FiscalReps Meets Slovakian Tax Authority
FiscalReps continues to meet with international tax authorities to further strengthen relationships and ensure that information is always current and applied correctly. The company met with the Financial Administration of the Slovak Republic on 25 May 2017.
The Financial Administration is a local authority and their responsibilities include, but are not limited to, the supervision of compliance with tax and customs legislation and regulation.
The meeting was extremely valuable to both parties enabling an open discussion of many aspects of section 68a of Act no. 39/2015 Coll. on Insurance. Based on knowledge and experience FiscalReps was asked by the Financial Administration to review and propose amendments to the draft Levy return form. FiscalReps is the first tax advisory firm to have been asked by the Financial Administration to comment on the draft return form.
It is expected that insurers will be required to submit the Levy return electronically. Although currently FoS insurers are not required to register for Non-Life Insurance Levy purposes, they should notify the Tax Office. At the time of the meeting the Financial Administration was not aware of any news regarding the Methodical Guidance which should clarify the process and rules around the Non-Life Insurance Levy.
With regard to renewals, the Financial Administration is aware of the initial view that renewals issued after 01 January 2017 that relate to existing insurance contracts which were written before 2017 should not be subject to an 8% Levy. However, our contacts are also aware of a dialogue within the Ministry and it is likely that any renewals that lead to the creation of a new insurance contract would be treated as taxable.
FiscalReps raised several important questions that initially have not been considered by the Ministry of Finance or Financial Administration. We will continue our discussion with the Financial Administration to assist with their on-going dialogue with the Ministry of Finance and Tax Office in order to tighten the rules around the Non-Life Insurance Levy. This should lead to completion of the Methodical Guidance and potentially could result in changes to the legislation which would be introduced in the future.
FiscalReps remains in close contact with the Financial Administration and aims to approach further local authorities, such as the Ministry of Finance and Tax Office, to clarify the rules and process.
If you have any questions please feel free to contact your dedicated Client Team or Client Director, Ladislav Hanak.
t: +44 (0)20 7036 8070