Slovak Republic: Proposed amendment to the determination of the taxable income of non-resident artists and sportsmen

Currently non-resident artists and sportspersons who derive income from performances within the Slovak Republic are taxed as follows. They are taxed at the same income tax rate as resident taxpayers (currently a flat rate of 19% applies), with the possibility to deduct by way of fiction an amount of 40% of the income as fictitious costs. The tax due is to be withheld by resident individuals and legal entities on payments to non-resident artists, sportspersons and entertainers.

It has been reported that the Slovak Ministry of Finance has published a proposed amendment to the income tax act, which would include per 2011 a reduction of the fictitiously deductible costs from 40 to 30%.