In Slovakia, deductions and business expenses may be claimed as specified below::
Offset of losses - A loss may be offset for 5 years.
Consolidated Statements - in Slovakia a loss in one company of a group may not be set against a profit in another company in the group.
Financing expenses - as a general rule, interest on credit is allowable for tax. When the interest received in an investee company is in excess of 25% of the borrower's capital, the interest will not be allowable if the amount of the loan is more than 4 times greater than the equity capital of the borrower (6 times, in banks).
Transfer prices - transactions between affiliated parties will be allowed only if they are consistent with the accepted market price of the transaction had the transaction been conducted between two parties that are not affiliated.
Pension plans - for an individual on paying for pension rights, a maximum of SK 12,000 per annum will be allowed.
Depreciation of Fixed Assets
- The declining balance method or the straight-line method are the accepted methods of depreciation in Slovakia.
- The owner of a business may choose the method of depreciation that is most beneficial to him for any item of his fixed assets.
- Assets, for purposes of depreciation, are divided into 4 groups. Assets may be written off over a period of 4 - 20 years.
- Intangible assets are depreciated according to the useful life of the asset.
