Slovak RepublicTax Guide

2013

PKF Worldwide Tax Guide 2013 I

Fore

wor

d

foreword

A country’s tax regime is always a key factor for any business considering moving into new markets. What is the corporate tax rate? Are there any incentives for overseas businesses? Are there double tax treaties in place? How will foreign source income be taxed?

Since 1994, the PKF network of independent member firms, administered by PKF International Limited, has produced the PKF Worldwide Tax Guide (WWTG) to provide international businesses with the answers to these key tax questions. This handy reference guide provides clients and professional practitioners with comprehensive tax and business information for over 90 countries throughout the world.

As you will appreciate, the production of the WWTG is a huge team effort and I would like to thank all tax experts within PFK member firms who gave up their time to contribute the vital information on their country’s taxes that forms the heart of this publication.

I hope that the combination of the WWTG and assistance from your local PKF member firm will provide you with the advice you need to make the right decisions for your international business.

Richard SackinChairman, PKF International Tax CommitteeEisner Amper LLP richard.sackin@eisneramper.com

PKF Worldwide Tax Guide 2013II

Disclaimer

important disclaimer

This publication should not be regarded as offering a complete explanation of the taxation matters that are contained within this publication.This publication has been sold or distributed on the express terms and understanding that the publishers and the authors are not responsible for the results of any actions which are undertaken on the basis of the information which is contained within this publication, nor for any error in, or omission from, this publication.

The publishers and the authors expressly disclaim all and any liability and responsibility to any person, entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this publication.

Accordingly no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.

PKF International is a network of legally independent member firms administered by PKF International Limited (PKFI). Neither PKFI nor the member firms of the network generally accept any responsibility or liability for the actions or inactions on the part of any individual member firm or firms.

PKF Worldwide Tax Guide 2013 III

Pref

ace

preface

The PKF Worldwide Tax Guide 2013 (WWTG) is an annual publication that provides an overview of the taxation and business regulation regimes of the world’s most significant trading countries. In compiling this publication, member firms of the PKF network have based their summaries on information current on 1 January 2013, while also noting imminent changes where necessary.

On a country-by-country basis, each summary addresses the major taxes applicable to business; how taxable income is determined; sundry other related taxation and business issues; and the country’s personal tax regime. The final section of each country summary sets out the Double Tax Treaty and Non-Treaty rates of tax withholding relating to the payment of dividends, interest, royalties and other related payments.

While the WWTG should not to be regarded as offering a complete explanation of the taxation issues in each country, we hope readers will use the publication as their first point of reference and then use the services of their local PKF member firm to provide specific information and advice.

In addition to the printed version of the WWTG, individual country taxation guides are available in PDF format which can be downloaded from the PKF website at www.pkf.com

PKF INTERNATIONAL LIMITEDMAY 2013

©PKF INTERNATIONAL LIMITEDALL RIGHTS RESERVEDUSE APPROVED WITH ATTRIBUTION

PKF Worldwide Tax Guide 2013IV

Introduction

about pKf international limited

PKF International Limited (PKFI) administers the PKF network of legally independent member firms. There are around 300 member firms and correspondents in 440 locations in around 125 countries providing accounting and business advisory services. PKFI member firms employ around 2,270 partners and more than 22,000 staff.PKFI is the 11th largest global accountancy network and its member firms have $2.68 billion aggregate fee income (year end June 2012). The network is a member of the Forum of Firms, an organisation dedicated to consistent and high quality standards of financial reporting and auditing practices worldwide.

Services provided by member firms include:

Assurance & AdvisoryInsolvency – Corporate & PersonalFinancial Planning/Wealth managementTaxationCorporate FinanceForensic AccountingManagement ConsultancyHotel ConsultancyIT Consultancy

PKF member firms are organised into five geographical regions covering Africa; Latin America; Asia Pacific; Europe, the Middle East & India (EMEI); and North America & the Caribbean. Each region elects representatives to the board of PKF International Limited which administers the network. While the member firms remain separate and independent, international tax, corporate finance, professional standards, audit, hotel consultancy and business development committees work together to improve quality standards, develop initiatives and share knowledge and best practice cross the network.

Please visit www.pkf.com for more information.

