Amendments to Lex Corona

The first amendment addresses the inclusion of COVID-related state aid in the threshold income amount for the application of the tax bonus and tax deductibility of expenses for COVID-19 testing. 

Tax Deductibility of Expenses for COVID-19 Testing

Expenses for testing employees, self-employed persons and close persons living with them in the same household are tax deductible. Expenses for testing natural persons who perform activities for a taxable person at the place of their business are also tax deductible. They are persons who, with regard to testing, are present on the taxable person’s business premises and follow the instructions of the business operator according to their assignments and orders. Such persons also include employees of cooperating companies who perform their work physically at the workplaces of the entities ordering services, such as employees of external companies who perform they work by providing services in logistics, servicing or cleaning activities.

The provision on the tax deductibility of expenses applies retroactively and thus applies to the entire period of the pandemic from 12 March 2020. In the event of testing employees and their close persons, such provided non-monetary performance is not subject to employee tax during the pandemic period. If the employer has already made an annual reconciliation for 2020, or issued a certificate of taxable income for 2020, the employer may prepare an amended annual reconciliation of prepayments of income tax from dependent activities, or issue an amended certificate of taxable income for 2020.

Inclusion of COVID-related State Aid in the Threshold Income Amount for the Application of the Tax Bonus

State aid in the form of pandemic sickness or nursing benefits, allowances under pandemic measures via active labour market measures, and subsidies for cultural workers, which are exempt from income tax, will be included in the statutory taxable income threshold amount (six times the minimum wage, ie 6 x EUR 580 = EUR 3,480) when determining entitlement to a child tax bonus. If the employer has already made an annual reconciliation for 2020, the employer may prepare an amended annual reconciliation of prepayments of income tax from dependent activities.

Zero VAT Rate on FFP2 and FFP3 Respirators

The second amendment to the Act introduces a zero VAT rate on FFP2 and FFP3 respirators. The amendment aims to ensure better affordability of effective protection of the population against COVID-19. The measure is valid from 12 February 2021 (announcement date) until 30 June 2021 (extended via an amendment to Lex Corona dated 30 March 2021 – Act No. 115/2021 Coll.).  

Date: 10 May 2021

SLOVAK VERSION