As part of the inter-ministerial consultation stage of the legislation process, a proposed amendment to Act No. 516/2008 Coll., on Audiovisual Fund, as amended (the “Act”), is currently under discussion (the “Amendment”).

The Amendment is the result of voluntary transposition of Article 13(2) and (3) of Directive 2010/13/EU on Audiovisual Media Services (consolidated). Its aim is to address the disadvantage faced by domestic streaming service providers compared to foreign providers seated in other EU Member States that also provide their services in the Slovak Republic but have so far been exempt from the contribution obligation.

As a result, the Amendment extends the scope of entities required to pay contributions to the Audiovisual Fund by including providers established in other EU Member States if their services are directed at audiences in the Slovak Republic.

It is proposed that the contribution comprise two components, namely:

• 0.5% of the basis consisting of the provider’s total revenues from (i) services provided in the Slovak Republic and (ii) advertisements (promotional content) displayed to viewers in the Slovak Republic in connection with such services (the “Calculation Basis”), in both cases for the previous calendar year;

• contribution from unrealized direct investment, calculated as the difference between the direct investment required under the Act for the previous calendar year and the direct investment actually made during that year.

According to the Amendment, providers of on-demand audiovisual media services should be required to make a direct investment (e.g. in the development and production of Slovak audiovisual works or in professional training in the field of audiovisual culture and film art) in the amount of 3% of the Calculation Basis annually.

Exemption from the aforementioned contribution is proposed only for providers of on-demand audiovisual media services with low turnover or low viewership, subject to confirmation by the Audiovisual Fund or by decision of the Media Services Council.

The contribution is to be paid annually to the Audiovisual Fund by July 31, together with the submission of the relevant financial breakdown and auditor’s report (if the amount of the contribution exceeds EUR 20,000).

The Amendment is proposed to enter into effect on January 1, 2027.