PKF Worldwide Tax Guide 2013 V

Stru

ctur

e

structure of country descriptions

a. taXes payable

FEDERAL TAXES AND LEVIES COMPANY TAX CAPITAL GAINS TAX BRANCH PROFITS TAX SALES TAX/VALUE ADDED TAX FRINGE BENEFITS TAX LOCAL TAXES OTHER TAXES

b. determination of taXable income

CAPITAL ALLOWANCES DEPRECIATION STOCK/INVENTORY CAPITAL GAINS AND LOSSES DIVIDENDS INTEREST DEDUCTIONS LOSSES FOREIGN SOURCED INCOME INCENTIVES

c. foreiGn taX relief

d. corporate Groups

e. related party transactions

f. witHHoldinG taX

G. eXcHanGe control

H. personal taX

i. treaty and non-treaty witHHoldinG taX rates

PKF Worldwide Tax Guide 2013VI

Time Zones

AAlgeria . . . . . . . . . . . . . . . . . . . .1 pmAngola . . . . . . . . . . . . . . . . . . . .1 pmArgentina . . . . . . . . . . . . . . . . . .9 amAustralia - Melbourne . . . . . . . . . . . . .10 pm Sydney . . . . . . . . . . . . . . .10 pm Adelaide . . . . . . . . . . . . 9.30 pm Perth . . . . . . . . . . . . . . . . . .8 pmAustria . . . . . . . . . . . . . . . . . . . .1 pm

BBahamas . . . . . . . . . . . . . . . . . . .7 amBahrain . . . . . . . . . . . . . . . . . . . .3 pmBelgium . . . . . . . . . . . . . . . . . . . .1 pmBelize . . . . . . . . . . . . . . . . . . . . .6 amBermuda . . . . . . . . . . . . . . . . . . .8 amBrazil. . . . . . . . . . . . . . . . . . . . . .7 amBritish Virgin Islands . . . . . . . . . . .8 am

CCanada - Toronto . . . . . . . . . . . . . . . .7 am Winnipeg . . . . . . . . . . . . . . .6 am Calgary . . . . . . . . . . . . . . . .5 am Vancouver . . . . . . . . . . . . . .4 amCayman Islands . . . . . . . . . . . . . .7 amChile . . . . . . . . . . . . . . . . . . . . . .8 amChina - Beijing . . . . . . . . . . . . . .10 pmColombia . . . . . . . . . . . . . . . . . . .7 amCyprus . . . . . . . . . . . . . . . . . . . .2 pmCzech Republic . . . . . . . . . . . . . .1 pm

DDenmark . . . . . . . . . . . . . . . . . . .1 pmDominican Republic . . . . . . . . . . .7 am

EEcuador . . . . . . . . . . . . . . . . . . . .7 amEgypt . . . . . . . . . . . . . . . . . . . . .2 pmEl Salvador . . . . . . . . . . . . . . . . .6 amEstonia . . . . . . . . . . . . . . . . . . . .2 pm

FFiji . . . . . . . . . . . . . . . . .12 midnightFinland . . . . . . . . . . . . . . . . . . . .2 pmFrance. . . . . . . . . . . . . . . . . . . . .1 pm

GGambia (The) . . . . . . . . . . . . . 12 noonGermany . . . . . . . . . . . . . . . . . . .1 pmGhana . . . . . . . . . . . . . . . . . . 12 noonGreece . . . . . . . . . . . . . . . . . . . .2 pmGrenada . . . . . . . . . . . . . . . . . . .8 amGuatemala . . . . . . . . . . . . . . . . . .6 am

Guernsey . . . . . . . . . . . . . . . . 12 noonGuyana . . . . . . . . . . . . . . . . . . . .7 am

HHong Kong . . . . . . . . . . . . . . . . .8 pmHungary . . . . . . . . . . . . . . . . . . .1 pm

IIndia . . . . . . . . . . . . . . . . . . . 5.30 pmIndonesia. . . . . . . . . . . . . . . . . . .7 pmIreland . . . . . . . . . . . . . . . . . . 12 noonIsle of Man . . . . . . . . . . . . . . 12 noonIsrael . . . . . . . . . . . . . . . . . . . . . .2 pmItaly . . . . . . . . . . . . . . . . . . . . . .1 pm

JJamaica . . . . . . . . . . . . . . . . . . .7 amJapan . . . . . . . . . . . . . . . . . . . . .9 pmJordan . . . . . . . . . . . . . . . . . . . .2 pm

KKenya . . . . . . . . . . . . . . . . . . . . .3 pm

LLatvia . . . . . . . . . . . . . . . . . . . . .2 pmLebanon . . . . . . . . . . . . . . . . . . .2 pmLuxembourg . . . . . . . . . . . . . . . .1 pm

