TAX RETURN AND THE WORK ABROAD
The liability to submit a tax return when working abroad
A resident of the Slovak Republic (a citizen who has a permanent residence in the Slovak Republic or usually resides there for at least 183 days in the relevant calendar year) is obliged to settle his worldwide income in the Slovak Republic, that means income from sources in the Slovak Republic territory, as well as income from sources abroad. A tax return is required, if the total taxable income for the tax year 2017 exceeds the amount of 1,901.67 €, or if he registered a tax loss.
The obligation to file a tax return also applies if the taxable income from dependent activities (at work) exceeds 1901.67 € for the taxable period, provided they come from foreign sources.
If you worked in countries like England, Ireland, Austria, Germany, the Netherlands, the Czech Republic and earned more than 1901.67 €, you are required to file a tax return also in Slovakia. We will take care of your tax return for you. Just fill out the online form or contact us by mail. The cost of making a tax return is 19.90 € for each foreign country you worked in. In order to get you a tax return, you need an income receipt issued by a foreign employer. If you do not know, just contact us by mail. More information for each country:
Tax return and income from England
To make a tax return for income from England, payslips are enough. The tax system in the UK is very different from other countries as the accounting year begins on 6 April and ends on 5 April. For this reason, we need to send you at least three payslips: from last December of the previous accounting year, last payslip before April 5, and last December payslip of the current referral – we will need payslips for December 2016 and 2017 in this 2017 fiscal year, and of course the last tape before April 5 (the payslip is a cumulative gross wage and contains the highest wage earned as it is income over the entire year).
Income from Germany and tax return
Income from the Czech Republic and tax return
Slovaks working in the Czech Republic need Potvrzení o zdanitelných příjmech for the submission of a tax return.
Opatrovateľky v Rakúska alebo príjem zo zamestnania a daňové priznanie
We will need the Lohnzettel L16 form for the tax return on income from Austria. For the nursing staff working in Austria we need sums of wages, paid social insurance (sozialversicherung) and the number of days in the batch to calculate Sachbezug.
Income from abroad in other countries and tax return
We offer you a list of the most common foreign countries and their confirmation of taxable income. Due to the large number of countries we offer only the most used ones. Of course, we If you haven’t found the country you’ve worked in, you can contact us and we will elaborate your tax return.
Tax return and avoidance of double taxation when working abroad
In order to avoid double taxation of these revenues, the Slovak Republic has concluded the elimination of double taxation treaties. A tax count-in method or a revenue elimination method is used. What method a citizen will use depends on a particular contract. This issue in the treaties falls within the scope of the article “Methods to eliminate double taxation”. In the case of income from dependent activity (employment) arising from a country, with which the Slovak Republic does not have an elimination of double taxation treaty, double taxation shall be prevented by the method of revenue elimination if the income in question was demonstrably taxed in that non-contracting country.
The tax count-in method
- The tax count-in method means, that the tax, you paid in the foreign country counts-in to the tax refund. In conclusion, that means that if the tax you paid abroad was lower, than the tax from the tax duty according to the Slovak law about the income tax, you have to pay the difference. If you paid the higher tax, the difference will not be refunded.
Method of revenue elimination
- The taxpayer shall provide the income that has been proven to be taxed abroad in the tax return. However, this revenue will be eliminated from tax, i.e. no tax is charged. Note: The resident of the Slovak Republic may be dependent on income from the dependent activity (working as an employee) can, even though in the contract about the elimination of double taxation is stated the tax count-in method, use the revenue elimination method, if the income has been proven to be taxed abroad. This procedure is more convenient.
- In case of the countries that the Slovak Republic has not signed the treaty about the avoidance of double taxation with, the taxpayer will tax his income also in the Slovak Republic in the name of the the income tax law. If the income of the taxpayer has been proven to be taxed abroad, he can use the revenue elimination method.
How to calculate income from work abroad if it was in a currency other than the euro
- average for the calendar month, for which the income was provided, or
- effective on the day on which the foreign currency income was received or credited by the bank, or
- average annual for the tax period for which the tax return is submitted, or
- the average of the average monthly exchange rates for the calendar months, in which the taxpayer received the income for which he is tax returning
Perhaps the most appropriate way is to use average monthly rates, or average annual rate. It is calculated with the rates of the National bank of Slovakia , respectively The European Central Bank (ECB). You can find them on the website of the National Bank of Slovakia in the course archive.