Slovak Republic - Tax Guide for Freelance Contractors

Tax residents in Slovakia:         are liable to pay Slovak tax on their worldwide income,
Non tax residents in Slovakia:  are liable to pay tax on their Slovak-source income only.

Individuals will be regarded as tax residents:

• if they have their permanent home or habitual abode in the Slovak Republic, or
• if they stay at least 183 days in a calendar year in the Slovak Republic.

Married persons must file separate tax returns.

Taxable income includes:

• employment income,
• business and rental income,
• capital income,
• benefits in kind.

Non-taxable income includes:

• benefits from social insurance,
• benefits from unemployment or health insurance,
• grants from the State, foundations or from abroad.

Certain deductions are permissible for 2012 including:

• mandatory contributions to health, sickness and pension insurance,
• mortgage interest expenses for business property,
• basic personal allowance of EUR 3'644.74 up to EUR 18'983,
• basic personal allowance of EUR 8'390.49 less one quarter of the taxable base if the taxable base is higher than EUR 18'983.  A personal allowance is not granted if the taxable base exceeds EUR 33'561.94,
• basic allowance for a dependant spouse in certain conditions,
• tax credit of EUR 243.18 per year per dependent child if monthly income is above EUR 1'963.20.

Income tax rates for 2012:

• 19.00% flat rate

Filing date:

Annual tax returns must be filed within 3 months of the end of the tax year.