Act No. 548 Coll.,

as of 21 December 2010,

which amends Act No. 595/2003 Coll. on income tax as amended and which amends certain acts 

     The National Council of the Slovak Republic has adopted the following Act:

Article I

     Act No. 595/2003 Coll. on income tax as amended by Act No. 43/2004 Coll., Act No. 177/2004 Coll., Act No. 191/2004 Coll., Act No. 391/2004 Coll., Act No. 538/2004 Coll., Act No. 539/2004 Coll., Act No. 659/2004 Coll., Act No. 68/2005 Coll., Act No. 314/2005 Coll., Act No. 534/2005 Coll., Act No. 660/2005 Coll., Act No. 688/2006 Coll., Act No. 76/2007 Coll., Act No. 209/2007 Coll., Act No. 519/2007 Coll., Act No. 530/2007 Coll., Act No. 561/2007 Coll., Act No. 621/2007 Coll., Act No. 653/2007 Coll., Act No. 168/2008 Coll., Act No. 465/2008 Coll., Act No. 514/2008 Coll., Act No. 563/2008 Coll., Act No. 567/2008 Coll., Act No. 60/2009 Coll., Act No. 184/2009 Coll., Act No. 185/2009 Coll., Act No. 504/2009 Coll., Act No. 563/2009 Coll. and Act No. 374/2010 Coll. is hereby amended as follows:

1.	In Section 1 subsection 1c) is added and reads as follows:
“c) tax on emission quotas.”.

2.	In Section 2 subsections u) and v) are deleted.

Footnote 2a is deleted.

3.	In Section 4 subsection 5, the words “through d)” are replaced with the words “through c)”.

4.	Section 4 subsection 6 reads as follows:
“(6) Any income, on which the tax withheld as provided in Section 43 subsection 6a) through d) may be deemed a tax advance, shall be included in the tax base, if the taxable party used the option to the deduct the tax withheld as a tax advance pursuant to Section 43 subsection 7.”.
           
5.	In Section 5 subsection 5a), the word “including” is replaced with the words “except for” and the words “up to 40% of meal allowance pursuant to such legislation, 15)” are deleted.

6.	Footnote 16 reads as follows:
“16) Section 18 though 33a of Act No. 283/2002 Coll. as amended.”.

7.	The second sentence in Section 5 subsection 8 is deleted.

Footnotes 23a through 23d are deleted.

8.	Section 5 subsection 9 is deleted.

9.	Footnote 28 reads as follows:
“28) For example, Act No. 7/2005 Coll. on bankruptcy and restructuring and on amendments to certain acts as amended; Section 20 of Act No. 447/2008 Coll. on cash benefits for compensation of severe disabilities and on amendments to certain acts.”.

10.	The following words in the first sentence of Section 6 subsection 10 are deleted “expect for taxable party who has income exclusively engaged in crafts defined by special legislation, 33) and who is allowed to deduct lump-sum expenses equal to 60%.” 

Footnote 33 is deleted.

11.	In Section 6, new subsection 16 is inserted after subsection 15 and reads as follows:
 “(16) If the taxable party deducts demonstrated tax expenses in the tax return filed for the relevant tax period, that taxable party may not reclassify, after the expiry of the period for the filing of the tax return for that tax period, such tax expenses into expenses deducted in a manner as provided in subsection 10. If the taxable party deducts tax expenses in the tax return filed for the relevant tax period in a manner as provided in subsection 10, that taxable party may not reclassify, after the expiry of the period for the filing of the tax return for that tax period, such tax expenses into demonstrated tax expenses.”. 

Existing subsection 16 is renumbered to subsection 17.

12.	Section 7 subsection 5 is deleted.

Existing subsections 6 and 7 are renumbered to subsections 5 and 6.

13.	In Section 7 subsection 6, the words “subsection 6” are replaced with the words “subsection 5”. 

14.	In Section 8 subsection 2a), the words “(a) through (e) and j)” are replaced with the words “(a) through (d) and i)”.

15.	Section 9 subsection 1a) is deleted.

The existing subsections b) through k) are renamed to a) through j).

16.	In Section 9 subsection 1a), the words “under a) or c)” are replaced with the words “under b)”.

17.	In Section 9 subsection 1b), the words “except for real estate that is exempt from tax under a)” are deleted.

18.	In Section 9 subsection 1f), the following words are inserted at the end: “and similar payments provided from abroad”.

19.	Footnote 39 reads as follows:
“39) For example, Act No. 36/2005 Coll. on the family and on amendments to certain acts as amended; Act No. 201/2008 Coll. on substitute maintenance payment and on amendments to Act No. 36/2005 Coll. on the family and on amendments to certain acts in the wording of finding of the Constitutional Court of the Slovak Republic No. 615/2006 Coll. as amended by Act No. 554/2008 Coll.”.

20.	Section 9 subsection 1g) reads as follows:
“g) pursuant to Section 6 subsection 3 and Section 8 subsection 1a), if the aggregate amount of such income does not exceed EUR 500 in the tax period; if the income so specified exceeds EUR 500, the tax base shall only include the income in excess of the amount established in this manner; expenses to the income included in the tax base shall be determined using the same ratio as is that of the income included in the tax base to the total income;”.

