TAX NEWS 2020

Suspension of payment of mandatory health and social insurance contributions by employers

Barbora Palenikova

Terms and conditions of eligibility:

All employers whose net turnovers fell by 40% and more due to emergency situation shall be eligible for the suspension of payments.

Definition of net turnover and the method of determination of its decline:

For the purposes of this provision, net turnover is defined in Section 2 (15) of the Act no. 431/2002 on accounting as amended. It includes revenues from sale of products, goods, and services after detracting any discounts. Net turnover also includes other revenues after detracting any discounts by an accounting unit, whose subject of activity is to acquire other revenue than is the revenue from sale of products, goods, and services.

In its regulation, the Slovak government will specify the methodology for calculation of decline in net turnovers pursuant to a specific directive. The regulation has not been published yet.

The period of suspended payments of mandatory health and social insurance contributions:

The suspension concerns the premium contributions for March 2020, which are, according to the new provision, now payable by 31 July 2020.

In its regulation, the government may determine also other future periods to which the suspension of insurance premium contributions shall apply.

Please, take note:

The suspension of payment of mandatory insurance premium contributions shall not concern the contributions, which the employer is obliged to pay on behalf of the employees. Equally, the obligation to report insurance premium contributions in monthly reports remains unchanged and the employers are obliged to submit their reports within the original deadlines. 

The method of reporting the decline in net turnover to the respective insurance company

Všeobecná zdravotná poisťovňa (VšZP health insurance company)

At the moment, the company is preparing the method how the employers will report the decline in net turnovers.

Source: https://www.vszp.sk/platitelia/odklad-splatnosti-preddavkov/

Dôvera zdravotná poisťovňa (Dôvera health insurance company)

The fact that the company’s net turnover or income has declined by 40% and more can be reported via a statutory declaration, which can be found at Dôvera’s Digital Branch. The Digital Branch can be activated at https://www.dovera.sk/koronavirus#tabpanel-pla

 

UNION zdravotná poisťovňa (UNION health insurance company)

According to available information, UNION is still waiting to publish its statement with regards to demonstrating of the decline in employer’s net turnover. Detailed information will be available at https://www.union.sk/app/novinky/Dolezite-informacie-v-suvislosti-so-sirenim-KORONA-virusu-COVID-19.html

 

Sociálna poisťovňa (Social Insurance Company)

At the moment, Sociálna poisťovňa is working on a technical solution, which will enable  reporting of a decline in net turnover via an online form for the purpose of extended deadline for insurance premium payments for March 2020.

Source: https://www.socpoist.sk/kto-a-ako-si-moze-odlozit-zaplatenie-odvodov/68337s#10b