Peter Varga lectured at the Slovak Chamber of Tax Advisors for tax advisors and the general public on the topic of Patent Box

Slovakia has become a tax haven for IT development companies. In addition to the super deduction(more information), the state has relatively recently implemented in our Income Tax Act also the institute of the so-called. Patent Box(more information).

Patent Box was one of the topics at the recent methodical days of the Slovak Chamber of Tax Advisors, where Peter Varga was also a co-presenter. Alongside the VAT in the Crypt lecture(more information), the Patent Box is one of the main topics we regularly cover at Highgate Group.

The lecture was also attended by a representative of the Ministry of Finance of the Slovak Republic, with whom a very interesting and stimulating discussion took place. For example, we looked at the position of freelancers in the R&D process. Indeed, after a more thorough legal, tax and accounting analysis, it is possible to conclude that in certain circumstances it is not necessary to have only employees.

In addition, we looked at the technical evaluation or requirements for the qualitative level of R&D activities.

A lot of interesting and especially practical topics. So we are very pleased that the Highgate Group can be instrumental in shaping the interpretations for the Patent Box application.

A year ago, Peter Varga managed to convince a successful SK IT company to relocate from offshore to Slovakia. One of the main reasons was the so-called. Patent Box (i.e. taxation of profits at 10.5% tax rate). Further, if the Patent Box is combined with supertaxation, a successful (not just IT) company may not have to pay taxes for a decade. But why do some still want to leave Slovakia?

We deal with clients in the context of legal and tax advice for a variety of reasons. From the need to diversify legal and practical risks, to the lack of corporate institutes such as carried interest, redeemable cumulative preference shares or share redemption, to PR/investor reasons. If the state aims to incentivise entrepreneurs not to go abroad with their businesses, the Patent Box is certainly a very important incentive element in the complex puzzle.

If you are interested in this topic, please do not hesitate to contact us.