Slovak Republic

Slovak Republic's Rankings
CategoryRankScore
Overall Rank1171.37
Corporate Taxes1463.54
Individual Taxes299.71
Consumption Taxes3354.15
Property Taxes486.2
International Tax Rules3159.27

The Slovak Republic ranks 11th overall on the 2019 International Tax Competitiveness Index, one spot worse than in 2018.


Strengths

  • The personal income rate on dividends is very low at 7 percent (compared to an OECD average of 23.8 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 less than half of the potential tax base.
  • The Slovak Republic has both a patent box and a super deduction for Research and Development expenditures.

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