General information – types of securities, deadlines, other market specifics – Slovak Republic

18.03.2024

Withholding tax

Debt securities

Holding restriction?

Withholding tax rate

Relief at
source

Quick
refund

Standard
refund

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
source

Quick
refund

Standard
refund

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.