MMalaysia . . . . . . . . . . . . . . . . . . .8 pmMalta . . . . . . . . . . . . . . . . . . . . .1 pmMexico . . . . . . . . . . . . . . . . . . . .6 amMorocco . . . . . . . . . . . . . . . . 12 noon

NNamibia. . . . . . . . . . . . . . . . . . . .2 pmNetherlands (The) . . . . . . . . . . . . .1 pmNew Zealand . . . . . . . . . . .12 midnightNigeria . . . . . . . . . . . . . . . . . . . .1 pmNorway . . . . . . . . . . . . . . . . . . . .1 pm

OOman . . . . . . . . . . . . . . . . . . . . .4 pm

PPanama. . . . . . . . . . . . . . . . . . . .7 amPapua New Guinea. . . . . . . . . . .10 pmPeru . . . . . . . . . . . . . . . . . . . . . .7 amPhilippines . . . . . . . . . . . . . . . . . .8 pmPoland. . . . . . . . . . . . . . . . . . . . .1 pmPortugal . . . . . . . . . . . . . . . . . . .1 pmQQatar. . . . . . . . . . . . . . . . . . . . . .8 am

RRomania . . . . . . . . . . . . . . . . . . .2 pm

international time Zones

AT 12 NOON, GREENwICH MEAN TIME, THE STANDARD TIME ELSEwHERE IS:

PKF Worldwide Tax Guide 2013 VII

Tim

e Zo

nes

Russia - Moscow . . . . . . . . . . . . . . .3 pm St Petersburg . . . . . . . . . . . .3 pm

SSingapore . . . . . . . . . . . . . . . . . .7 pmSlovak Republic . . . . . . . . . . . . . .1 pmSlovenia . . . . . . . . . . . . . . . . . . .1 pmSouth Africa . . . . . . . . . . . . . . . . .2 pmSpain . . . . . . . . . . . . . . . . . . . . .1 pmSweden . . . . . . . . . . . . . . . . . . . .1 pmSwitzerland . . . . . . . . . . . . . . . . .1 pm

TTaiwan . . . . . . . . . . . . . . . . . . . .8 pmThailand . . . . . . . . . . . . . . . . . . .8 pmTunisia . . . . . . . . . . . . . . . . . 12 noonTurkey . . . . . . . . . . . . . . . . . . . . .2 pmTurks and Caicos Islands . . . . . . .7 am

UUganda . . . . . . . . . . . . . . . . . . . .3 pmUkraine . . . . . . . . . . . . . . . . . . . .2 pmUnited Arab Emirates . . . . . . . . . .4 pmUnited Kingdom . . . . . . .(GMT) 12 noonUnited States of America - New York City . . . . . . . . . . . .7 am Washington, D.C. . . . . . . . . .7 am Chicago . . . . . . . . . . . . . . . .6 am Houston . . . . . . . . . . . . . . . .6 am Denver . . . . . . . . . . . . . . . .5 am Los Angeles . . . . . . . . . . . . .4 am San Francisco . . . . . . . . . . .4 amUruguay . . . . . . . . . . . . . . . . . . .9 am

VVenezuela . . . . . . . . . . . . . . . . . .8 am

ZZimbabwe . . . . . . . . . . . . . . . . . .2 pm

PKF Worldwide Tax Guide 2013 1

slovaK republic

Currency: Euro Dial Code To: 421 Dial Code Out: 00 (EUR)

Member Firm:City: Name: Contact Information:Prievidza Richard Clayton Budd 46 518 38 29 budd@hzpkf.sk

a. taXes payable

COMPANy TAxSlovak resident companies are subject to corporate income tax on income derived from worldwide sources, while non-residents are subject to corporate income tax only on income sourced in the Slovak Republic. Income tax has been covered since 1 January 2004 by the Income Tax Act (No. 595/2003 Coll.), which brought significant reforms favouring taxpayers. The Act was recently amended with a new tax rate for legal entities and, in some cases, sole proprietors.

Resident companies are those which have their legal seat or place of effective management in the Slovak Republic.

The company tax rate is 23% which is the flat rate for all corporations and legal entities without exception. The fiscal year is the calendar year or the taxpayer’s fiscal year (subject to notification to the tax authorities). Tax is due and payable:• inasinglepaymentiftheprevioustaxliabilitywaslessthan€1,659.70• inquarterlyinstalmentsiftheprevioustaxliabilitywasbetween€1,659.70and

€16,596.96• inmonthlyinstalmentsiftheprevioustaxliabilitywasover€16,596.96.

