Proposal for measures called "Kilečko 2"

Some of the measures from "Kilečko 2" have been moved to a later legislative process – the so-called "Kilečko 3" with an expected date of adoption sometime during the year 2022. The changes affect almost all sectors of the economy. The bill follows the so-called "Business kilečko", i.e. Act no. 198/2020 Coll. which amends certain laws in connection with the improvement of the business environment affected by measures to prevent the spread of the disease COVID-19 (effective from 21 July 2020).

Individual measures

In the following section we bring you an overview of the most interesting measures from "Kilečko 2":

Changes in bookkeeping

The obligation of accounting units that meet the size criteria set out in Section 17a par. 2 of Act no. 431/2002 Coll. on Accounting as amended (the “Accounting Act”) to keep accounts and prepare financial statements in accordance with International Financial Reporting Standards (“IFRS”) should be changed to a possibility. However, an entity will be classified as a public interest entity under the Accounting Act if it meets the size criteria regardless of the accounting standards used.

Acceleration of the process of eliminating defects in the Commercial Register

By amending the Act no. 530/2003 Coll. on the Commercial Register and on the Amendment of Certain Acts it is intended to ensure a quick correction of an incorrectly executed registration. If the data were not entered in accordance with the application for registration, the Registry Court, in cooperation with the Ministry of Justice of the Slovak Republic, shall correct such registration within five working days at the proposer’s complaint to the chairman of the Registry Court.

Changes in the conclusion of contracts by leasing companies

Leasing companies should also be allowed to conclude contracts securing the obligations of the parties (the "security contracts") through electronic devices. In 2019, the electronic conclusion of this type of contract was made possible for banks, branches of foreign banks, postal companies, companies providing electronic communications networks or electronic communications services. It is therefore proposed to give this option to leasing companies as well if they conclude security contracts with an entrepreneur. This exemption should not apply to consumer contracts due to the need for increased consumer protection as a weaker party of the contract.

A change in the creation of tax policy in the municipality

"Kilečko 2" also brings a change in the creation of tax policy in the municipality. So far, the basic statutory tax rate (0.25%) has been multiplied for different types of land. For arable land and permanent grassland, the legal maximum was five times the basic statutory rate, for forest land ten times the basic statutory rate, and for land with gardens, built-up areas and courtyards, other areas and building plots, the rate could be determined arbitrarily, if the difference between the lowest and the highest rate was maximum of five times among the listed types of land. Through the implementation of the measures from "Kilečko 2", the principle of determining the margin between the lowest and highest rate of land tax set by the municipality for all groups of land is to be unified. According to the proposal, the highest rate of land tax can be a maximum of five times the lowest tax rate for all types of land.

OSH and single-person companies

Single-member limited liability companies should have the same obligations in the field of occupational health protection as self-employed persons, regardless of whether there is an employment relationship in the given single-member limited liability company, i.e., regardless of whether the shareholder or executive manager is also an employee.

Changes in energy law

It is also proposed to delete the obligation for persons who have been issued a permit to conduct business in the energy sector according to Section 6 par. 2 of Act no. 251/2012 Coll. on Energy and on Amendments to Certain Acts, as amended (the “Energy Act”), to submit a proposal for entry of the permitted activity in the Commercial Register within 30 days from the date of entry into force of the decision. According to the explanatory memorandum to the bill, the reason for the deletion is the redundancy of this obligation. The obligation does not have its origin in the energy sector and at the same time the office does not have the power to check the correctness of entries in the Commercial Register.

The proposed amendment to the Energy Act also allows the electricity supplier to set off the electricity customer's overpayment with the electricity supplier's receivable under the contract concluded pursuant to Section 26 of the Energy Act (electricity supply contract, distribution system connection contract, combined electricity supply contract etc.). At the same time, the parties can agree on another way of settling mutual claims.

Other measures that are part of "Kilečko 2" include, for example, the abolition of the registration of complaints under the Energy Act or the reduction of administrative burdens regarding the mandatory publication of price proposals by regulated entities, or allowing free provisions of the original Slovak technical standards or information on original technical standardization. The condition of employing at least 10 permanent employees required for the issuance of an authorization to distribute alcoholic beverages in consumer packaging is also abolished and the possibility of selling smokeless tobacco products (electronic devices, tobacco refills, accessories, etc.) via the Internet is introduced. The authorization of the Trade Licensing Office to cancel the trade in the event of its non-performance for a longer period will also be extended from 2 to 4 years from its establishment, and the conditions of education and practice for the operation of a detective service will be liberalized.