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Baker Tilly Slovakia Tax Alert February 2013

February 13, 2013 1 comment

TAX ALERT | SLOVAKIA
February 2013		 Baker Tilly
The most significant changes to the taxation of individuals from the start of year 2013:1. Personal tax allowances for spouse– From 1st January 2013, the spouse allowance is possible to apply only if the spouse living with taxpayer in common household is:
- taking care of a dependent child, or
- receiving a cash allowance for nursing, or
- unemployment registered and is actively seeking a job, or
- considered a disabled individual or a severely disabled individual.2. Tax allowance related to voluntary contributions to II. pillar – until the 31st December 2016 taxpayers may apply as a tax allowance the amount of voluntary contributions to pension, this amount is 2% of the taxpayer´s tax bases from active income, i.e. income from employment and from business. This amount should not exceed 2% of 60-times average monthly salary reported by Statistics Office of the SR two years previously.

3. Tax bonus – the tax bonus should be apply only by taxpayer, who in the period reached 6 times the minimum wage only from active income, i.e. income from employment and from business. The tax bonus should not be applied by taxpayers who earn only rental income.

4. The lump-sum expenses from business income – changes in the implementation of lump-sum expenses in 2013:
- the lump-sum expenses could be applied to the annual maximum amount 5.040€,
- the lump-sum cannot be applied to rental income,
- authors who contribute to the newspapers, magazines or to the television can decide whether they prefer their honorarium already taxed by withholding tax or an honorarium in the total amount with the possibility to apply real expenses or lump-sum expenses and with the duty to charge social and health insurance.
Bratislava
Eva Belková
Managing Director
Karadžičova 16
821 08 Bratislava
Slovak Republic
Tel: +421 250 203 302
Email: ebelkova		 Bratislava
Vladimír Bartoš
Head of Accounting Department
Slovak Tax Advisor
Karadžičova 16
821 08 Bratislava
Slovak Republic
Tel: +421 250 203 304
Email: vbartos
Disclaimer: The information contained in this material is general and does not provide a comprehensive analysis of these topics. Despite the fact that we try to ensure the timeliness and accuracy of the information contained in this material, we cannot guarantee that it will still be valid on the date it is read. Therefore users of this information should not base any business or investment decisions on it without first discussing the matter with a professional advisor. Our initial consultation is free.Privacy & Disclaimer Feedback
Baker Tilly Slovakia Accounting s.r.o. and Baker Tilly Slovakia Audit s.r.o. are independent member firms of Baker Tilly International which is the world’s 8th largest accountancy and business advisory network by combined fee income of its independent members. Baker Tilly International member firms specialise in providing accountancy and business advisory services to entrepreneurial, growing businesses and mid-market corporates worldwide.
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Tax Alert December 2012 Baker Tilly Slovakia

December 18, 2012 Leave a comment

Baker Tilly

TAX ALERT | SLOVAKIA
December 2012		 Baker Tilly
Amendments to the law on Value Added taxThe invoice directive is introduced into the law on Value Added tax effective from 1st January 2013. The aim of the directive is the extension of invoices in electronic formats and to achieve identical usage of paper invoices and invoices in electronic formatThe invoice directive modifies the content of invoices on delivery of goods and services in country, on delivery of goods to the another member state, on delivery of services to the another member state, on retrieving of goods from another member state and on receiving services from abroad, on a uniform basis. According to directive, an invoice issued by a taxpayer must contain:

the name and the address of the seat, place of business or fixed establishment of the taxable person, his tax identification number, by which the goods or services are delivered,
the name and the address of the seat, place of business, fixed establishment or domicile of the recipient of the goods or services and his tax identification number,
the sequential number of the invoice,
the date of the supply of goods or services, or the date of incoming payment, if this date can be determined and if it differs from the invoice issuance date,
the invoice issuance date,
the quantity and type of the goods supplied or the extent and type of service rendered,
the taxable amount per each tax rate, the unit price excluding tax and the reductions and discounts, if these are not included in the unit price,
the applied tax rate or indication of tax exemption; for tax exemption must be stated the reference to the clause of the Act on value added tax or Council Directive 2006/112/ES of November 2006 on the common system of value added tax as amended or information “the supply of goods is exempted from VAT”,
the full tax amount to be paid in Euros, except the amount of tax applied pursuant to a special arrangements applicable to works of art, collectors´ items, antiques and second-hand goods,
the information “the invoice issued by customer”, if the customer, who is the recipient of good or service, issued the invoice,
the information “reverse charge”, when the person liable for payment of tax is the person to whom the goods or service were supplied.

The invoice directive, as incorporated in the Act on value added tax effective from 1st January 2013, provides a uniform deadline for issuing of invoices – the invoice has to be issued within 15 days:

from the date of supply of goods or services,
from the date of the received payment prior to the supply of goods or service,
from the end of month, in which was supply of goods exempt from tax pursuant §43,
from the end of month, in which the service was provide or the payment received before the provision of service has been completed with the place of supply in another Member State.

The directive also allows for aggregate invoicing for periods longer than a calendar month.

Act on the restriction on cash payments

According to the approved Act, effective from 1st January 2013, a cash payment with value exceeding 5.000 € is not possible (valid for legal entities and individual businesspeople); between individual non-entrepreneurs payment in cash over 15.000 € is prohibited.

The value of the cash payment, which is divided into several separate payments and these payments arise from a single legal relationship, is the sum of those payments.

Cash payments agreed before the entry into force of this Act, the value of which exceeds the amount limited by the Act, may be made up to 31st March 2013.
Bratislava
Eva Belková
Managing Director
Karadžičova 16
821 08 Bratislava
Slovak Republic
Tel: +421 250 203 302
Email: ebelkova		 Bratislava
Vladimír Bartoš
Head of Accounting Department
Karadžičova 16
821 08 Bratislava
Slovak Republic
Tel: +421 250 203 304
Email: vbartos
Disclaimer: The information contained in this material is general and does not provide a comprehensive analysis of these topics. Despite the fact that we try to ensure the timeliness and accuracy of the information contained in this material, we cannot guarantee that it will still be valid on the date it is read. Therefore users of this information should not base any business or investment decisions on it without first discussing the matter with a professional advisor. Our initial consultation is free.Privacy & Disclaimer Feedback
Baker Tilly Slovakia Accounting s.r.o. and Baker Tilly Slovakia Audit s.r.o. are independent member firms of Baker Tilly International which is the world’s 8th largest accountancy and business advisory network by combined fee income of its independent members. Baker Tilly International member firms specialise in providing accountancy and business advisory services to entrepreneurial, growing businesses and mid-market corporates worldwide.
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Final Vote – Re Linked-In Discussion thread on a name to tie in West Slav Countries

July 26, 2011 2 comments

Second round of the French presidential electi...

It's voting time!

Two months ago I started a discussion on the CEE Professionals Group on Linked-In.

“Help to find a phrase for PL-CZ-SK or coin one if there isn’t one…

Everyone knows what Benelux is, who the PIGS or BRIC countries are, or even what is meant if we say “German Speaking World”, but how would you find an easy way to describe the triangle of countries Poland, Czech Republic and Slovakia? Please remind me or educate me of an existing term I may have overlooked, or failing that let’s put our heads together and coin one.”

Among the 49 comments to date several very interesting options appeared, no less than 21 choices from 16 people – a testimony to the helpfulness and the creativity of the Group. So now is the time to vote on them, which I’ve asked people to do here as there’s no voting there and also people may want to vote without putting their name to the vote.

Hopefully the mods of the Group will see this as fair, as there is a chance for my regulars to know about and join the Group as well as for Group members to see this site and sub to it.