Tax returns for the applicable period should be filed by 31 March of the following year. A three-month extension of the deadline may be requested, but only if income was earned outside Slovakia.

Taxpayers can donate 1.5 -2% of their paid taxes to non-profit organisations. Based on a written request, the tax authorities will provide the donated amount to the designated non-profit organisation.

There is an opportunity to inform the tax authorities in writing about any change of the tax period from the calendar year to a fiscal year.

CAPITAL GAINS TAxThere is no separate capital gains tax. Gains from sales of assets are incorporated into taxable income when determining the company’s tax liability.

BRANCH PROFITS TAxThere is no separate branch profits tax in the Slovak Republic. The income of Slovak branches of foreign companies is subject to taxation in the Slovak Republic at the flat rate of 23%.

SALES TAx/VALUE ADDED TAx (VAT)The current VAT Act (No. 224/2004 Coll.) entered into effect with the accession of the Slovak Republic into the European Union on 1 May 2004 and is harmonised with similar laws in other EU Member States (based on Council Directive 2006/112/EC).

VAT is paid on the supply of goods and services within the country, the intra-Community acquisition of goods, and on the importation of goods from countries outside the EU.

The standard rate had been 19% but was temporarily raised to 20% on 1 January 2010. This higher rate continues in force in 2013. There is a reduced rate of 10% for medicines, books and other printed matter.

There is also a special excise tax imposed on selected commodities such as petroleum, wine, spirits, tobacco, beer, electricity, coal and natural gas.

FRINGE BENEFITS TAxFringe benefits (goods or services) to employees are taxed as part of their total taxable amount at a flat rate of 19%. Any tax levied on an employee is deducted by the employer. Starting1January2013,anincreasedrateof25%isleviedonincomeabove€34,401.74 earned by individuals during the year.

Slovak Republic

PKF Worldwide Tax Guide 20132

LOCAL TAxESThe main local taxes that a municipality can levy are property tax (on land, buildings and flats), hotel tax, tax on the operation of vending machines and machines that do not offer cash prizes, as well as local fees on community waste disposal and low-value construction waste.

Self-governing regional authorities may also levy taxes on M, N and O category motor vehicles used for business purposes or for activities where the income derived is subject to income tax.

Local taxes paid are a recognised deduction from income tax.

OTHER TAxESAn annual tax is levied on the owner or beneficial owner of a building situated within the Slovak Republic. The rate of tax depends on the size, quality, type and location of the property. This tax is deductible on a cash basis for income tax purposes.There is no inheritance tax, gift tax or real estate transfer tax levied in the Slovak Republic.

Employers pay contributions to social security and health insurance amounting to 35.2% of gross income paid to employees as shown on payroll records up to a maximum assessment set by law. These contributions are deductible when determining taxable income.The rates are as follows:

Health insurance 10.00%

Hospitalisation 1.40%

Retirement insurance 14.00%

Disability 3.00%

Unemployment insurance 1.00%

Accident insurance 0.80%

Guaranty insurance 0.25%

Reserve fund 4.75%

b. determination of taXable income

A company’s taxable income is determined by ascertaining assessable income according to official accounting and then subtracting all deductions. Generally, to be deductible, expenditure must be wholly and exclusively incurred for the purposes of the business. Certain income that has already been subject to withholding tax is not included in taxable income, with some exceptions such as royalties.Special additional conditions apply to deductions of some expenses. For example, special expenses defined by tax law are tax-deductible only for the period in which they are fully paid and special income (e.g. contractual penalties, late fees) is taxable only for the period in which it is received.

DEPRECIATIONThe tax law prescribes the rules under which a business depreciates its assets. Property, plant and equipment are divided into four groups according to their expected useful life (periods ranging from four to 20 years). A taxpayer may choose either straight-line or accelerated (declining-balance) depreciation. The choice of method is carried out on an asset-by-asset basis and, once the method is selected, it cannot be changed. Intangible assets (capitalised development costs) can be amortised over five years from when they were expensed. Amortisation may be postponed without the taxpayer losing the right to amortise in future periods.

Note: Starting from 1 January 2012, assets are depreciated in the first year pro rata according to the number of months.

STOCK/INVENTORyAll trading stock on hand is valued at purchase price including any additional procurement costs incurred. Internally generated inventory must be valued on the basis of production costs. In the event that a temporary impairment in inventories is found during stocktaking, an allowance is made. Accepted valuation methods include FIFO, average acquisition costs or pre-defined (planned) prices but not LIFO.

