Proposal of measures to decrease negative impacts of COVID-19 on legal entities in Slovakia On Monday, March 16, 2020 Minister of Economy of the SR Peter Žiga, Minister of Finance of the SR Ladislav Kamenický and upcoming Minister of Economy of the SR Richard Sulík discussed with representatives of business associations and representatives of companies measures that could mitigate the impact of COVID-19 on the business environment in Slovakia.The negotiation resulted in a proposal of 13 measures and their final version will be approved by the new government and parliament:Negotiations with banks on the possibility of postponing of loan and mortgage repayments without a negative record for the debtor in the register. Introduce the possibility of freezing interest and principal repayments for both natural persons (employees) and legal entities. Through the Slovak Guarantee and Development Bank (SZRB) simplify short-term and low (or non-) interest-bearing loans to enterprises in selected sectors to bridge over the emergency period.Allocation of funding for support of investments in private sector, through e.g. Slovak Investment Holding (SIH) and European Investment Bank (EIB) including the introduction of "tax super-depreciation" and accelerated depreciation.Adjustment of the possibility of tax loss utilization.Postponing the submission of tax declaration from 31st March to 30th June 2020 and applying the following measures even if the tax declaration was submitted in due time: Remission of administrative fees for applications for postponed tax paymentPostponing the deadline for payment of taxes for all taxpayersPostponing the period for VAT paymentsRemission of penalty for late payments Abolition of social security and health care contributions of self-employed persons for a period of three months (March - April - May) and their subsequent proportional increase over the next 18 months, starting from June 2020.Exemption from social security contributions, health care contributions and income taxes from the wages paid to employees (similar regime as applied to the 13th and 14th salaries).Radical simplification of the conditions for providing the allowance to support the job maintenance (applicable also for SMEs and self-employed), for instance changes of deadline for requesting the allowance - immediate applying, changes of the system of reconciliation of the concerned employees, reduction of the administration related to the allowance, etc.For a limited period of time, funding of the costs of supported technologies of electricity production (Renewable energy sources-OZE, Guidelines for electricity producers from renewable energy sources- VÚKVET, as well as brown coal) from the state budget leading to reduction of the system operation tariff (TPS) and the final price of electricity for natural persons and legal entities.To support the debate at the EU level aimed at introduction of measures to enable the European Structural and Investments Funds (ESIF) of the current funding period to be used to cover the impacts of the crisis and the redevelopment of the economy, for instance the possibility to assign funds for operational financing (interest-free loans with a repayment period of 3-5 years) or the possibility to support business investments across sectors without applying category exceptions and size constraints, etc. Changes of conditions of taking care of a family member (a special kind of sick leave for the parent staying at home with kid resulting in receiving 80% of average salary which is paid by the Social Insurance Agency from day one or a € 600 voucher to cover babysitter services in case the kid has only one parent). Prolongation of the time period to pay the customs debt to 30-40 days. Not to impose fines on companies if they are unable to meet e.g. time conditions of public procurement, as well as to limit the execution of control activities towards businesses and entrepreneurs.
