Governments across CEE, including Slovakia, have introduced or are discussing various measures to mitigate potential adverse consequences of the coronavirus situation. This short overview summarizes measures taken in Slovakia with respect to corporate housekeeping matters. The measures are envisaged to be temporary valid until about a month after the end of the crisis.
The below measures aimed at direct business support and maintaining employment have become effective on the date of their publication in the Collection of Laws of the Slovak Republic:
Contribution of 80 per cent of employee’s salary: Companies that had to close their premises and operation will be paid 80 per cent of each employee’s salary. The maximum amount of the contribution per one employer is EUR 200.000 per month. The highest possible contribution per one employee amounts to EUR 1100 per month. Applications for payment of the contribution can be submitted from 6 April, the contributions will be paid from 15 April.
Contributions for entrepreneurs and self-employed with drop in revenues: Employers whose premises have not had to be mandatorily closed but that have recorded revenue shortfalls of at least 20 per cent will be compensated by the state depending on the actual drop in revenues. The revenues will be compared to the same period the previous year. Applications for payment of the contribution can be submitted from 6 April, the contributions will be paid from 15 April.
Employees in quarantine: Employees in quarantine sick leave will be paid sickness benefit by the Social Insurance Office (Sociálna poisťovňa) in the amount of 55 per cent of their daily contribution basis already from the first day of the respective period. The employers will therefore no longer pay the wage compensation for the first 10 days of sick leave. Employees who are at home with their children will be compensated by the state until the school facilities are re-opened.
Postponement of employer contributions for March: The deadline for the payment of contributions for March 2020 for employers and self-employed whose revenues have dropped by more than 40 per cent is postponed until 31 July 2020. The government might later adopt also postponement for further months.
Provision of monthly bank guarantees: The Ministry of Finance can provide small-scale employers financial aid in the form of a guarantee for a credit granted by a bank or of the payment of interest on loans granted by a bank.
Apart from the above adopted measures, the following measures intended to minimize partly the administrative burden for entrepreneurs in respect of tax duties have also been brought in:
Tax Returns and Payments: The original filing deadline for annual income tax returns has been extended until the end of the calendar month following the end of the pandemic period. The respective extension applies also to the payment of the balance of tax.
Financial Statements: Financial statements have to be filed together with the annual income tax return. The extension described above therefore applies also to financial statements, annual reports and auditor’s reports, and their filing with the financial statement register.
Suspension of tax inspections and tax procedures: During the pandemic period, the deadline for tax inspections or tax procedures that commenced before the pandemics will be suspended upon taxpayer’s request.
Deferral of income tax advance payment: The tax administrator will not charge the taxpayers default interest provided they pay the tax advance – that have fallen due during the pandemic period – not later than until the end of the calendar month following the end of pandemic period.
The overview below describes selected proposed legislative measures, the adoption of which in Slovakia is expected in the next few days:
Entrepreneurs should be able to include loss carryforward since 2014 (including). This applies to companies which have not included the loss carryforward yet.
Coalition considers the introduction of rent control as regards closed premises and of rent compensation: Using legislative means, the government wants to force landlords leasing retail premises to decrease the rent during the quarantine period by 30 to 40 per cent; the proposed wording of this measure has not been published yet.
By Martin Tupek, Senior Associate, Noerr