COVID-19: Government measures
Below, we have summarized the most significant financial measures to mitigate the impact of Covid-19 approved by the Slovak Parliament on 2 April, 7 April, and 22 April 2020:
- The standard deadlines (expiring during the pandemic) for submission of Financial statements, Annual reports and Audit reports will be considered as met if the companies fulfil these obligations by the end of the 3rd calendar month following the month in which the end of the pandemics will officially be declared; or within the deadline for filing of the CIT return – please see below (whichever comes first). The same applies also the other accounting related obligations (bookkeeping, inventory counts, etc.) if there are objective reasons (technical, personal) for non-fulfilment).
- The standard deadlines (expiring during the pandemic) for submission of the income tax returns, motor vehicle tax returns, annual tax settlements for employees and announcements on non-monetary income by health care providers, as well as for payments of income tax liability, advance payments for personal income tax collected from employees, withholding tax and so called „securing of tax“ will be considered as met if the companies fulfill these obligations by the end of the calendar month following the month in which the end of the pandemics will officially be declared
- However, the extension of time limits does not apply to the filing of VAT returns and other VAT related VAT filings, or to the payment of the VAT liability. Similarly, the law does not apply to the payment of income tax advances.
- The standard deadlines for submission of the employers reports on tax settlement (“Hlásenie“), confirmations on personal income tax paid for employees and declaration on assignment of share of income tax (“2%”) of individuals, will be considered as met if the companies fulfill these obligations by the end of the 2nd calendar month following the month in which the end of the pandemics will officially be declared. Employers are obliged to deliver employees their annual settlement reports within the same period.
- The employer is obliged to issue a confirmation for the purposes of remitting a share of the income tax paid („2%“) to employees by the 15th day of the 2nd month following the month in which the end of the pandemics will be officially declared
- The late payment interest will not be levied regarding to late payment of income tax (in case of fulfilment of this obligation within the end of the calendar month following the month in which the pandemic period is ended). For payments of other taxes, advances, withholding tax, etc. the exemption is not applied and the statutory deadlines mut be respected.
- Measures in relation to third sector were presented to ensure that share of the income tax paid by companies will be delivered to the non-profit organizations like in normal situation (“2%” of the paid tax).
- Share of the paid income tax (“2%”) can be used for relieving the negative effects of the pandemic during the pandemic period until the end of 2021. This is also applied to the share of paid tax received in 2019 under the condition of publication of a precise specification of the use of the share of paid tax by the end of May 2022.
- Import of the medical material from non-EU countries will be exempt from import duties and VAT.
- The black list of tax debtors and VAT payers will not be updated during pandemics.
- Tax inspections and tax proceedings which started before and during the pandemic will be suspended at the request of taxpayer only. Tax distrainment procedures will be delayed as well.
- Missing the statutory deadlines without submission of an application will be forgiven, i.e. without fees and the need to issue a decision (except for submission of tax return and paying taxes).
- No payment of administration charges for actions that have to be taken as a result of the pandemic.
- Matching delivery of correspondence by the tax administrator with the current post office rules. Further updates will follow.
- Employers will be able to postpone the payment of their March 2020 social security and health insurance contributions, if their revenues dropped by more than 40%.
- Financial assistance for small employers through institutions such as the Export-Import Bank of the Slovak Republic and the Slovak Guarantee and Development Bank in the form of a guarantee for a loan provided by a bank (the guarantor is MFSR) or payment of interest on a loan provided by a bank from state budget funds was introduced.
- Postponing the repayment of the loan to a maximum of 9 months for consumers, small employers or other entrepreneurs - natural persons was introduced.
- The possibility of non-payment of income tax advances payable during the pandemic was approved in cases, if taxpayer reports a reduction of their sales at least 40% in comparison with the same period in 2019 (eg. If there is a decrease in sales for April 2020, the delay of payment of advances is applied on May 2020). The reduction needs to be proved by taxpayer with a declaration submitted no later than 15 days before the advance expiration. The delay can be applied for the first time for May 2020. This will also be applicable for taxpayers who have already applied for advance payments differently. Taxpayer will pay the advances when submitting the tax return for the tax period 2020.
- The possibility of unapplied tax loss deduction from tax periods 2015 to 2018 (max. 1 mil. EUR) was approved in cases, if the deadline for filing of the income tax return for 2019 expires in from 1 January 2020 to 31 December 2020. The tax loss is deducted chronologically from the first reported loss.
- If the deadline for filing a tax return and for reporting obligation regarding the local taxes expires during the pandemic period and the taxpayer fulfil these obligations till the end of the month following the month in which the pandemic period ends, these obligations are considered as fulfilled.
- Motor vehicle tax advances payable during the pandemic period do not need to be paid since April 2020. The unpaid advances will be settled within the deadline for filing the motor vehicle tax return.
- Income tax overpayments applied by taxpayer in the income tax return filed during the pandemic period will be refunded within 40 days from the end of the calendar month in which the tax returned was filed.
- Income tax overpayments from the tax returns filed before the pandemic period (12 March 2020) will be refunded within 40 days from 31 March 2020. However, if the taxpayer subsequently files a tax return stating a lower overpayment, this will be considered as an administrative offense. Taxpayer will have to pay back the difference between the original and the new amount of overpayment and will have to pay a penalty of 100% of the difference.
In the following publication, updated to March 2021, we have prepared overall government measures in the Slovak Republic for you.
Covid19 Guide to government Measures in Slovak Republic
We also present a publication prepared together with our partner organizations within the BDO international network, which summarizes measures in selected EU countries, included V4 countries, Croatia, Moldova, Bulgaria, Serbia and others:
Covid 19 Guide to Government Measures in the CEE Region
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