What is the correct procedure for remitting 2% (or 3%) of the tax paid for 2021 after an individual employee's annual return? By what date must the 2% (3%) be remitted and what form should be used?
Every taxpayer has the right to decide whether to remit a portion of his/her income tax paid after the annual tax settlement to an entity for charitable purposes, once the statutory obligations have been met. If so, the employer must process the annual settlement at the employee's request by 19 April 2022 at the latest.
Thereafter, under the Income Tax Act, the taxpayer can decide whether to remit 2% or 3% of the tax paid, subject to the following conditions:
- 2% to the entity he chooses from the list of recipients compiled by the Notary Chamber of the Slovak Republic,
- 3 % if the natural person has carried out volunteer activities of at least 40 hours and is able to provide written confirmation of this, which he/she shall also attach to the declaration of remittance of the share of the tax paid.
Tax remittance declaration and its annexes
In order to remit a share of the tax paid, a taxpayer whose employer has made an annual income tax assessment must complete and submit a current and separate form entitled 'Declaration of remittance of a share of the personal income tax paid'. If the taxpayer submits an incorrect or outdated form, the tax office will ask the taxpayer to resubmit with the current form.
Mandatory attachments to be attached to the declaration are:
- certificate of payment of employment tax,
- a certificate of volunteering for at least 40 hours.
Deadline for submission of the declaration
A taxpayer wishing to remit his/her 2% (or 3%) of tax to a non-profit entity is required to complete and submit a declaration of remittance of the share of tax paid for 2021 to the tax administrator (tax office) by the end of April 2022. However, as 30 April falls on a Saturday this year, this can be done until Monday 2 May 2022.
Instructions for completing the declaration correctly
The Tax Administration provides taxpayers whose employer has made an annual settlement of advance payments of employment tax with the detailed procedure below as a guide for the correct completion of the declaration of remittance of the share of the tax paid. Step by step, the information to be provided and completed on each line is specified in more detail:
Line 01: Here the taxpayer shall enter the taxpayer's birth number. If he/she does not have one, he/she shall enter his/her date of birth in line 02. If the taxpayer has only a 9-digit birth number, he enters it from the left and leaves the last box blank.
Line 'Year': the taxpayer enters the year 2021 (the year for which the declaration is made).
Lines 03 to 11: are used to fill in the taxpayer's identification data such as name, surname, title, permanent address and telephone number. All data except the telephone number are compulsory.
Line 12: here the taxpayer enters the net amount of tax paid less the tax bonus applied to the dependent child(ren) and the tax bonus on interest paid from line 24.
Line 13: this line is for the specific amount of the share the taxpayer wishes to remit to the non-profit entity. The share may be in the aforementioned amount of 2 or 3 %, and at the same time the amount may not be less than € 3. The exact figure must be rounded off mathematically to two decimal places.
Line 14: This is used to indicate the date of payment of the tax on the basis of the employer's tax payment slip (as in line 26 of the tax payment slip). If the taxpayer has incurred an overpayment, enter 3/31/2022.
Line 15: This line is reserved for the beneficiary's ID number to whom the taxpayer wishes to remit a share of the tax paid. If the TIN is shorter than 12 digits, it is entered from the right and the boxes on the left are left blank. If the taxpayer enters an incorrect TIN, the entitlement to a share of the tax paid to the non-profit entity will be lost and the taxpayer will be notified of this fact.
Line 16: Here the taxpayer enters the business name of one recipient that the taxpayer has chosen for the remittance of the share of the tax paid. If the recipient's business name is longer than the number of boxes, the taxpayer shall enter only as many letters as will fit in the boxes or enter an abbreviation of the recipient's business name. An error in the name of the recipient or an abbreviated business name is not a reason for the necessary re-filing (correction) of the declaration.
If the taxpayer wishes the recipient to be informed of his/her identification data, he/she shall indicate his/her consent to the transmission of the data at the end of the declaration in the box marked with an "x". Subsequently, the recipients will be notified by the tax authority of the providers' details until the end of January 2023. However, this does not apply to the amount provided, which is a tax secret.
The taxpayer's signature is required at the end of the declaration after all the necessary details have been filled in.
How and where to submit the declaration
The declaration, together with a receipt for the payment of the employment tax, must be delivered in paper form to any tax office or contact point. The taxpayer may do so either bilaterally on one sheet of paper, with the completed declaration on one side and the employer's tax receipt on the other, or unilaterally on two separate sheets of paper.
If all the form's elements are duly completed and the taxpayer fulfils all the statutory conditions for remitting the share of the tax paid, the tax office will pay the share to the recipient by the end of July 2022.