Do you need to request for a deferral payment of taxes for a corona crisis or do you need to pay the tax in instalments? If so, then this article is for you and we have good news for you.

Firstly, the interest on deferral payment of taxes is reduced from the original 10% p.a. at 3% p.a.

Secondly, a need to carry out an economic and financial analysis on application was cancelled. The obligation to lodge a lien on tax arrears of more than EUR 3,000 has also been abolished.

State´s First Aid should also be more accessible for the above stated reasons, as it has been so far required that the entity doesn´t have income tax arrears.

QUESTIONS

How to apply for a deferral payment on taxes?

You must apply for a tax deferral electronically if you are a natural or legal person-entrepreneur. Also, if you are not obliged to communicate with the Financial Administration electronically, you can request either in writing or orally in the minutes (minutes= the written record of everything that's happened during a meeting with Tax Authority).

What must a deferral request contain?

It must be clear from the application:

- Who applies,

- The reason for the application,

- What is he asking for in this case.

What can be the reasons for applying?

The financial report stated that there could be 4 reasons why a deferral payment of tax is requested:

1. The payment of the tax would jeopardize the nurture of the taxable person or his dependents;

2. The taxable person's income has fallen and therefore the tax cannot be expected to be paid on time, mainly as a result of an emergency situation such as a pandemic or natural disaster;

3. Payment of the tax would increase the insolvency of the tax subject in the event of a significant restriction or interruption of the performance of business activities on the basis of decisions taken by the Government of the Slovak Republic;

4. Other evidence of a serious nature for which the tax cannot be paid.

Is there a charge for submitting a deferral request?

In this case, the application is valid. Outside the pandemic period, this is an administrative fee of EUR 9.50.

If you have any further questions, do not hesitate to change the experts on the topic in our company. Do not forget to follow our website, Facebook or LinkedIn for more actual information.