Company registration in Slovakia

To determine the tax residency of the legal entity, registered in Slovakia, management and control should be carried out from the territory of Slovakia. Residents subject to taxation of all income received from sources worldwide. The income of non-residents is subject to taxation only if it is obtained from a source in Slovakia.

Income tax rate - 21%. A reduced tax rate of 15% applies to legal entities and entrepreneurs with incomes of up to 100 000 EUR.

VAT rate – standard rate – 20 %. Reduced rate of 10% (applies to medical products). Insurance and financial services are exempt from VAT.

Registration as a VAT payer is compulsory if the company conducts business and makes a profit on the territory of the country, or if it receives an annual profit of more than 49 790 euros.

In Slovakia, the concept of "tax license" applies, which implies the payment of a minimum tax by companies in the following amount:

• 340 euros for annual income up to  50,000 euros;
• 960 euros for annual income from  50,000 to  250,000 euros;
• 1,920 euros — for annual income from 250,000 to 500,000 euros;
• 3,840 euros — for an annual income of more than 500,000 euros.

Obligation to pay the tax license does not extend on the first financial year.

Taxation of dividends: rate of 7%, if a Slovak company pays dividends to a tax resident of Slovakia or a tax resident of a state with which a double taxation treaty has been signed. If dividends are paid to a tax resident of a state with which a double taxation avoidance agreement has not been signed, the rate will be 35%.

Taxation of interests and royalty: rate 19 % while paying to the residents of EU and 35 % while paying to non-residents of the EU.

When opening a company in Slovakia, stamp duty is charged depending on the form of filing registration documents.

None.

Slovakia has signed 70 international tax treaties, including agreement with Ukraine.