Daň z príjmu (income tax) is the tax itself, which the state collects from your income: salary, business profit, or other earnings. It should not be confused with daňové priznanie (tax return) — this is the declaration, meaning the document in which you calculate this tax.
Who it concerns
- Employees — the employer deducts the tax from the salary every month.
- SZČO and entrepreneurs — calculate and pay it themselves once a year.
For natural persons, the basic rate is usually 19%, and for the part of income above a certain annual threshold, it is 25%. The exact limits and rates can change, so it is worth checking them every year.
The amount of tax can be legally reduced by the tax-free allowance and the tax bonus for children. Sometimes, a tax return is submitted voluntarily to get back an overpayment of tax that the employer withheld during the year — in this case, the extra money is returned to your account.
