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2018 will be rich in tax changes.

The revision to the income tax act has resulted in the most significant tax changes within the last 15 years.Tax experts believe tax changes that came into effect at the beginning of this year will be the most significant within the last 15 years since the introduction of the flat tax.

These changes will affect individuals as well as corporate entities either in a positive or negative way. Tax changes of private individuals The definition of a taxable person has changed the Finance Ministry extended the definition of a taxable person with an unlimited tax liability to include an individual residing in the Slovak Republic.

An individual is considered to reside in the Slovak Republic if they have available accommodation, which is not only for occasional use, and their intention to remain permanently in the given place of residence is apparent, taking into account all related facts and circumstances, including the individual's personal and economic ties to the Slovak Republic."The introduction of this criterion may change the tax residence, for example, in the case of athletes who have permanent residence in Monaco," explained Silvia Hallova, tax consultant and partner at Grant Thornton Slovakia.

Introduction of the tax bonus on mortgages for young people the tax bonus for paid interest on mortgages is replacing state contribution. The tax bonus represents 50 percent of interest paid in the respective tax period, but no more than Pound 400 per year.

Only applicants between 18 and 35 years of age with an average monthly income that does not exceed 1.3-times the average monthly wage can apply for a mortgage less than Pound 50,000. "This change will negatively affect people without employment and income who will have to pay instalments," said Wilfried Serles, managing partner at Grant Thornton Slovakia, adding that these people would prefer state contribution.

"This change was not thought over properly." e: What other tax changes concerning private individuals will come into force this year? What are the changes for corporate entities? 1.

Mar 2018 at 6:30 |Jana Liptakova

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Publication:Slovak Spectator (Bratislava, Slovakia)
Date:Mar 1, 2018
Words:388
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