Slovakia: Harmonisation of tax exemption on debt securities
Effective
1 July 2013
withholding tax will no longer be applied to interest paid by Clearstream Banking1 on Slovak debt securities.
Background
The National Council of the Slovak Republic has approved an amendment to Act No. 595/2003 Coll. on Income Tax in order to harmonise the withholding tax implications for public and private bonds. These amendments are still to be signed by the President.
The conditions described in our Announcement L12099, dated 21 December 2012, will apply to income from all Slovak debt securities earned after 1 July 2013:
- Withholding tax will be abolished for natural persons that meet their tax liability individually in their tax returns.
- Entities not established for a business (non-profit organisations), the National Property Fund of the Slovak Republic and the National Bank of Slovakia will continue to be subject to 19% withholding tax but will become taxpayers, who would, therefore, withhold the tax themselves as required by law.
Impact on customers
Subject to the signature of the President of Slovakia, interest paid as of 1 July 2013 by Clearstream Banking on Slovak debt securities will no longer be subject to withholding tax.
Further information
For further information, customers may contact the Clearstream Banking Tax Help Desk on:
| Luxembourg | Frankfurt | |
| Email: | tax@clearstream.com | tax@clearstream.com |
| Telephone: | +352-243-32835 | +49-(0) 69-2 11-1 3821 |
| Fax: | +352-243-632835 | +49-(0) 69-2 11-61 3821 |
or Clearstream Banking Customer Service or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking SA, registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).
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