Filing a personal income tax return is an annual obligation for many Slovaks. An incorrectly completed return can lead to penalties, additional payments, or issues with the tax authorities. We provide an overview of the most common mistakes and practical examples to help you avoid them.
1. Late Filing of the Tax Return
Taxpayers often submit their tax returns after the statutory deadline, which may result in penalties and late payment interest.
The deadline for filing the tax return is March 31. If you know you will not meet this deadline, request an extension via the tax administration portal. You can extend the deadline by three months (or six months if you have foreign income).
2. Failure to Pay Taxes on Time
Many taxpayers believe that if they submit their tax return on time, they can pay their tax later.
The tax payment deadline is March 31, the same as the filing deadline. Make sure to use the correct variable symbol to ensure your payment is properly assigned.
3. Ignoring Electronic Communication with the Tax Office
Since 2018, electronic communication with the tax office has been mandatory for entrepreneurs.
However, some taxpayers still believe they can submit their tax return in paper form. If they file it incorrectly, it may not be accepted, or they could face a fine.
Check whether your type of income requires electronic filing. If you are a sole trader, you must submit your tax return electronically via the tax administration portal. If you have only employment or rental income, you may submit your return in paper form.
4. Missing Attachments
Some taxpayers fail to realize that claiming tax bonuses and other tax reliefs requires submitting supporting documents.
Check the instructions for the tax return to determine if any attachments are necessary (e.g., a school attendance certificate for the child tax bonus, a confirmation of employment income).
5. Incorrect Reporting of Income and Expenses Based on Actual Payments
Taxpayers often mistakenly believe that all invoices issued in a given year should be included in the tax return, even if they have not been paid. Similarly, they sometimes report expenses that have not yet been settled.
Only income actually received during the tax year should be reported. The same rule applies to expenses—if you paid for health insurance for December 2023 in January 2024, it belongs to 2024.
6. Failure to Report Advance Tax Payments
Many entrepreneurs forget to include the advance tax payments they made during the year in their tax return.
Check your accounting records or bank statements to verify the amount of advance tax payments made and report it in the appropriate section of the tax return.
7. Failure to Request a Tax Refund
If your tax return shows a tax overpayment, but you do not check the box "Request for a tax refund", your money will not be refunded automatically.
To receive a refund from the tax office, in both Form A and Form B, complete Section XI of the tax return. Check the box "Request for a tax refund" and provide your IBAN bank account number. Don’t forget to sign the declaration, confirming that you are requesting the refund.
8. Failure to Allocate 2% of Tax to a Non-Profit Organization
Many taxpayers are unaware that they can support a non-profit organization by allocating 2% of their tax. While this is not an error in filling out the tax return, it is a missed opportunity to contribute to a good cause.
If you want to donate 2% of your tax, select a recipient from the official list of approved organizations. In both Form A and Form B, complete Section XII – Allocation of Paid Tax. Provide the organization’s details (ID number, name) and the amount you wish to allocate.
If you fail to pay your tax on time (by March 31 or within the extended deadline), the 2% will not be donated to the organization, even if you indicated it in the return. This means that if you pay your tax late, the full amount will remain with the state.
9. Incorrect Calculation of the Child Tax Bonus
Some parents miscalculate the child tax bonus, misunderstand the eligibility conditions, or are unaware that in case of low income, they can add the income of another eligible person.
If your income is too low to claim the full tax bonus, check whether you can include the income of the other eligible parent in your tax base. This could help you qualify for a higher tax bonus.
Conclusion
Errors in tax returns can lead to unnecessary problems, but most of them can be easily avoided with proper preparation. It is crucial not to leave tax filing until the last minute, double-check all information, and comply with the required obligations.
If you are unsure, use available resources, online tools, or seek professional assistance. Filing your tax return correctly and on time can save you money and unnecessary stress.
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