On April 22, 2020, National Council of the Slovak Republic approved a law amending extraordinary tax measures adopted by Act no. 67/2020 Coll., which came into effect on April 4, 2020 and about which we have already informed you in our previous News Flash. The amendment entered into force on April 25, 2020 upon publication in the Collection of Laws of the Slovak Republic. The amendment changes some of the already adopted tax measures and simultaneously adds some new measures.
Below, we briefly summarise an overview of the most significant changes resulting from the recently adopted amendment.
1. If the taxpayer doesn’t perform a specific task (e.g. filling an appeal, submitting documents to the tax administrator) during the coronavirus pandemic within the statutory period or period required by the tax administrator, he/she shall be forgiven by law for missing this period, based on a condition that he/she will perform the task no later than by the end of the calendar month following the end of the pandemic period. This doesn’t apply to filing of tax return and the tax payments. The above also doesn’t apply to the filing of the control statement and the EC Sales List, nor to the payment of tax advances.
2. The taxpayer may request the suspension of the tax inspection. Tax inspections initiated during the pandemic period and ex lege suspended, will continue, unless the taxpayer requests their suspension. If the taxpayer doesn’t request the suspension and misses the acts required by the tax control, he/she will not be excused for the missed deadline.
3. The taxpayer may request the suspension of the tax proceedings (e.g.: levying proceedings). The tax proceedings initiated during the pandemic and ex lege suspended, will continue, unless the taxpayer requests their suspension. If the taxpayer doesn’t request the suspension and misses the acts in the tax proceedings, he/she will not be excused for the missed deadline.
4. If a taxpayer incurs tax arrears during the pandemic period, the taxpayer is at risk of late interest penalties even if he/she pays them by the end of the calendar month following the end of the pandemic, when he/she will be treated as if he/she didn’t have a tax arrears. The only exception is the income tax (not tax advances) that became due during the pandemic.
5. It is appointed that the tax overpayment of the income tax claimed by the taxpayer in the income tax return filed during the pandemic, shall be refunded by the tax administrator within 40 days from the end of the calendar month in which the taxpayer filed the tax return. In the case of a tax return for 2019 filed from January 1, 2020 to March 12, 2020, the tax overpayment will be refunded within 40 days from the March 31, 2020. If the tax overpayment is reduced after the tax control or by filing a corrective or supplementary tax return, the taxpayer is at risk of penalty, which shall be of 100% of the difference. The penalty shall not be imposed if the taxpayer corrects the tax overpayment before its refund.
6. The new measure drops the obligation to pay the tax advances which should have been due during the pandemic period, starting from the April 2020. The taxpayer will settle the tax advances in the form of tax settlement for the tax period.
7. An additional measure is introduced to allow the entrepreneurs, both natural and legal persons, not to pay income tax advances payable during the pandemic for the period following the period in which the taxpayer shows a decrease in his/her revenues of at least 40 % compared to the same period of the previous calendar year. This applies by submitting a declaration of compliance with this condition no later than 15 days before the expiration of the advance payment due date. It is possible for the first time to apply this measure to the advance payments payable in May 2020.
For example, for a taxpayer who pays monthly advance payments will be decisive for his/her advance payment for May 2020, whether sales for April 2020 will be at least 40 % lower than sales generated in April 2019.
In addition to the information above, the taxpayer still has the option to request the tax administrator to determine the payment of the tax advances differently (event at a zero amount). Considering the conditions of the introduced measure, this tool may be administratively more advantageous.
8. Further, the possibility of claiming a deduction of unused tax losses for the tax periods 2015 – 2018, from the tax base calculated in the tax return of which the last day of the filing period expires in the period from January 1, 2020 to December 31, 2020 is introduced.
These tax losses are possible to be deducted up to EUR 1 million. If the tax period is a financial year, the deduction may be claimed in the tax return for the tax period ending no earlier than on October 31, 2019.
9. For selected notification obligations that expire during the pandemic, the due day is postponed until the end of the calendar month following the month in which the pandemic period ends.
10. Similarly, the due date of the fine imposed on the spot is postponed.
11. Based on the introduced measure, if the VAT payer arises customs arrear or arrear on compulsory social-insurance contributions during the pandemic, these arrears will not be taken into account for the purpose of an earlier refund of the excessive deduction if they are paid by the end of the calendar month following the end of the pandemic period.
12. In the area of excise duties, measures are being introduced in the matter of fulfilling the compliance with the condition for applying the preferential rate of mineral oil tax, in the matter of performing the tax supervision under the Act on Excise Duty on alcoholic beverages and in the matter of a withdrawal of special permits and deregistration.
13. The deadline for filing a real estate tax return or partial tax return that didn’t expire before the start of the pandemic period or started during the pandemic period (e.g. due to auction, inheritance) is considered to be met if the filing is made by the end of the calendar month following the end of the pandemic period.
We will gladly assist you in applying the COVID-19 measures. Do not hesitate to contact us!