Financial measures regarding taxation and accounting to mitigate the negative consequences of a pandemic arisen due to COVID-19

• Tax Administration

• Prioritizing of electronic submissions for entities not obliged to deliver documents by electronic means, with the exception of documents with required structured form, e.g. Tax Returns, Withholding Tax notice, Financial Statements;
• 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; Note: Failure to meet the deadline for non-payment of VAT pursuant to Section 29 of the Tax Code and Section 4 of Act No. 67/2020 Coll. on certain exceptional financial measures regarding the spread of dangerous and contagious disease COVID-19.

  The Financial Directorate has prepared Q&As (link below) regarding the missed deadlines for tax payments, including VAT and possible sanctions, but please note that they are not legally binding.

  https://www.financnasprava.sk/_img/pfsedit/Dokumenty_PFS/Infoservis/Aktualne_informacie/Covid19/2020.04.03_korona_003.pdf

  The current legislation does not allow for the extension the deadline for filing VAT return. If the taxpayer fails to submit the tax return in time, we recommend applying for remission of the missed period within 30 days at the latest when the reasons no longer exist. Webpage of the Financial Directorate that take into account reasoning for waiving it will take account of the reasoned requests for waiving from missed deadline.

  Under current legislation, the tax administrator levies interest on late payment on the outstanding amount at an interest rate of 15% p.a. The Financial Directorate, in cooperation with the Ministry of Finance of the Slovak Republic, is preparing a change in legislation so that no sanctions for missing the deadline for filing the tax return and for paying the tax are imposed in this situation.

  This also applies to summary and control statements.

• 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;
• Suspension of the tax procedure, which started before the period of pandemic based on the request of the taxpayer, by the end of the pandemic period;
• Suspension of the extinction of a right to impose a tax and a right to collect tax arrears during the pandemic;
• Tax arrears / § 2 let. (b) the Tax Administration Code / 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, Wittheld 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. Note. Above said does not relate to late payment of corporate income tax prepayments according to Income tax Act, Section 42;
• During the pandemic period, no administrative fee shall be imposed for administration acts necessary to mitigate the negative consequences of the pandemic.
• If the deadline for imposing a fine pursuant to Act No. 431/2002 Coll. on Accounting, as amended, did not expire by the start of the pandemic, the period of the pandemic is not included.
• Note. These are fines imposed by the tax administrator pursuant to Act No. 431/2002 Coll. on Accounting, as amended.

• Income Tax
  • 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

• 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;
• The provisions shall also apply to a permanent establishment;
• 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;
• 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;

Note. If the failure to meet the deadline is not related to the submission of Financial Statements, but e.g. due to inability to carry out stocktaking for personal or technical reasons, announce change of accounting period, announcement on approval of financial closure, etc. Given obligations are to be met by the end of the following third calendar month after the termination of pandemic.

Above given may have an impact on change of deadlines related e.g. to audit of financial statements and annual report by auditor, filing financial closures mainly in cases if the accounting period is financial year (not calendar year) and deadline for auditing falls into pandemic period.

We are here to answer any questions you may have.

Vladimír Bartoš,

Tax Advisor,Tax Partner

Mobile: +421 911 402 190

E-mail: [email protected]

Zuzana Sidorová,

Tax Advisor,Tax Manager

Mobile: +421 911 908 268

E-mail: [email protected]