Act on certain exceptional measures in the financial area in relation to COVID-19

Deadline for filing of the income tax return

Extension of the statutory deadlines for filing of income tax return (hereinafter "tax return"), in the case the last day of the deadline for filing expires during a pandemic period. The duration of the pandemic is set for the period from 12.3.2020 until the end of the calendar month, when the Government of the Slovak Republic will recall the emergency situation.

The deadline is automatically extended to the end of the calendar month following the month in which the pandemic period ended. Within the same deadline the taxpayer, taxable person or an heir is obliged to paid income tax liability.

In practice if e.g. the Government of the Slovak Republic will declare end of pandemic period caused by virus COVID-19 as of 31.7.2020, the deadline for filing tax return and due date for payment tax will be 31.8.2020. 

Bankruptcy and liquidation

The special scheme is applicable also for taxpayers in bankruptcy or liquidation, if the last day for filing of the tax return falls for on a period of pandemic. Also, in this situation the deadline for filing of tax return will be extended to the end of the calendar month following the month in which the pandemic period ended.

• Notification of extension of deadline for filing a tax return

Taxpayers can use the institute of extending the deadline for filing the tax return based on officially submitted notification. The deadline can be extended by three months or in case of foreign income by six calendar months from the ordinary deadline. The taxpayer in submitted notification shall indicate a new period which end no later than the last day of the calendar month in which the tax return is submitted and the tax shall also be payable within that new period.

Example:

Taxpayer, legal person, has taxable period fiscal year ending on 31.3.2020. The deadline for filing of the tax return and due date for payment of tax liability would be 30.6.2020. Taxpayer can file the notification and extend the deadline by three months, i.e. to the 30.9.2020.

In the case the taxpayer has not have a possibility of extension of deadline and pandemic situation would end in July 2020, taxpayer would be mandatory to fill tax return and pay tax liability until 31.8.2020.

Taxpayer can file the notification till the last day of month following the month when pandemic situation ended, i.e. 31.8.2020.

Bankruptcy and liquidation

Notification on prolongation is not applicable for taxpayers in bankruptcy or liquidation. Such taxpayer can request tax administrator for extension of deadline. Request is necessary to file 15 days before expiring the original deadline for filing tax return, at latest.

Taxpayers, who have already submitted the notification of extension of deadline

It is important to note that the extension of the statutory deadline also applies to taxpayers who have already submitted a notification of extension the deadline for filing the tax return. These are, for example, taxpayers who have extended the deadline for filing tax return for taxable period 2019 to 30.6.2020. Assuming the end of pandemic period on July 2020, the deadline for filing tax return and due date of tax liability are automatically extended to 31.8.2020, regardless of the extension of the deadline specified in the notification or request.

Income tax overpayment

By the postponement of the deadline for filing of the tax return for all taxpayers, the deadline is also automatically postponed for refund of the income tax overpayments by the Tax Authorities.

The Tax Authorities will refund the tax overpayments pursuant to the Tax Administration Act:

• At the earliest after the expiry of the deadline for filing the tax return, i.e. within one month after the pandemic situation ends,
• No later than 40 days after the expiry of the deadline for filing the tax return, i.e. 40 days after the end of month following the end of the pandemic situation.

The deadlines mentioned above also apply to the taxpayers who have already filed the income tax return for the tax period of 2019.

According to the latest information, the Ministry of Finance of the Slovak Republic is preparing further legislative measures related to the income tax overpayments for the year 2019. For more information, see https://www.mfsr.sk/sk/media/tlacove-spravy/na-preplatky-danovnici-nebudu-musiet-cakat.html .

• Assignation of tax liability paid

The postponement of the period for filing the tax return also automatically means a postponement of the assignment of the tax proportion to the beneficiaries of the paid tax. In a tax return filed within this extended statutory period, the taxpayer may also assignate the proportion of tax liability paid after all legal conditions have been met.

With regard to employees whose annual clearance were settled by the employer, they submit to the tax administrator a statement of assignation of the proportion of paid income tax no later than the last day of the second month following the end of the pandemic situation.

The law only regulates a special deadline for submission of the statement of assignation of the proportion of paid tax and statement of a tax receipt. The conditions and method continue to be assessed according to the applicable Income Tax Act.

During the pandemic situation, beneficiaries of the proportion of the paid tax may also use the funds obtained from the tax assignment in order to help and mitigate the negative consequences of the pandemic, regardless of whether or not such activity was considered to be the subject of their activity.  

• Health care providers

Similarly, for the healthcare provider, the deadline for notifying on withholding and payment of tax is postponed to the last day of the month following the month of the end of the pandemic period.

• The supplementary income tax return 

If the taxpayer identifies an obligation to file a supplementary income tax return and the deadline for submission would expire during the pandemic period, the taxpayer may also submit the supplementary tax return until the end of the month following the end of the pandemic period.

The pandemic period will not be taken into account related to calculation of the penalty for a possible tax increase in the supplementary tax return. The penalty will be calculated for the period from the end of the regular tax return period to 11 March 2020 (assuming payment of the tax arrears after the end of the pandemic period).

Measures in the field of motor vehicle tax

If deadline for submission of the tax return and the due date has expired during the pandemic period, it is deemed to be observed if the taxpayer shall submit the tax return and shall pay the tax by the end of the calendar month following the end of the pandemic period.

Accounting measures

Due to the negative consequences of a pandemic, some entities will not be able to meet their obligations objectively, the law allows entities to meet these missed obligations to the end of the third month following the end of pandemic situation or to the expiry of the deadline for submission of tax return under law, whichever is the earlier.

Forgiveness of missed deadline

Missing of the statutory deadline laid down by law, which has expired during the pandemic period, i.e. free of charge and the need for a decision will be forgiven in the situation if the taxpayer performs a missed action (e.g. fill the recall, submitting the required documents to the tax administrator, etc.) by the end of the calendar month following the end of the pandemic period, at the latest. Attention, this cannot be applied to file a tax return and to pay tax.

Interruptions of tax audits and tax proceeding

If during the pandemic period, a tax audit is ongoing it can be suspended based on request of the tax payer. In case the tax inspection has been suspended prior to the start of the pandemic period due to one of the legal reasons and the suspension should end at the pandemic period, the time limit for performance of the tax audit in both cases is during the pandemic period suspended by law until the end of the calendar month in which emergency situation is withdrawn, even if during the pandemic period the reasons for which the tax audit was suspended disappeared. The legal effects of acts, which were carried out from the start of the pandemic period until the day of entry of the law into force will remain. If a tax audit starts during the pandemic period, time limit for its performance is suspended from the day following the day of its commencement until the end of the pandemic period.

If during the pandemic period, a tax audit which relates to eligibility of VAT excess is ongoing, the tax administrator may issue a partial protocol where it is stated the tax audit is interrupted.

Tax proceeding which has been started before the pandemic period can be interrupted as usually also based on the request of the tax payer.

Tax proceeding interrupted before the pandemic period continues to be interrupted until the end of the pandemic period irrespective of the fact whether the reasons for interruption will disappear during the pandemic period or not.

Forfeit the right to impose a tax and termination and cessation of the right to recover tax arrears

Further, it was agreed that during the pandemic period the running of the time period is suspended when it could lead to the cessation of the right to levy tax or to recover tax arrears. This automatically extends the time limit for commencement of the tax audit.

Deferral of tax execution

The law stipulates the fact that the tax execution is postponed during the pandemic period, while legal effects of acts undertaken during the pandemic period remained effective until the date of entry of this law into force.