21.	Section 9 subsection 1i) reads as follows:
“i) pursuant to Section 8 subsection 1d) through f), if the aggregate amount of such income less any expense under Section 8 subsection 5 and 7 does no exceed EUR 500 in the tax period; if the difference between the aggregate income and aggregate expense exceeds EUR 500, the tax base shall only include the difference above the amount established in this manner; if the taxable party also earned income pursuant to Section 6 subsection 3 and Section 8 subsection 1a) at the same time, the exemption from tax under letter g) and under this letter shall be applied, however, only up to the aggregate amount of EUR 500;”.

22.	In Section 9 subsection 2b), the words “and compensation for nursing,42)” are deleted.

23.	Footnotes 42 through 44 read as follows:
“42) Act No. 447/2008 Coll.
Act No. 448/2008 Coll. on social services and on amendments to Act No. 455/1991 Coll. on licensed trade (the Trades Act) as amended, as amended.
43) For example Act No. 235/1998 on childbirth bonus and bonus to parents who have three or more children born at the same time or twins more than once in two years, amending certain acts, as amended; Act No. 238/1998 Coll. on funeral allowance as amended; Act No. 600/2003 Coll. on child benefit and on amendments to Act No. 461/2003 Coll. on social insurance as amended; Act No. 627/2005 Coll. on allowances to support substitute child care as amended; Act No. 571/2009 Coll. on parental allowance and on amendments to certain acts. 
44) For example, Act No. 98/1987 Coll. on special allowance for miners as amended; Act No. 305/2005 Coll. on social and legal protection of children and social custody and on amendments to certain acts as amended.”.

24.	In the introductory sentence in Section 9 subsection 2i), the words “payments provided to remedy or mitigate the consequences of an emergency situation, 50a)” are inserted after the words “indemnities received,”. 

Footnote 50a reads as follows:
“50a) Section 3 subsection 2 of Act of the National Council of the Slovak Republic No. 42/1994 Coll. as amended.”.

25.	In Section 9 subsection 2v), the words “legislation. 59)” are replaced with the words “legislation. 59d)”.

26.	In Section 9 subsections 2w) and 2x) are added and read as follows:
“w) income of persons acting for the Police Force, paid to such persons from special funds used by the Police Force for the payment of costs related to the performance of operative and investigative activities, to the performance of criminal intelligence operations,  deployment of agents and witness protection;59e)
x) revenues (income) of a mandatory participant in a trading scheme 59f), who performs activities pursuant to special legislation 59g), from the sale of emission quotas assigned  and registered free-of-charge in years 2011 and 2012 pursuant to special legislation. 59h)”.

Footnotes 59e through 59h read as follows:
“50a) Sections 38a, 39, 39c and 41 of Act of the National Council of the Slovak Republic No. 171/1993 Coll. on the Police Force as amended.
59f) Section 2(g) of Act No. 572/2004 Coll. on the trading in emission quotas and on amendments to certain acts.
59g) Annex 1 table A of Act No. 572/2004 Coll.
59h) Section 9(8) of Act No. 572/2004 Coll. as amended by Act No. 117/2007 Coll.”.

27.	In Section 9 subsection 3, the words “subsection 1 b), or c) above” are replaced with the words “subsection a), or b) above”. 

28.	In Section 9 subsection 4, the words “subsection 1a) through c)” are replaced with the words “subsection 1a) and b)” and the words “subsection 1i)” are replaced with the words “subsection 1h)”.
        
29.	Section 11 subsection 1 reads as follows:
“(1) The tax base (partial tax base) calculated from the income under Section 5 or Section 6 subsection 1 and 2 or the sum of partial tax bases from such income shall be reduced by tax allowances referred to in subsections 2 and 3.”. 

30.	In Section 11 subsection 2a), the words “the applicable subsistence minimum” are replaced with the words “the subsistence minimum 39a) applicable at 1 January of the relevant tax period (hereinafter referred to as the “applicable subsistence minimum”)”.  

31.	In Section 11, subsections 4 and subsections 9 through 14 are deleted.

The existing subsections 5 through 8 are renumbered to subsections 4 through 7.

32.	In Section 11 subsection 7, the words “the tax allowances referred to in subsections 3 and 4 above” are replaced with the words “the tax allowance referred to in subsection 3 above”.

33.	Section 13 subsections 1a) and 1b) read as follows:
“a) income of taxable parties referred to in Section 12 subsection 3 above, if such income is derived from the activity, for which the taxable parties were established, or which is defined as their core activity by special legislation, except for any income generated by business and any income, the tax on which is withheld as provided in Section 43 below;
  b) income of state-funded organisations from the leasing or sale of assets, which is included in the budget of their founder, except for the income the tax on which is withheld as provided in Section 43 below and except for the income from the leasing or sale of assets included in the budget of the founder if the founder of that state-funded organisation is a municipality or a higher territorial unit;”.    
     
