Fresh tax, legal and economic information MANDAT news The April issue includes: Income Tax Prepayments Payments to Health Insurance Companies Not to be missed Important Dates MANDAT CONSULTING, k.s., Nám. SNP 15, 811 01 Bratislava, www.mandat.sk
INCOME TAX PREPAYMENTS We remind you that 30 April 2013 is the deadline for final payment of the differences arising on income tax prepayments paid, where tax prepayments paid for January to March 2013 are lower than the prepayments calculated on the basis of a tax return filed for 2012. HEALTH INSURANCE PAYMENTS By filing income tax returns on the due date and paying tax obligations, duties relating to taxes and payments might not end. That is, by 30 September 2013 each health insurance company will perform an annual settlement of health insurance premiums also for the different types of occasional income, based on the income tax return filed by a taxpayer for 2012. The health insurance company will charge an underpayment arising on: transfer of options, transfer of shares of a private limited company, public limited company or transfer of rights of a cooperative association, dividends, transfer of ownership of real estate, inherited industrial and other intellectual property rights, including copyright, derivative transactions, non-cash winnings originating from sources in Slovakia, transfer of securities, and occasional activities including income from occasional agricultural production and occasional lease of movable assets. Jana Princová e-mail: jana.princova@mandat.sk Tel.: +421 2 571042-35 The health insurance payment rate amounts to 14%. For a person with disabilities, the rate amounts to 7% (excluding dividends, where there is a single rate of 14%). The basis of assessment is consistent with the tax base, i.e. the amount from which tax has been calculated in the tax return. Below we discuss some cases where health insurance payments are paid. Sale of Real Estate When selling real estate, a distinction must be made as to whether the sale of real estate is exempt from income tax or not. MANDAT CONSULTING, k.s., Nám. SNP 15, 811 01 Bratislava, www.mandat.sk 1
HEALTH INSURANCE PAYMENTS Sale of real estate is exempt from income tax when a taxpayer had owned an apartment or a house for more than five years or he owned the real estate before 1 January 2011, while having his permanent residence in the real estate for at least two years prior to the sale. If income from the sale of real estate was taxed in the tax return for the year 2012, the health insurance company will use the difference between income from the sale and expenses incurred to achieve it as a basis of assessment for charging health insurance payments. Based on the tax return for the year 2012, the health insurance company will perform an annual settlement of health insurance premiums by the end of September 2013 at the latest. Non-cash Winnings With winnings in various types of competitions, a distinction is made between cash winnings and non-cash winnings. Cash winnings are taxed using a withholding tax and are not disclosed in the income tax returns. In the case of non-cash winnings, e.g. winnings in the form of a car or a trip, this is not the case. Non-cash winnings must be disclosed in the tax return and tax on the winning must by paid. Health insurance premiums will be charged by the health insurance company, again based on the tax return filed. Dividends Dividends mean the share of profits, compensatory interest, or share in liquidation proceeds. The time when the dividends were paid is relevant to assess whether health insurance payments are to be paid on dividends. No health insurance payments shall be paid on profit shares for the years 2004 to 2010. The obligation to pay health insurance payments on dividends has been established since 2011. Hence, dividends on profits for the year 2011 paid in 2012 will be settled by the health insurance company in September 2013. The basis of assessment for calculating health insurance payments on dividends in the annual settlement for the year 2012 shall be the dividend income less the amount of one monthly minimum basis (i.e. EUR 339.89). If the dividends paid amount to less than EUR 339.89, no health insurance payments are paid on that income. It is the responsibility of a dividend recipient to notify such an income to the health insurance company by the end of May 2013. A single rate of 14% has been set for all dividend recipients (including persons with disabilities). From 2013, premium prepayments on dividends have also been introduced. MANDAT CONSULTING, k.s., Nám. SNP 15, 811 01 Bratislava, www.mandat.sk 2
