<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The article deals with the integration process of implementation of European Union secondary law into the Slovak tax legislation. In particular, the article analyses whether provisions of (i) EU Parent Subsidiary Directive, (ii) EU Interest and Royalty Directive and (iii) EU Merger Directive are implemented into the Slovak Income Tax Act. Following our research, it should be noted that in general, the Slovak tax legislation has adopted the EU secondary law, in particular, the Parent Subsidiary and Interest and Royalty Directives have been implemented. It should be noted that the profit distributions are not subject to tax in Slovakia. It follows that interest and royalty are not subject to tax and is applicable to EU associated companies. Following the Slovak implementation of EU Merger Directive, merger transactions are generally treated as not giving rise to a capital gain. As a result, according to the Slovak Income Tax Act the income received by shareholders from acquiring new shares and income from exchange of the shares on merger transaction is not subject to income tax.</p></abstract>

The article deals with the integration process of implementation of European Union secondary law into the Slovak tax legislation. In particular, the article analyses whether provisions of (i) EU Parent Subsidiary Directive, (ii) EU Interest and Royalty Directive and (iii) EU Merger Directive are implemented into the Slovak Income Tax Act. Following our research, it should be noted that in general, the Slovak tax legislation has adopted the EU secondary law, in particular, the Parent Subsidiary and Interest and Royalty Directives have been implemented. It should be noted that the profit distributions are not subject to tax in Slovakia. It follows that interest and royalty are not subject to tax and is applicable to EU associated companies. Following the Slovak implementation of EU Merger Directive, merger transactions are generally treated as not giving rise to a capital gain. As a result, according to the Slovak Income Tax Act the income received by shareholders from acquiring new shares and income from exchange of the shares on merger transaction is not subject to income tax.

Slovak Income Tax Legislation in Terms of EU Secondary Law Transposition

Slovak University of Agriculture in Nitra,

EU agrarian Law

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Slovak Income Tax Legislation in Terms of EU Secondary Law Transposition"}

The article deals with the integration process of implementation of European Union secondary law into the Slovak tax legislation. In particular, the article...

Slovak Income Tax Legislation in Terms of EU Secondary Law Transposition

Published Online: Dec 30, 2016

Page range: 33 - 36

DOI: https://doi.org/10.1515/eual-2016-0010

Keywords
dividend payment, interest payment, royalty payment, income tax, merger

© 2016 Renáta Krajčírová, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Slovak Income Tax Legislation in Terms of EU Secondary Law Transposition

Published Online: Dec 30, 2016

Page range: 33 - 36

DOI: https://doi.org/10.1515/eual-2016-0010

Keywordsdividend payment, interest payment, royalty payment, income tax, merger

© 2016 Renáta Krajčírová, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
dividend payment, interest payment, royalty payment, income tax, merger