34.	In the introductory sentence of Section 13 subsection 2f), the words “from interest from participation certificates” are replaced with the words “revenues from assets in a mutual fund, 74b) income from participation certificates accrued upon their return (redemption)". 

Footnote 74b reads as follows:
“74b) Section 55 subsection 2 of Act No. 594/2003 Coll. as amended by Act No. 635/2004 Coll.”.

35.	In Section 13, new subsection 2j) is added and reads as follows:
“j) revenues (income) of a mandatory participant in a trading scheme 59f), who performs activities pursuant to special legislation 59g), from the sale of emission quotas assigned and registered free-of-charge in years 2011 and 2012 pursuant to special legislation. 59h)”.

36.	The third item in Section 16 subsection 1e) reads as follows:
	“3. interest and other income from credits and loans and from passbook deposits, deposits on current and savings accounts, revenues from assets in a mutual fund, 74b) income from participation certificates accrued upon their return (redemption), revenues from bonds except for state bonds and state treasury bonds, revenues from certificates of deposit, treasury bonds, deposit letters and other securities of equal ranking, and from derivatives pursuant to special legislation; 76)”.

37.	In Section 16 subsection 1e), the fourth item, the words “real estate or” are deleted and the words “shall also include means of transportation used by” are replaced with the words “shall also include motor vehicle and other means of transport referred to in Annex 1 used by”.

38.	The fifth item in Section 16 subsection 1e) is deleted.

The existing items 6 through 9 are renumbered to 5 through 8.

39.	In Section 16 subsection 1e), the fifth item, the words “sale of” are replaced with the words “transfer of”.

40.	In Section 16, new subsection 1f) is added and reads as follows:
“f) from the transfer, lease and other use of real estate located in the territory of the Slovak Republic.”.

41.	Section 17 subsection 3a) reads as follows:
“a) income in respect of which the tax liability is settled upon the withholding of the tax pursuant to Section 43 subsection 6 or in respect of which the taxable party did not use the option to deduct the withholding tax as a tax advance pursuant to Section 43 subsection 7;”.

42.	Section 17 subsection 4 reads as follows:
“(4) The tax base shall also include any income in respect of which the withholding tax pursuant to Section 43 subsection 6a) through d) can be considered a tax advance and the taxable party used the option to deduct the withholding tax as a tax advance pursuant to Section 43 subsection 7. With respect to the taxable party with a limited tax liability pursuant to Section 2 subsection e) indent three that conducts business in the territory of the Slovak Republic through a permanent establishment and the taxable party with an unlimited tax liability pursuant to Section 2 subsection d) indent two, except for an entity not established or founded to conduct business (Section 12 subsection 2), the National Property Fund of the Slovak Republic and the National Bank of Slovakia, the tax base shall also include revenues from debentures and treasury bonds.”.

43.	Section 17c subsection 3c) reads as follows:
“c) shall include goodwill or negative goodwill adjusted pursuant to special legislation 1), up to its full inclusion, however for not more than seven consecutive tax periods, at least in the amount of one seventh a year, starting from the tax period in which a decisive day occurred; 77c) if, during that period
1.	the taxable party is dissolved with liquidation, not later than in the tax period ended by the day preceding the day of that party’s entry into liquidation;80b)
2.	the taxable party is dissolved without liquidation, not later than in the tax period ended by the day preceding the decisive day;80b)
3.	a bankruptcy order has been made against the taxable party, not later than in the tax period ended by the day preceding the effective date of the bankruptcy order 80b); or if
4.	the enterprise is sold, not later than by the effective date of the enterprise transfer agreement 30); or a contribution in kind is made, not later than by the payment date of the contribution in kind. 80c)”.

44.	In Section 17e subsection 2c), the following words are added at the end: “posted in the opening balance sheet of the successor-in-law not adjusted pursuant to special legislation1)”.

45.	In Section 19 subsection 2c) intent six, the word “legislation, 17)” is replaced with the words “legislation 17) except for travel allowances pursuant to special legislation, 15)”.

46.	Section 19 subsection 2d) reads as follows:
 “d) travel allowances up to the amount to which there is an entitlement pursuant to special legislation, 15) and pocket money for a foreign business trip provided pursuant to special legislation, 87a)”. 
  
  Footnote 87a reads as follows:
  “87a) §14 of Act No. 283/2002 Coll.”.

47.	In Section 19 subsection 2e, the comma after the word “travel” is replaced with the word “and”, a semicolon is inserted after the words “in that place” and the words “and with an activity performed abroad also an amount up to 40% of eligible meal allowance pursuant to special legislation; 87)” are deleted.

48.	Section 19 subsection 3j) reads as follows: 
“j) local taxes and local fee pursuant to special legislation 90a) and other fees related to activities generating income liable to the tax;”. 

Footnote 90a reads as follows:
“90a) Section 2 of Act No. 582/2004 Coll. on local taxes and local fee for municipal wastes and minor construction wastes.”.

