- Income tax in Slovakia is provided for by the Act No. 595/2003 Coll. on Income tax and its later amendments.
Some facts on the income tax – corporate bodies and natural persons:
- Income tax rate in Slovakia is for corporate bodies 21 % and for natural person – 19%; in case of tax base over 35 022,31 € income tax rate is 25 %
- corporate bodies and natural persons can utilize a tax loss evenly over a maximum of four consecutive tax periods following the period in which they reported the loss;
- each corporate body or natural person, who is entitled to carry out business activities in Slovakia, is obliged to register for income tax and do that not later than up to following month after month, when the permission to carry out business activities in Slovakia is granted. Registration and report obligation within this deadline also applies to each natural person, which began to conduct other self-employment activities, or rented a real estate. Registration obligation within to end of the following month also applies to founding permanent establishments in Slovakia;
- tax period iis a calendar or economic year;
- tax returns must be filed within three months following the end of the taxable period. Corporate bodies and natural persons may file a announcement to the tax administrator to extend filing deadline by up to three months, or if a part of the income reported is from sources abroad, the filing deadline may be extended up to 6 months. The announcement has to be submitted in written form, latest by normal filing deadline. Corporate bodies may change the tax period from a calendar year to the so-called fiscal year, which represents 12 consequent calendar months, and which is not consonant with a calendar year;
- in case of closing down a permanent establishment in Slovakia, taxpayer is obliged to file a tax return by the end of the third month following the month of the close-down;
- tangible fixed assets for tax purposes have been defined as any tangible property with the acquisition price higher than 1,700 € and with the usable life no shorter than one year. Such assets are classified into tax depreciation groups to which different tax depreciation periods apply.
- intangible fixed assets, according to the Act on Income Tax, is any property of intangible nature with the acquisition price higher than 2,400 € and with the usable life of at least one year. Intangible fixed assets are depreciated based on the actual usage period and it is equal with the accounting depreciation;
- land is excluded from depreciation
Income tax natural persons
- personal allowances for the individuals, whose tax base is lower than 19,809 €, have been 3,803.33 € a year (316,94 € a month) ; if the tax base is higher than 19,809 €, the personal allowance is progressively reduced to nil and those individuals with an annual tax base exceeding 35,022,32 € are not entitled to any personal allowance;
- annual tax bonus for dependent children for the year 2017 has been set to 21,41 € / month
- in 2017 an individual may claim a dependent spouse allowance of up to 3,803.33 € annually. The spouse has to share the household and his/her actual annual income must not exceed 3,803.33 €. If the spouse has annual income of up to 3,803.33 €, personal allowance is reduced by the actual income. Spouse allowance may be claimed provided that the individual’s income doesn’t exceed 50,235.63 € in 2017. If it does, the available spouse allowance is progressively reduced;