Ing. Marcel Muráni, tax advisor
What is the impact of the current situation on your business? How to ask the state for various concessions?
The information in this Article is based on the legislation in force on 27.03.2020.
Deferral of taxes – is it possible?
Yes! Slovak legislation allows deferred payment of tax or payment of tax in installments. The tax administrator is entitled to secure its claim against you through a lien. This lien does not apply if your tax is due up to € 3000. The tax administrator can allow you to defer payment or tax repayment for a maximum of 24 months.
Unfortunately, nothing is free. If the tax administrator authorizes you to defer or pay installments of your tax in addition to the tax, you are also required to pay 10% p.a. The interest shall be calculated for each day of the authorized deferred tax payment or the authorized tax payment in installments. If you pay a deferred tax or installment tax imposed by a decision of the tax administrator within a time shorter than that imposed by the decision, the tax administrator shall charge interest on the deferred amount until the date of payment of the deferred tax or the date of payment of the tax in installments.
The time limit specified in the decision granting the deferral of payment or in the decision granting the payment of the tax in installments shall not be extended or waived. If you do not pay the deferred tax or installment tax by the specified date, the tax administrator is obliged to initiate the tax execution procedure within 30 working days from the date on which the tax or tax installment was supposed to be paid.
Can I apply for tax relief?
You can, but only if you are a natural person. If you are a legal entity (Ltd., Limited partnership, Cooperative, etc.), there is no such option for you.
You did not request a deferred tax, but you did not pay the tax because you do not have enough money due to the current situation. How to proceed?
In this case, you can apply for a waiver of the default. For serious reasons, the tax administrator will waive the deadline if the taxpayer so requests not later than 30 days from the date on which the reasons for the default were dropped and if he pays the tax in the same deadline.
Would you like to pay social insurance to Social insurance agency in installments?
Submit your application to the Social Insurance Agency, which may, on the basis of this application, authorize you to repay the outstanding amounts due for your insolvency or for any other reason that would give rise to insolvency. However, you must meet both of the following conditions:
(a) you may reasonably be expected to be able to pay the outstanding amounts of premiums for a period not exceeding 24 months; and
(b) at the time of the decision to authorize the repayment of the outstanding amounts of the premiums, if you are a premium payer at that time.
The annual interest rate of installments is 10%.
What about health insurance?
Upon your request, the sickness insurance fund may allow the repayment of outstanding sums due to the premium and the outstanding balance of the annual premium due to your insolvency in installments. The interest rate is at least 15%. Subsequently, it is also possible to apply for remission of interest on late payment.
If you have any further questions, feel free to write to us at office@emineopartners.sk.
The information above on this website is intended to give you a basic overview of tax, accounting, and legal regulations. They do not in any way serve as a guide for their application in practice, which may differ significantly from the legislation in force at the time. The information on this website does not guarantee legal, accounting, tax or other professional advice or services. As such, information should not be taken as a substitute for professional consultations with accountants, tax, legal or other advisors. EMINEO PARTNERS shall not be liable and shall not be liable for any discrepancies, omissions or results obtained from the use of this information. All information and examples are provided without any guarantee of their applicability in practice. EMINEO PARTNERS is not obliged to reflect the applicable legislation on the information and examples provided on this website.
