Taxation

The tax authority in Slovakia is the Tax Directorate of the Slovak Republic and it has a network of 102 local Tax Offices; there is also a special Tax Office for Selected Taxpayers - taxpayers of this Office are all companies situated in region Bratislava with annual turnover over 33 193 918,87 € and all banks, insurance companies and branches of foreign banks and insurance companies regardless of the annual turnover.

In general, the income is taxed according to residency for tax purposes or residence on the Slovak territory for a period longer than 183 days (6 months) of a calendar year. In case of tax residence, the income of a person is usually taxed in Slovakia - flat income tax 19%. After the taxation period (that is one calendar year) the annual clearing of taxes is made by filing the tax return (declaration of taxes), and the final level of non-taxable amount is calculated dependent on the whole-year wage. Only afterwards the tax overpayment or tax in arrears can be determined.

In order to make the taxing of migrant persons easier and to avoid double taxation, the Slovak republic concluded bilateral agreements with other countries. The conditions therefore vary upon the country of origin of a person – if there is a bilateral agreement, and what are its provisions. Slovak republic continuously spreads the geographical area covered by tax agreements, as of June 2010 there are 62 agreements signed. The list of countries with double taxation agreements with Slovakia is available on the website of Ministry of Finance (www.finance.gov.sk).

In case of states, where no double taxation treaty exists, income from abroad, that have been taxed in the country of occupation other than SR are exempted from taxation in the SR. (An authentic certificate of taxation of income must be submitted.)

The following incomes are exempt from taxation:

(for exact wording see the Act no. 595/2003 on Income tax)

• scholarships provided from the state budget (including PhD scholarships), or by higher education institutions or similar benefits provided from abroad, financial support of foundations, non-for-profit organisations, etc. except for remuneration for carrying out employment or business activities;
• financial resources from grants provided on the basis of international treaties, by which is the Slovak Republic bound;
• benefits from insurance of natural persons except for benefits from insurance after reaching certain age or additional old-age savings;
• travel allowances and per diems up to the amont set by law.

Last modified: 2011-06-01