How to Avoid Drawing the Attention of the Tax Authorities in Slovakia

To avoid attracting unwanted scrutiny from the Slovak tax authorities, it is essential to maintain honesty and transparency in your business operations.

Here are some key recommendations:

• Timely Reporting. Submitting tax returns and payments on time significantly reduces the risk of inspections. Delays or unfulfilled obligations are likely to draw immediate attention from inspectors.
• Stable Financial Performance. Sudden spikes in income, unexpected increases in expenses, or continuous losses may raise red flags. Such changes should always be logically explained in your documentation.
• Caution with “Zero” Reports. If a company is actively operating but continuously reports no profit, this may appear suspicious. Accurate and honest reporting is crucial to maintaining credibility.
• Accurate Documentation. All data in your reports must be correct, and all operations must be clearly documented. Errors or inconsistencies can trigger additional queries or audits.
• Screening Your Partners. Doing business with unreliable partners—such as shell companies or “one-day firms”—can lead to issues for your company as well. Always verify their reputation and tax reliability.
• Audit Preparedness. Even if you’re fully compliant, it’s important to keep your records organized. A prompt and clear response to any inquiry from the tax office shows your good faith.

Following these recommendations will help minimize risks and make interactions with tax authorities much smoother. Transparency in tax matters is key to running a stable and worry-free business.

If you’re planning to start a business in Slovakia, feel free to contact us at: +421951909019, info@emigrant.help. We’ll gladly walk you through all the details.