General information – types of securities, deadlines, other market specifics – Slovak Republic
Withholding tax
Debt securities | Holding restriction? | Withholding tax rate | Relief at | Quick | Standard |
Yes | 0% a | ||||
Government bonds | N/A | N/A | N/A | ||
Corporate bonds | N/A | N/A | Yes b | ||
Treasury bills (T-bills) | N/A | N/A | N/A | ||
a. Corporate bonds, including bank bonds, were subject to taxation at 35% from 1 January 2023 (included) to 17 April 2023 (included).
b. Standard refund offered as of 11 March 2024 on corporate bonds, including bank bonds, during the time period referred to in the preceding footnote.
Equities | Holding restriction? | Withholding tax rate | Relief at | Quick | Standard |
No | 35% | ||||
Each issuer applies their own guidelines and procedures. Clients are requested to refer to the tax notification sent by LuxCSD for each event in order to obtain the complete applicable relief at source procedure. | Yes | No | No | ||
Types of securities eligible in LuxCSD
The eligible securities issued in the Slovak Republic are as follows:
- Treasury bills (T-bills);
- Government bonds;
- Corporate bonds;
- Bearer equities.
Types of beneficial owners recognised in the Slovak Republic
Non-resident legal entities
Note: Physical securities are not held with the Slovak CSD and do not benefit from the standard service; therefore, they are not eligible in LuxCSD. If physical shares are obtained following a corporate action, the certificates will be sent back to the client.
Holding restrictions
Please refer to the Market Link Guide – Slovak Republic.
Capital gains tax
There is no capital gains tax withheld through LuxCSD on securities held in LuxCSD. However, capital gains tax may be payable on specific gains. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.
Stamp duty
There is no stamp duty withheld through LuxCSD on securities held in LuxCSD. Stamp duty may however be payable on specific transactions. LuxCSD does not assist in this regard. Please consult your tax advisor for further information.
Deadlines applicable in relation to withholding tax relief or reclaim
Relief at source
Each issuer applies their own guidelines and procedures. Clients are requested to refer to the tax notification sent by LuxCSD for each event in order to obtain the complete applicable relief at source procedure, when applicable.
Standard refund
The statutory deadline for reclaiming withholding tax, applicable to reclaims submitted via standard refund procedures with the Slovak CSD, is ten years after the day the coupon payment was made.
The deadline by which LuxCSD must receive the documentation is at the latest nine months before the statutory deadline.
All standard refund applications received after this deadline will be processed by LuxCSD on a “best efforts” basis.
However, in such cases, LuxCSD will apply an extra charge and accepts no responsibility for forms that have not reached the Slovak Tax Authorities by the date considered being the statute of limitations deadline.
When are refunds received?
The estimated time for receiving a refund from a standard refund application is three months from the date of receipt by the Slovak Tax Authorities, although this can vary depending on when the application is filed, and the complexity of the information supplied in the reclaim form.
LuxCSD’s local depository also indicated that, once received, the required documents will be transferred to each relevant issuer but from then on, the actual refund payment timeline may substantially vary among the relevant issuers.
Notes on tax reclaims
Clients warrant the completeness and accuracy of the information they supply to LuxCSD.
It is the clients’ responsibility to determine any entitlement to a refund of tax withheld, to complete the forms required correctly and to calculate the amount due. LuxCSD is under no obligation to carry out any investigation in respect of such information.
With respect to tax reclaims in general, clients are reminded that LuxCSD accepts no responsibility for their acceptance or non-acceptance by the tax authorities of the respective country.