HOW TO PROCEED
The Slovak Holding Company is an ordinary company which falls within the scope of general tax law.
There are no limitations on the activities of the company.
A Slovak company can be constituted either as a “spolocnost s rucenim obmedzen?m” (private limited company- SRO) or an “akciová spolocnost” (public limited company- AS).
The minimum share capital for incorporation of a Slovak company is SKK200.000 for a private limited company and SKK1.000.000 for a public limited company.
For companies incorporated as private limited companies, a minimum participant deposit of SKK30.000 is required while for companies incorporated as public limited companies at least 30% of the share capital must be paid up in cash prior to the founding shareholders’ meeting.
Companies incorporated in Slovakia may have bearer shares.
As from 1st January 2004 Slovakia introduced a flat tax for individuals and corporations at a flat rate of 19%.
A 15% corporate tax is levied on companies engaging agricultural business.
Corporate income tax is charged on its worldwide profits reported in financial statements of companies resident in Slovak Republic subject to adjustments.
Dividends paid to residents or non-residents are not subject to tax and therefore not included in taxable income, unless paid out of profits derived prior to 1 January 2004.
Capital gains are not subject to tax in Slovakia provided that the seller of the shares is not an entity subject to unlimited tax liability in Slovakia.
See income above.
Besides the common advantages of a holding company, the Slovak Holding Company may also enjoy from the following:
As from 1 January 2004, dividends paid by Slovak companies to shareholders (corporate and individuals) are not subject to withholding tax.
Dividends and royalties paid by Slovak Holding companies to resident shareholders are not subject to withholding tax.
Double Tax Treaties
2 If conditions are met.
20 Deducted in equal proportion during the 5 years period if the amount of the losses deducted is invested in acquisition of tangible fixed assets.
21 The 25% rate is applied on payments of interest others than participation certificates, debentures, certificates of deposit, treasury bonds and equivalent securities.
A bespoke 'offshore' solution can be complex and requires careful planning and execution. We
therefore encourage our clients to contact us directly, without obligation.
While all of our consultants in our offices provide a Free Initial Consultation, the office and consultant listed below has particular expertise in this area and will gladly assist with advice on how to approach your unique challenge.
Alternatively, to select one of our multilingual offices, click here for a list of our office contact details.
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