Last week the Slovak government has taken measures to mitigate the effects of the coronavirus crises in the financial area. These measures have been approved by Slovak parliament on April 2nd, 2020, and come into force as of April 4th, 2020. The changes concern various tax regulations and are adopted due to the situation in relation to COVID-19 within the Slovak Republic. The new regulations will be in force only during the pandemic period and will expire one month after its end.
Administration of taxes
Changes overview:
- In some particular cases the electronic submissions do not have to be followed by physical deliveries in „paper form“;
- Missing deadlines by taxpayers during the pandemic period will be forgiven under the condition that the respective action will be done by the end of the month following the end of the pandemic period; this does not apply to the submission of tax returns and payment of individual taxes;
- Tax inspections – the approved measure interrupts the periods for the performance of tax inspections except for cases when the subject of the tax audit is the claimed excessive VAT deduction. In such a case the tax authorities can issue a partial protocol to the amount which without any disputes should be repaid to the taxpayer;
- Interruption of tax proceedings during the pandemic period – based on a request by the taxpayer some tax proceedings may be interrupted, especially those who required personal hearing at the Tax office or personal local investigations;
- List of tax debtors will not be published and updated during the pandemic period;
- Tax arrears – taxed due during the pandemic period are not treated as tax arrears if paid within 1 month after the end of the pandemic period;
- Tax executions are postponed during the pandemic period.
Corporate income tax
Deadlines due during the pandemic period are postponed as follows:
Income tax return (including the assignment of a share in the paid tax), payment of income tax:
The end of the calendar month following the end of the pandemic period.
Statement on the attribution of a share in the paid tax (if not attributed via the tax return) by individuals:
The end of the second calendar month following the end of the pandemic period.
Issuance of the confirmation on the paid tax for the purposes of attribution of a share in the paid income tax by the employer to an employee:
15 days of the second calendar month following the end of the pandemic period.
Notification on the reconciliation of payroll tax and on the amount of income from employment paid to individual employees without regard to the nature of the income (in cash or in-kind) for the past taxable period, on the withheld tax advance payments, on the employment premium, on tax bonus and on the tax bonus for the paid interest costs:
The end of the second calendar month following the end of the pandemic period.
Annual tax reconciliation of payroll tax:
The end of the calendar month following the end of the pandemic period.
Delivery of the document on the performed annual tax reconciliation by the employer to an employee:
The end of the second month following the end of the pandemic period.
Filing of the notification on the withholding and settlement of income tax of a health care providers and payment of the tax:
The end of the calendar month following the end of the pandemic period.
The payment of monthly and quarterly tax prepayments is not governed yet. Guidelines by the Slovak Ministry of Finance are expected soon.
VAT
No special reliefs introduced in the VAT area yet. ASB recommends that advance payments should be considered by the clients when they expect poor payment discipline of their business partners.
Road tax
The deadline for filing road tax returns, due during the pandemic period, is moved to the end of the calendar month following the pandemic period. Within the same deadline also the tax will be due.
Accounting deadlines
All deadlines imposed by Act on Accounting are considered as met if the accounting unit fulfills its obligation by the end of the third month following the end of the pandemic period (e.g. deadline for filing of Financial Statements into Register).
Administration fees
All request and filings which are filed by taxpayers in order to mitigate the negative consequences of the pandemic are not subject to administration fees.
Importation of goods
VAT exemption and import custom duties exemption for the importation of goods for the support of victims of a natural disaster.
Rental expenses subsidy
The partial payment of rental expenses in the retail sector is still under discussion. We will further monitor the topic.
Financial market measures
The financial support is granted in the form of a loan guarantee and/or payment of interest expenses from loans. The provider of this type of financial aid will be the Slovak Ministry of Finance and the mediators of the aid will the Export-Import Bank of Slovakia and Slovenská záručná a rozvojová banka, a.s.
Postponement of loan and mortgage payments for individuals and legal entities (9 months relief from payment of principal amount installments).
Support for sustaining workplaces
For more details regarding support for sustaining workplaces please refer to our Payroll Newsflash.
Zuzana Kolárová
Managing Director, ASB Slovakia
E: zkolarova@asbgroup.eu
