According to the proposed Income Taxes Act, it is expected that the taxation of State Bonds will be unified with other bonds (without regard to the issuer) and will be taxed at a rate of 15%. Currently such income is exempt from tax.
The proposal also suggests that income received from state bonds that were purchased prior to the effective date of the Law will also be subject to the new rules.
The retroactive nature of this proposal is the main opposition against the Act both from the National Bank of Slovakia and also from securities traders.
The information in this newsletter is correct to the best of our knowledge and belief at the time of going to press. Specific advice should be sought, however, before investment and other decisions are made.
For further information contact Mr Frank Walsh on +421 7 5340 545 Email directly on frank.walsh@arthurandersen.com.
You may also wish to read through related material on the Slovak Republic provided by Arthur Andersen. You can view the entire archive via the Internet on Business Monitor Online (http://www.businessmonitor.co.uk), or via your online provider by entering "Arthur Andersen" and "Business Monitor" as a free text search.
