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Local authorities will receive this year's share of corporate tax by the end of April

Last update: 28.03.2023 15:00

The Ministry of Finance of the Slovak Republic is fully aware of the difficult situation in which local authorities find themselves due to the negative impact of the energy crisis. Last year, the Ministry of Finance, as well as for households and entrepreneurs, allocated financial resources to cap energy prices for all cities, municipalities and higher territorial units. Today, the government is coming up with another support measure for local authorities. Local authorities will receive the approved corporate tax funding all at once, rather than gradually on a monthly basis, so that they are able to cope with the impact of the crisis.

To this day, financial resources have been earmarked for local authorities to compensate for the rise in energy prices in the estimated amount of EUR 200 million through the compensation schemes of the Ministry of Economy. They will also be compensated in 2023 by an increase in the tax bonus, through a direct increase in income from share taxes (both natural persons and legal entities) in the amount of 325 million euros. The total amount of compensation for the local authority today thus amounts to more than EUR 525 million.

Today, moreover, the Government of the Slovak Republic, on the basis of a joint agreement with the local authorities, has decided to proceed to another helpful measure, which will contribute to bridging this financially difficult period. As municipalities, higher territorial units and organisations established by them are obliged to pay increased amounts of utility bills during this period and the state budget assistance from the Ministry of Economy's schemes is accruing gradually, as well as the amount of corporate income tax resources, the government has therefore decided to provide all the remaining corporate income tax funding they have been promised at once. Thus, municipalities and higher territorial units will be granted the full amount of corporate income tax determined by law for 2023 by the end of April, after deduction of the monthly instalments already provided.

Thus, an amount of EUR 171 million will be granted to municipalities and EUR 73 million to higher territorial units. Once the state budget funds are made available, the local authority will reimburse these amounts with the invoices paid from income tax resources and will be able to use them to carry out its tasks.
This measure has no impact on the state budget. 

Press Department
Ministry of Finance of the SR