Slovak Republic: Proposed abolishment of withholding tax on interest distributions from corporate bonds for non-resident beneficial owners

06.04.2023

The Slovak Parliament has announced, on 29 March 2023, an amendment to the tax legislation, which includes a proposal to abolish the withholding tax on interest distributions from Slovak corporate bonds for non-resident beneficial owners.

If the new law is passed, the following new default withholding tax rates will be applicable in Clearstream Banking:

Income type

Default withholding tax rate

Interest distributions from Slovak corporate bonds

The withholding tax rate will decrease from 35% to 0%

The effective date of this change, if the law is passed, is expected to be 1 May 2023.

We continue to monitor the Slovak market for new developments and will provide more information as it becomes available.

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.