Slovakia: Proposed abolition of withholding tax on government bonds and T-bills

The Committee for Finance and Budget of the National Council of the Slovak Republic has prepared a draft law amending Law No. 595/2003 on Income Tax.

The proposed amendment includes, among other matters, the following changes applicable to government bonds and treasury bills (“T-bills”):

Withholding tax would be abolished for natural persons that meet their tax liability individually in their tax returns.
Entities not established for a business (non-profit organisations), the National Property Fund of the Slovak Republic and the National Bank of Slovakia would continue to be subject to 19% withholding tax but would become taxpayers, who would, therefore, withhold the tax themselves as required by law.

If approved by the President, these changes would be effective as of 1 January 2013 and would impact our current tax procedure. In such case, we would issue a separate Announcement accordingly.

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