Tax reform to include digital platform businesses in Slovakia

In 2018, the Ministry of Finance in Slovakia introduced an amendment to the Income Tax Act which seeks to ensure that digital business activities are taxed in the country. 

The amendment requires platform businesses to register a permanent establishment in Slovakia. In order for platforms to do so, the definition of permanent establishment was altered: Regular services of mediating transport and accommodation (even performed through a digital platform) are considered as activities carried on through a permanent place in the territory of Slovakia and thus, lead to the creation of a permanent establishment. As a consequence, the income of such an establishment becomes subject to taxation. In case a foreign platform business does not register such a permanent establishment and the tax registration obligation is not fulfilled, the payments for mediation services are subject to a withholding tax. 

Further information: 

https://www.mfsr.sk/sk/media/tlacove-spravy/digitalne-platformy-budu-slovensku-musiet-platit-dane.html 

Taxation of digital business activities in Slovakia | News Flash - Accace - Outsourcing and advisory services 

Metadata

  • Initiative
  • Legislation
  • Slovakia
  • Government
  • Yes
  • no specific sector focus
  • taxation
  • 2022
Disclaimer  —  Eurofound aims to keep the information in this database up to date and accurate. If errors are brought to our attention, we will try to correct them. However, Eurofound bears no responsibility or liability whatsoever with regard to the accuracy or content of this database or of external links over which Eurofound services have no control and for which Eurofound assumes no responsibility.