49.	Indents three and four are added in Section 19 subsection 3k) and read as follows:
“3. if the VAT taxable person is entitled to VAT refund in a Member State of the European Union in which goods and services were delivered to that person or to which it exported goods, if the goods and services, to which the tax applies, are deemed a tax expense in that tax period in which the entitlement to the VAT refund 90b) is posted in a manner laid down in special legislation 1) and if it involves a taxable party using the single-entry bookkeeping system 1) or a taxable party that keeps records pursuant to Section 6 subsection 11 or subsection 14 in that tax period in which it claims the VAT refunds in a manner laid down in special legislation; 90b)
4. if the VAT taxable person is not entitled to the VAT refund in a Member State of the European Union in which goods and services were delivered to that person or to which it exported goods, if the goods and services, to which the tax applies, are deemed a tax expense, on grounds that the amount of the value added tax is below the amount prescribed for VAT refund, in that tax period in which the payment for goods and services was made;”.

Footnote 90b reads as follows:
“90b) Section 55f of Act No. 222/2004 Coll. as amended by Act No. 471/2009 Coll.”.

50.	In Section 19 subsection 3l), the words “special legislation; 35)” are replaced with the words “special legislation 35) and to a supplementary pension saving scheme of the same kind abroad;”.

51.	Footnote 102 reads as follows:
“102) Act No. 129/2010 Coll. on consumer credits and other credits and loans for consumers and on amendments to certain acts.”.

52.	In Section 21, new subsection 2l) is added and reads as follows:
“l) tax on emission quotas.”.

53.	In Section 22 subsection 2d) and in Section 26 subsection 1, the words “in the Annex” are replaced with the words “in Annex 1”.

54.	Section 22 subsection 7 reads as follows:
 “(7) For the purposes of this Act, the intangible assets means long-term intangible assets pursuant to special legislation, 1) whose input value is higher than EUR 2,400 and its useful life or operating and technical functionalities exceed one year, including long-term intangible assets booked by a successor-in-law of the taxable party dissolved without liquidation excluded from goodwill or negative goodwill pursuant to special legislation 1) only where fair values pursuant to Section 17c are applied.”.

      Footnote 110 is deleted.

55.	In Section 22 subsection 8, the following words are added at the end: “with the exception of goodwill or negative goodwill which is included in the tax base pursuant to Section 17a through 17c”.

56.	Footnote 118 reads as follows:
“118) Section 25(6) of Act No. 431/2002 Coll. as amended by Act No. 504/2009 Coll.”.

57.	In Section 32 subsection 2d), the words “or is obligated to increase the tax base on the ground that the conditions for the claiming of tax allowances pursuant to Section 11 subsections 9 through 11 have not been met” are deleted.

58.	Section 32 subsection 3b) reads as follows:
“b) other types of taxable income pursuant to Section 6 through 8, including income taxable pursuant to Section 43, in respect of which the taxable party applies the procedure pursuant to Section 43 subsection 7.”.

59.	In Section 32 subsection 4d) the words “European Communities and their” are replaced with the words “European Union and its”.

60.	The following sentence is inserted at the end of Section 32 subsection 8:
“The person specified in special legislation 122aa) and the person referred to in Section 49 subsection 4 shall also include into the aggregate taxable income from dependent activity of a deceased taxable party, on behalf of whom that person files a tax return, such taxable income from dependent activity which has been paid by the former employer of the deceased taxable party to a person to which the entitlement to that income was transferred. If the income from dependent activity of the deceased taxable party is paid to that person after the filing of a tax return, that person is obligated to file an additional tax return on behalf of the deceased taxable party. In that case, the tax administrator will not apply the procedure under special legislation. 146a)”.

Footnote 122aa reads as follows:
“122aa) Section 35 of the Labour Code.”.

61.	 In Section 32 subsection 11, Section 32a subsection 1a) indent six, Section 36 subsection 6c) and Section 37 subsection 1b), the words “subsection 7” are replaced with the words “subsection 6”.

62.	In Section 32a subsection 1a) indent three, the words “save for the income referred to in Section 43 subsection 3j)” are deleted.

63.	In Section 35 subsection 1b) the words “subsection 3, 4 and 7” are replaced with the words “subsection 3 and 6”.

64.	In Section 35 subsection 7, the words “including tax collected pursuant to Section 43” are deleted.

65.	In Section 37 subsection 1a), the words “and 4” are deleted.

66.	In Section 37 subsection 2, the word “local” is deleted.

67.	In Section 38 subsection 1, the words “referred to in Section 5 subsection 1i) and in Sections 6 through 8, and is not obligated to increase the tax base on the ground that requirements for the claiming of tax allowance under Section 11 subsections 9 through 11 were not met,” are deleted.

68.	Section 38 subsection 4 reads as follows:
“(4) The employer that is a taxpayer 122) shall calculate the tax due and deduct any tax advances previously withheld, tax allowances with respect to the taxable party pursuant to Section 11 subsection 2a) or b), tax allowances with respect to the spouse pursuant to Section 11 subsection 3, tax allowances in respect to the taxable party referred to in Section 11 subsection 6, as well as any employment premium and tax bonus, provided that the employee requests, by February 15 after the expiry of the tax period, to perform the annual clearing and undersigns a statement the form of which is to be specified by the Ministry.”. 

