In Slovakia is from 2004 the flat tax 19 %. The personal income tax is also levied on all private persons. Subject to income tax are in Slovakia these categories:
• income from dependent activity
• income from business, other independent gainful activity and tenancy
• income derived from capital
• other income
An employer is obligated to deduct, immediately, each month, the amount of tax and national insurance due from a salaried worker. Generally, the tax base id defined as a difference between taxable incomes and tax-deductible expenses. As there are more types of income subject to personal income tax, the final tax base is equal to the sum of partial tax bases determined with respect to individual types of income. Slovak resident tax will be calculated on his income earned in Slovakia and overseas. A foreign resident who is employed in Slovakia pays tax only on his income in Slovakia. To be considered a Slovak resident, residence of at least 183 days during any calendar tax year must be established.
Tax due date
In Slovakia is the tax period a year. Personal income tax are paid monthly, quarterly based on previous tax liability. The tax return and the report must be submitted not later than tree months following the last day of the tax period (that is by 31 of March). The taxpayer must pay the tax by the same date.
Tax rate
In Slovakia is flat tax rate 19 %.
Deductions
The following are the most significant types of deductions income, for instance:
• social insurance paid
• health insurance paid
• social security benefits received
• old-age pension savings received
• social assistance benefits received
…
Tax allowance
Taxpayer is allowed to deduct his previous losses from the tax base. Losses may be carried forward for a period of five years. The following are the most significant types of allowance income, for instance:
• personal allowance (98 496 SKK per year)
• child allowance (6 660 SKK per year for every kind)
• spouse allowance
• allowance for long-term savings (maximum annual amount that can be deducted is 12 000 SKK)
Bc. Petr Gola
