Increase of withholding tax securement rate against non-contractual countries

From 1 March 2014, the amendment to the Income tax Act No. 595/2003 Coll. set-up increased withholding tax securement against so called “non-contractual countries”.

If the taxable income arising from the Slovak sources will be paid to the tax resident of the “non-contractual country”, the paying entity will be obliged to deduct the 35% withholding tax securement (instead of 19% till 28 February 2014). The definition of the “non-contractual countries” includes the countries which did not conclude international double tax treaty or international tax information exchange agreement with the Slovak Republic, or which are not members of international tax information exchange structure for similar purposes.

We will be pleased to provide you with further information upon your request.

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