69.	In Section 38 subsection 5, the first sentence reads as follows: The employer that is a taxpayer 1) shall perform the annual clearing pursuant to subsections 1 and 2 above with reference to records concerning the taxable wages (Section 35 subsection 1 above), which it must keep pursuant to this Act (Section 39 below), to documents proving entitlement to tax allowances and to the tax bonus, to certificates of the aggregate income from dependent activities accounted and paid and the related tax advances withheld, to the certificates of the tax due with respect to any taxable income paid in kind, and to the tax bonuses awarded and paid by all the employers that are taxpayers. 122)”.
 
70.	In section 39, the seventh indent of subsection 2f) is deleted.

71.	In Section 39 subsection 4), the words “or the income referred to in Section 43 subsection 3j)” and “or the income referred to in Section 43 subsection 3j)” are deleted.

72.	In Section 39 subsection 9a) the words “and on tax collected pursuant to Section 43,” are deleted.

73.	The following sentence is inserted at the end of Section 41 subsection 1: “Tax returns also need not be filed by taxable parties who only have income pursuant to Section 13 subsection 2a), and income, on which tax is withheld pursuant to Section 43”.

74.	The last sentence in Section 42 subsection 5 reads as follows:
“If in its first tax period the taxable party existed for less than three months, then in the following tax period it shall pay a tax advance in respect of this tax period based on the estimated tax indicated on the tax return.” 

75.	The last sentence in Section 42 subsection 7 reads as follows:
“A taxable party incorporated during the previous tax period as a result of a merger or division and in the event of fusion shall pay the tax advance within the deadline for the filing of tax returns, in a manner and in the amount stipulated by subsection 4b) through d).”

76.	In the first sentence of Section 12 subsection 9, the words “within 30 days” are replaced with “by the end of the calendar month following”.

77.	Section 43 subsection 2 reads as follows:
“(2) Tax on the income originating from sources in the territory of the Slovak Republic, which is earned by taxable parties with limited tax liability, other than any income earned by a permanent establishment of such taxable parties (Section 16 subsection 2), shall be withheld in the case of income specified in Section 16 subsection 1c), d) and e) indent one, two and four, interest and other revenues from credits and loans provided and from derivatives pursuant to special legislation. 76)”.

78.	In Section 43 subsection 3a) the words “pension fund 134a)” are inserted after the words “pension fund 35)”.

Footnote 134a reads as follows:
“134a) Section 47 subsection 1 of Act No. 43/2004 Coll. on old-age pension savings and on amendments to certain acts, as amended by Act No. 747/2004 Coll.”

79.	Section 43 subsection 3b) reads as follows:
“b) revenue from assets in a mutual fund 74b), revenue from participation certificates paid (refunded), revenue from certificates of deposit, deposit letters and treasury bonds, except where the beneficiary of the revenue or income was a mutual fund 66), a supplementary pension fund 35) and a pension fund,134a).”

80.	Section 43 subsection 3g) reads as follows:
“g) the income of a fund of operations, maintenance and repairs 135), i.e.:
1.	income from the lease of joint parts of a house, joint facilities of a house, joint non-residential premises, accessories and adjacent land, including any default interest and penalties received in respect of such lease;
2.	contractual penalties and late payment interest arising from the use of the fund’s resources;
3.	income from the sale of joint non-residential premises, joint parts of a house or joint facilities of a house, unless agreed otherwise by and between the owners of flats and non-residential premises in the house;”

81.	Section 43 subsection 3i) reads as follows:
“i) revenue from debentures and treasury bonds, where they arise to an individual, a taxable party not established or founded to conduct business (Section 12 subsection 2), the National Property Fund of the Slovak Republic, the National Bank of Slovakia, a taxable party with a limited tax liability pursuant to Section 2 letter e) indent three, who does not conduct business in the territory of the Slovak Republic through a permanent establishment.” 

82.	Section 43 subsection 3j) and k) is deleted.

The existing letters l) and m) are renamed to j) and k).

83.	In Section 43 subsection 4, the words “subsection 5 or 9” are replaced with the words “subsection 5, 9 or 10.”

84.	Section 43 subsection 5c) is deleted.

The existing letter d) is renamed to letter c).

85.	In Section 43 subsection 5c) the words “reduced by 40%” are replaced with the words “reduced by expenditure equal to the percentage prescribed for that income pursuant to Section 6 subsection 10.”

