Information for entrepreneurs in Slovakia
Dear colleague!
Below, we have summarized some important information, tasks, and deadlines that you should be aware of for our long-term and successful cooperation:
• If you are not familiar with accounting, we recommend hiring an accountant to avoid any potential problems.
• Every individual entrepreneur must prepare and submit a tax return to the tax office by March 31 of each year.
If you have no experience with tax returns, consult an accountant.
• Every individual entrepreneur is required to pay social and health contributions monthly if they had a business in the previous year. Those who are "new" and obtained their entrepreneurial license this year only pay health insurance in the first year. The social security contribution will be calculated for you by the social security authority after the first tax return. The Health and Social Insurance Office can provide further information.
• Income tax must be paid once a year. Your accountant can calculate the amount of tax and advise you on the best expense allocation for you. We suggest setting aside a certain amount each month for this purpose to make tax payments less burdensome.
Other important information!
Registration with health and social insurance. As an independent entrepreneur, everyone is obliged to pay contributions to health and social insurance themselves.
a) Health Insurance
Every individual entrepreneur is obliged to report the specified advance amount to their insurer within 8 days of starting their business because insurance premiums are paid in the form of monthly advances. The amount depends on the previous year's (according to tax returns) tax base. Since as a starting individual entrepreneur there is no basis for assessment for the previous year, the advance amount of the insurance premium is calculated based on the current year's minimum wage.
b) Social Insurance
As a starting entrepreneur, you are exempt from paying social security contributions in the first year. In the following years, whether you need to pay contributions to the social security company depends on the total income earned in the previous year. Thus, the entrepreneur is first required to visit the relevant branch of the Social Insurance Company and submit the tax return extract by June 30 of the year following the commencement of the business activities. Based on this, the insurer will determine whether the entrepreneur will be mandatory insured.
Advice:
Although in the first year of business, the entrepreneur is not obliged to pay contributions to the social security company, they can register as a voluntary contributor (for example, for pension or health insurance) and pay contributions.
Below is a summary of the obligations that arise when working as an entrepreneur and how this differs from regular employment.
• The entrepreneur is obliged to keep accounts; if not familiar with accounting, they should hire an accountant.
• Every individual entrepreneur must prepare and submit a tax return to the tax office by March 31 of each year. If you have no experience with tax returns, consult an accountant.
• Contributions must be paid to health and social insurance.
• In case of illness, the social insurance pays from the first day – the entrepreneur must send all medical documents to the insurer.
• The entrepreneur works at their own risk.
• We recommend taking out liability insurance for potential workplace damages. As an entrepreneur, you are responsible for any damages caused.
• The entrepreneur is not entitled to paid leave or meal vouchers.
• There is no probation period.
CONTACTS
Social Security
LINK
Info line 0800 123 123
Entrepreneurial Registry
LINK
Info line 0800 222 222