Taxes in Slovakia

In this article you find a general overview of taxes in Slovakia.

Personal income tax

Individuals whohave their permanent residence or habitual abode in Slovakia are treated asresidents. An individual has his habitual abode in Slovakia if he/ she ispresent in Slovakia for at least 183 days (in aggregate) in a calendar year.

Starting fromJanuary 1st, 2018 in addition to the above two mentioned criteria also thecriterion of a real residence will be examined. If an individual is providedwith permanent accommodation on the territory of the Slovak Republic that doesnot only serve for occasional accommodation due to short-term visits, he / shewill be treated as a resident, as well. All other individuals are treated asnon-residents

The tax ratesapplicable for income derived in 2018 are: 

·        annual taxable income up to EUR35,268.06 is taxed at 19% 

·        annual taxable income above EUR35,268.06 is taxed at 25% 

·        income from capital is taxed atflat rate of 19%

·        income from dividends paid outof pre-2004 profits and profits derived from January 1st , 2017 is taxed at 7%(35% applies if dividends are from foreign sources of non-contracting state)

Corporate income tax

A company istreated as resident if it has its legal seat or place of effective managementin the Slovak Republic. The calendar year or the business/financial year is atax period.

Income andcapital gains corporate income tax is levied at a rate of 21%. This is thefinal tax burden on 2018 corporate profits in some cases because dividends paidout of 2018 profits are not taxed in the hands of shareholder if theshareholders are corporate and based in other than non-contracting state.Starting January 1st, 2018, a minimum corporate tax (so-called tax licenses),which was introduced in 2014, is abolished.

Value added tax

Standard rate is20%, reduced rate is 10%. Export of goods and services is zero rated.Intra-Community supplies of goods are zero rated under certain conditions.

VAT registration

The thresholdfor mandatory VAT registration for taxable person with registered office, placeof business or fixed establishment in Slovakia is turnover of EUR 49,790 for aperiod of 12 previous consecutive calendar months. Taxable persons supplyingreal property (buildings, building land) have to register for VAT purposes ifcertain conditions are met. The voluntary VAT registration is possible as well.

Other business related taxes

Motor vehicletax, Excise and Customs duties

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