CMS Expert Guide to the law and regulation of Covid-19 tax relief

Country-by-country comparison

Value Added Tax

  • None
  • Postponement for duty to submit VAT returns for natural person and juridical person until 30 June.
  • Postponement for duty to submit VAT returns and the deadline to pay VAT on the basis of tax subject’s notice.

Corporate Income Tax

  • 2 months deferral of deadline for submission of Corporate tax return for 2 months (until 31 May 2020)
  • simpler procedure when asking for deferral of tax obligations, if the taxpayer is impacted by Coronavirus regulations (e.g. mandatory closure, quarantine etc.)
  • Postponement for duty to pay taxes for every tax payer until 30 June.
  • Remit of interest on late tax income prepayments if the arrears appear during the current period and will be paid until the end of this year.

Social Security Contributions or Payroll Tax

  • 24 months deferral of April, May and July social security contribution payments for self-employed persons,
  • partial refund of salaries for employees, who cannot work due to Coronavirus restrictions (e.g. substantial lack of business, mandatory closure, medical quarantine etc.
  • deferral of social security contributions payment in now also possible
  • Postponement of obligatory social and health payments in the period from March 2020 until June 2020 for juridical persons and self-employed persons. It can be paid in the period of the next 18 months.
  • Absolute exemption from social and health payments for employees, income taxes for those employers, who are unable to assign work to their employees for the reason of adhering to orders putting down the operation as a result of preventive quarantine measures. 

Other relief measures

  • 2 months deferral of deadline for submission of annual financial statements (until 31 May 2020)
  • all tax inspections and reviews are temporarily halted
  • judicial and administrative deadlines stop running until 30 July 2020
  • 12 months loan repayment deferral for businesses subject to mandatory closure during quarantine period
  • Extension of deadline for customs debt payment (from 10) to 30 – 45 days for third country food importers.
  • Extension of deadline for tax controls and local surveying.
  • Granting of short-term interest-free loans for companies (mainly SMEs) via EXIMBANKA (Export-Import Bank) and the Slovak Guarantee and Development Bank (SZRB) to overcome the period of state of emergency.
  • Automatic extension of validity of MOT and emission tests for vehicles having expired validity from 13 March (including) until 12 June.
  • Financing of costs of supported technologies producing electricity during the period March– December (which would lead to the lower price of tariff for the operation of the system)
  • Negotiations with bank and finance sectors on possible postponement of loan instalments, mortgages and leasing without negative records in register for the debtor. Negotiations on possible bank product that would help companies to overcome the adverse financial situation – for that purpose, banks would be proportionally pardoned the bank levy payments. Negotiations on the possibility that insurance companies would not have to pay the levies.
  • Negotiations with energy suppliers for the purpose of exemption from companies to pay penalties for not complying with arranged diagram of electric energy consumption.
  • Exemption for companies from paying penalties if they are unable to carry out public contracts.
  • Restriction of new and planned controlling actions of companies and businesses until June.
  • Negotiations on the EU level on enabling of use of euro funds for the purpose of covering of the effects of COVID-19 and financial rehabilitation.

Additional comments

  • Additional measures are planned to be introduced by 10 April 2020.

On March 18, the Slovak Ministry of Economy proposed to the government package of state-aid measures. Measures are divided into 4. scopes:

  1. Immediately feasible measures described in this summary)
  2. Measures requiring legislative adjustments
  3. Measures aimed at prevention and system of actions for companies
  4. Measures supporting repeated economic growth