Slovakia: Domestic Corporate Taxation
Calculation of Taxable Base
Tax is paid on the taxable profit shown in a company’s financial accounts, which must comply with Slovakian accounting standards. Allowances are made for deductible and non-deductible items. Expenses are tax deductible if incurred to maintain the profitability of the company, though there are certain exceptions. Tax losses can be carried forward over five consecutive years without any restrictions. Depreciation is calculated using either the declining balance or straight-line method – whichever is more beneficial to an individual business.
Capital gains are added to revenue and taxed at the same rate as normal income. There is no taxation of dividends. Tax on interest (taxed at source) and royalties on patents is 19%. There is no capital duty or payroll tax.
There are no local business taxes in Slovakia.