CAPITAL GAINS AND LOSSESCapital gains are considered taxable income and taxed at the applicable tax rate: 23%forlegalentities,19%forindividualsuptoannualincomeof€34,401.74,and25% of earnings from individuals above that figure.

Slovak Republic

PKF Worldwide Tax Guide 2013 3

Losses from the sale of stock or a share of a limited liability company are recognised as a tax deduction only up to the amount of income. There are three exceptions when the loss is fully recognised for tax purposes: • alossfromthesaleofspeciallyquotedstockonanexchange• alossfromthesaleofbondstotheextentofincomereceivedfromthebond

included in its price• alossfromthesaleofstockcertifiedbyabroker.

DIVIDENDSIn the Slovak Republic, dividends are subject to neither personal nor corporate income tax. This applies to dividends paid out in 2004 onwards.

For profits earned and not paid out as dividends prior to 2004, the undistributed profits are taxed at a rate of 19% (and in 2013 at a motivational tax rate of 15%) when they are paid out or at the tax rate according to the applicable double taxation treaty. Dividends paid out by companies in a group to corporate shareholders resident in an EU Member State who have a direct holding of at least 25% of the capital is not taxed.

Note: all taxable income and dividends paid out since 2011 are included when assessing health insurance contributions.

INTEREST DEDUCTIONInterest paid by a company is treated as an ordinary business expense.

The Slovak Republic is not planning any thin-capitalisation related restrictions on deducting interest from loans.

LOSSESLosses in a year may be carried forward and set off against profits in the subsequent seven years without requiring the losses deducted to be reinvested. The losses may be set off non-uniformly over the five-year period.

FOREIGN SOURCED INCOMEThe Slovak authorities levy taxes on all foreign income received by Slovak residents and companies whose registered office is in the Slovak Republic.

INCENTIVESIncentives for investors are governed by legislation on government subsidies (No. 231/1999 Coll., as amended), under which tax benefits may also be an incentive to invest. Specific tax benefits have to be negotiated with the Economics Ministry.

c. foreiGn taX relief

Tax paid in a foreign country is set off against tax liabilities in the home country in accordance with double taxation treaties with the applicable country (either by a deduction or exemption).

Income earned by individuals (i.e. from wages and salaries) is exempt from taxation where proof is given that the income will be taxed abroad and where the Slovak Republic has no double taxation treaty with the other country which has taxed the income. If a double taxation treaty exists, the treaty method of exemption takes precedence.

d. corporate Groups

There is no concept of corporate groups in the Slovak Republic. For tax purposes, profits and losses of holding and subsidiary companies may not be consolidated.

e. related party transactions

All transactions between related companies realised across borders must be conducted at an arm’s length basis with the meaning of arm’s length price depending upon each individual transaction. Any difference arising between the price of the actual transaction and that regarded as the arm’s length price will be adjusted for tax purposes.

f. witHHoldinG taX

The Slovak Republic imposes a 19% withholding tax at the source, which applies also to interest and royalties.. This tax rate may be reduced to the tax rate set in the relevant double taxation treaty. There is no withholding tax on dividends.

Slovak Republic

PKF Worldwide Tax Guide 20134

G. eXcHanGe control

Slovakia has been using the Euro as its currency since 1 January 2009. The Foreign Exchange Act allows the Euro to be used freely to pay for business and other costs, for direct investment and reinvestment and for purchase of real estate property abroad. Also, it is legal to accept financial credit (i.e. receive loans) from companies with no registered office within the Slovak Republic but, in certain circumstances, there is a requirement to report such credit.

The Foreign Exchange Act partially restricts the ability for companies without a registered office in the Slovak Republic to acquire real property in the Slovak Republic.

Capital transfers are regulated and there is a duty to report and obtain a special permit or licence from the central bank.

Starting in 2013, there is a separate law restricting cash payments to a ceiling of €5,000,exceptforindividualsnotoperatinganundertaking,wheretheceilingforpaymentsincashis€15,000.

H. personal taX

Personal income tax is payable by permanent residents within the Slovak Republic individually on their worldwide income. Non-residents are only subject to tax on Slovak-sourced income. If an individual spends 183 days or more of the relevant calendar year in the Slovak Republic, that person is deemed to be resident in the Slovak Republic.

Under Slovak law, employees hired under an employment contract pay contributions for social security, retirement and health insurance amounting to 13.4%. This is withheld by the employer.

The rate of contributions is as follows:

Health insurance 4.00%

Hospitalisation 1.40%

Retirement 4.00%

Disability 3.00%

Unemployment insurance 1.0%

Different rates apply to contributions made by self-employed persons.

