Tax regime of corporate bonds is back at its status valid until end of 2022
The Amendment to the Income Tax Act which again changes the provisions on taxation of other than government bonds, was published in the Collection of Laws on 18 April.
Based on the Amendment to the Income Tax Act valid as of 1 January 2023 income from bonds paid out by Slovak tax residents were considered as income sourced in Slovakia and were subject to withholding tax. The amount of tax withheld ranged from 0% to 19%, in extreme cases up to 35% based on the residence of foreign investors. For more details on the above changes, we refer to our previous Article.
The amendment to the Income Tax Act which was approved by the Parliament during the March’s Meeting brings back the taxation regime of corporate bonds to its status as at 31 December 2022. Income from bonds paid to the Slovak tax non residents are not taxable tax in Slovakia as of 18 April 2023.