The COVID-19 pandemic has far-reaching implications on every aspect of daily life and business operations, as well as relations between employers and employees in Slovakia.
To mitigate the negative impacts in tax, accounting and customs, the Slovak parliament has recently passed the Act[1] on certain extraordinary measures to be adopted in the financial sector in Slovakia. The law entered into force on 4 April 2020 and was amended[2] on 9 April 2020.
The key measures implemented cover:
TAXES IN GENERAL
Default of the tax period shall be remitted if the tax subject conducted the defaulted act at the latest before the end of the calendar month following the end of the COVID-19 pandemic. However, this will not apply for tax return fillings and tax payments.
Upon request, tax controls shall be interrupted during the COVID-19 pandemic.
During the COVID-19 pandemic, the Financial Administration of the Slovak Republic shall not update the publicly available list of tax debtors.
Tax proceedings shall be interrupted during the COVID-19 pandemic.
Tax executions shall be deferred during the COVID-19 pandemic.
INCOME TAX (in Slovak: "Daň z príjmov")
Communications with the authority may be conducted electronically, it is not necessary to visit the office in person.
Income tax return filings.
Possibility to submit the application for extending the period for filing the tax return until 31 March 2020, and so extend the period for filing the tax return and the period for payment of taxes for 3 months, or 6 months in case of income from abroad. If no notification on extending the period for filing the tax return is submitted, it is possible to use automatic remission of sanctions in case the tax return is filed and paid by 30 June 2020. This "deferral" does not need to be notified to the authority.
VAT RETURN FILINGS
Currently, the law does not allow extending the period for VAT return filings. Thus, if a VAT return is not filed on time, it is recommended to apply for exemption of this obligation. According to publicly available information, the Financial Administration of the Slovak Republic obliged to take into account a reasoned application for exemptions in situations caused by COVID-19. Moreover, changes to legislation are being prepared so that any sanctions for late tax payments will not be imposed.
MOTOR VEHICLE TAX (in Slovak: "Daň z motorových vozdiel")
Default of the tax period and payment due date (which has not expired before the beginning of the COVID-19 pandemic or has started during the COVID-19 pandemic) shall be exempted if the tax subject conducted the defaulted act and made the payment at the latest by the end of the calendar month following the end of the COVID-19 pandemic.
ACCOUNTING REGULATIONS
During the COVID-19 pandemic, deadlines under accounting regulations[3] are deemed to be met if the entity fulfils the missed obligations by the end of the third calendar month following the end of the COVID-19 pandemic, or by the expiry of the period for filing the tax return, depending on which period lapses earlier.
If during the COVID-19 pandemic the entity could not objectively fulfil obligations under the accountancy regulations[4] due to personal or technical reasons due to the negative consequences of the pandemic, it is not considered a breach of these obligations if the entity fulfils these obligations by the end of the third calendar month following the end of the COVID-19 pandemic.
The COVID-19 pandemic period shall not be considered if the period for imposing a fine pursuant to the accounting regulations[5] began before the beginning of the COVID-19 pandemic and has not expired before the beginning of the COVID-19 pandemic.
REPORTING AND ANNUAL CLEARING (in Slovak: "Hlásenie a ročné zúčtovanie")
Reporting on tax accounting and on total employment income provided to individual employees (regardless of whether they are cash or non-cash) for the past tax period, as well as on withholding tax advances, employee bonuses, tax bonuses and tax bonuses on paid interest, which the period for filing expires during the COVID-19 pandemic, shall be filed by the end of the second calendar month following the end of the COVID-19 pandemic, and the income tax is also due within this period.
The annual clearing and calculation of income tax, which deadline expires during the COVID-19 pandemic, shall be carried out by the employer no later than the end of the calendar month following the end of the COVID-19 pandemic. The employer is obliged to deliver to the employee proof of annual clearing by the end of the second calendar month following the end of the COVID-19 pandemic at the latest.
The employer shall return to the employee the difference between the calculated income tax and the total income tax deducted in favour of the employee after the annual clearing, but no later than by payment of the salary/remuneration for the second calendar month after the end of the COVID-19 pandemic is accounted. Accordingly, the employer shall pay to the employee the employee bonus, tax bonus or its part, and tax bonus for paid interest or its part in the amount due under the accountancy regulations.[6]
CUSTOMS
Release of goods from customs and VAT in case of goods imported to support disaster victims:
Possibility to release goods from customs and VAT in case of goods imported by charities helping disaster victims. The relevant authority when approving release is the Ministry of Interior of the Slovak Republic. The release of goods from customs and VAT may be applied for from 30 January until 31 July 2020.
