The changes are not fundamental but can significantly reduce the administrative burden on entrepreneurs.
The law, which includes more than a hundred amendments and is colloquially known in Slovak as “podnikateľské kilečko”, brings various innovations in a number of business areas.
Within the framework of business law, the circle of entrepreneurial subjects which have to have their annual financial statements audited, is significantly narrowed. The limit criteria for this audit requirement will be gradually increased, and from 2023 only companies with a net annual turnover of more than EUR 8 million (now EUR 4 million), more than 50 employees (now 30) and assets of more than EUR 4 million (now EUR 2 million) will have to be audited.
Another change concerns corporate law and is also related to auditing. The procedure for increasing capital in the most common form of company, the limited liability company, will be modified. In the case of a nominal increase in the share capital of a limited liability company, i.e. an increase from equity, an audit of the annual financial statements is no longer required. However, the increase in share capital must be made from profit carried forward by the company and may not exceed the value of the share capital prior to the increase. We recommend that you consult a lawyer when increasing the share capital.
The changes also affect many other areas. In the tax and social area, for example, the increase in the limit for claiming fuel expenses as tax expenses, the abolition of double reporting obligations to the Social Insurance Company, or the abolition of the reporting obligation regarding the classification of selected employees in a risk category and less frequent assessment of their health condition are newly regulated.
Entrepreneurs who have businesses no longer have to keep their complaints regulations in a visible place or make the sample cash register receipt available at every point of sale.
We view as positive the lifting of the constitutionally controversial immediate maturity of monetary fines (in millions of Euro) for food traders, which often led to liquidation, and restoration of the original situation, where the maturity of the sanction is postponed by the filing of an appeal.
Meanwhile, the government has announced work on a second package of measures to improve the business environment, which it intends to present as early as the fall.
Source: Act No. 198/2020 Coll.