Slovakia strongly against harmonised corporate tax

Slovakia has declared its unwillingness to support the plan to harmonise corporate income taxes in the European Union, with finance minister Ivan Miklos saying Slovakia had a big problem with the idea.

photo (c) Tibor Macak, The Daily

Miklos pointed out, however, that if the system were to mirror the system currently in place in Slovakia, then that would be acceptable for the country. Saying that, he is well aware that reaching a compromise that would not negatively impact the Slovak system is unlikely.

The 19% flat-rate system in Slovakia has been acclaimed in other countries as a good model, because by having corporate and income taxes on the same level, this prevents speculations on how to manipulate taxes. It is also regarded as attractive for foreign direct investments.

Slovakia is also demanding that the conditions of the new European Stabilisation Mechanism be made fairer, because now it discriminates against smaller countries. “We are aware of the importance of unity and solidarity within the eurozone and are ready to participate in the European Stability Mechanism” said Miklos, subject to certain changes.

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