The personal income tax rate in the Slovak Republic remains 19%, though starting 1 January 2013 the personal income tax rate is raised to 25% on annual earnings above€34,401.74,or176.8timessubsistenceincome.Becausethebracketisbased on subsistence income, the threshold figure is subject to change each year. In addition and in all cases, the personal allowance is reduced on a sliding scale to zero when taxable income is more than 176.8 times subsistence income (in 2012 this was€33,561.94).

Tax returns for the applicable period should be filed by 31 March of the following year, although a three-month extension may be requested only in the case of income earned outside Slovakia. Income tax on earnings from employment is withheld monthly. Provisional payments on income from business operations, rental income etc are paid quarterly or monthly depending on the last known tax liability (between €1,659.70and€16,596.96/over€16,596.96)andasasinglepaymentifthelasttaxliabilitydidnotexceed€1,659.70.

Individuals can request the tax authorities to donate 2% of their Slovak personal income tax liability to an eligible Slovak non-profit organisation. The Act sets out who can receive such charitable contributions, for example, civic associations, foundations and religious organisations. These recipients must meet several conditions.

Real property tax is paid on land and buildings, with the tax rate depending on the quality of land and location of the buildings (number of citizens).

Slovak Republic

PKF Worldwide Tax Guide 2013 5

i. treaty and non-treaty witHHoldinG taX rates

Dividends

(%)

(1) Interest

(%)

(2) (3) (5)

Royalties

(%)

(2) (4)

Non-Treaty Countries: 0 19 19

Treaty Countries:

Australia 0 10 10

Austria 0 0 5/0

Belarus 0 10/0 10/5

Belgium 0 10/0 5/0

Bosnia and Herzegovina 0 0 10

Brazil 0 15/10 15/25

Bulgaria 0 10 10

Canada 0 10/0 10/0

China 0 10/0 10

Croatia 0 10 10

Cyprus 0 10/0 5/0

Czech Republic 0 0 10/0

Denmark 0 0 5/0

Estonia 0 10/0 10

Finland 0 0 10/5/1

France 0 0 5/0

Georgia 0 5 5

Germany 0 0 5

Greece 0 10 10/0

Hungary 0 0 10

Iceland 0 0 10

India 0 15/0 30

Indonesia 0 10/0 15/10

Ireland 0 0 10/0

Israel 0 10/5/2 (5) 5

Italy 0 0 5/0

Japan 0 10/0 10/0

Kazakhstan 0 10/0 10

Korea 0 0/10 10/0

Latvia 0 10/0 10

Lithuania 0 10 10

Libya 0 10 5

Luxembourg 0 0 10/0

Macedonia 0 10 10

Malta 0 0 5

Mexico 0 10/0 10

Slovak Republic

PKF Worldwide Tax Guide 20136

Dividends

(%)

(1) Interest

(%)

(2) (3) (5)

Royalties

(%)

(2) (4)

Moldova 0 10 10

Montenegro 0 10 10

Netherlands 0 0 5

Nigeria 0 15 15

Norway 0 0 5/0

Poland 0 10/0 5

Portugal 0 10 10

Romania 0 10/0 10/15

Russia 0 0 10

Serbia 0 10 10

Singapore 0 0 10

Slovenia 0 10 10

South Africa 0 0 10

Spain 0 0 5/0

Sri Lanka 0 10/0 10/0

Sweden 0 0 5/0

Switzerland 0 10 10/0

Syria 0 10 12

Taiwan 0 0/10 5/10

Tunisia 0 12 15/5

Turkey 0 10/0 10

Turkmenistan 0 10/0 10

Ukraine 0 10 10

United Kingdom 0 0 10/0

United States 0 0 10/0

Uzbekistan 0 10 10

Vietnam 0 10 5/10/15

1 Dividends paid out within the Slovak Republic are generally not subject to tax where paid out of profits generated from 1 January 2004 onwards.

2 Interest and royalties are tax exempt for associated companies in EU Member States in accordance with EU Directives (see Section F above).

3 The lower tax rate generally applies to interest on loans provided by the government or the central bank. It is advisable to check the applicable double taxation treaty for specific details.

4 Separate tax rates for royalties are generally applied so that the higher rate is for industrial royalties and the lower rate is for cultural royalties. It is advisable to check the applicable double taxation treaty for specific details.

5 The withholding rate is reduced to 5% if a bank or financial institution receives the interest.

Slovak Republic

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