Liquidity Measures
Financial Aid
Government Measure
Eligible businesses may be provided financial aid in the form of (i) state guarantees of bank loans or (ii) reimbursement of interest on bank loans.
The total financial aid granted to a single undertaking must not exceed €200k over any period of three fiscal years (€20k in the agriculture sector).
Further conditions for obtaining aid may be stipulated by the bank and/or the Ministry of Finance at a later stage.
Eligibility
SME1 employers that have properly paid their tax and social security obligations prior to the COVID-19 pandemic and have no arrears due for more than 180 days. Guarantees will not be available to (i) any temporary employment agencies, and (ii) undertakings in difficulties.
(In May 2020, this measure will be extended to also cover large enterprises)
1Under the Commission Regulation (EU) No 651/2014 of 17/06/2014, category of SME's is made up of enterprises which (i) employ fewer than 250 persons and (i) have an annual turnover not exceeding €50m and/or an annual balance sheet total not exceeding €43m.
Supervising Authority
Ministry of Finance of the Slovak Republic
Availability
From 12 March 2020 (the start of the COVID-19 state of emergency declaration) and currently in force.
Deferred Tax and Social Security Payments
Government Measure
Any unpaid income tax, corporate tax, road tax, withholding and payroll taxes (and corresponding tax returns) due during the COVID-19 pandemic shall be considered as properly settled if paid by the end of the month following the month in which the COVID-19 pandemic (state of emergency) ends. The Financial Administration of the Slovak Republic comprising of the Financial Directorate of the Slovak Republic, district Customs Offices, district Tax Offices and the Financial Administration Criminal Office (“Tax Authorities”) will not apply fines and default interest on such late payments and late filings. This measure does not apply to VAT and regular corporate tax advances.
Social security payments (starting from the period of March 2020) may be deferred by employers whose monthly turnover drops by more than 40%.
Eligibility
All taxpayers registered in the Slovak Republic.
Supervising Authority
Ministry of Finance of the Slovak Republic and the Tax Authorities
Availability
From 12 March 2020 (the start of the COVID-19 state of emergency declaration) and currently in force.
Deferred Mortgage / Loan Repayments
Government Measure
Deferral of repayments is not automatic but depends on agreement between the creditor and debtor. Creditors have certain limited grounds to refuse the application for deferral, if filed by debtor.
Applies to both interest and principal repayments.
If the creditor is a bank, deferral is permitted for a maximum period of 9 months. If the creditor is a person other than a bank, the deferral is permitted for a maximum period of 3 months. In both cases, the debtor may only apply for deferral once during the pandemic period.
Granting a deferral will not be considered as a default nor will it reduce the creditworthiness of the debtor.
Eligibility
Consumers, SMEs and sole traders.
The following debtors are not eligible:
- Debtor in default for more than 30 days prior to the submission of the application for the deferral;
- Debtor defaulting on another loan by an amount of €100 and more as at 29 February 2020;
- Debtor considered to be a “failed debtor” under EU Regulation No. 575/2013 as at 29 February 2020; or
- Debtor whose application for the deferral has not been properly completed.
Supervising Authority
Ministry of Finance of the Slovak Republic
Availability
From 12 March 2020 (the start of the COVID-19 state of emergency declaration) and currently in force.