Tax Reliability Index and criteria
The Tax Reliability Index is a rating of tax entities according to their compliance with their obligations to various authorities or partners. The Tax Reliability Index is not new in Slovakia, but it has not been sufficiently elaborated so far.
What is the Tax Reliability Index?
The Tax Reliability Index is an independent tool for assessing tax entities. Its aim is to motivate businesses to meet their obligations and commitments. The Tax Reliability Index is assigned to each business on the basis of an assessment of certain criteria.
Tax Reliability Index – Assessment criteria
The criteria for determining the Tax Reliability Index are regulated by Decree of the Ministry of Finance of the Slovak Republic No 544/2021 Coll. on the criteria for determining the Tax Reliability Index.
– Compliance with tax regulations and fulfilment of legal obligations,
– Compliance with customs regulations and compliance with legal obligations,
– Compliance with the Act on the use of electronic cash registers,
– Submission of income tax and value added tax returns,
– Submission of excise duty returns,
– Paying taxes on time and in full,
– Payment of customs duties on time and in full,
– Results of tax audits,
– Economic indicators (number of employees, turnover, etc.).
How can I find out my tax reliability index?
Only those entrepreneurs who obtain the status of a reliable tax entity receive the results of the assessment. Each entrepreneur receives a list of benefits that can be used together with the index.
The Tax Reliability Index helps not only the authorities but also other businesses. The Tax Reliability Index is publicly available, so any entrepreneur can check the index of another partner or employer.
The Tax Reliability Index applies to both legal and natural persons who have business income, but also to self-employed persons. The Tax Reliability Index does not only apply to those entrepreneurs who reported zero income in the previous tax year.
If the entrepreneur is classified as reliable, he or she may receive benefits under the “special tax regimes”, which include, for example, granting a request for permission to pay tax or tax arrears in instalments, granting a request for permission to defer payment of tax or tax arrears, or granting a request for payment of advance payments of corporation tax.
Conversely, unreliable businesses will not be allowed to benefit from these advantages, nor also have a reduced time limit (8 days) in relation to tax audits or higher fines.
How to become a reliable entrepreneur?
Benefits can reduce the administrative burden for any entrepreneur. Benefits also help entrepreneurs in terms of time and money.
To become a reliable entrepreneur, you need to fulfil your obligations on time and correctly. Our experts (at Real Deal + s. r. o.) can help you with this. Our team of experts can help you with tax returns, reimbursements as well as achieving the criteria of the tax reliability index.
