Consolidation will introduce a stronger solidarity mechanism for legal entities

The Government of the Slovak Republic, after careful consideration of all aspects of the issue of above-average profits of corporate entities and their impact on public finances, decided to adjust the solidarity mechanism for legal entities, more precisely - to introduce a special levy for energy companies. The Ministry of Economy of the Slovak Republic proposed to exclude this levy from the consolidation measures. However, this decision will have to be compensated by another measure, based on the request of the Ministry of Finance (MOF) of the Slovak Republic. In this case, through an additional adjustment of the corporate income tax rate and changes in the payment of dividends from the energy sector.

The Ministry of Economy of the Slovak Republic emphasised that the introduction of a sectoral tax could cause complications, especially in relation to the competitiveness of our energy companies and their investment activities. This agreement between the Ministry of Economy of the Slovak Republic and the Ministry of Finance of the Slovak Republic also guarantees that the memorandum with the Slovak power plants will not need to be opened and that the power plants will continue to be able to guarantee electricity prices for households.

Energy companies, especially Slovak Electric, will continue to be the largest taxpayers, ensuring their contribution to supporting public services and strengthening solidarity in our society. The corporate tax rate, even after the increase, remains competitive compared to larger EU economies such as Germany, France, Italy and Spain.

The Ministry of Economy of the Slovak Republic believes that the new solidarity mechanism will contribute to the stabilisation of public finances and strengthen the economic cohesion of the country, while creating space for further development and investment in the Slovak economy.

Press department MH SR