BRATISLAVA, Nov 28 (Reuters) - Slovakia's government said on Friday it expected parliament to override a presidential veto on a new law to cut corporate tax, as the bill could help win a billion-euro investment from South Korean car maker Hyundai .
The South Korean car maker is deciding between future European Union members Slovakia and Poland for the site of a 1.1-billion-euro plant that it is planning to build in central Europe.
However, Slovakia's hopes suffered a setback on Tuesday when President Rudolf Schuster vetoed a law designed to introduce a flat rate for both income and corporate taxes of 19 percent from next year, cutting the corporate rate from 25 percent.
Poland said its chances of winning the Hyundai plant had increased after the veto, but Slovakia's economic ministers said parliament was expected to vote by the required majority of 76 deputies to override the veto, despite recent tensions inside the ruling coalition.
"I am confident we will have a 19 percent tax rate, that the law will be approved again, although our position may have weakened with this veto," Finance Minister Ivan Miklos said.
Economy Minister Pavol Rusko added at the same news conference: "Hyundai will decide on the location in February or March. By then the law will have been approved for a long time."
Polish Deputy Economy Minister in charge of foreign investment Andrzej Szejna said earlier this week that Poland, the largest of the 10 mostly ex-communist countries joining the EU, could offer investment grants for Hyundai totalling as much as 30 percent of the car maker's investment.
Miklos said it was too early to specify Slovakia's offer. "We want this investment, we want to be competitive," he said.
Slovakia has become a favourite location for car industry investors in recent years, mainly thanks to its cheap labour force and central European location. The government hopes that the new tax law will help it attract even more foreign firms.
Poland has a corporate tax rate of 19 percent, and also hopes the size of its domestic market of 38 million people will be a key draw for Hyundai.
Slovakia already beat Poland in the contest for a large car indsutry investment early this year when France's PSA Peugeot Citroen chose to build a 700-million-euro, 300,000 car plant in a town just north of Bratislava.
Slovakia's parliament should hold the second vote on the tax law in a session starting on Tuesday.