Slovak Republic: Draft Law implementing withholding tax on Slovak dividend payments
Clearstream Banking would like to inform customers that the Slovak Parliament is currently discussing a new law implementing a withholding tax rate on Slovak dividend payments as of 1 January 2017. The changes foreseen by this law are described below:
- The default withholding tax rate for Slovak dividend payments will be 35%.
- Beneficial owners being residents in a country listed on the “White List”1 will be eligible to benefit from the reduced withholding tax rate of 7%. Should the DTT signed between the Slovak Republic and the beneficial owner’s country of residence grant a more favourable rate, the DTT rate will apply.
- Beneficial owners being Slovak legal entities will be eligible to benefit from a full tax exemption.
- Beneficial owners being Slovak individuals will not be eligible to benefit from any reduced tax rate. However, the 14% “Health Care Insurance Contribution” previously withheld by issuers will be abolished.
Before entering into force, this Law still needs to be approved by the Parliament and signed by the President.
We continue to monitor the situation and will provide further information as it becomes available.
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1. The “White List” is published on the Ministry of Finance’s Website
| This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice. |