How does tax filing work in Slovakia?

March is once again that time of the year when we have to tackle tax filing. Let’s admit it, there is hardly anyone who enjoys this task. That’s why in this article, we will look at how tax filing works in Slovakia, what to expect, and how to make this obligation as easy as possible.

Why do we file tax returns? A tax return is a document in which you report your income and expenses for the past year to the state. Based on this information, the state calculates the amount of tax you need to pay. It is an important obligation that should not be underestimated. Filing your tax return correctly and on time will save you not only stress but also potential penalties.

Who has to file a tax return? All individuals and legal entities with taxable income in the previous year must file a tax return. This applies to freelancers, entrepreneurs, employees, contractors, as well as people with income from rentals, property sales, or investments. However, there are exceptions when you do not have to file a tax return. If you are unsure whether this applies to you, it is best to consult a tax advisor.

What types of tax returns exist? There are two basic types of tax returns in Slovakia:

• Type A tax return: For individuals with income from dependent activities (e.g., employees).
• Type B tax return: For individuals with income from business, other self-employment (freelancers), rentals, and other income. Legal entities, such as limited liability companies (s.r.o.), file a corporate income tax return.

When and how to file a tax return? Tax returns must be filed by March 31 of the following year. Individuals can file electronically via the Financial Administration portal, by mail, or in person at the tax office. Legal entities are required to file tax returns electronically.

What do you need to file a tax return? The documents required depend on the type of income you have. The most common include:

• Proof of income from employment (from your employer)
• Overview of business income and expenses
• Proof of paid contributions
• Proof of interest paid on loans It is important to know which deductible items you can claim and what the non-taxable part of the tax is that you are entitled to. Your accountant can help you in this area.

TIP: You can postpone your tax return by three months Any taxpayer who cannot meet their tax obligations on time for various reasons can request a tax return extension. This request must be submitted electronically via the Financial Administration portal by March 31. A tax return extension is especially beneficial for freelancers who would otherwise have to start paying social insurance contributions from July. By postponing the tax return, the start of these payments is moved from July to October.