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CORPORATE LAW
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Energy, Infrastructure
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Awards & Deals


  • Law Firm of the Year 2017, Slovakia

    HKV named as the “highly recommended law firm” in seven categories of the competition Law Firm of the Year 2017: Corporate Law, Competition, Developer Projects and Real Estate, Mergers and Acquisitions, Banking and Finance, Employement and Public Procurement.

  • Legal 500 2017, Slovakia

    Legal 500 guide for the year 2017 identified HKV in five ranking categories: Banking, Finance & Capital Markets; Commercial, Corporate and M&A; Employement; Projects and Energy and Real Estate and Construction.

  • IFLR 1000 2017, Slovakia

    “They have deep knowledge in all areas, provide quick reactions and deliveries and have done a good job recently,” says a client who worked with the firm on project finance.

  • Chambers Europe 2017, Slovakia

    HKV ranked by the Chambers Europe 2017 in the categories Banking & Finance, Corporate/M&A, Employment, Energy, Real Estate and Restructuring/Insolvency.

  • Chambers Europe 2017, Slovakia

    Peter Víglaský is admired by clients and highlighted for his "excellent knowledge of the international environment."

  • Chambers Europe 2017, Slovakia

    Well known as a practitioner who "makes deals happen," Roman Hamalais appreciated by his clients, who say: "He can anticipate future problems and avoid them or provide solutions before we ask."

  • Chambers Europe 2017, Slovakia

    Martin Kluch impresses clients with his "pro-deal" attitude. He is described as "technically very good, very pragmatic and personable. We get clear answers from him. He provides business-oriented advice."

  • IFLR 1000 2017, Slovakia

    The IFLR1000 guide ranked HKV in the categories Energy and Infrastructure and Financial and Corporate for the year 2017.

  • IFLR 1000 2017, Slovakia

    „The approach that we have experienced was client friendly, pro-active and practical,” says a client from the energy industry.


News



Amendment to Income Tax Act


In December 2017, an amendment to Act No. 595/2003 Coll. on Income Tax, as amended and on Act No. 563/2009 Coll. on Tax Administration (the Tax Code) and on the Amendment and Supplement of Certain Acts, as amended was introduced. The Amendment strengthens the level of protection against aggressive tax planning and the rules against the disruption of the tax base resulting from the transfer of profits outside the Slovak Republic.

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With effectiveness as of January 1, 2018 (or, with respect to some of the changes, as of January 1, 2019), through the amendment, the Anti-Tax Avoidance Council Directive (EU) 2016/1164 of July 12, 2016 is transposed into the law of the Slovak Republic and introduces many changes that intend to reduce tax avoidance.

The introduction of “Exit Taxation” is one of the most relevant changes. The aim is to tax the economic value of profits created in the Slovak Republic in cases where a taxpayer transfers its assets, business activities or tax residence abroad. As a result, beginning in January 1, 2018, a tax rate of 21% will be applied. If certain statutory conditions are met, the tax may be paid in instalments.

After the amendment, in the case of non-monetary contributions, mergers or divisions of companies or cooperatives, the “fair value method” will be predominantly applied, while the book value method may only be used in specific cases.

The amendment also affects the taxation of income of legal entities from the sale of shares and ownership interests in companies. As of January 1, 2018, such income is not subject to taxation. The change is applicable to legal entities fulfilling the following statutory conditions: interest in the registered capital in the company of at least 10%, a holding period of the ownership interests or shares of at least 24 consecutive calendar months, the seller carries out essential functions in the Slovak Republic and manages and bears risks related to the ownership of the ownership interests or shares, and has available the personnel and material equipment necessary for performance of such functions.

Last but not least, with effectiveness as of January 1, 2019, new rules for a taxation concerning controlled companies (CFS Rules) will be introduced that should prevent the outflow of profits of Slovak companies to “Controlled Foreign Companies”. A Controlled Foreign Company will be considered a foreign entity which is directly or indirectly controlled by a Slovak company (through more than 50% interest in the voting rights, registered capital or profits) and the amount of a tax paid by such Controlled Foreign Company abroad will be lower than the difference between the tax that would be paid by it in the Slovak Republic and the tax that would be paid by it abroad.

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Changes to the Anti-money Laundering Legislation


There is an initiative to introduce several changes to the anti-money laundering legislation (with proposed effectiveness as of March 1, 2018), by virtue of which customer due diligence requirements are to be modified.

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The Parliament has been debating the Government proposal seeking to transpose the fourth AML Directive (EU) 2015/849 of the European Parliament and of the Council of May 20, 2015. The vast majority of amendments that are proposed to be effective as of March 1, 2018 concern Act No. 297/2008 Coll. on Protection against Laundering the Proceeds of Criminal Activities and on Protection against Terrorist Financing and on the Amendment and Supplement of Certain Acts, as amended. The amendments of other affected acts are proposed to become effective as of July 1, 2018.

The proposal calls for minimum actions that “obliged persons” (such as banks, financial institutions, auditors, accountants and a number of other persons) should take within simplified customer due diligence. Under general customer due diligence, obliged persons would be required to examine the beneficial owners of the client and whether or not the client or beneficial owner is an internationally sanctioned person or politically exposed person. In business relationships with a politically exposed person, the obliged person would be required to conduct enhanced customer due diligence. The proposal also includes the recommendation that the definition of politically exposed person be significantly extended.

Due to the risks associated with cash payments, it is proposed that the limit required for a legal entity or a natural person – entrepreneur trading in cash to be classified as an obliged person be reduced from the current EUR 15,000 to EUR 10,000.

It is also proposed that the concerned persons be required to identify their beneficial owners, maintain (updated) their identification data (if they are not recorded in the Register of Public Sector Partners) and store them for a certain period of time.

Last but not least, with proposed effectiveness as of July 1, 2018, certain legal entities registered in the Commercial Register would also be required to register identification data about their beneficial owners. If the law is adopted, the legal entities concerned and registered in the Commercial Register before June 30, 2018 will be obliged to register data concerning their beneficial owners by December 31, 2019.

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