Income tax return for individuals with income from the Slovak republic and abroad

On September 30, 2022, the extended deadline of six calendar months for filing the income tax return, which primarily concerns individuals with foreign income, will expire. These are individuals who are residents of the Slovak Republic (have a permanent residence/habitual abode - stay here for at least 183 days in the relevant calendar year) and their income in the Slovak Republic and abroad for the year 2021 exceeded € 2,255.72 or they reported a tax loss.

Income from abroad includes:

• active income – income from abroad activity (e.g. income from the dependent activity of a taxpayer employed abroad, income from the Slovak self-employed person, if the taxpayer performed activity abroad, regardless of the recipient's country...);
• passive income – income from the management of property/real estate outside the Slovak Republic (e.g. rental of the taxpayer's property abroad*, income from interest in a foreign bank...).

*tax exemption up to €500 applies when renting, tax exemption applies when selling real estate if the taxpayer has owned the property for more than 5 years

In the case of earning income from the Slovak Republic and abroad, it is necessary to calculate these incomes and calculate the social and health insurance contributions. If they are in a currency other than euro, they must be converted by the average exchange rate. It is important that the income is not taxed twice, for which the tax credit method or the income exclusion method is used.

Subsequently, individual fills in the "Place for special records" section - the country code, the type of income, the amount of income and expenses from a source abroad. It is good to state the currency exchange rate in the notes.

Documents attached to the income tax return:

• copies of all confirmations/documents on the individual´s employment income from sources in the Slovak Republic and from sources abroad and paid mandatory insurance premiums,
• documents related to the application of the tax bonus, e.g. a copy of the child's birth certificate or an extract from the birth certificate, a copy of the decision on the adoption of the child, etc.,
• written confirmation of volunteer activity,
• a copy of the confirmation issued by the creditor on housing loans to declare the amount of the tax bonus for the interest paid,
• copies of income certificates from which withholding tax was withheld, where the taxpayer could decide to consider the collected tax as an advance payment,
• copies of receipts on income from which withholding tax was deducted and on the amount of the advance payment collected when paying out (returning) the share certificate acquired before December 31, 2003.

The obligation to send an electronic tax return applies to all individuals who are self-employed and their representatives. For other individuals who carry out dependent activity it is possible to send the tax return in paper form.