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Pellegrini signed an amendment to the equalization tax law, which takes into account the EU directive

by AI | 13.Dec 2024 | Europe in brief AI

Pellegrini signed the law on the equalization tax, in accordance with the EU directive.

President of the Slovak Republic Peter Pellegrini signed the law on the equalization tax in accordance with the EU directive. Photo: TASR

Bratislava – President of the Slovak Republic Peter Pellegrini signed an amendment to the equalization tax law on Friday. It is a legal standard from the Ministry of Finance (MF) of the Slovak Republic, which deputies of the National Council (NC) of the Slovak Republic definitively approved on November 28, informs TASR.

Last year, the equalization tax law incorporated the relevant EU directive into the Slovak legal system, which is based on global model rules adopted by the so-called Inclusive Framework of OECD/G20 organizations. It aims to ensure a minimum 15% taxation of income for entrepreneurs located in Slovakia who are members of a multinational group or a large national group of companies.

In order to clarify and supplement global rules, administrative guidelines were adopted during 2023. Although they are not part of the directive, European Union member states have committed to implementing them.

“The aim of the bill is to implement the guidelines approved so far, ensuring the implementation of all conclusions derived from them, and in certain cases, it is necessary for the rule to be clearly enshrined in law to ensure a higher degree of legal certainty,” explained the Ministry of Finance.

The amendment includes, for example, refinements and additions to the calculation of the eligible income or eligible loss of the basic entity and the calculation of the amount of adjusted included taxes. Established definitions are also clarified, rules for calculating the amount of excluded income based on economic substance are added, and simplified calculations for insignificant entities are introduced.

The amendment to the law will be effective from December 31, 2024. (December 13)