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country for at least 183 days in any 12-month period. For further information regarding PE issues please refer to Chapter 4.

An individual will be taxed only on income originating from Slovak sources if he/she is present in Slovakia for less than 183 days. If the individual is in Slovakia for more than 183 days, he/she will be treated as a resident unless the applicable double taxation treaty states otherwise. If individuals have their domicile in a country with which Slovakia has concluded a double taxation treaty, their Slovak tax liability will be limited in accordance with the provisions of the applicable double taxation treaty.

Income can be subject to Slovak tax regardless of whether or not it is remitted to Slovakia.

Expatriates who are employees of foreign companies and are paid from abroad for activities performed in Slovakia could in some cases be exempt from personal income tax. This is not the case if:

they stay in Slovakia for more than 183 days in a calendar year or a 12-month period, as the case may be, or the foreign company has a PE in Slovakia, or their remuneration is borne by a Slovak entity.

Taxable Income

Taxable income comprises specified categories of income, less the deductions allowable for each category and certain general deductions. The income categories are as follows:

income from dependent activities (i.e. employment activities) income from independent activities (i.e. entrepreneurial activities, for example, partnerships and professional consultancies and self-employed individuals), including rental income income from capital (i.e. interest, dividends distributed from pre-2004 profits etc.) and other income (including gains other than exempt gains).

Employment income

Income from employment activities includes any monetary and nonmonetary benefits related to employment obtained by an employee (or in specific cases by other persons).

Examples of benefits in kind that are considered fully taxable include:

company car available for private use (the taxable benefit is calculated as 1% of the acquisition price of the car including VAT for each month) petrol expenses for company car used for private purposes rental paid by the employer for a house or flat used by employee


©2010 KPMG Slovensko spol. s r.o. , a Slovak limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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