First Year of the Tax Reform, or 19 Percent at Work

The tax reform is one of the foremost topics discussed both within the country and abroad. The following analysis surveys initial results. Although the overall outcome cannot be evaluated for several years to come given the expected long-term benefits, we can already say unequivocally that the change has been favorable rather than unfavorable in the short term, too. The budget target for tax revenue has been met, the impact on citizens has been largely favorable, and the interest of investors in Slovakia has grown. Understandably, no tax system is ideal, but we can say that, despite minor blemishes, the Slovak system has become an inspiration to many countries. We have identified several areas in which we believe the tax and social contributions of Slovakia may yet be improved. Therefore, by way of a conclusion we suggest several specific measures, as well as systemic changes.