The Slovak Republic Ministry of Finance has initiated a public consultation process to get feedback on a draft law aimed at implementing a 15 percent global minimum corporate tax rate.

The objective of this legislative proposal is to align Slovakia’s domestic tax laws with the European Union (EU) Directive on global minimum corporate tax, which closely resembles the Organization for Economic Co-operation and Development’s (OECD) Pillar Two initiative, also known as GLoBE Rule. The proposed tax rate will be applicable to companies with annual consolidated revenues of at least EUR 750 million in at least two of the previous four accounting periods.

The Finance Ministry said in a recent statement, “the introduction of a minimum level of taxation will prevent the shifting of profits to countries with low or no taxation. With this arrangement, both the EU and the OECD expect that companies that are part of large multinational groups will pay a fair share of tax regardless of where they operate”.

The proposed global minimum tax framework includes provisions for a domestic top-up tax. If adopted, this tax regime is expected to take effect from January 2024. The Finance Ministry’s move aligns with broader international efforts to establish a common minimum corporate tax rate, which has gained significant momentum in recent years.

Members of the public and stakeholders are encouraged to provide their feedback and comments on the draft tax law. The consultation period is open until 23 August 2023, offering an opportunity for interested parties to influence the final shape of the legislation.