Lex Corona Tax and Legal Alert, April 2020

The following measures are implemented:

• Missing a deadline – if, during the Pandemic Period, a taxable entity fails to perform a certain act by a deadline stipulated by law or requested by the tax administrator, this failure will be forgiven if the taxpayer performs the missed act by the last day of the calendar month following the month in which the Pandemic Period comes to an end. This will not apply to filing an income tax return and paying the income tax.
• Interruption of a tax inspection and tax proceedings – during the Pandemic Period, the period for performing a tax inspection and tax proceedings if started before the commencement of the Pandemic Period will be interrupted. An interruption exemption will apply if a decision on returning a tax overpayment or on a claim (e.g. refund of VAT excess) must be made.
• Tax underpayments – the amount of tax due during the Pandemic Period will not be considered a tax underpayment provided the taxable entity pays or remits the amount due by the last day of the calendar month following the month in which the Pandemic Period comes to an end. However, if the taxpayer fails to pay this tax in the alternative period, the amount due will be considered a tax underpayment as of the first day after the alternative period.*
• Sanctions – the tax administrator will not impose interest on late payments if the taxable entity pays or remits income tax, collected tax prepayments, withholding tax, or an amount withheld as a tax securement which became due during the Pandemic Period to the tax administrator by the last day of the calendar month following the month in which the Pandemic Period comes to an end.*
  

PwC note

Based on the above wording, the amount of tax due during the Pandemic Period should not be considered a tax underpayment, provided the taxable entity pays or remits the amount due by the last day of the calendar month following the month in which the Pandemic Period comes to an end. The Act, however, only limits certain types of tax payments – income tax due, withheld payroll tax, withholding tax and tax securement, for which the tax administrator may not impose late payment interest. Thus, it is not clear what would be the approach adopted by the tax administrators as regards other types of payments (e.g. tax advances, excise duties or VAT liability due). 

• Amended tax return – the obligation to file an amended tax return is met if the filing period ends during the Pandemic Period and the taxable entity files the return by the last day of the calendar month following the month in which the Pandemic Period comes to an end.

• Listing in Financial Administration registers – during the Pandemic Period, the Slovak Financial Directorate will update neither the published tax debtor list, nor the list of VAT payers for which reasons for cancelling registration have occurred.
  

• The deadlines for meeting the obligations of accounting units which result from the Slovak Accounting Act (e.g. preparation of the financial statements, the annual report, the independent auditor’s report, and their deposition in the financial statements register, including other bookkeeping obligations) will be postponed. Thus, the new deadline for complying with these obligations will be either the last day of the third calendar month following the month in which the Pandemic Period comes to an end, or the deadline for filing the tax return, whichever comes first.

• Exemption from customs duties and VAT on imports of goods (e.g. medical supplies) from third countries will be applied if intended for allocation free-of-charge to victims of a natural disaster, including a pandemic. The Slovak Ministry of Interior will approve organizations authorized to import goods exempt from import customs duties and VAT. This exemption will be subject to a decision of the European Commission and the Customs Office, if the set conditions are met, will suspend the payment of import customs duties and VAT until notified of the European Commission’s decision.

• For taxpayers who are obliged to file a return for a period other than a year (e.g. taxpayers dissolved with or without liquidation), the period for filing a motor vehicle tax return will be extended until the last day of the calendar month following the month in which the Pandemic Period comes to an end.

• The exemption from paying administrative fees applies if a filing is made during the Pandemic Period with the purpose of mitigating the adverse consequences of the pandemic.