On 29 May 2019, the Slovak government approved a draft Law to update the Income Tax Act. The draft law proposes the implementation of Directive 2017/952 amending Directive 2016/1164 as regards hybrid mismatches with other countries. It also introduces tax incentives for the car manufacturing industry.
Micro taxpayer regime is introduced in the draft law and clarifies eligible criteria. The Individual entrepreneurs and enterprises whose annual income does not exceed EUR 49,790 will be entitled as micro taxpayers. The micro taxpayer regime will enter into force on 1 January 2021.
The draft law amends the deduction conditions for losses by small and medium sized enterprises (SMEs). The proposed changes are scheduled to enter into force on 1 January 2020.
