1 January 2008.
New payment of contribution on social insurance - Self employed persons
From 1 July 2007 self employed persons are obliged to pay social insurance contributions according to the amount of the tax base for the previous tax calendar year. Self employed persons were obliged to send an extract of the tax return to the social insurance company till the end of 30 June 2007. Now they have to pay a first new contribution till 8 August 2007. In case of delay of this payment there will be a penalty in the sum 0,05 % of debit payment for each day.
Year clearance of health insurance
Act No. 508/2004 Coll. on health insurance imposes a compulsory year clearance of health insurance premium on public health insurance till 30 June 2007.
The clearance must be done on an approved form and it must be sent to the health insurance company. The calculated amount of insurance premium will be compared to insurance advance payments during the previous calendar year. If some differences appear, these differences will be compensated with the health insurance company.
The Ministry of Health SR prepared some electronic forms for payers of public health insurance. These forms can be found on internet page - www.rzzp.sk.
Microloans have become cheaper for small and middle enterpreneurs
because of the decline of the interest rate from 7,55 % to 6,5 %. The
microloan is to due to pay until 2 years with the possibility of posponing
the payment of the security for the period of six months.
The loan is provided in the range of 50 T - 1,5 mil. SKK
and can be used for the acquisition of assets, reconstruction or purchasing
of premisses and purchase of goods etc.
The microloans are provided by the office RPIC - Regional advice and information center of Košice.
Tax returns for real estate tax
The tax payer is obligated to submit the real estate tax return for the year 2006 only in the case of changed conditions with impact on the amount of the tax. The deadline for submitting is January 31. The tax authority sets the amount of the tax by March 15. The tax is due by March 31.
The Amendment to the Income Tax Act is in effect from 15 December 2005. That means, that some regulations are effective for the year 2005.
According to the Amendment, dividends paid to the employees of a company
or co-operative, who don't participate in the share capital of the company,
are tax exempt. Those, who have paid the tax, can request the tax refund
in the yearly tax settlement.
Dividends paid to the executives working on the basis of a mandate contract
without any share in the share capital are still subject to income tax.
Unrealised foreign exchange differences
The taxpayers, who have decided to exclude foreign exchange differences arising in the bookkeeping caused by unrealised receivables and payables in 2005 from the tax base as at the day of the statutory close of accounts, are obliged to notify the tax authority up to the end of the year 2005.
Submit the monthly statements electronically
The employers employing more then 9 employees are obliged to submit the monthly statements for social insurance electronically from October 2005. This obligation concerned till now only employers with 20 and more employees. The first page of the insurance statement has to be submitted still in the paper form. That should by definitely abolished next year.
The communication between the Social insurance company and the employer should be quicker, less expensive and simple. After the entry into the electronic registry of the Social insurance Company web site, a user number, user name and password have to be entered. A completed file has to be sent and it´s acceptation checked. If the statement is correct, the first page has to be printed, confirmed and delivered to the Social insurance Company.
Leasing of land from 1 January 2006
The Ministry of Finance of the Slovak has prepared a proposal for the Amendment to the Income Tax Act with effect from 1 January 2006.
The proposed amendment harmonizes the definition of financial lease with accounting. At the same time a minimal period of lease of assets exempt from depreciation (§23) especially land was determined. This adjustment extends the items of tangible property which can be subject to financial lease contract including lands.
The period of lease of land is determined as minimal 60 % of the depreciation period of the buildings and constructions included in the depreciation class four. According to this regulation the period of the lease could be minimal 12 years and is optimal also regarding the fact, that the land is leased mostly for building purposes.
In § 2 let. s) pt. 1 Income Tax Act was determined the condition according to which the proprietary right is to be transferred to the lessee after the end of the lease for a purchase price which is not higher (that means also equal) than the residual price of the leased assets after the linear depreciation, will be cancelled as senseless.
The Act on archives and registration
Based on this Act on archives and registration and the Notice of the Ministry of Interior of the Slovak Republic every organization is obliged to ensure the administration of its documents. The legal entities are obliged to prepare its own archive plan and submit it to the state archive. The individuals are also obliged to prepare such a plan, however they do not have to submit it to the state archive for approval.
The deadline for fulfilling this obligation was set up on 30 June 2005. However the Ministry of Interior proposed an amendment to postpone it to 30 June 2007. The notice should come into effect in June 2005.
From October 15, drivers in the Slovak Republic are obliged to drive with lights switched on. This regulation is valid until 15 March. For violation of this regulation the police is allowed to impose a penalty up to 2.000 SKK.