Slovak Republic: Dividend withholding tax on Slovak equities certain corporate bonds

05.01.2018

Clearstream Banking1 informs customers that further to our Taxflash, T16035 dated 14 October 2016, and the approval of the amendment to Act No. 595/2003 Coll. on Income Tax by the Slovak parliament, effective

1 January 2018

the below withholding tax rates will be applicable to the Slovak dividend payments based on the gains realised in 2017:

Standard withholding tax rate

35%

Individuals resident in a White List country

7% or DTT, whichever is lower

Slovak Individuals

7%

Legal entities resident of DTT country

0%

Slovak legal entities

0%

Impact on customers

On the Slovakian market, the issuers are the withholding agents of the tax applied to Slovak dividends. No common procedure has been published by the issuers and it is expected that each issuer will issue its own guidelines.

We will keep you informed as soon as we receive further details about the procedure to follow in order to obtain relief at source or a refund on Slovak dividend payments. 

Further information

We continue to monitor the information available on the market and will provide more information as it becomes available.

For further information, please contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or your Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.