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Measures List
First Prev Next Last Separator
Measure Name
Date when measure came into force
Increase of maximum rate 23% 2013/01/01
Introduction of tax license 2014/01/01
Decrease of CIT rate 2014/01/01
The change in loss carry-forward rules 2014/01/01
Results 1 - 4 of 4.

Generic Tax Name Corporate income tax
Tax name in the national language Daň z príjmov právnických osôb
Tax name in English Corporate income tax
Member State SK-Slovak Republic
Tax in force since 1993/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Act No. 595/2003, as last amended by Act No. 463/2013.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

Others – taxpayers (companies) can assign 1.5% of their paid corporate income tax to non-profit organizations. They can increase the assignment to 2% provided they donated another 0.5% of their tax liability.

 
Geographical Scope Tax territory of the Slovak republic.
 
Taxpayers
Domestic-source income of non-resident entities is Taxed
Not Taxed
Comments
 
Tax object and basis of assessment
As general rule, taxable income under corporate income tax includes also








Comments

Income considered Domestic income
Worldwide income (subject to double-tax relief)
Comments

Comments

 

 
Deductions, Allowances, Credits, Exemptions
Valuation of inventory
System First-in first-out (FIFO)
Last-in first-out (LIFO)
Average cost
Specific identification (unit method)

Comments

Depreciation rules
 
Buildings
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments

There are options to use Straight-line method or Declining balance. Depreciation period of administrative and residential buildings is 40 years. Depreciation period of industrial buildings is 20 years. The average depreciation period just simple average of figures stated above. 

Average depreciation period 30  Years
Average depreciation rate 3.33 %
 
Movable (tangible) assets
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments

There are options to use Straight-line method or Declining balance.

Average depreciation period 8  Years
Average depreciation rate 12.5 %
 
Movable fixed assets
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments

There are options to use Straight-line method or Declining balance.

Average depreciation period 8  Years
Average depreciation rate 12.5 %
 
Intangible assets
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments

There are options to use Straight-line method and Declining balance.

Intangible assets are depreciated over their actual useful life.

Average depreciation period
Average depreciation rate
 
Land (if any)
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments
Average depreciation period
Average depreciation rate


Comments

Are there limits to interest deductions? Yes No
If yes:
Definition of deduction limit 25% of EBITDA (earnings before interest, taxes, depreciation and amortization)

Comments

Is there an Allowance for Corporate Equity? Yes No
If yes:
Notional rate applied for allowance

Comments

Losses
Loss carry-forward exists? Yes No
If yes:
Time limit: Indefinite
4  Years  
Size limit:
 
Loss carry-backward exists? Yes No
If yes:
Time limit: Indefinite
 
Size limit:
 

Comments

Tax losses may only be carried forward for up to four years and only up to one quarter of accumulated losses can be deducted each year.



Comments

Since 2005 investment incentives in Slovakia are assigned to the government approved rules (dependent e.g. on region, unemployment rate…). The investment incentives are given according to the decision on the granted incentives of the Slovak Ministry of economics. The investment incentives are given in compliance with the EU law and have to be approved by the European Commission and Slovak government.

Since 2010 the R&D incentives are given according to the decision on the granted incentives of the Slovak Ministry of Education. The taxpayer is allowed to claim a tax relief up to the amount of the tax falling to the proportional part of the tax assessment base.

As of 2015, a new R&D tax relief scheme was introduced. The new relief is a tax deduction (i.e. allowance) for R&D expenditure with the possibility of a carry forward of up to four years for companies with insufficient profits or in a loss position. The deduction is calculated as the sum of three components: 25% of eligible R&D expenditures, 25% of increase in the R&D expenditures compared to the previous year and 25 % of labour costs of newly-hired graduates involved in R&D. These R&D tax allowances come on top of the standard deduction of the R&D costs and wages from the CIT base.

