Since 1 January 2022 two new amendments to the Income Tax Act have had an impact on the remuneration of employees and their net income. These amendments concern employees’ nutrition and non-monetary benefits. Let’s focus on the first topic today. Based on the amended provisions, meal vouchers, financial meal contributions, and hot meals provided by an employer to employees are exempt from tax (and consequently from social security and health insurance) only up to the limit defined by the Labour Code, which since 1 May 2022 is EUR 3.30 daily, or in the amount funded from the Social Fund (“the SF“) of the employer. The relevant authorities simultaneously confirmed that the exemption applies only if the meal voucher or financial contribution is provided in advance, before the lunch break of the particular work-day for which the exemption is claimed.
This autumn has been very productive in terms of legislative changes in the areas of taxes, social contributions, and labor law.
As the end of 2024 and the beginning of 2025 are just around the corner, let’s summarize once again:
- Which changes will be relevant for you as employers starting from 2025.
- What actions you can still take as employers in 2024.
Read more about the changes here.
On 1 January 2022 a new provision of the Slovak Income Tax Act (“the ITA”) – Article 5(7)(o), came into effect, based on which the tax (and also social security and health insurance) exemption is extended to “non-monetary supplies provided to an employee up to EUR 500 in total in a tax period from all employers, if… the costs incurred by the employer in respect of this non-monetary supply are not regarded as costs for reaching, assuring, or keeping taxable revenues, [then] only supplies exceeding this amount are included in the tax base.“
Methodical-Guide-regarding-tax-exemption-2022
The adjusted revised wording of the draft amendment to the Slovak VAT Act after evaluation of several fundamental comments raised within the comment procedure was submitted to the National Council of the Slovak republic, where the amendment is currently undergoing its second reading.
In the current edition, we present the most significant changes that the amendment should bring, effective from 1 January 2023 (except for some provisions proposed to be effective from 1 January 2024).
Upcoming-changes-brought-by-the-amendment-of-the-Slovak-VAT-Act
In this newsletter, we would like to bring you the most important information on the proposed amendment of the thin capitalisation rules, DEBRA and ATAD 3 proposals which concern tax deductibility of borrowing costs and substance requirements.
On 6 December 2022, the Slovak Parliament approved a new amendment to the Slovak VAT Act with several significant amendments. In the previous edition , we already presented the most significant changes that the amendment should bring, effective from 1 January 2023 (except for some provisions proposed to be effective from 1 January 2024). Below is a summary of the most significant legislative changes that supplement and replace some decisions from the last session of the National Council of the Slovak Republic.
Practical examples regarding the amendment to the labor code.
Electromic-communication-with-employees-final.pdf
The current pandemic situation escalated the processes when the employees perform their activities fully or partly outside the premises of the employer. Such work-arrangements create new labour law, social security as well as tax issues for the employers and the employees. Specific issues must be considered in the case of “cross-border home-office regimes”.
BDO-alert-home-office-march-2022.pdf
Starting from 2025, the government plans to introduce the so-called sugar tax on sweetened beverages.
🔴This new tax will impact the prices of nearly all drinks containing added sugar or any sweetener.
🔴Exceptions are not limited to products for people with lactose intolerance utilizing plant-based milk alternatives or powdered products serving as dietary supplements.
🔴However, in the proposed bill, we also find a few exceptions that will be exempt from this tax.
Details on which beverages will be affected, what will constitute the tax base, the proposed rate categories, and who will be liable for the tax can be found in the attached newsletter prepared by our tax experts Lucia Bellanová and Petra Hužovičová.
We are excited to share the latest edition of our newsletter, which is focused on approved tax changes following the consolidation package.
In the attached link you will find our bulletin for your perusal.
Should you have any questions or require further assistance, please do not hesitate to reach out to us.
We are excited to share with you the latest edition of our newsletter, in which we provide an in-depth overview of the newly introduced financial transaction tax.
In the attached link you will find our bulletin for your perusal.
Should you have any questions or require further assistance, please do not hesitate to reach out to us.