Brussels wants to make business easier. But large Slovak factories are on alert: We will lose a competence

The European Commission is trying to unify the calculation of corporate income tax in the EU, which, however, some employers perceive as a threat to state sovereignty in the area of taxes. The new rules could simplify tax compliance for companies and stimulate cross-border investments, but some have concerns about limiting the rights of member states in the area of taxes.

The European Commission's argument for such harmonisation is facilitating business and encouraging investments by large cross-border groups, and thus also stimulating economic growth in the Union. Currently it is necessary to comply with up to 27 different national tax systems in the EU.

According to the Commission, this complexity creates unequal conditions and increases tax uncertainty and the costs of tax compliance for businesses operating in more than one member state and discourages them from cross-border investments. „New simpler rules could reduce current tax compliance costs by up to 65 percent,“ the Commission states.

On the other hand, there are concerns, including in Slovakia. The Republic Union of Employers recently warned that as a result of such a step we may lose one of the key instruments of fiscal policy. Employers point out that the proposal is in conflict with the principles of European law and the possible approval of the directive would also fundamentally curtail Slovakia's rights in the area of taxation.

The Association of Industrial Unions and Transport evaluates the diversity of tax systems as a potential instrument for stimulating economic growth and supporting public finances.