 
Rate(s) Structure
Nominal corporate income tax rate Rate: 22.00 %

Central government surcharge Rate:
Regional government surcharge Rate:
Local government surcharge Rate:
Combined rate (all-in rate) Rate: 22.00 %


Comments

Special tax rate for SMEs
Special tax rates apply to SMEs: Yes No
If yes:
Nominal corporate income tax rate Rate:
Central government surcharge Rate:
Regional government surcharge Rate:
Local government surcharge Rate:
Combined rate (all-in rate) Rate:


Comments
 
International aspects
Treaty countries Non-treaty countries
 
Repatriated profits are taxed according to the following system Exemption system Exemption system
Tax credit Tax credit
Deduction Deduction
 
Interest received is taxed Yes No Yes No
Tax rate on interest received 22.00 % 22.00 %
Outgoing dividends withholding tax
Outgoing interest payments withholding tax 15.00 % 19.00 %
 
Foreign losses can be set-off Yes No Yes No
If yes:
Minimum direct or indirect shareholding to qualify loss-offset (if applicable)
 
Loss carry-forward exists? Yes No Yes No
If yes:
Time limit: Indefinite
4  Years  
Indefinite
4  Years  
Size limit:
 
Loss carry-backward exists? Yes No Yes No
If yes:
Time limit: Indefinite
 
Indefinite
 
Size limit:
 
Controlled foreign company (CFC-)rules exist? Yes No Yes No
If yes:
Time limit: Indefinite
 
Indefinite
 
Size limit:
 
Threshold for capital or voting power held directly or indirectly by resident in non-resident company
CFC-rules apply if foreign tax rate is lower than
CFC-rules apply for passive income only? Yes No Yes No

Comments   Treaty countries

Outgoing dividends withholding tax

exempt

Outgoing interest payments withholding tax

0.00 – 15.00  %, depending on individual bilateral Double Tax Treaties


Comments   Non-treaty countries

Outgoing dividends withholding tax

exempt

Outgoing interest payments withholding tax

19.00  % and  35%, the second rate applies where no treaty about bilateral exchange of information exists

 
Measures against profit shifting
 
Do Thin Capitalization (TC) rules exist? Yes No
If yes:
Date of first introduction
2015/01/01
Introduced as Explicit TC law
Part of CIT law
Test for TC Ratio
Arm's length
If ratio
Value of numerical ratio: 1 : 4
Definition numerator
Definition denominator EBITDA
 
Debt considered for test Internal
Internal and external
TC depends on shareholding? Yes No
Substantial shareholding threshold 25.00 %
 
Type of shareholding Direct
Indirect
Automatic remedy Yes No
Remedy Non-deductibility of interest
Reclassification as dividend
 
Rules apply to All companies
Foreign companies
Non-EU companies
Transfer pricing rules exists? Yes No
If yes:
Arm’s length principle applied? Yes No
 
Remedy Fee
Tax base increase
 
Tax due date

In general the tax period is considered to be a calendar year. If the tax administration authorizes the taxable party to use the financial year as its accounting period, at the same time it shall authorize the taxable party to use the financial year as its tax period.If the tax period, which coincides with the calendar year, is replaced by a financial year, then the period between the starting date of the calendar year and the date preceding the date of change of the tax period, shall be treated as a separate tax period.

 
Tax collector

Tax authorities.

 
Special features

Minimum annual tax, called tax license, is set at three levels:

480 Eur     Small corporations, not registered to VAT

960 Eur     Small corporations, registered to VAT

2,880 Eur  Large companies (turnover over 500,000 Eur)

 

The minimum tax is paid as the ordinary CIT, i.e. when tax return is filed. The difference between the minimum tax and the tax calculated based on taxable income may be carried forward and deducted from tax liability up to 3 years. Companies in the first year of existence and non-profit organizations are exempt.

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d51O

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 1,708.90 EUR 2.36
2011 1,699.19 EUR 2.41
2010 1,659.23 EUR 2.46
2009 1,576.97 EUR 2.47
2008 2,087.50 EUR 3.17
2007 1,835.50 EUR 3.27
2006 1,599.10 EUR 3.52
2005 1,344.50 EUR 3.43
2004 1,171.90 EUR 3.38
2003 1,118.20 EUR 3.72
2002 926.10 EUR 3.52
2001 878.60 EUR 3.68
2000 813.10 EUR 3.64

Comments