HEALTH INSURANCE PAYMENTS Prepayments will be calculated and paid for the policyholder by a dividend payer. For the purposes of the Health Insurance Act, a dividend payer is a legal entity with its registered office in the territory of the Slovak Republic, who pays dividends. Prepayments are due on the eighth day after the end of the calendar month in which the dividends were paid. Prepayments are calculated at the rate of 14% of the amount of dividends paid in the calendar month, with the maximum amount 120-times the average monthly salary (in 2013: from the amount of EUR 94,320). The dividend payer is required to disclose to the competent health insurance company, in writing or electronically, the total amount of dividends paid and premium prepayments within eight days from the date of payment of dividends. A policyholder who receives income from dividends paid out by a legal entity that pays dividends and does not have its registered office in the territory of the Slovak Republic, is obliged to notify the health insurance company that is competent to perform the annual settlement of premiums of the amount of dividends he received in the previous calendar year, on a prescribed form, not later than by the end of May of the calendar year following the year for which the annual settlement of premiums is carried out. NOT TO BE MISSED Amendment to the Public Procurement Act On 18 February 2013, an amendment to the Public Procurement Act entered into force. The amendment aims to simplify public procurement procedures so that as much as possible information can be found on the Internet. Under the amendment, parties will be able to demonstrate their compliance with the conditions of participation by means of a solemn declaration; the amendment allows for the possibility of awarding the contract to second and third placed tenderers. Sanctions in the form of a ban on participation Marian Vojtek e-mail: marian.vojtek@mandat.sk Tel.: +421 2 571042-22 MANDAT CONSULTING, k.s., Nám. SNP 15, 811 01 Bratislava, www.mandat.sk 3
IMPORTANT DATES: 1 MAY 2013 TO 31 AUGUST 2013 Deadline for Legal Obligation 9. May 2013 Nature of Legal Obligation Maturity date for social insurance contribution and health insurance advance payment for sole traders for the period of April 2013 Maturity date for social insurance contribution and health insurance advance payment made by the employer for employees for the period of April 2013 + 5 days Payment of advances for tax on income from dependent activities by the employer for April 2013 15. May 2013 Payment of withholding tax and subsequent notification to the respective tax office. Payment of the amount deducted from payments to entities and individuals for the purposes of tax securement by the payers of these payments and subsequent notification to the respective tax office. 20. May 2013 Obligation to register for VAT payment for a tax entity that achieved a turnover of EUR 49,790 Deadline for filing a summary statement for April 2013 for VAT payers doing intra-community supplies in the EU 27. May 2013 Filing of VAT tax return and payment of tax obligations: for the month of April 2013 (if the tax period is the Submission of records kept under Article 70, para 6 of the VAT Act to the tax office: for the month of April 2013 (if the tax period is the upon acquisition of a motor vehicle from another Member State which is or which was registered in the motor vehicle registry in another Member State, for the purpose of its resale. 31. May 2013 Maturity date of the monthly advance payment for corporate income tax in the amount of 23 % of the tax base calculated in the tax return for the tax period 2012, if the tax for the calendar year 2012 was in excess of EUR 16,596.96. Maturity date of the monthly motor vehicle tax advance payment for the taxpayer whose estimated tax with one tax MANDAT CONSULTING, k.s., Nám. SNP 15, 811 01 Bratislava, www.mandat.sk 4
IMPORTANT DATES: 1 MAY 2013 TO 31 AUGUST 2013 Deadline for Legal Obligation Nature of Legal Obligation administrator exceeds EUR 8,292, in the amount of 1/12 of the estimated tax. The taxpayer s deadline for submission to the tax office of a statement providing an overview of withheld and paid advances for the tax on income from dependent activities, and a tax bonus overview for April 2013 10. June 2013 Maturity date for social insurance contribution and health insurance advance payment for sole traders for the period of May 2013 Maturity date for social insurance contribution and health insurance advance payment made by the employer for employees for the period of May 2013 + 5 days Payment of advances for tax on income from dependent activities by the employer for May 2013 17. June 2013 Payment of withholding tax and subsequent notification to the respective tax office. Payment of the amount deducted from payments to entities and individuals for the purposes of tax securement by the payers of these payments and subsequent notification to the respective tax office. 20. June 2013 Obligation to register for VAT payment for a tax entity that achieved a turnover of EUR 49,790 Deadline for filing a summary statement for May 2012 VAT payers doing intra-community supplies in the EU 25. June 2013 Filing of VAT tax return and payment of tax obligations: for the month of May 2013 (if the tax period is the Submission of records kept under Article 70, para 6 of the VAT Act to the tax office: for the month of May 2013 (if the tax period is the upon acquisition of a motor vehicle from another Member State which MANDAT CONSULTING, k.s., Nám. SNP 15, 811 01 Bratislava, www.mandat.sk 5
