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contributions under the saving or insurance plan are agreed to be paid over at least 10 years, and the taxpayer is not allowed to cash in within this period; and the savings or insurance plan can mature at the age of 55 at the earliest.

Reduction of tax – child allowance

The taxpayer's tax liability is reduced by an annual child allowance of EUR 240 p.a. per child (the allowance will increase before the end of 2010 to a yet unknown amount). This is however subject to certain conditions including a 90% Slovak source income test for non-residents.

Personal Income Tax Compliance

An annual personal income tax return must be filed with the tax authorities no later than 31 March following the end of the tax period. Payment of personal income tax liabilities is also due by the filing date. A notification to the tax authorities on the extension of the filing deadline and tax payment date up to a maximum of a further three (in some cases six) months can be made at the latest by 31 March of the following year. There are significant penalties for non compliance with the regulations.

In some cases, a tax return does not have to be filed, e.g., if the taxpayer had only employment income and provided that the employer has performed, upon the taxpayer’s request (which must be made no later than 15 February), a yearly tax settlement on behalf of the taxpayer (subject to further conditions).

Social Security

EU Regulations

Since the accession of Slovakia into the EU on 1 May 2004, the EU Social Security Regulation has been applicable in Slovakia. As a result, social security rules, including Council Regulation (EEC) No 1408/71 on the application of the social security schemes of employed and self-employed persons moving within the Community are applicable, unless any transitional arrangements have been agreed between Slovakia and other member states.

This Regulation states, subject to specific exceptions, that the law of the state where the employment is exercised should apply. This means that an employee assigned from another member state to perform work for a Slovak company becomes, in principle, subject to the Slovak social system.


©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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