Corporate Tax in Slovakia

Opening a company in Slovakia means enrolling with the country’s taxation system and paying the levies imposed by the government. Companies in Slovakia are subject to the income tax imposed on the business profits they make here, but also on other sources of income.

Below, our company formation agents in Slovakia explain how companies are taxed here. They can also advise on the procedure of starting a business in Slovakia.

Tax rules imposed on companies in Slovakia

All companies operating in Slovakia, including subsidiaries and branch offices of foreign companies, will be taxed as follows:

1.        in order to be subject to taxation in Slovakia, a company must have it control in this country;
2.        the corporate tax will be imposed on the global income of a company;
3.        Slovak branch offices of foreign companies will be taxed on the incomes earned in this country;
4.        the corporate tax will be applied to the taxable income earned by the company;
5.        the tax year for which the corporate tax is applied is the same as the calendar year.

Slovak companies can modify the fiscal year with the tax authorities.

Corporate incomes taxed in Slovakia

Among the incomes falling under the corporate tax in Slovakia are:

• -          business profits;
• -          dividend, interest and royalties payments;
• -          capital gains;
• -          real estate ownership;
• -          the value added tax;
• -          social security related to employment.

Our company registration consultants in Slovakia can offer more information on the tax legislation applicable here.

Corporate tax rates in Slovakia

Starting with January 2018, the Slovak corporate tax has suffered an important modification, as the alternative minimum tax is no longer levied on companies. The new standard rate of the corporate tax applicable to companies in Slovakia is 21%.

The rates applied to the other taxable incomes of companies in Slovakia are:

• -          the withholding tax applicable to dividends payments is 7%;
• -          the withholding tax applicable to interest and royalties payments is 19%;
• -          the exit tax applied to companies moving their activities outside Slovakia is 21%;
• -          the social security paid by companies as employers is 32.5% per employee’s gross salary.

For more information on the corporate tax in Slovakia, please contact our local company formation representatives.