Foreign tax relief
A credit for foreign tax paid by a Slovak tax resident on foreign-source income taxable in the Slovak Republic is available in cases where the DTT concluded between the Slovak Republic and the foreign country states so. The credit of foreign tax can be applied up to the amount of tax that would be payable on that income in the Slovak Republic. If the DTT requires the exemption method to avoid double taxation, this method has to be applied. The taxpayer can also opt, based on Slovak law, to use the exemption method of foreign-source employment income if this method is more favourable for the taxpayer.
If the Slovak Republic has no DTT concluded with a foreign country, the employment income from foreign-source that was taxed abroad can be exempt from taxation in the Slovak Republic.
See the Withholding taxes section in the Corporate tax summary for a list of countries with which Slovakia has a DTT.