1. Changes in percentage designation in Slovakia
Past, present and future
Milan Andrejkovič

2. Changes in percentage designation in Slovakia
Percentage designation is in Income tax law
No special law
Pros and cons of insertion into Income tax law
Income tax law is „open“ each year –
possible frequent changes

3. Changes in percentage designation in Slovakia
Eligible „donors“ – individuals and corporates
Changes in % value – 1%, 1,5%; 2%, 3%
Minimum and maximum designated amount
Eligible purposes
Eligible beneficiaries
Way of designation
Sanctions
Anonymity
Transfering of amounts
Duties – special bank account, audit, Commercial bulletin...

4. 1. Eligible „donors“ – individuals and corporates
At the beginning in – only INDIVIDUALS could designate Starting COMPANIES are allowed to designate as well

5. 2. Changes in % value – 1%, 1,5%; 2%, 3%
Started with 1% from individuals
Increase from 1% to 2%
Possible 3% from individuals (2011- Law on volunterism)
In case of at least 40 hours of voluntary work per year
Matching principle from companies
In order to designate more, companies are required to give a gift

6. 3. Minimum and maximum designated amount
Started with minimum:
20 SKK (0,66€) from individuals
250 SKK (8,3€) from companies
No maximum limit

7. Minimum and maximum designated amount
Increased the minimum:
3€ from individuals
8€ from companies
No maximum limit

8. Minimum and maximum designated amount
Government´s efforts to limit the maximum:
from companies – different proposals
Skk – Skk max from company
(16.666€ €)
for 1 beneficiary
Maximum cap

9. 4. Eligible purposes
There is no single, legislative definition of Public benefit purposes in Slovakia.
Changes, extensions, specifications:
Started with 6 purposes
Now 9 purposes
Specifications:
f.e. – support of sport – support of psychical activities

10. 5. Eligible beneficiaries
Legal forms:
NGOs
Slovak Red Cross
Organizations of churches -
4. Research and development organizations
5. Special funds (Anti-drug fund, ...)

11. Way of designation
Started with special document called „Vyhlasenie – Declaration“ Part of Tax declaration

12. Sanctions
Beneficiaries getting more than specific amount are obliged to publish in Commercial Bulletin how they spent the money from designation. If they failed to report, the sanction was exclusion from the eligibility of getting designation for 3 years Change: only for 1 year

13. Anonymity Beneficiaries had no information about the supporters
Starting 2016, supporters can agree to send informations about themselves to beneficiaries:
Individuals: Name, address
Companies: Name, address, legal form
But NO FINANCIAL INFO

14. Transfering of amounts
Tax offices used to transfer individual amounts.
expensive for both tax offices and beneficiaries
Tax offices send the money in bulk

15. Duties – special bank account, audit,...
Beneficiaries getting more than specific amount are obliged to open new bank account and to transfer the money from designation there.
Interest gained has to be spent for the same purposes as the origin amount.
Beneficiaries getting more than specific amount are obliged to have a financial audit
Beneficiaries getting more than specific amount are obliged to publish the spending in Commercial Bulletin

16. Future changes
New information system called: „Open information system of NGOs“
Registration process
Anonymity
Sanctions