slovakia

COVID-19 Countermeasures in Slovakia

Summary

Area
Title
Description
Labour law
Contribution for employees and self-employed
Possible contribution of employee’s remuneration up to 80% of their salary for employers who had to close or limit their operations
Remunaration reduction
Possible reduction of compensation of employees' wages to 80%
Social security exemption
Exemption from the payments of social and health deductions for employees of those businesses, that had to close due to imposed measures. Complete abolition of social and health levies payments for self-employed workers
Tax
Deadlines extensions
Deadlines for a number of taxes have been extended
Tax advance payments expiration
For March-April or Q1 2020 tax advances shifted 2 moths after pandemic ends. Obligation to pay monthly or quarterly advances starting in May 2020 or Q2 2020 on income tax if sales decreased over 40% yoy expires.
Tax losses deduction
Unclaimed tax losses for the taxable periods which ended between years 2015 and 2018 may be deducted
Financial support
Postponing loans
Negotiations with banks on the possibility of postponing loan repayments without any negative consequence
Short-term loans
Slovak Guarantee and Development Bank (SGDB) will provide short-term loans for selected sectors with simpler conditions and rules

Labour market

Contribution for employees and self-employed persons

  • Employers and self-employed who had to close their operations can apply for contribution of employee’s remuneration of 80% of their average earnings, not more than EUR 1100
  • Employers, self-employed persons with employees included who, have did not have to close or restrict their operations and whose sales decreased by 20% or more, can apply for contribution to employee’s remuneration. The amount of the contribution depends on decrease in sales. The employer will have to keep the job place also after the end of the crisis. The maximum compensation is EUR 540.  The amount of the contribution per employee cannot exceed 80% of the employee's gross salary,
  • Contributions for the retention of jobs for small businesses and sole traders;
  • Reduction of compensation of employees' wages to 80%
  • Change in the conditions of eligibility of benefit for taking care of the children:

Tax provisions

Tax Administration

  • Remission of missed deadline, if the taxpayer performs the missed act no later than by the end of the following calendar month after the termination of pandemic; this however does not apply to submission of the Tax Return and the payment of the tax;
  • Suspension of tax controls during the pandemic period based on the request of a taxpayer, with the exception of the tax audit for the eligibility of excessive deduction;
  • Possibility to issue a partial protocol for the tax audit of the eligibility of VAT deductions during the pandemic period, however the partial protocol does not have to include audit findings and evidence assessments; by issuance of the partial protocol, the tax control is suspended;
  • The Financial Directorate of the Slovak Republic will not update on its website the public list of tax debtors; the list of VAT payers, where there were reasons to cancel the registration, and the list of deleted VAT payers;
  • Tax arrears is not considered to be the tax amount due, which maturity period expires during the pandemic and which the taxpayer pays no later than by the end of the following calendar month after the termination of pandemic

  • Automatic deferral of tax execution during the pandemic;

  • Taxpayers shall not be penalized if the period for submitting an Additional Income Tax Return expires during the pandemic period, provided that they comply with this obligation no later than by the end of the following calendar month after the termination of pandemic;

  • Late interest will not be imposed by the tax authorities if the taxpayer pays the Income Tax, Tax Advances, Withholding Tax, or the amount of Tax Security that has become due during the pandemic period, no later than by the end of the following calendar month after the termination of pandemic;

Income Tax

  • General time limit: If the time limit for submission of the Income Tax Return and the payment of the Income Tax expires during the pandemic period, the period is extended by the end of the following calendar month after the termination of pandemic;
  • Extended time: Possibility to submit the Extension of the Deadline Notification for Income Tax Return during the pandemic period by a maximum of three calendar months, if the taxpayer has income from abroad for the relevant tax period, the period may be extended by a maximum of six calendar months;
  • If the extended period for submission of the tax return expires during the pandemic period, the period shall be extended by the end of the following calendar month after the termination of pandemic
  • Notification of deduction and payment of the Income Tax of a Healthcare provider shall be submitted by the end of the following calendar month after the termination of pandemic, and the Income Tax shall be paid within the same period;
  • Tax Statement Report, of which the last day of the period expires during the pandemic period, shall be submitted by the end of the second following calendar month after the termination of pandemic, and the Income Tax is also due within the same period;
  • Annual Tax Clearance, of which the last day of the period expires during the pandemic period, shall be executed by the employer no later than by the end of the following calendar month after the termination of pandemic, and the employer is obliged to deliver the confirmation to the employee by the end of the second following calendar month after the termination of pandemic.

Vehicle Tax

  • If the deadline for submission of the Vehicle Tax Return expires during a pandemic period, the period shall be extended by the end of the following calendar month after the termination of pandemic.

Accounting

  • If the deadline pursuant to Act No. 431/2002 Coll. on Accounting, as amended expires during the pandemic period, the accounting entity is obliged to fulfil its obligations by the end of the following third calendar month after the termination of pandemic; or by the end of the expiration of the deadline for submission of Tax Return, depending on which expires earlier;

Financial support

  • Negotiations with banks on the possibility of postponing loan repayments without any negative consequence - no entry in the debtors register and on the possibility of freezing interest and principal repayments for individuals but also for legal entities;
  • Slovak Guarantee and Development Bank (SGDB) will provide short-term loans for selected sectors with simpler conditions and rules;
  • Allowing using the European Structural and Investment Funds to cover the impact of the crisis, more flexible drawing from the Funds;
  • Funding the support of the private sector – setting apart funds through the Slovak Investment Holding (SIH) and the European Investment Bank (EIB) to support private sector investment;

Rent compensation

The subsidies apply to those entrepreneurs who were not able to use their rented premises (a room, set of rooms or a market stand) for agreed business purposes or the use of these premises was significantly limited due to the restrictive measures imposed to prevent the spread of COVID-19.

The extent of the financial compensation (subsidy) will be equal to the amount of the discount on rent based on the agreement between the landlord and the tenant, maximum up to 50% of rent for the rent period affected by the restrictions. If the landlord is a state property administrator, the rent payment is reduced by half.

The tenant pays rent for the period of restricted use in the final amount reduced by the rent discount as well as by the rent compensation subsidy provided to the tenant. The tenant can repay the overdue rent in no more than 48 equal monthly repayments.

Other measures

  • Sanction for importers of raw materials for production from third countries - the customs debt (which must be paid within 10 days) could be extended to 30-40 days;
  • Reducing the price of energy, part of the amount could also be paid by the state;
  • Not imposing fines on companies if they are unable to meet the conditions of public contracts on time, not imposing fines if, for example, the refrigerators are not at the right temperature.
  • Temporary protection of lease. enants (entrepreneurs and non-entrepreneurs) have been provided protection in the case of late payments of rent and other lease-related payments due to circumstances resulting from the spread of the dangerous contagious human disease COVID-19.

Contact Us

Alena_Lipovska
Alena Lipovska
Manager, Country Manager