Parliament of the Slovak Republic approved amendments to Act no. 235/2012 Coll. on the Special Levy on carrying out business in regulated areas. The original version of Act was effective from 1 st September 2012 and required a regulated person, including insurance and reinsurance companies regulated by the National Bank of Slovakia, to pay the Special Levy. For the avoidance of doubt, these changes are unrelated to the amendments to the Act on Insurance (Act No. 39/2015 of 3rd February 2015) that include the proposed introduction of an 8% contribution from non-life insurance premiums.

Amendments to Act were approved on 23 rd November 2016 and shall be effective from 31 st December 2016. The rate of the Special Levy shall double from current 0.00363 (0.363% per month) to 0.00726 (0.726% per month) in 2017. Furthermore, the rate shall decrease to 0.00545 from 1 st January 2019 for the levy period (i.e. calendar month) within the accounting period starting after 31 st December 2018. Moreover, the rate shall decrease to 0.00363 with effect from 1 st January 2021 which should apply to levy period beginning after 31 st December 2020.

By way of background, the Special Levy is payable by a legal entity or branch of a foreign entity with establishment in Slovakia, which is authorised to carry out business in a regulated area in Slovakia and expects that income of its activity in the regulated area will reach at least 50% of total income in the accounting period. The obligation to pay the Special Levy shall arise with the levy base of EUR 3,000,000 per annum.

With regard to 8% non-life insurance levy, a review of relevant sources of information are carried out on a daily basis and we are currently not aware of the amended legislation that has been published and signed off by president.

If you have any questions please contact Ladislav Hanak at Ladislav.Hanak@fiscalreps.com.