Slovak Republic
Category | Rank | Score |
---|---|---|
Overall Rank | 11 | 69.27 |
Corporate Taxes | 19 | 58.64 |
Individual Taxes | 3 | 95.88 |
Consumption Taxes | 34 | 54.52 |
Property Taxes | 3 | 87.12 |
Crossborder Taxes | 34 | 55.23 |
The Slovak Republic ranks 11th overall on the 2021 International Tax Competitiveness Index, three spots better than in 2020.
Strengths
- The personal income rate on dividends is very low at 7 percent (compared to an OECD average of 24.1 percent).
- The Slovak Republic has better-than-average tax treatment of business investment in machinery, buildings, and intangibles.
- Corporations can deduct property taxes when calculating taxable income.
Weaknesses
- Companies are severely limited in the amount of net operating losses they can use to offset future profits and are unable to use losses to reduce past taxable income.
- The VAT of 20 percent applies to approximately half of the potential consumption tax base.
- The Slovak Republic has both a patent box and a super deduction for Research and Development expenditures.
Learn more about the tax system in Slovak Republic