Taxation

Examples of income exempt from taxation or not subject to taxation:

Scholarships and Grants:

• scholarships provided e.g. from the state budget (including PhD scholarships), or by higher education institutions or similar benefits provided from abroad, corporate scholarships provided to university students, financial support from foundations or non‑profit organisations except for remuneration for carrying out employment or business activities,

•  financial resources from grants provided upon international treaties, by which Slovakia is bound;

Benefits, e.g.:

• benefits from health and social insurance, including old‑age savings,

• per diems/travel allowance (employer’s financial contribution to the board of an employee during a business trip) up to the amount set by law;

• the value of meals provided by the employer to the employee for consumption at the workplace or the financial contribution for meals;

• the amount spent by the employer on employee’s training.

Child Tax Bonus (§ 33):

While not direct income, the child tax allowance can reduce a taxable income for the parent of a dependent child staying with him/her in the same household, thus providing a financial benefit without being classified as taxable income.

The determination of the tax residence is necessary in order to clarify the tax liability to the state of occupation and/or residence.

Unrestricted tax liability applies to a person who has a permanent residence, a residence or a habitual abode in Slovakia. A person who usually stays in Slovakia for at least 183 days in a calendar year is generally considered to have a habitual abode in Slovakia. A Slovak tax resident is generally subject to tax on his/her worldwide income, i.e. income received from Slovakia as well as from abroad.

On the other hand, a taxpayer with restricted tax liability is a person without a permanent residence or domicile in Slovakia, a person who usually stays in Slovakia for less than 183 days in a calendar year or who often stays in Slovakia only for the purpose of studies or enters Slovakia daily (or occasionally) only for the purpose of employment. Subject to a tax of such a taxpayer is only his/her income from Slovakia. The tax residence may also be determined by bilateral double taxation agreements.

The decisive factors for the determination of the tax residence are permanent residence, residence, habitual abode and the length of stay, as well as the centre of vital interests – closer personal and economic relations. In cases covered by a bilateral double taxation agreement, additional criteria may apply, such as a permanent home, centre of vital interests, habitual abode and nationality, usually under the relevant Article 4 of the agreement.

In order to make the taxing of migrant persons easier and to avoid double taxation, the Slovak Republic has concluded bilateral agreements with other countries. Slovakia continuously extends the geographical area covered by taxation agreements. Currently there are taxation agreements signed with 75 countries. The list of countries with double taxation agreements with Slovakia is available on the website of the Ministry of Finance of the Slovak Republic .

COUNTRIES THAT HAVE SIGNED DOUBLE TAXATION TREATIES WITH SLOVAKIA: ​

​​​The taxation conditions, therefore, vary depending on the country of “origin” of a person – in particular, whether a bilateral agreement is in force and what its provisions stipulate.

Double taxation agreements also state the method of elimination of double taxation, in case the income was taxed in the country of occupation and must be declared in the country of tax residence, where he/she is a taxpayer with unrestricted tax liability. In cases where no double taxation agreement exists, the taxation of foreign income is governed by the Slovak Income Tax Act. The applicable rules depend on the type of income and the specific circumstances. Supporting documents proving tax paid abroad may be required when claiming relief from double taxation. This is relevant to taxpayers with unlimited tax liability in the Slovak Republic. Legislation, official documents and forms to download are available in Slovak and some of the documents also in English at the website of the Ministry of Finance of the Slovak Republic.

The deadline for submitting the tax return is 31 March every year (with the possibility of postponing this deadline for 3–6 months upon sending the notification to the competent tax office until 31 March). Only afterwards the tax overpayment or tax arrears can be determined. The taxpayer must pay the tax within the deadline for filing the declaration of taxes. An employee, who worked throughout the year in Slovakia and received taxable income only from employment during the calendar year, may request the annual settlement of income tax from the last employer. It is necessary to submit the request not later than 15 February. The annual settlement will be done by the employer on behalf of the employee. In case he/she will not ask the employer for the settlement until the given deadline, fails to deliver all required documents to this date, or has income from abroad that must be included in the Slovak tax return, he/she must submit the tax return on his/her own.

In the case of tax residents with unlimited liability who have some income from abroad, the relevant foreign income must be stated in the tax return and, where applicable, documents proving tax paid abroad must be provided.Supporting documents may be required depending on the applicable method of eliminating double taxation. When the taxpayer cannot obtain these documents within the deadline (31 March), the deadline for filing the tax return may be extended in accordance with the applicable rules, including an extension of up to 6 months where the taxpayer has taxable income from abroad. The tax return form and other tax related documents can be downloaded from the website of the Slovak Finance administration, although in Slovak only. It is recommended to consult the competent tax authority with any tax issues arising from a researcher’s state of permanent residence prior to commencing work in the Slovak Republic.