86.	Section 43 subsection 6 and 7 reads as follows:
“(6) With respect to income on which tax is withheld, the tax liability of the taxable party shall be regarded as fully settled upon the due withholding of the tax. Withholding tax can be deemed a tax advance, if it was collected on:
a)	income pursuant to Section 16 subsection 1d) in the event of a taxable party with limited tax liability;
b)	income pursuant to Section 16 subsection 1e) indent one, two and four, interest and other revenues from credits and loans provided and from derivatives pursuant to special legislation76) and income from participation certificates paid (refunded) in the event of a taxable party from a Member State of the European Union and a taxable party with limited tax liability in other states comprising the European Economic Area;
c)	income from participation certificates paid (refunded) in the event of a taxable party with unlimited tax liability pursuant to Section 2 letter d), with the exception of a taxable party not established or founded to conduct business (Section 12 subsection 2), the National Property Fund of the Slovak Republic and the National Bank of Slovakia; 
d)	revenue from debentures in the event of a taxable party with limited tax liability pursuant to Section 2 letter e) indent three, who does not conduct business in the territory of the Slovak Republic through a permanent establishment.
(7) If a taxable party pursuant to Section 6 letter a) through d) decides to deem tax withheld from income pursuant to subsection 6a) through d) as a tax advance, it may deduct this advance from the tax in the tax return; if the withholding tax amount exceeds the taxable party’s tax amount calculated in the tax return, the taxable party is entitled to a refund of the tax overpayment126); a partner in a general commercial partnership or a general partner of a limited partnership may also deduct the prorated tax, which was withheld from the general commercial partnership or the limited partnership, applying the ratio, which applies to the distribution of profits among the partners or the general partners under the memorandum of association, otherwise in equal parts; spouses earning income from their tenancy by the entirety, in respect of which withholding tax may be deducted as an advance, may deduct a prorated part of the tax withheld, applying the same ratio as applies to the taxation of the income.” 

87.	In Section 43 subsection 9, the words “participation certificates” are replaced with “assets in a mutual fund 74b)”.

88.	Section 43 subsection 11 reads as follows: 
“(11) The taxpayer 122) shall transfer the withheld tax to the tax administrator by the fifteenth day of each month for the previous calendar month, unless the tax administrator determines otherwise upon request by the taxpayer 122). The taxpayer 122) is also obligated submit to the tax administrator the notification of tax withholding and transfer. The tax shall be withheld from the payment or from the amount credited in favour of the taxable party. Any performances in kind shall also be treated as a payment.” 

89.	Section 43 subsection 13 is deleted.

The existing subsections 14 and 15 are renumbered to subsections 13 and 14.

90.	Section 43 subsection 14 reads as follows:
“(14) In the case of tax on revenue from debentures and treasury bonds pursuant to subsection 3i) arising to an individual, a taxable party not established or founded to conduct business (Section 12 subsection 2), the National Property Fund of the Slovak Republic, the National Bank of Slovakia and a taxable party with limited tax liability pursuant to Section 2 letter e) item three, who does not conduct business in the territory of the Slovak Republic through a permanent establishment, the taxpayer122) is the securities broker holding the clients’ financial instruments and funds which generate the relevant income.”

91.	In Section 45 subsection 3a) the words “European Communities and their” are replaced with the words “European Union and its”.

92.	In the first sentence of Section 45 subsection 4, the words “legal act of the European Community” are replaced with the words “legally binding act of the European Union”.

93.	In Section 46 the words “Section 11 subsection 7” are replaced with “Section 11 subsection 6” and the following sentence is inserted at the end: “Tax is not paid if the payable tax calculated in the tax return does not exceed EUR 3.32.”

94.	Section 50 subsection 15 is inserted and reads as follows:
 “(15) If in the course of a tax audit pursuant to special legislation 82) or an on-the-spot inspection pursuant to special legislation 146ab) the local tax administrator discovers that a taxable party pursuant to subsection 1b) violated the conditions stipulated in subsection 1b) and in Section 52i subsection 2 and 3, it shall decide upon the taxable party to pay an amount equal to the difference between the amount of the paid tax indicated on the statement pursuant to subsection 3 and the amount of the paid tax, which it was entitled to indicate on the statement (hereinafter only the “difference”). An appeal may be filed against this decision. The tax administrator shall impose a penalty interest upon the taxable party in respect of the time period from the day following the date when the portion of the paid tax was credited to the beneficiary until the date when the difference is paid, in the amount of four times the basic interest rate of the European Central Bank applicable at the date of crediting of the percentage of the paid tax; should the quadruple of the basic interest rate of the European Central Bank fail to reach 15%, an annual interest rate of 15% shall be applied to the calculation of the penalty interest instead of the quadruple of the basic interest rate of the European Central Bank. If the taxable party pursuant to subsection 1b) discovers that in its statement it indicated a portion of the paid tax greater than that eligible under subsection 1b) and Section 52i subsection 2 and 3, it shall notify this fact to the tax administrator by the end of the month following after the discovery, indicating the time period to which the discovery pertains, and shall pay the difference by the same deadline, while the tax administrator shall impose a penalty interest upon the taxable party in respect of the time period from the day following the date when the percentage of the paid tax was credited to the beneficiary until the date when the difference is paid, in the amount of double the basic interest rate of the European Central Bank applicable at the date of crediting of the portion of the paid tax; should the double of the basic interest rate of the European Central Bank fail to reach 7.5%, an annual interest rate of 7.5% shall be applied to the calculation of the penalty interest instead of the double of the basic interest rate of the European Central Bank. The penalty interest is calculated for a maximum of four years of delay in the payment of the difference. The penalty interest may not be imposed after the lapse of five years of the end of the year in which the taxable party was to pay the difference.”

