|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.|
|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|