|EXPATRIATE AND EMPLOYER TAX COMPLIANCE AND ADVISORY|
|Tax rate||Progressive tax rate: 19 % or 25%.|
|Tax period||Calendar year|
|Tax residency / Domicile according to domestic law||Domicile in Slovakia.
Permanent residence in Slovakia.
Present for at least 183 days during a calendar year in Slovakia.
|Tax registration||At arrival, within 1 month from the commencement month of the taxable activities in Slovakia.
At departure, within 1 month following the month of the termination of the taxable activities in Slovakia.
Generally, the registration duty is not applicable to persons receiving only employment income (from a local or a foreign employer)
|Employment income definition||Remuneration is cash and other taxable in-kind benefits regardless whether it is paid regulary or as a one off payment (e.g. cost of living allowance, home leave allowance, bonus, usage of cars, etc.)|
|Examples of tax exemption||Value of food provided by employer to employees (within certain limits); value of beverages provided by employer to employees at workplace; use of leisure, healthcare, educational, pre-school or sports facilities provided by employer to employees, travel expense reimbursement up to certain limits, etc.|
|Specific expatriate concession||Not applicable.|
|Income of board members||Treated as employment income (executive as well as non-executive).|
|Tax returns||Submitted by taxpayer within 3 months following the respective calendar year (i.e. usually until 31 March of following year). The deadline should be extended to additional 3 months (generally) or 6 months (if the taxpayer is having income derived from the sources abroad) based on written announcement delivered to Slovak Tax Authorities within regular deadline – i.e. usually until 31 March of following year. In case of having only employment income, the annual tax reconciliation should be performed by employer for employee (instead of tax return submission).|
|Tax payments||Tax advances shall be witheld when paying or remitting or crediting taxable wages to the employee´s favour, regardless of the period, to which the taxable wage is related and balancing payment within the same deadlines as submission of tax returns.|
|Employment income / income from board members||Art 15/16 Model OECD Tax Convention|
|INTERNATIONAL SOCIAL SECURITY|
|Cross border employments||EU Regulation No 883/2004 and EU regulation No. 1408 / 71.|
|Exception under Art 16 of Reg. 883/2004
and Art 17 of Reg. 1408/71
|Social Security Cost as % from gross salary and absolute amounts||Contributions of the employees (*) and maximum monthly contributions in EUR: Sickness insurance 1.4%, Retirement insurance 4% , Permanent disability insurance 3 %, Unemployment insurance 1%, Health insurance 4%. Total 13.4%. Starting from 1 January 2015 a new health insurance allowance amounting annually to 4,560 EUR was introduced for the low-income employees (with annual income up to 6,840 EUR).
Contributions of the employer and maximum monthly contributions in EUR: Sickness insurance 1.4%, Retirement insurance 14%, Permanent disability insurance 3%, Unemployment insurance 1%, Health insurance 10%, Guarantee insurance 0.25%, Reserve fund 4.75%. Total 35.2%.
(*) calculated from assessment base that is capped at the amount of 6,384 EUR (a maximum assessment base). There is no maximum assessment base for health insurance contributions.
|Work permit||EU and EEA nationals do not need any work permit to be employed in Slovakia. non – EU and EEA nationals need to fulfil various conditions depending on the nature of their stay and work they want to execute, the length of the stay and other circumstances.|
|Visa||EU and EEA citizens do not need a visa to enter Slovakia. Third country nationals from particular countries may be obliged to apply for a visa before entering Slovakia.|
|Residency permits / registration certificate||EU nationals who plan to stay more than 119 days in the territory of Slovakia have to apply for a residence permit after the 90-days period from their entry into Slovakia. After having their applications processed, they will automatically be given a permanent residence permit, valid for five years.
The foreigner who is planning to stay in the area of Slovak Republic for more than three months and is not a citizen of the EEA will be granted a first permit by the police department after fulfilling certain conditions.
|Driving license||The driving licence issued by the EU Member State is valid throughout the EU.
Non-EU nationals who are long term residents in Slovakia, are obliged to apply to exchange their driver’s licence for a Slovak driver’s licence.
Conditions for the exchange are set by the Law on Road Traffic effective, from February 2009.
|STOCK OPTION PLAN||Tax treatment depends upon the conditions of the Stock Option Plan.|
|ARTICLE 15 OF THE OECD MODEL|
|183 days||Number of days spent in the territory of Slovakia in relevant calendar year (either continuously or periodically), including Saturdays, Sundays, public holidays, vacations, etc. Every day of such stay in Slovakia (even started) is included.|
|Notion of employer||In principle, the employer is the person towards who the employee is in a situation of legal subordination. Slovak Income Tax Act recognizes employer as a person who pays the employee the income from dependent activities performed by him/her (i.e. remuneration for employee´s work).In addition, there is recognized a concept of so-called economic employer. The economic employer is the employer having unlimited tax liability in Slovakia for whom an employee performs work as per his instructions and orders, even though the remuneration for such work is being paid, under an agreement between the parties, through another party having its registered office or his/her residence abroad.|
|Existence of a permanent establishment|| See the criteria of the tax treatyIn countries where no tax treaty was signed, please follow the criteria of permanent establishment stipulated by Slovak law.
A) a permanent place or facility through which taxpayers with limited tax liability carry out fully or partially their activities in the territory of Slovakia;
B) a building site or constructions and assembly works site if the duration of the activities exceeds six months;
C) providing services in the territory of Slovakia if the length of the activity exceeds 183 days either continuously or spasmodically within the period of any 12 consecutive calendar months;
D) a person (individual or company) who is acting on behalf of the taxpayer with limited tax liability in Slovakia and has the authority to negotiate and conclude contracts in the name of this taxpayer (continuously or repeatedly).
|Partner, Tax – Bratislava, Slovakia|
|Direct line: (+421) 259 204 700|
|Address: Suché mýto 1, 811 03 Bratislava|
|Tax manager – Bratislava, Slovakia|
|Direct line: +421 2 5920 4723|
|Address: Suché mýto 1, 811 03 Bratislava|