On 10 June 2020 the Government approved a proposal to terminate the emergency situation, which is normally declared for the period of 3 months. Therefore, in Slovakia the emergency situation officially terminated on 13 June 2020.
However, the critical situation persists, i. e. the so-called pandemic period. This is followed by the obligations for employees and employers, such as filing a tax return or annual tax reconciliation.
According to § 21 par. 1 of the Extraordinary Measures Act, the deadline for submitting a tax return pursuant to § 49 par. 2 of Act No. 595/2003 Coll. on Income Tax (hereinafter referred to as the “Income Tax Act”) is postponed from 31 March 2020 (or the end of the third month after the end of the tax period) to the end of the following calendar month after the termination of the pandemic period. Within this period the tax must be also paid.
If the Government terminates the pandemic period till: |
Deadline for submitting the tax return till: |
end of July |
31st of August |
end of August |
30th of September |
end of September |
31st of October |
Pursuant to § 24 par. 2 of the Extraordinary Measures Act, the employer shall make the Annual Tax Reconciliation no later than by the end of the following month after the termination of the pandemic period.
Pursuant to § 24 par. 1 of the Extraordinary Measures Act, and the Annual Tax Statement („Hlásenie“) shall be submitted no later than by the end of the following second month after the termination of the pandemic period.
If the Government terminates the pandemic period till: |
„RZD“ completion till: |
Delivering of completed „RZD“ to employees and the Statement till: |
Reimbursement of overpayments and tax bonuses to employees till: |
end of July |
31st of August |
30th of September |
Payroll for September |
end of August |
30th of September |
31st of October |
Payroll for October |
end of September |
31st of October |
30th of November |
Payroll for November |
Generally speaking, if an employee is allocated to an EU Member State, the law of the state in which he is allocated applies. On 30 July 2020, the Labour Code No. 311/2001 Coll. (hereinafter referred to as the Labour Code) will be amended with regards to secondments of personnel from EU Member States to the territory of the Slovak Republic.
From 30 July 2020, the employment relationship of an employee allocated from another EU country to the territory of the Slovak republic will be governed by the provisions of the Labour Code. The first of the added conditions is that the employer will be obliged to arrange accommodation for his allocated employee in accordance with the conditions and rules applicable in the territory of the Slovak Republic. The second condition added is compensation for travel expenses — applicable in accordance with the Slovak law on Travel Compensation (reimbursement of travel expenses, reimbursement of accommodation expenses and meal allowances).
The liquidation process will be longer, more complicated and costly from 1 October 2020. Companies will be required to pay, in addition to the advanced payment (1 500€) for liquidation, remuneration for further actions of the liquidator and the preparation of the documentation. Smaller companies will be unlikely able to finance such a costly process.
Therefore, if you are planning to close your business, do not delay entry into liquidation. Liquidations in which the liquidator will be entered in the commercial register by 30 September 2020 will be completed according to the legislation which is in force now.
Employees who become temporarily unable to work by a quarantine measure, e.g. the day before the termination of the pandemic period, will be entitled to sickness benefit in the amount of 55% of the daily assessment basis paid by the Social Insurance Company. The same amount of sickness benefit will be paid if this temporary inability continues after the termination of the pandemic period.
For a period when children will not attend pre-schools, schools or social service facilities, despite their opening (from 01.06.2020), the parent of the child will be entitled to care givers allowance, provided that the conditions are met (e.g. if the parent worries for the child's health). However, this legislation will only maintain the entitlement for the care givers allowance if there is a prior education and training process, i.e. during the school holidays the care givers allowance is not entitled to the parent.
The results of the Annual Health Insurance Clearance (hereafter referred to as ‘RZZP’), carried out by Health Insurance Companies, is to be delivered to employers in the near future. The deadline for the processing of the RZZP for 2019, as compared with the previous periods is postponed due to the COVID-19 pandemic to 31 October 2020.
The Notification of the Implementation of the RZZP for 2019 will be sent to each employer via their electronic box. It is necessary to deliver this notification to the payroll provider.
The Notification from the Health Insurance Company shall include passwords, which are also necessary for electronic access to the settlement details that have to be transferred to the payroll processing.
The Health Insurance Company is obliged to repay the excess health insurance within 45 days of the expiration of the period for submission of a dissenting statement.
Incurred health insurance arrears are due within 45 days of the date of entry into force of the statement.
The Parliament of Slovak Republic approved a package of more than 100 measures under the name ‘Lex korona’, the most significant aid for entrepreneurs since 2014, when the tax reform was introduced.
From among these measures we have chosen those that directly affect payroll, accountancy and taxation:
These legislative changes were proposed and most of them accepted but with a different date of effectiveness.
Initially, these proposals also included a change in the areas of meal tickets and introduction of the possibility to replace meal tickets with financial compensation. However, this issue was postponed to the autumn, when a second package of measures is supposed to be introduced.