Footnote 146ab reads as follows:
“146ab) Section 14 of Act of the Slovak National Council No. 511/1992 Coll. as amended.”

95.	Section 51b is inserted after Section 51 and reads as follows, including the title:

“Section 51b
Tax on emission quotas

		(1) For the purposes of tax on emission quotas
 a) the taxable party is the mandatory trading scheme participant 59f) who performs the activities pursuant to special legislation 59g) or who had been such a participant only for a part of the relevant calendar year;
       b) emission quotas registered are greenhouse gas quotas assigned to and registered in favour of the taxable party free of charge under special legislation 59h) in the relevant calendar year, including emission quotas received from another taxable party due to the purchase of an enterprise or its part, contribution in kind made in the form of an enterprise or its part, fusion, merger or division of companies or cooperatives, which the other taxable party received free of charge pursuant to special legislation 59h) in the relevant calendar year;
       c) emission quotas consumed are greenhouse gas quotas surrendered by the taxable party pursuant to special legislation 146ac) for the relevant calendar year from the emission quotas registered in that calendar year;
       d) emission quotas transferred are greenhouse gas quotas transferred by the taxable party pursuant to special legislation 146ad) in the relevant calendar year from the emission quotas registered in that calendar year, with the exception of emission quotas transferred to another taxable party due to the sale of an enterprise or its part, contribution in kind made in the form of an enterprise or its part, fusion, merger or division of companies or cooperatives;
e) emission quotas unconsumed in the relevant calendar year are emission quotas registered in that calendar year less the emission quotas consumed in that calendar year, less the savings in emission quota consumption due to the taxable party’s investments in technologies aimed at reducing the amount of emissions released into the air, and less emission quotas transferred in that calendar year. Emission quotas that were transferred from the emission quotas registered in the relevant calendar year to another taxable party due to the sale of an enterprise or its part, contribution in kind made in the form of an enterprise or its part, fusion, merger or division of companies or cooperatives, are not considered emission quotas unconsumed.
		(2) The subject of the tax on emission quotas constitutes emission quotas registered in 2011 and 2012.
		(3) The tax base for the tax on emission quotas is determined as the sum of the multiples of emission quotas transferred in the individual calendar months and the average market price of emission quotas in the calendar month preceding the month in which they were transferred, and the multiple of the emission quotas unconsumed and the average market price of emission quotas in the relevant calendar year.
		(4) A taxable entity that is dissolved without liquidation in the course of the calendar year shall calculate the tax base for the tax on emission quotas as the sum of the multiples of emission quotas transferred in the individual calendar months and the average market price of emission quotas in the calendar month preceding the month in which they were transferred.
		(5) The tax rate for the tax on emission quotas represents 80% of the tax base for the tax on emission quotas pursuant to subsection 3 and 4.
		(6) The taxable party shall file a tax return in respect of tax on emission quotas to the relevant local tax administrator within 30 June after the end of the relevant calendar year. The tax on emission quotas is due within the deadline stipulated for the filing of the tax return in respect of tax on emission quotas.
		(7) A taxable entity that is dissolved without liquidation in the course of the calendar year shall file a tax return in respect of the tax on emission quotas for the part of the calendar year ending on a date pursuant to special legislation,77c) within three calendar months as of that date.
		(8) For the year 2011, the taxable party shall pay semi-annual tax advances for the tax on emission quotas in the amount of one half of the estimated tax, namely by 30 June 2011 and by 31 December 2011. It shall calculate the estimated tax by applying the tax rate pursuant to subsection 5 to the amount calculated as a multiple of the average market price of emission quotas in 2010 and the emission quotas registered in 2011 less the emission quotas actually consumed in 2010.
		(9) For the year 2012, the taxable party shall pay semi-annual tax advances for the tax on emission quotas in the amount of one half the tax liability calculated in the tax return in respect of tax on emission quotas filed for 2011, namely by 30 June 2012 and by 31 December 2012.
		(10) If the tax advances for the tax on emission quotas are lower than the tax on emission quotas calculated in the tax return in respect of the tax on emission quotas, the taxable party shall pay the difference within the deadline stipulated for the filing of the tax return pursuant to subsection 6 and 7. If the tax advances paid for the tax on emission quotas are higher than the tax on emission quotas calculated in the tax return in respect of the tax on emission quotas, the difference shall be considered a tax overpayment pursuant to special legislation.126)
		(11) The tax on emission quotas is rounded up to the whole euro.
		(12) The Ministry shall publish the average prices of emission quotas in the individual months and calendar years on its website.
		(13) The administration of the tax on emission quotas is governed by the provisions of special legislation.128)”

      Footnotes 146ac and 146ad read as follows:
      “146ac) Section 13 subsection 1b) of Act No. 572/2004 Coll. as amended by Act No. 117/2007 Coll.
        146ad) Section 12 subsection 1 of Act No. 572/2004 Coll.”

