Taxation in Slovakia
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In Slovakia, taxes are levied by the federal and local governments. Tax revenue stood at 29.5% of GDP in 2013. The most important revenue source for the federal government is the income tax, social security, value-added tax and corporate tax.
Income tax
The income tax in Slovakia is levied at two different rates of 19% on income below 35.022,31 Euro and 25% above [1] A personal allowance of 3.803,33 Euro apply, which is phased out when yearly income hit 25% income tax bracket. In case of a non-working spouse a further allowance can be claimed.
Social Security contributions
All employment income is mandated to pay into various social funds by law. In 2016 the rate for the employee is 13.4% and the employer contribution 35.2% of corresponding salary. Maximum monthly income base is 4.290 Euro.[2]
| Insurance policy | Max. monthly ceiling | Employee % | Employer % |
|---|---|---|---|
| Retirement Insurance | €4.290 | 4.0% | 14.0% |
| Disability Insurance | €4.290 | 3.0% | 3.0% |
| Sick Leave Insurance | €4.290 | 1.4% | 1.4% |
| Unemployment Insurance | €4.290 | 1.0% | 1.0% |
| Contribution into Reserve fund of the SIC | €4.290 | 0.0% | 4.75% |
| Guaranty Insurance | €4.290 | 0.0% | 0.25% |
| Injury Insurance | no limit | 0.0% | 0.8% |
| Health care Insurance | €4.290 | 4.0% | 10.0% |
| Total in % | 13.4% | 35.2% |
Value-added tax
The value-added tax (VAT) in Slovakia is levied at a rate of 20%, but is expected to fall back to 19% when the crisis is over. A lower rate of 10% is levied on medicine and certain books.[3]
Corporate tax
The corporate tax in Slovakia stood at 22% for 2014.[4] Resident companies are those which have their legal seat or place of effective management in the Slovak Republic.
Tax reform after the Soviet era
The time after the collapse of the soviet, a long range of range of reforms have been made, to bring the country from a government run economy to a free market economy. A large tax reform was enacted in the year 2003. It included a long range of reforms including abolishing most deductions on the income tax, and bringing it down to a flat rate of 19% instead of a progressive rate from 10% to 38%. The corporate tax fell from 25% to 19%. Furthermore, the two rates of VAT 14% and 20% were merged into one band of 19%. All inheritance and gift taxes was also abolished.[5]
Road tax and toll
 | Parts of this article (those related to Road tax and toll) need to be updated. (July 2016) |
Road tax and toll payment in Slovakia is compulsory. These are paid for with vignettes, purchased for between one week to one year periods. Cost is determined by the weight of the vehicle. Additional costs are incurred for trailers attached to vehicles.
Vehicles below 3.5 tons
Persons travelling on a highway or speedway in Slovakia with a vehicle with maximum permissible total weight below 3.5 tons, are obliged to pay road tax by buying vignette. There is a traffic sign on each border crossing informing about this obligation but no further reference within the country.
Types of vignettes
Currently, there are 6 types of vignettes:
- Green - valid for 1 year
- Pink - valid for 30 days (including pierced date)
- Blue - valid for 7 days (including pierced date)
If a trailer category O1 or O2 is attached (to a tractor vehicle within the vehicle categories M1, N1 or N1G, and the maximum permissible weight of the vehicle and trailer exceed 3.5 tons, drivers have to buy additional vignette for heavy vehicle combinations.
- Purple - valid for 1 year (from January 1, 2011 until January 31, 2012)
- Orange - valid for 30 days (including pierced date)
- Yellow - valid for 7 days (including pierced date)
Prices
In 2011 the prices (including VAT) are the following:
- EUR 50 - green and purple vignette
- EUR 14 - pink and orange vignette
- EUR 7 - blue and yellow vignette
Vehicles over 3.5 tons
Since January 1, 2010 all vehicles above 3.5 tons maximum permissible total weight (including busses) must pay electronic toll when driving in Slovakia. Information about this obligation is stated by a traffic sign on each border crossing. Generally all main corridors (national roads) and highways are toll liable. A company named SkyToll A.S., runs a system based on a combination of GPS, GSM and DSRC technology. Each driver has to stop at one of the distribution points located on each border crossing used by heavy traffic and register the vehicle. The driver obtains an electronic on-board unit.
External links
- Web page about the electronic toll system in Slovakia
- Correct usage of the on-board unit
- Toll liable roads in Slovakia
- National highway company of Slovakia - information about vignettes
- Correct usage of a vignette
- Road tax liable highways in Slovakia
References
- ^ "KPMG". Income tax rates.
{{cite web}}: Check date values in:|date=(help) - ^ "KPMG" (PDF). Tax Card 2013.
{{cite web}}: Check date values in:|date=(help) - ^ "VAT Live". VAT rate rise to 20%.
{{cite web}}: Check date values in:|date=(help) - ^ "KPMG". Corporate tax rate 2014.
{{cite web}}: Check date values in:|date=(help) - ^ "Visegradrevue". Tax reform Slovakia.
{{cite web}}: Check date values in:|date=(help)