Ondrus: Slovakia Becoming Leader in Tax Support for Social Enterprises

Bratislava, October 12 (TASR) - Slovakia is gradually becoming a European leader in terms of tax support for social enterprises, MEP Branislav Ondrus (Voice-SD) told a news conference held jointly with Alena Gunarova, head of the Alliance for a Social Economy in Slovakia (ASES), earlier this week. According to Ondrus, the development of a social economy has a significant impact on supporting the employment of vulnerable groups, improving living conditions and addressing social and environmental challenges. "We're successfully implementing the European Commission's Social Economy Action Plan, as well as the EU Council's recommendations regarding the development of framework conditions for a social economy. We're introducing new tax allowances that will support the sustainable business of social enterprises," stated Ondrus. According to Ondrus, the action plan supports social enterprises that combine business activities with a positive impact on the social sphere and environmental protection. Ondrus said that two new tax elements supporting social enterprises will apply in Slovakia as of January 1, 2025. One of these is an exemption for social enterprises from the obligation to pay for the so-called tax licence. Those that don't generate a profit won't have to pay the minimal tax, explained Ondrus. The second new feature is the inclusion of the products and services of social enterprises in the reduced VAT rate of 5 percent. "The introduction of a lower VAT rate for social enterprises is an important step towards their long-term sustainability. Thanks to this change, social enterprises will be able to operate more efficiently, provide more services and create jobs for people who are disadvantaged on the labour market," stated Ondrus. Gunarova noted that these new tax elements will enable social enterprises to expand their activities. The obligation to pay a tax licence would be ruinous for social enterprises. "It's important that we in Slovakia continue to support social enterprises that bring social and economic benefits. Improving the conditions for these enterprises means a better society for all of us," added Gunarova. ko/df