Hi jnicola,
Well, tax deductions are pretty straight forward, it's a flat 19% and
the employer makes the deduction each month.
Social Insurance (pension, unemployment, and care insurance) is also
deducted every month.
a) Taxes and Insurance and Pension contributions:
Slovakia Income Taxes and Tax Laws
* In 2005 the individual income tax rate in Slovakia is flat at 19%.
* Exemptions are granted to taxpayers with specific types of income.
Income Tax for an Individual
* An individual in Slovakia is liable for tax on his income as an
employee and on income as a self-employed person. In the case of an
individual who answers the test of a "permanent resident" of Slovakia,
tax will be calculated on his income earned in Slovakia and overseas.
A foreign resident who is employed in Slovakia pays tax only on his
income in Slovakia.
* To be considered a Slovak resident, residence of at least 183 days
during any calendar tax year must be established.
* An employer is obligated to deduct, immediately, each month, the
amount of tax and national insurance due from a salaried worker.
REPORTING DATES AND PAYMENT
The tax year in Slovakia is the year ending on December 31.
Advance payments of tax are made as specified below:
* An Individual - An individual whose income is only from a wage is
not obligated to file an annual return. The employer deducts tax from
the employee and transfers it to the tax authority every month.
DEDUCTION OF TAX AT SOURCE
Taxation of Employee
An employer is obligated to deduct tax at source from an employee and
to make additional contributions to social security.
Social Security
* An employee: the employer's contribution is 35.2% of the salary. The
employee's contribution is 13.4%.
* The insurance covers pension, unemployment and care insurance.
http://www.worldwide-tax.com/slovakia/slovakia_tax.asp
THE SLOVAK POCKET TAX BOOK 2006
SLOVAK REPUBLIC
INDIVIDUALS
Personal Income Tax
TAX RATE
? The personal tax rate is a flat rate of 19%.
PAYROLL WITHHOLDING
? An employer must withhold income tax from employment income when he
makes salary payments, usually on a monthly basis...
? The tax withheld must be paid to the Tax Office at which the entity
is registered within five days from the date the salary was paid to
the employee. The employer must keep payroll records and is
responsible for tax registration and the correct payment of tax.
Furthermore, if the employee only earns employment income from Slovak
sources during a calendar year, the employer must (if requested by the
employee) produce an annual tax reconciliation on the employee?s
behalf. In effect, this reconciliation statement functions as the
employee?s tax return.
? Leased employees should be on the Slovak company?s payroll.
? A foreign company that employs people who are in the Slovak Republic
more than 183 days should keep payroll for these people, unless they
provide services in Slovakia.
Health and Social Security
HEALTH INSURANCE
? The computation base for calculating contributions is the taxable
income received, plus certain benefits provided by the employer. The
minimum monthly base is the official minimum monthly salary (currently
SKK 6,900). The maximum monthly base is currently SKK 47,475, which is
three times the official Slovak average salary.
? Both the employee and the employer contribute to the health insurance system.
[See Table]
? In addition to these contributions, the employer must also make
injury insurance contributions based on its safety classification
determined according to the law (rates are from 0.3% to 2.1% of
employees? total salary costs per month). However until 31 December
2006, this percentage is levied at a flat rate for every employer,
being 0.8% of the total employees? taxable employment income, with no
maximum limit.
http://www.pwc.com/Extweb/pwcpublications.nsf/docid/62F672AC2804618E80257141003846B8/$file/2006PocketTaxBook.pdf
c) Working rules - what are the rules about ehen people can work, how
they work and so on.
The best thing to do would be to download the following pdf and read
the Labour Code, it is rather extensive.
Slovak Republic - Slovakia
Labour Code July 2004
Collection of Laws
P a r t T h r e e
WORKING TIME AND REST PERIODS
§ 85
Part Four
WAGES AND AVERAGE EARNINGS
http://www.employment.gov.sk/mpsvrsr/internet/home/page_pdf
Monthly gross statutory minimum wage rates
Slovakia: 6,900 koruny 182.14 Euros
http://www.fedee.com/minwage.html
Plus anything else you think is useful...
World Bank
Starting a Business in the Slovak Republic (2005)
http://www.doingbusiness.org/exploretopics/startingbusiness/moredetails.aspx?economyid=168
World Bank
Employing Workers in the Slovak Republic
http://www.doingbusiness.org/ExploreTopics/HiringFiringWorkers/Details.aspx?economyid=168
World Bank
Hiring and Firing Workers
http://rru.worldbank.org/Documents/DoingBusiness/ExploreTopics/HiringFiringWorkers/Economies/slovak_republic.pdf
World Bank
Dealing with Licenses in the Slovak Republic
http://www.doingbusiness.org/ExploreTopics/DealingWithLicenses/Details.aspx?economyid=168
Ministry of Labour, Social Affairs and Family of the Slovakia Republic
http://www.employment.gov.sk/mpsvrsr/internet/home/index.php?lang=en
Procedure and obligations of employers
http://www.employment.gov.sk/mpsvrsr/internet/home/page.php?id=1825&sID=d4a1e00e4b9421f7260159a9b3b7cf36
Tables
http://www.employment.gov.sk/mpsvrsr/internet/home/page.php?id=1351&lang=en
Ministry of Finance of the Slovak Republic
http://www.finance.gov.sk/En/Default.aspx
Statistical Office of the Slovak Republic
http://www.statistics.sk/webdata/english/index2_a.htm
National Bank of Slovakia
http://www.nbs.sk/INDEXA.HTM
I was glad to work on this for you. If you have any questions, please
post a clarification request and wait for me to respond before
closing/rating my answer.
Thank you,
hummer
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