Favourable taxation for IT companies in Slovakia. Peter Varga commented for TouchIT

Peter Varga gave an interview for TouchIT on the topic of preferential tax regime for developmentally active Slovak IT companies. These are the institutes of super deduction and patent box, which our tax system has known for a relatively short time. However, using both regimes, an IT company may not pay income tax in Slovakia for several years.

The Patent Box exempts from income tax up to 50% of the profits that a taxpayer (e.g. an IT company) makes from royalties for the grant of a right to use or for use:

• an invention protected by a patent or a technical solution protected by a utility model which results from research and development carried out by the taxpayer;
• a computer program that is the result of development by the taxpayer;

The Patent Box also allows taxpayers to benefit from this exemption from income tax if they derive income from the sale of products which are the result of research and development carried out by the taxpayer and which are wholly or partly based on an invention protected by a patent or a technical solution protected by a utility model. Read more about Patent Box and optimization for IT and development companiesin the video by Peter Varga.

The super-deduction for change is a tool by which a taxpayer (e.g. an IT company) can, for an economically unprofitable project (in the research or development phase), claim the costs of that project at least twice as much as the revenue from profitable projects. You can learn more about supercalculus in Super-deduction for research and development or at our conference.

The full interview of Peter Varga for TouchIT can be found here: IT companies and companies that do research can save significantly on taxes.

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