Slovakia Country Profile taxation trade issues

Slovakia

TAXES - ACCOUNTING

Corporate tax

Tax rate for resident companies	19%

Tax rate on long-term capital gains	Capital gains are taxed at the rate of 19%.

System governing groups of companies and dividends paid by subsidiaries to their parent companies	The normal dividends tax rate is 15%; this rate may be reduced by treaty.

Tax rate on branches	Foreign branches are taxed on profits made in Slovakia at the rate of 19%.

Income tax

Fiscal year	The fiscal year begins on January 1st and ends on December 31st of the same year.

Income tax rate	Flat rate of 19%

Tax deductions or other allowances	There are not so many tax deductions allowances in Slovakia, they depend on the status and the health of every person. Insurance allowances disease, interests of loans for the purchase of place of residence, etc, are deductible.

VAT rates

Standard rates	19%

Reduced rates	10% since January 1st, 2007.

Other important taxes

Name of tax	Rate
Transfer of real estates	1% to 20%
Tax on vehicles	1200 SKK to 3 600 SKK for cars of 1-st category. 1200 SKK to 54 000 SKK for buses and lorries.
Succession and donations	5%

Accounting

Introduction
The New Slovak accounting system was developed by referring to models of the continental Europe, French and German in particular. This new accounting system required also the introduction of a new commercial law, a new accounting law, the new accounting schema and a new audit law.

General accounting principles
The structure of accounts as well as the balance sheet and the profit and loss account are inspired by the French model.

Obligations and publications
Entrepreneurs and any trading company of Slovakia must keep up to date and prepare annually some accounting documents :
- The account book.
- The inventory account.
- The expenses analysis account.
- The stocking evolution.
- The balance sheet.
- The profit and loss account.
- The fixed assets statement.
Certification and the control of accounts
To realize a financial analysis, The Directive of article 23 forces companies to produce financial information each year. Two schemas of publication for financial information are possible :
- A complete document for companies which are obliged to be audited by an independent auditor.
- An abbreviated document for entrepreneurs and companies which do not have to audit their accounts.

Certification and auditing
To realize a financial analysis, The Directive of article 23 forces companies to produce financial information each year. Two schemas of publication for financial information are possible :
- A complete document for companies which are obliged to be audited by an independent auditor.
- An abbreviated document for entrepreneurs and companies which do not have to audit their accounts.

Professionals and representative organizations
The political changes in Slovakia required the implementation of a new structure of the accountant and auditor activities.

Useful links

For further information, please contact the Slovak Investment and Trade Development Industry (SARIO).

Last modified in 2006 - ongoing update