In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices
Certain supplies and services are exempt without credit entitlement (certain postal services, financial and insurance services, education, public radio and TV broadcasting services, health and social services, the transfer and leasing of real estate (with exceptions), services related to sports and physical education; social welfare and lottery services); others are exempt but give the right to credit ("zero-rated" - financial and insurance services provided to extra EU customer, supply of goods to other EU member states, certain import of goods, and export of goods and services).
A vehicle tax applies to vehicles that are registered in the country and used for business purposes. The taxpayer is the entity that uses the vehicle for business purposes. The tax rate varies according to engine capacity, vehicle size, etc.
Road tax, real estate tax, and most other such taxes are tax-deductible. Social security contributions paid by an employer with respect to employees are also tax-deductible. VAT charged to profit and loss is tax-deductible only if certain conditions are met. Contributions to supplementary pension savings made by the Slovak employer on behalf of the employee are tax-deductible (capped at 6% of the employee's gross salary). Start-up expenses are tax-deductible in the period when incurred.
In general, interest expenses incurred in order to generate taxable income can be treated as tax-deductible, subject to thin capitalisation rules.
Charitable contributions are treated as gifts, hence are not tax-deductible. Subject to conditions, expenses incurred by the employer on transporting employees to and from work can be deducted.
Certain expenses for practical education provided to students can be deducted (capped at EUR 3,200/student/year).
Tax losses can be carried forward in equal amounts over a period of four years. The carryback of losses is not permitted. From 1 January 2020, a company or branch may carry forward and utilise a tax loss equally over a period of five years following the year in which the tax loss arose, capped at half of the tax base in the respective tax period. From 1 January 2021, micro-taxpayers (total income or revenues up to EUR 100,000) may carry forward and utilise a tax loss equally over a period of five years following the year in which the tax loss arose up to the amount of the tax base in the respective tax period.
Other taxes include:
Slovakia | Eastern Europe & Central Asia | United States | Germany | |
---|---|---|---|---|
Number of Payments of Taxes per Year | 8.0 | 13.9 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 192.0 | 226.2 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 49.7 | 36.5 | 36.6 | 48.8 |
Source: Doing Business - Latest available data.
Income Tax | From 19% to 25% |
From EUR 0 to EUR 38,553.01 (176.8 times the subsistence level) | 19% |
Above EUR 38,553.01 | 25% |
Self-employed individuals and micro-taxpayers (income up to EUR 49,790) | 15% (if above the threshold, the standard rates apply) |
Income from capital | 19% |
Dividend income arising from profits before 2004 and after 1 January 2017 | 7% (35% if dividends are from foreign sources of non-cooperating state) |
The personal allowance of 21 times the minimum subsistence amount - announced each year on 1 January - is available to all individuals whose annual tax base does not exceed a certain limit (EUR 38,553.01 in 2022). If the tax base of a taxpayer exceeds EUR 20,235.97 (2022), the personal allowance is reduced to nil progressively, based on a specific formula.
Slovak tax residents with permanent residency in Slovakia can also claim a dependent spouse allowance, provided the aggregated net active income of that taxpayer does not exceed certain limits (EUR 38,553.01 in 2022).
For 2022, tax bonuses are available for dependent children, as follows:
Private entrepreneurs may deduct ordinary business expenses incurred to maintain, secure, and generate business income, provided they keep accounts recording their income and costs. The costs should be recorded in the sequential order for rental income. Alternatively, an entrepreneur (apart from a person having just rental income) who is not a Slovak VAT payer can opt to deduct lump-sum expenses. The lump-sum expenses can be up to 60% of income (capped at EUR 20,000 per annum) in order to determine the taxable income (actual business expenses or rental costs are not tax-deductible if the taxpayer opts for the lump-sum deduction).
Type of property and law | Validity | International Agreements Signed |
---|---|---|
Patent Patent Act (Act no435/2001) |
20 years |
Patent Cooperation Treaty (PCT) |
Trademark Act No. 506/2009 Coll. on Trade marks |
10 years, renewable for a successive period of 10 years. |
Trademark Law Treaty Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks |
Design Law on Inventions, Industrial Designs and Rationalization Proposals (No. 527 of November 27, 1990) and law n°444/2002 on designs. |
5 years, renewable for four further 5-year periods with a maximum of 25 years. | |
Copyright Law on copyright (law n°618/2003 of 4 December 2003) |
During the author's life and 70 years after his death. |
Berne convention For the Protection of Literary and Artistic Works Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations WIPO Copyright Treaty WIPO Performances and Phonograms Treaty |
Industrial Models Law on Inventions, Industrial Designs and Rationalization Proposals (No. 527 of November 27, 1990) |
When the validity of the registration expires or if the owner of the industrial model renounces his rights. |
At the international level:
- Member of the International Standard Organization (ISO)
- Member of the International Electrotechnical Commission (IEC),
- Member of the International Telecommunication Union (ITU),
New Year and Independence Day of the Slovak Republic | 1 January |
Epiphany and Orthodox Christians' Christmas | 6 January |
Good Friday | the Friday before Easter (March/April) |
Easter Monday | March/April |
Labor Day | 1 May |
Liberation of the Republic | 8 May |
St Cyril and St Methodius | 5 July |
Anniversary of the Slovak National Uprising | 29 August |
Slovak Constitution Day | 1 September |
Our Lady of Sorrows | 15 September |
All Saints' Day | 1 November |
Fight for Freedom and Democracy Day | 17 November |
Christmas Day | 25 December |
St Stephen | 26 December |
End of year holidays | Between 25 December and 6 January |
Easter | From Easter Friday to Monday |
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Latest Update: May 2024