Slovakia’s Parliament has reduced the corporate income tax rate from 23% to 22% with effect from 1 January 2014. The reduced corporate income tax rate is effective for tax periods beginning after 31 December 2013.
This change affects both the calculation of tax advance payments as well as the cash flow of companies. Regarding the calculation of the corporate income tax liability for 2013, the tax rate of 23% is to be applied. However, from the first month or quarter of 2014, companies must remit tax advances based on the latest known tax liability recalculated with the new tax rate of 22%.
After filing the 2013 corporate income tax return, the amount of advance payments due in 2014 would be calculated from the liability for 2013, using the same tax rate of 22%.
The threshold for quarterly advance payments has been increased from €1,659.70 to €2,500 as of 1 January 2014.
