Slovak Republic: Tax services available to LuxCSD clients
Further to Announcement L24008, LuxCSD1 informs clients that, effective
immediately
the following new tax services are offered:
- Debt securities: standard refund in relation to corporate bonds (including bank bonds) interest distributions
- Equities: relief at source in relation to dividend distributions.
The new relief at source service is available for Slovak dividend distributions with record date on or after 15 March 2024.
Impact on clients
Clients wishing to apply for a relief at source or a standard refund on behalf of BOs who are eligible for tax exemption or a reduction in tax rate via the relief at source or the standard refund process are required to provide certification in accordance with the procedures described below.
Relief at source
Eligible BOs, documentation requirements and deadlines
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.
The following is a list of information regarding the various tax forms to be completed in order to benefit from relief at source of withholding tax on dividends from Slovak equities. The templates of the forms are available in the Tax forms to use section.
One-time certificate
The one-time certificate must be completed and signed by the LuxCSD client and remains valid until revoked.
Withholding tax
Standard rate of withholding tax: 35%
Holding restriction: No
The standard rate of withholding tax on dividends from Slovakian equities is 35% in LuxCSD.
Standard refund
Eligible BOs
To be eligible for the standard refund service, the BOs must, among other things, fulfil the following conditions:
- Be a legal entity and a non-resident of the Slovak Republic; and
- Fall in any of the following categories:
- Qualify for the benefit of a reduced withholding tax rate in accordance with a double taxation treaty (DTT) between its country of residence and the Slovak Republic; or
- Be a resident for tax purposes in a White-List country (19%); or
- Be a resident for tax purposes in an EU area country and hold at least a 25% interest in the capital stock of the bond issuer or vice versa (0%).
Documentation requirements
In order to obtain a refund on behalf of eligible BOs, clients must submit the following documentation to LuxCSD by the relevant deadlines:
- Request for Tax Reclaim in relation to Slovak Debt Securities;
- Letter of Request to CBL for Reclaim of Slovak Withholding Tax;
- Certificate of tax residence;
- Declaration of ultimate beneficial owner (UBO);
- Credit advice;
- Power of attorney from the BO to its representative, if applicable.
Important note: Corrections or strike-throughs on any documents being submitted are not allowed and are grounds for immediate rejection.
Request for Tax Reclaim in relation to Slovak Debt Securities
The document should be provided by each BO. It must be dated and signed by the BO and printed on letterhead paper or with the company stamp.
How many are provided? | One per BO. |
Who completes it? | The BO. |
How often is it provided? | One per reclaim application. |
When is it provided? | Before the applicable standard refund deadline. |
Copy or original? | Original required. |
Letter of Request to LuxCSD for Reclaim of Slovak Withholding Tax (LOR)
The Letter of Request authorises LuxCSD to reclaim withholding tax from the Slovak Tax Authorities on the client's behalf.
Clients can also mention their own reference number (column Y of the breakdown) in the dedicated field of the LOR.
Who completes it? | Client. |
How often is it provided? | Per reclaim application. |
When is it provided? | At the latest by the LuxCSD refund deadline. |
Copy or original? | Original required. |
Certificate of tax residence (COR)
For each BO requesting a standard refund from Slovak Withholding Tax, a valid Certificate of Residence must be issued. The Certificate of Residence is considered as valid if:
- It covers the payment date. Its validity is for one year from its issuance date. Should it define a specific period, the document will be valid for that particular period only, regardless of the date of issuance.
- It is issued or approved by the local Tax Authorities of the BO’s country of residence.
- It confirms that the BO is resident within the meaning of article 4 of the tax convention between its country of tax residence and Slovak Republic and is subject to corporate income tax without option for being exempt.
- It is duly signed and stamped by the local Tax Authorities of the BO’s country of residence.
- It is either in English language or bilingual (Slovak and English).
- It is presented in its original form or as a certified copy (original upon request).
- It is presented double-sided, LuxCSD will not take any responsibility if the form is rejected by the depository for this reason.
Who completes it? | BO's tax authorities. |
How often is it provided? | Per reclaim application. |
When is it provided? | At the latest, by the LuxCSD refund deadline. |
Copy or original? | Original or certified copy required. |
Declaration of ultimate beneficial owner (UBO)
The request should be provided by beneficial owners (BOs). It must be dated and signed by the BO or its legal representative under power of attorney and detail the reclaim request.
How many are provided? | One per BO. |
Who completes it? | The BO. |
How often is it provided? | One per reclaim application. |
When is it provided? | Before the applicable standard refund deadline. |
Copy or original? | Original required. |
Credit advice
The credit advice issued by the last financial institution paying the BO should be provided by all clients wishing to introduce a standard reclaim. It identifies income payment details including the security type, gross amount of payment, date of payment and amount of tax withheld.
Upon request from the Slovak Tax Authorities, a full chain of credit advice from the BO to LuxCSD must be provided.
Who completes it? | The financial institution paying the BO. |
How often is it provided? | One per reclaim application. |
When is it provided? | Before the applicable standard refund deadline. |
Copy or original? | Original or certified copy required (original upon request). |
Power of attorney from the BO to its representative (PoA)
If the client or a third party is completing the reclaim forms on behalf of the BO, a PoA must be provided to LuxCSD.
How many are provided? | One per BO. |
Who completes it? | The BO. |
How often is it provided? | Once until revoked. |
When is it provided? | Before the applicable standard refund deadline. |
Copy or original? | Original required. |
The documentation requirements may change from time to time, depending on additional requirements of the Slovak Tax Authorities.
Form descriptions are presented in accordance with the procedures available for reclaim of withholding tax on income from Slovak equities If the client or a third party is completing the reclaim forms on behalf of the BO, a PoA must be provided to LuxCSD.
Additional supporting information may, at any time, be requested by LuxCSD’s local depository, the issuer or the relevant tax authority, if deemed relevant.
Statutory deadline for reclaiming withholding tax
The general statutory deadline for reclaiming withholding tax using the standard refund procedure is 10 years after the day the coupon payment was made.
LuxCSD deadline for standard refund applications
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 vary substantially among the relevant issuers.
Notes on tax reclaims
Client warrants the completeness and accuracy of the information they supply to LuxCSD.
It is the client’s 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 check the correctness of such information.
LuxCSD accepts no responsibility for the acceptance of the refund application or non-acceptance of the refund application by the tax authorities nor for the reimbursement of taxes paid.
Further information
For further information, clients may contact LuxCSD Client Services, their Relationship Officer or the Tax Help Desk.
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1. LuxCSD refers to LuxCSD S.A., registered office at 42, Avenue J.F. Kennedy, L-1855 Luxembourg, registered with the Luxembourg Trade and Companies Register under number B-154.449.