IMPORTANT DATES: 1 MAY 2013 TO 31 AUGUST 2013 Deadline for Legal Obligation Nature of Legal Obligation is or which was registered in the motor vehicle registry in another Member State, for the purpose of its resale. 1. July 2013 Maturity date of the monthly advance payment for corporate income tax in the amount of 23 % of the tax base calculated in the tax return for the tax period 2012, if the tax for the calendar year 2012 was in excess of EUR 16,596.96. Maturity date of the monthly motor vehicle tax advance payment for the taxpayer whose estimated tax with one tax administrator exceeds EUR 8,292, in the amount of 1/12 of the estimated tax. Maturity date of the quarterly motor vehicle tax advance payment for the taxpayer whose estimated tax with one tax administrator exceeds EUR 660 but no more than EUR 8,292, in the amount of 1/4 of the estimated tax. The taxpayer s deadline for submission to the tax office of a statement providing an overview of withheld and paid advances for the tax on income from dependent activities, and a tax bonus overview for May 2013 8. July 2013 Maturity date for social insurance contribution and health insurance advance payment for sole traders for the period of June 2013 Maturity date for social insurance contribution and health insurance advance payment made by the employer for employees for the period of June 2013 + 5 days Payment of advances for tax on income from dependent activities by the employer for June 2013 15. July 2013 Payment of withholding tax and subsequent notification to the respective tax office. Payment of the amount deducted from payments to entities and individuals for the purposes of tax securement by the payers of these payments and subsequent notification to the respective tax office. 22. July 2013 Obligation to register for VAT payment for a tax entity that achieved a turnover of EUR 49,790 MANDAT CONSULTING, k.s., Nám. SNP 15, 811 01 Bratislava, www.mandat.sk 6
IMPORTANT DATES: 1 MAY 2013 TO 31 AUGUST 2013 Deadline for filing a summary statement for June 2013 and for 2nd quarter VAT payers doing intra-community supplies in the EU 25. July 2013 Filing of VAT tax return and payment of tax obligations: for the month of June 2013 (if the tax period is the for the 2nd quarter of 2013 (if the tax period is the calendar quarter) Submission of records kept under Article 70, para 6 of the VAT Act to the tax office: for the month of June 2013 (if the tax period is the for the 2nd quarter of 2013 (if the tax period is the calendar quarter) upon acquisition of a motor vehicle from another Member State which is or which was registered in the motor vehicle registry in another Member State, for the purpose of its resale. 31. July 2013 Maturity date of the monthly advance payment for corporate income tax in the amount of 23 % of the tax base calculated in the tax return for the tax period 2012, if the tax for the calendar year 2012 was in excess of EUR 16,596.96. Maturity date of the monthly motor vehicle tax advance payment for the taxpayer whose estimated tax with one tax administrator exceeds EUR 8,292, in the amount of 1/12 of the estimated tax. The taxpayer s deadline for submission to the tax office of a statement providing an overview of withheld and paid advances for the tax on income from dependent activities, and a tax bonus overview for June 2013 8. August 2013 Maturity date for social insurance contribution and health insurance advance payment for sole traders for the period of July 2013 Maturity date for social insurance contribution and health insurance advance payment made by the employer for employees for the period of July 2013 + 5 days Payment of advances for tax on income from dependent activities by the employer for July 2013 MANDAT CONSULTING, k.s., Nám. SNP 15, 811 01 Bratislava, www.mandat.sk 7
IMPORTANT DATES: 1 MAY 2013 TO 31 AUGUST 2013 Deadline for Legal Obligation Nature of Legal Obligation 15. August 2013 Payment of withholding tax and subsequent notification to the respective tax office. Payment of the amount deducted from payments to entities and individuals for the purposes of tax securement by the payers of these payments and subsequent notification to the respective tax office. 20. August 2013 Obligation to register for VAT payment for a tax entity that achieved a turnover of EUR 49,790 Deadline for filing a summary statement for July 2013 VAT payers doing intra-community supplies in the EU 26. August 2013 Filing of VAT tax return and payment of tax obligations: for the month of July 2013 (if the tax period is the Submission of records kept under Article 70, para 6 of the VAT Act to the tax office: for the month of July 2013 (if the tax period is the upon acquisition of a motor vehicle from another Member State which is or which was registered in the motor vehicle registry in another Member State, for the purpose of its resale. MANDAT CONSULTING, k.s., Nám. SNP 15, 811 01 Bratislava, www.mandat.sk 8
ABOUT US The companies MANDAT CONSULTING, k.s. and MANDAT AUDIT, s.r.o. were founded in 2004 as tax advisory and auditing companies. Since their establishment, they have been providing small, medium-sized and companies active in Slovakia with services in the field of tax consultancy, audit and accounting. Long-lasting cooperation with foreign advisory companies hand in hand with the competence of Slovakian tax advisors and auditors enables us rendering our service to the clients originated from abroad. In present time, 41 well trained members of our staff are at the disposal to our clients. Information provided in this material are only of a cursory nature. MANDAT CONSULTING, k.s. assumes no liability for any decision taken on the basis of this issue. Should you wish to add other person to be receiving MANDAT news, please contact: news@mandat.sk Please contact us, should you require additional information. MANDAT CONSULTING, k.s., Nám. SNP 15, 811 01 Bratislava, www.mandat.sk 9