Inheritance tax, gift tax and real estate tax

The Parliament approved an amendment to the Act No. 318/1992 Coll. on inheritance tax, gift tax and real estate tax.

Under the amendment, individuals who acquire the legal possession of a flat originally owned by their employer are exempt from these taxes.

Health Insurance Act

The Parliament approved an amendment to the Health Insurance Act No. 273/1994 Coll. that strengthens the powers of state administration in relation to health insurance companies.

Under the amendment, the amount of basic capital necessary for a health insurance company incorporation is increased from current Sk 30 m to Sk 60 m. Both mergers and splits of insurance companies are possible only with the prior consent of the Ministry of Finance.

Moreover, for health insurance companies there is an obligation to inspect the efficiency of drug prescription in health institutions.

Minimum subsistence level

Under an amendment to the Minimum Subsistence Act, the minimum will increase up to Sk 3,000 for an adult and Sk 1,355 for a dependent child, per month.

The amendment will bring the minimum up to the level of minimum wage (Sk 3,000 at present).

The amendment also stipulates which types of income are/are not to be included into the base for the minimum computation, sets limits on the entitlement to social security benefits and determines the methods of the minimum adjustment.

The amendment is expected to enter into effect from 1 July 1998.

Pensions and sick-pay

The Parliament approved the act on pension and sick-pay increases with effect from 1 July 1998.

Under the new law, pensions will increase by 8% and the maximum average daily net wage will rise from Sk 300 to Sk 350 for the purposes of sick-pay determination.

Civil Aviation Act

Under the new Civil Aviation Act approved by the Parliament, air-tickets sale is excluded from the trade licensing act. Travel agencies will have to ask the Ministry of Transport, Post and Telecommunications for a special license to sell air tickets.

Travel agencies with clients abroad are under an obligation to insure themselves against bankruptcy effecting their clients.

Slovak Chamber of the Self-Employed

The Parliament passed the Act on the Incorporation of the Slovak Chamber of the Self-Employed with its seat in Zilina with effect from 1 July 1998. Membership in the Chamber is voluntary. The Chamber may be joined by individuals holding trade licenses and, under specified conditions, also by legal entities and individuals not possessing these licenses.

The Chamber aims to protect and back common interests of its members, support proper and qualified operation of their businesses, organise technical training and provide consultancy services related to trade licensing issues.

The information in this newsletter is correct to the best of our knowledge and belief at the time of going to press. Specific advice should be sought, however, before investment and other decisions are made.

For further information contact Mr Frank Walsh on +421 7 5340 545 Email directly on Click Contact Link