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Slovakia

Government and institution measures in response to COVID-19.

Government and institution measures in response to COVID-19.

Tax measures – Direct and Indirect

(e.g. payment deferrals, rate reductions…)

Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

Employment-related measures

(e.g. state compensation schemes, training…)

The measures of financial compensation through subsidies to employers and self-employed persons in order relief the labour market and sustain employment.

The measures introduce the possibility of financial compensation through subsidies to employers and self-employed persons in order to relief the labour market and sustain employment.  The measures are aimed to relief the impacts of the State of Emergency for those employers and self-employed persons who will maintain jobs despite:

  • the duty to interrupt or restrict their business operations by virtue of the decision of the Public Health Authority of the Slovak Republic („PHA“);
  • interruption or restriction of their business operations on the ground of protection of the health of their employees;
  • decrease of sales.
  • Once the general and special conditions are met, the compensation will be provided as subsidies in the form of:
    • a direct financial contribution to employers to cover  part of the wage costs of employees who, because of interruption or restriction of their business, are unable to allocate work to those employees, or
    • a direct financial contribution to employers to cover a part of the wage costs of employees subject to the decline of sale and
    • a direct financial contribution to self-employed persons to cover the levy on insurance funds and partial compensation of the loss of income from their business activities.

There are currently four valid measures:

  • MEASURE NO. 1: Subsidies for employers who closed or restricted their business operations due to the decision of the PHA, in the amount of 80% (60%) of average monthly salary up to EUR 1100 (880)/month /employee (to whom the employer is unable to allocate work)
  • MEASURE NO. 2: Subsidies for self-employed persons, whose sales declined during the State of Emergency, maximum amount EUR 540/month
  • MEASURE NO. 3: Subsidies for employers affected by the extraordinary situation:
    • in the maximum amount of contribution specified in Measure No 2 for all employees/or
    • in the amount of 80% of average monthly salary up to EUR 880 /month /employee (to whom the employer is unable to allocate work).
  • MEASURE NO. 4: Subsidies for individuals who do not receive any income during the State of Emergency, maximum amount EUR 210 / month

Start-ups

  • Allowance to employers for keeping a job (financed by ESF and the state budget) - employers have to maintain the work position beyond quarantine (cost estimated from €254 million to €299 million)
  • Absolute exemption from social and health payments for employees, income taxes for those employers, who are unable to assign work to their employees for the reason of adhering to orders putting down the operation as a result of preventive quarantine measures.

Economic stimulus measures

(e.g. loans, moratorium on debt repayments…)

Postponement of mortgage installments

  • Individuals, self-employed persons, small and medium enterprises may request banks for postponement of the mortgage installment by 9 months. Banks are obliged to approve the requests once the formal requirements have been fulfilled. The postponement will not be entered into records of the official debtors register.

Financial aid for small and medium sized companies

  • Measures in the area of the financial market includes also measures in the area of financial aid with the aim to preserve employment and performance in small and medium sized companies. The financial aid should be granted in the form of a guarantee to a loan and/or payment of interest costs from loans. The provider of this type of financial aid will be the Slovak Ministry of Finance and the mediators of the aid will the Export-Import Bank of Slovakia and Slovenská záručná a rozvojová banka, a.s.

Start-ups

  • Granting of short-term interest-free loans for companies (mainly SMEs) via EXIMBANKA (Export-Import Bank) and the Slovak Guarantee and Development Bank (SZRB) to overcome the period of the state of emergency.
  • Negotiations with bank and finance sectors on possible postponement of loan instalments, mortgages and leasing without negative records in register for the debtor. Negotiations on possible bank product that would help companies to overcome the adverse financial situation – for that purpose, banks would be proportionally exempted the bank levy payments. Negotiations on the possibility that insurance companies would not have to pay the levies.

Contact us

Tax & Legal: Tomas Ciran – tciran@kpmg.sk
Restructuring: Kenneth Ryan – kennethryan@kpmg.sk