Deduction from income tax of legal entities

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Financing instrument
Name of the instrument in English
Deduction from income tax of legal entities
Country
Slovakia
Type of instrument
Tax incentives
Level of operation
National
Part of the country where the instrument applies

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Region(s) in which the instrument applies

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Sector(s) in which the instrument applies

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Act 595/2003 as amended by later Acts

Objective(s) and target(s)

To promote and implement VET-supporting measures; better prepare learners for future employment and mitigate skill shortages in the labour market.

Year of introduction
2003
Year of termination
No foreseen end to the instrument (on-going)
Governance (management, operation, monitoring and evaluation)

The Ministry of Finance is responsible for the overall management of the instrument. The Financial Office is responsible for the monitoring/evaluation of the instrument and day-to-day operation.

Eligible group(s)

All companies

Education and training eligible

The instrument supports apprenticeship and other types of education and training. It applies to EQF 3-4 levels.

Source of financing and collection mechanism

State (loss of tax revenue)

Financing formula and allocation mechanisms

The maximum amount that a company may deduct is:
- EUR 3,200 if more than 400 hours of practical training provided per one learner
- EUR 1,600 if more than 200 hours of practical training provided per one learner.
 

Eligible costs

Any apprenticeship related costs

Volumes of funding

Based on the number of learners in dual education system for 2015 and 2016 multiplied by the legally stipulated 3,200 EUR maximum deductible amount per learner, it may be estimated that public funding (loss of tax revenue) amounted to EUR 3,587,200 in 2016 and EUR 1,702,400 in 2015.

Beneficiaries/take up

In 2016, 142 companies benefited. The same number of companies benefited in 2015.

Monitoring/evaluation reports available

System of Dual Education project, http://www.dualnysystem.sk/

Monitoring/evaluation results

na. At the time of this research, post-piloting phase was on-going.

Sources

Ministry of Finance,
http://www.finance.gov.sk

Financial Office,
https://www.financnasprava.sk/sk/financna-sprava

More on this instrument (in relation to adult learning)

Tax allowance for training and re-qualification of employees, and own training facilities
Slovakia
Tax incentive for companies

Related apprenticeship schemes

Dual education and training
Slovakia
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