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Slovak budget
Slovak budget

New Slovak budget for the year 2017

Sep 02 2016

On 20 July 2016, the draft budget for 2017 was agreed upon. Compared with the budget for 2016, liabilities increase by 0.9% and reduction of payments by 7.0%.

The council wants to maintain the particularly high level of support that is provided since 2015 to help the Member States who protect the EU's external borders and fight against organized crime and terrorism.

It is expected that the Council will accept its position in mid-September. The mentioned position will serve as a mandate for Slovakia with the European Parliament about the budget for 2017. The payments cover the expenses arising from commitments, which were included in the budget during the current and previous years, designated for the budget.

Entrepreneurship in Slovakia 2016

Trade license or Ltd? This is how it goes in Slovakia. One of the most important advantages of doing business in form of Ltd is the separation of privacy from the business and the risks which belong to the business. In the year 2016, most entrepreneurs decided for Ltd. When it comes to contributions, the Ltd is elaborated better.

In the case of Ltd, you only pay health insurance (approx. €60 per month). If any other matters concern you, such as injury or retirement, then you must solve it through the private sector. Compare to the trade license, through the Ltd you can save pretty much money. Money, which you otherwise as a trader would spend on the contributions, can be saved in Ltd, if you move them to the private sector and take the responsibility on yourself.

The advantage of Ltd includes the fact, that your business card will have a more trustworthy effect on the people around you. Even more, you don't have liability with your "personal" property. When it comes to trade license, in most cases there is a liability with the property of husband/wife. Furthermore, from 1 January 2016, you don't have to deposit the capital value of €5,000 in the bank account. On the chance of your business plan won't work, Ltd has another plus where such a "useless" Ltd can be sold.

Among the disadvantages of Ltd, we can include the following details. Regardless of the entrepreneur's profit, a minimum tax based on tax license has to be paid. Well, it's an advantage for those who do business for a year since then they are exempt from tax license. Therefore it's recommended to establish Ltd in the middle of the year when this exemption is strongest. The other disadvantages include double-entry bookkeeping and the Ltd establishment is followed by "starter" fee of around €400. On the other hand, if you want to liquidate Ltd, the liquidation of the company ranges from about €600. In the case of the already mentioned sale of Ltd, the entrepreneur can earn thousands of euros.

Sources:
http://www.finance.gov.sk/Default.aspx?CatID=38&id=845
http://podnikam.webnoviny.sk/podnikat-ako-zivnostnik-alebo-s-r-o-porovnanie-pre-rok-2016/

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