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Taxation of Foreign Companies in Slovakia

Taxation of Foreign Companies in Slovakia

Updated on Tuesday 14th February 2017

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taxation-of-foreign-companies-in-slovakia.jpgBeing a member of the Organization for Economic Co-operation and Development (OECD), the corporate tax system in Slovakia commonly abides by the rules and regulations of the OECD. Therefore, foreign companies in Slovakia which are considered non-resident are taxed only on their revenues which originate from Slovakia.
The corporate tax rate for revenues generated in Slovakia is set at 22% since 2014. Our lawyers in Slovakia can provide further details on this subject.

What are the revenues originating from Slovakia?

Since the taxation of foreign companies in Slovakia is applied only on their income generated in the country, it is perhaps recommended to understand exactly what Slovak generated income implies.
Slovak generated revenues refer to the business revenues of permanent establishments and passive income, for example interests, royalties and revenues from asset disposal.
The term permanent establishment is utilized in the local tax legislation and refers to a fixed place of taxable business in Slovakia. A permanent establishment could represent a branch which must be registered in the Slovak Commercial Register, or an unregistered entity with no legal standing. Our Slovak lawyers can offer more information on this matter. 
A permanent establishment in Slovakia has the following characteristics:
it can represent an individual acting on behalf of a foreign business entity and signing agreements on a regular basis in this position, with a power of attorney;
it effectuated business activities within the territory of Slovakia for more than six months in one calendar year;
a specific place through which the business endeavors of the foreign business are undertaken in the country.

Non-resident businesses in Slovakia

A company is considered a non-resident in Slovakia if its legal seat or location of its effective management is outside the country’s territory, therefore being exempt from the worldwide taxation of foreign companies in Slovakia.
The location of effective management refers to the place in which the management and business decisions of the supervisory and executive levels of the organization are effectuated, even when the location is not registered as such.
For more details on the taxation of foreign companies in Slovakia, or if you need help in any type of legal matters in this country, we invite you to get in touch with our law firm in Slovakia.


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