Anyway, here’s the poll and thansk in advance for your vote. I can’t see your IP Address but the machine at polldaddy does so you can only vote the once and be counted. Further attempts are not counted, but enable you to see how the vote is progessing, and when it pans out I’ll put the results into the discussion.

There isn’t a prize for the winner, other than the honour of having thought of the best one, but my heartfelt hanks for all your help in getting to an optimal answer to the problem!

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Should your Company have a pro-forma audit?

January 19, 2011 Leave a comment

Mostrador de um relógio Foto de Jose Goncalves

Tempus fugit - is it time for your proforma audit?

For businesses which have never been audited but which are growing up quickly to meet the audit thresholds in a year or two, you may wish to consider having your first audit done while it is still voluntary to do so, and the results, if less positive than expected, can at least be kept private.

Once your business has exceeded the audit thresholds (very typically in Europe this means for a private company about 50 employees, 5 million Euros turnover and 2.5 million Euros of gross assets, and it means 2 out of those three conditions – we just stated actually the Polish ones verbatim, (with the proviso that they also state a set PLN amount to avoid subjectivity for businesses that are on the cusp), but most countries are not far off that – even the Czech Republic which really needs much smaller thresholds)

Clearly this doesn’t apply at all to public limited companies, ie. the “S.A.”, “a.s.”, UK plc or German AG style companies which must be audited regardless of size – in some jurisdictions even if they are dormant – but for private limited liability companies most jurisdictions have size criteria like the ones just given – for Slovakia about 60% of the sizes given, so please note that this is divergent from the Czech ones, which are far too high for that country and result in proportionally fewer audits, which is a bad thing for corporate governance in that country.

While you are under the limits audit is voluntary. And you can have an unofficial audit whereby the audit comes and does for you all the normal work he would do if officially appointed, but it is only pro-forma. “Pro-forma” is Latin for something like the idea of “as if” so the auditor will work and report as if they had been properly appointed, but it is really a dry run for you. You do not appoint them as statutory auditors in the minuted general meeting, you do not have to file the report as the audit was voluntary, and you get all the benefit of the audit without the risk, and on top of all of that, I can get you these pro-forma audits for only 75% of the cost of a statutory audit, because the Firms we associate with want to promote good voluntary governance practice in the economy.

If you wait for your first audit until it is an obligatory one because you’ve outgrown the size criteria – and as we come out of the recession that will happen to some of you next year hopefully sooner than you dare hope for now – then if the auditor finds something wrong then the report of the auditor could be “modified” – I’ll do a separate article on what sorts of “modifications” exist and what they mean in accountancy speak, but it’s not good if you get one.

It will not help if you need a loan, and it will probably trigger a lot of interest on the part of the tax inspector. But you’ll have to publish it anyway, if there isn’t time to do the remedial work a good auditor should outline to you in time for your statutory deadline.

Now auditors get cajoled, encouraged in a friendly way or even outright threatened by desparate managers and owners to overlook things or change to an opinion that doesn’t match the facts, and there is nothing that can be done in those circumstances. Auditors are not generally anywhere near as afraid of their client as they are of their regulator, but more than that we are educated throughout our professional lives to be independent in our outlook, and so the only way to get out of some modified opinions is to do the remedial work the auditor recommends or make the adjustments that they recommend.

There’s no point in changing to another auditor you think will be more pliable – they must write to the old auditor and ask if there are any reasons why they cannot act. The best thing to do, if you are not sure how well your company will stand up to an audit is to have your first one a year or so before you need to. Then if the audit shows up a lot to be desired, you have a whole year to put it right and nobody will ever know because auditors are bound by confidentiality – it isn’t us who even publish our reports, it’s the responsibility of the client. The report is given to its addressee, which is always the shareholder, and some other corporate governance boards if they are in existence.

So it’s well worth thinking about, especially if your business has been growing fast and maybe has outgrown its systems.

Let us know if we can help.

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