Income tax act adjustment

As of January 1, 2020, an amendment of the Income tax act became effective. This amendment brings a lot of changes for entrepreneurs. Besides the decrease of the tax rate for the selected persons to 15%, the definition of the dividends has been extended (dividends underly taxation in Slovakia), and the group of tax-free services was broadened and now includes e.g. some additional education services for employees or certain medical inspections. In addition, the part of tax base which does not underly taxation was increased to 21-times the valid living wage. The new regulation also concerns overdue receivables and debts, as well as their tax assessment. Also, the rules for a tax lost deduction have been changed. Completely new is introduction of the new term micro-taxpayer, which got a special treatment. The changes touched tax non-residents as well. This amendment is possibly the most important one in the history of the Income tax act.