96.	In Section 52a the words “legal acts of the European Communities and” are replaced with the words “legally binding acts of”.

97.	 Section 52j is inserted after Section 52i and reads as follows:

“Section 52j

Transitional provisions to the regulations effective as of January 1, 2011

(1)	 The provision of Section 5 subsection 5a) of the regulation effective as of 1 January 2011 shall apply to business travels abroad, where the employee was sent after 31 December 2010.
(2)	 Exemption of income pursuant to Section 9 subsection 1a), i)  and j) of the regulation in effect until 31 December 2010 shall apply to income generated in the sale of such property acquired until 31 December 2010. In the event of income generated after 31 December 2010 from the sale of an apartment that was obtained prior to 1 January 2004, Section 9 of the regulation in effect until 31 December 2010 shall apply.
(3) In the application of Section 11 subsection 1 through 4 and 9 in the tax period of 2010 and the preceding tax periods, the provisions of the regulation in effect until 31 December 2010 shall apply. 
(4) The provision concerning the failure to comply with conditions pursuant to Section 5 subsection 9 of the regulation in effect until 31 December 2010 shall also apply in the case of failure to comply with the conditions after 31 December 2010.
(5) The provision of Section 17c subsection 3c) of the regulation in effect from 1 January 2011 shall apply to goodwill or negative goodwill booked by a successor-in-law in the case of fusion, merger or division of companies or cooperatives, where the decisive date77c) was after 31 December 2010.
(6) The provision of Section 22 subsection 7 of the regulation in effect from 1 January 2011 shall apply to intangible assets commissioned after 31 December 2010.
(7) The provision of Section 43 of the regulation in effect until 31 December 2010 shall apply in the taxation of income from a dependent activity cleared by 31 December 2010 and paid by 31 January 2011.
       (8) The provisions of Section 9 subsection 2x) and Section 13 subsection 2j) of the regulation in effect from 1 January 2011 shall apply to revenue (income) from the sale of emission quotas assigned and registered free of charge in 2011 and 2012 pursuant to special legislation59h), which a mandatory participant in a trading scheme59f) performing activities pursuant to special legislation59g) generated until 31 December 2012.
      (9) The provisions of Section 51b subsection 1 through 12 of the regulation in effect from 1 January 2011 shall be applied for the last time when submitting the tax return in respect of the tax on emission quotas for 2012.
      (10) The provisions of Section 1 subsection 1c), Section 21 subsection 2l) and Section 51b subsection 13 of the regulation in effect from 1 January 2011 shall apply if the tax liability for the tax on emission quotas arose by the end of 2012.

98.	In Annex 2 the words “legal acts of the European Communities and” are replaced with the words “legally binding acts of”.
 
99.	Indent one and two in Annex 2 read as follows:
“1. Council Directive 2008/7/EC of 12 February 2008 concerning indirect taxes on the raising of capital (OJ L 46, 21.2.2008).
2. Council Directive 2009/133/EC of 19 October 2009 on the common system of taxation applicable to mergers, divisions, partial divisions, transfers of assets and exchanges of shares concerning companies of different Member States and to the transfer of the registered office of an SE or SCE between Member States (codified version) (OJ L 310, 25.11.2009).”.

Article II

     Act No. 283/2002 Coll. on reimbursement of travel expenses as amended by Act No. 530/2004 Coll., Act No.  81/2005 Coll., Act No. 312/2005 Coll., Act No. 348/2007 Coll., Act No. 475/2008 Coll. and Act No. 151/2010 Coll. is amended as follows:

In Section 14, the words “is entitled to” are replaced “may be granted by the employer” and the words “from 5%” are deleted.

Article III

        Act No. 572/2004 Coll. on emission quota trading and on the amendment of certain acts, as amended by Act No. 733/2004 Coll., Act No. 117/2007 Coll., Act No. 515/2008 Coll. and Act No. 136/2010 Coll. is amended as follows:

1. In Section 7, new subsection 8 is inserted after subsection 7 and reads as follows:
	“(8) The register administrator is obligated to keep records for the purposes of tax on emission quotas pursuant to special legislation.4c) The method and the scope of records may be laid down in a generally binding regulation issued by the Ministry.”

Footnote 4c reads as follows:
“4c) Section 51b of Act No. 595/2003 Coll. on income tax as amended by Act No. ....../2010 Coll.”.

The existing subsection 8 is renumbered to subsection 9.

2. Letter c) is inserted in Section 17 subsection 2 and reads as follows:
    “c) for the purposes of tax on emission quotas pursuant to special legislation4c), the method of booking and calculation of greenhouse gas emissions in the operation achieved as a result of the operator’s investments in technologies aimed at reducing the volume of emissions.”

Article IV

  This act shall enter into force on 1 January 2011.

President of the Slovak Republic

Speaker of the National Council of the Slovak Republic

Prime Minister of the Slovak Republic