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In the current issue of Tax & Legal news we would like to draw your attention to the following highlights:
Assessing the functions and risks of a company in the light of recent case law
Recently, the administrative courts as well as the Supreme Administrative Court of the Slovak Republic have issued several judgments dealing with the assessment of transfer pricing of the manufacturing companies. These judgments bring new insights into the way in which the taxpayer´s functions and risks within the group are assessed.
Financial Transactions Tax Act was published in the Collection of Laws
On 25 October 2024, Act on financial transactions tax was published in the Collection of Laws, which is supposed to be one of the tools for the consolidation of public finances. Since the expert discussion could only take place during and after the approval of the act in the National Council, several areas remain unanswered, and in particular, the question whether it will be necessary to amend this act before it enters into force.
Establishment of new company with the aim to maintain the benefit of the status of small enterprise constitutes an abusive practice
The Court of Justice of the EU (CJEU) released judgement C‑171/23 UP CAFFE which is dealing with the question, whether establishment of new company with the aim to maintain the benefit of the status of small enterprise in respect of an activity previously carried out, under that status, by another company, constitutes an abusive practice.
European Union updates list of non-cooperative jurisdictions for tax purposes
The Council of the European Union approves a revised list of non-cooperative jurisdictions for tax purposes. Following the meeting, one country was removed from the blacklist. At the same time, no other countries were added to the list.
One sentence summary | October 2024
- As of 1 January 2025, the monthly minimum wage and the hourly wage will change according to the number of hours worked.
- Parliament has approved an amendment to the Minimum Wage Act.
- The President ratified the treaty between the Slovak Republic and the Kyrgyz Republic on the avoidance of double taxation.
- On 25 October 2024, the Act on Financial Transaction Tax was published in the Collection of Laws, as well as the Act amending several acts related to improving the state of public finances.
- The European Central Bank decreases interest rates from 23 October 2024.
Did you know?
Did you know that you can interrupt the tax depreciation?
In certain cases, the taxpayer is obliged to interrupt the tax depreciation. However, did you know that the Slovak Income Tax Act also states the interruption of the application of tax depreciation of tangible assets as a voluntary option?
