Slovakia: Selected adopted legislative measures II

Governments across CEE, including Slovakia, have introduced or are discussing various measures to mitigate potential adverse consequences of the coronavirus situation. This overview briefly summarises selected legislative measures adopted in Slovakia.

The below measures aimed at direct business support and maintaining employment have become effective on the date of their publication in the Collection of Laws of the Slovak Republic.

• The state will pay 80% of the employee’s salary in the companies that are mandatory closed. The maximum amount of the contribution per one employer is EUR 200.000 per month. The highest possible contribution per one employee amounts to EUR 1100 per month. Applications for payment of the contribution can be submitted from 6 April, the contributions will be paid from 15 April.
  (effective from 27 March 2020)
• Contributions for self-employed and employers in companies that have recorded decline in revenues will depend on the extent of their shortfalls. The maximum amount of the contribution per one employer is EUR 200.000 per month. Applications for payment of the contribution can be submitted from 6 April, the contributions will be paid from 15 April.
  (effective from 27 March 2020)
• Extension of deadlines for filing annual income tax returns, payment of the balance of tax, filing financial statements, annual reports, and auditor’s report, and their filing with the financial statement register until the end of the calendar month following the end of the pandemic period.
  (effective from 4 April 2020)
• Provision of monthly bank guarantees to small-scale employer by the Ministry of Finance.
  (effective from 4 April 2020)
• The Social Insurance Office (Sociálna poisťovňa) will pay sickness benefit to employees in quarantine sick leave in the amount of 55% of their daily contribution basis already from the first day of the respective period. The employers will therefore no longer pay the wage compensation for the first 10 days of sick leave. Employees who are at home with their children will be compensated by the state until school facilities are re-opened.
  (effective from 27 March 2020)
• Postponement of employer contributions payment form March until 31 July 2020.
  (effective from 4 April 2020)
• Deferral of income tax advance payment, whereby the tax administrator will not charge the taxpayers default interest provided they pay the tax advance until the end of the calendar month following the end of pandemic period.
  (effective from 4 April 2020)

The proposed measures are – as to their extent – the largest economy aid plan ever adopted in Slovakia. The aid will amount to approximately one billion euro in direct payments and half a billion euro in bank guarantees.

Due to the dynamic developments, we will update this overview regularly and as required. We hope you find this helpful and feel free to contact our advisors in this matter at any time.