Slovakia
Financial Year – 1 January – 31 December (default) or any 12-month period (optional fiscal year)
Currency – Euro (EUR)
Corporate Tax Summary
Residence – A company with a registered seat or a place of effective management in Slovakia.
Basis of Taxation – Resident companies are taxed on their worldwide income. Non-resident companies are generally taxed on their income derived from Slovak sources. The tax rates and treatment are the same for companies and branches of foreign companies.
| Reference | ||
| Corporate Income Tax Rate (%) | 21% | A special 15% tax rate applies for companies with income (revenues) not exceeding EUR 100,000 in the tax period. |
| Branch Tax Rate (%) | 21% | To be taxable, a branch should be considered a permanent establishment for Slovak income tax purposes. |
| Withholding Tax Rate: | ||
| Dividends – Franked | N/A | Slovak law does not recognise the concept of franked dividends. |
| Dividends – Unfranked | 0% / 7% / 35% (or according to the respective double tax treaty, if applicable) | 0% applies where: (i) Dividends are paid to an individual from profits declared from 1 January 2004 to 31 December 2016. (ii) Dividends are paid to a company from profits declared after 1 January 2004. 7% applies where: (i) Dividends are paid to an individual from profits declared up to 31 December 2003. (ii) Dividends are paid to an individual from profits declared after 1 January 2017. 35% applies where the recipient is from a non-cooperative country (a country with which Slovakia has not concluded a double tax treaty or a bilateral treaty on the exchange of tax information, or a country that is not party to an international treaty containing the exchange of tax information and at the same time the country is not referenced in the EU list published in the EU Official Journal as of 1 January of the calendar year) |
| Dividends – Conduit Foreign Income | N/A | |
| Interest | 0% / 19% / 35% (or according to the respective double tax treaty, if applicable) | Generally, the rate is 19%. A reduced tax rate may apply if provided for by the respective double tax treaty. 0% applies to transactions covered by the EU Interest and Royalties Directive. 35% applies where the recipient is from a non-cooperative country (a country with which Slovakia has not concluded a double tax treaty or a bilateral treaty on the exchange of tax information, or a country that is not party to an international treaty containing the exchange of tax information and at the same time the country is not referenced in the EU list published in the EU Official Journal as of 1 January of the calendar year) |
| Royalties from Intellectual Property | 0% / 19% / 35% (or according to the respective Double Tax Treaty, if applicable) | Generally, the rate is 19%. A reduced tax rate may apply if provided for by the respective double tax treaty. 0% applies to transactions covered by the EU Interest and Royalties Directive. 35% applies where the recipient is from a non-cooperative country (a country with which Slovakia has not concluded a double tax treaty or a bilateral treaty on the exchange of tax information, or a country that is not party to an international treaty containing the exchange of tax information and at the same time the country is not referenced in the EU list published in the EU Official Journal as of 1 January of the calendar year) |
| Fund Payments from Managed Investment Trusts | Taxation depends on the character of the income, which is assessed on a case-by-case basis. | Slovak law does not recognise the concept of trusts. |
| Branch Remittance Tax | N/A | |
| Net Operating Losses (Years) | ||
| Carry Back | N/A | |
| Carry Forward | Tax losses declared for tax periods starting after 1 January 2020: 5 years (up to 50% of the tax base declared in the tax period of utilisation) Tax losses declared for tax periods starting before 31 December 2019: 4 years (up to 25% of the tax loss carried forward per year) |
Individual Tax Summary
Residence – A Slovak tax resident is an individual who:
- is a Slovak citizen with a place of permanent residence in Slovakia.
- is a non-Slovak citizen with permanent residence in Slovakia.
- has a residence in Slovakia and, taking into account all circumstances including personal and economic relationships, is defined as having the intention to stay permanently in Slovakia.
- is usually present in Slovakia (more than 183 days in a calendar year).
Basis of Taxation – Resident individuals are taxed on their worldwide income. Non-resident individuals are generally taxed on their income derived from Slovak sources. Capital gains are generally considered as income and taxed as such.
Filing Status – The personal income tax return should be filed within three months after the year-end, i.e. by 31 March of the following calendar year. The deadline for filing personal income tax returns can be extended. The personal income tax liability is due also within the deadline for submission of the personal income tax return.
Personal Income Tax Rates
| Taxable Income | Tax Payable – Residents | Tax Payable – Non Residents |
| EUR 37,163.36 | 19% / 25% |
For 2020, individual annual income up to EUR 37,163.36 is subject to 19% income tax. Annual income exceeding EUR 37,163.36 is taxable at the rate of 25%. The threshold is linked to the valid subsistence minimum in Slovakia. This means that it changes slightly every year. Income from capital (e.g. interests) is subject to a flat tax rate of 19%. Income from entrepreneurial activities with annual turnover less than EUR 100,000 is subject to a tax rate of 15%.
Goods and Services Tax (GST)
| Rate | 20% (10% reduced rate for a limited range of goods such as pharmaceuticals, some foods, books) |
| Taxable Transactions | – Supply of goods and services effected within Slovakia for consideration by a taxable person. – Import of goods into Slovakia. – Intra-Community acquisition of goods effected within Slovakia for consideration by a taxable person or by another legal entity (not being a taxable person). |
| Registration | Persons or entities with a seat, place of business or establishment in Slovakia who carry on economic activities and have a turnover greater than EUR 49,790 in the previous 12 consecutive months are liable to register for VAT purposes (voluntary registration is also possible). Special VAT registration thresholds and/or procedures apply in certain cases. |
| Filing and Payment | The VAT period is a calendar month. A VAT payer may opt for a calendar quarterly VAT period, provided that more than 12 calendar months have passed since the end of the calendar month in which they became a VAT payer and turnover was less than EUR 100,000 in the previous 12 consecutive calendar months. VAT returns, together with VAT Control Statements (a detailed overview of taxable transactions with data related to the supplies of goods and services) must be submitted electronically within 25 days following the end of the applicable VAT period. Payment of the VAT liability is also due within this period. VAT payers making intra-community deliveries of goods or providing services to a taxable person in another EU member state are obliged to file an EC sales list within 25 days following the relevant calendar month or quarter. The EC sales list must be filed electronically. |
Other Taxes Payable
| Tax | Reference |
| Payroll Tax | Income from dependent activities is generally taxed by payroll tax (withheld from the taxable income along with employees‘ mandatory social and health insurance contributions). The tax base for calculating personal income tax from dependent activities (payroll tax) is represented as the gross income of an employee (or other income from dependent activities) reduced by the mandatory social and health insurance charges paid by the employee (withheld and remitted on behalf of the employee by the employer). In addition to the part payable by the employee and withheld and remitted by the employer, the employer is also obliged to pay its part of the mandatory social and health insurance charges for each employee. |
| Stamp Duty | N/A – court stamp duties represent insignificant amounts, real estate transfer tax has been suspended in Slovakia |
| Land Tax | Real estate tax applies in Slovakia and it is imposed on land, buildings, apartments and non-residential premises within apartment buildings. The amount is generally insignificant. |
There is also motor vehicle tax, tax on insurance and several types of local taxes representing insignificant amounts. Gift tax and inheritance tax do not apply in Slovakia.
Last updated: 06.07.2020