In order to benefit from the double tax treaties provisions in Slovakia in 2014 a new Certificate of Tax Residency (CoTR) valid for 2014 or issued in 2014 by the tax authority in the investor’s country of residence has to be provided by the non-resident investors in Slovak securities to the sub-custodian.
The CoTR is valid for the whole calendar year. If CoTR is issued earlier e.g within December 2013 , it must indicate its validity for the year 2014. Please be reminded to provide CoTR valid for 2014 as soon as possible it is highly recommended to provide such document at least one business day prior to the first income payment.
The document needs to be an original. In such a case no Apostille or Notarization is required on the CoTR.
In case the non-resident client fails to provide the above mentioned document the entitled income will be taxed at a standard 19% tax rate.
Impact on foreign investors: Certificates of Tax Residency need to be refreshed for the year 2014 to be used for a proper tax rate application in the Slovak market.