Once an employment relationship arises, the employer is obliged to pay its employees their wages as well as contributions. At the same time, employees are obliged to tax their income. Where a Slovak company employs Slovak citizens, no problem arises regarding taxation or the question of where social or health contributions should be paid.
What if your employer is a company based in Austria?
Legal basis
Decree No. 48/1979 Coll. of the Minister of Foreign Affairs of 16 February 1979 — the Double Taxation Treaty — governs, in its Article 15, precisely the taxation of salaries, wages and other remuneration.
If the employment is carried out in Austria, the salary, wage or other remuneration may be taxed in Austria. The Double Taxation Treaty thus clearly governs where taxation is to take place.
Key point
Where the employment is carried out in Austria, the salary may be taxed in Austria. The decisive factor is also the nature of the employee's work under the contract with the foreign employer.
However, in order to determine the decisive fact in relation to active income, the nature of the employee's work under the employment contract concluded with their foreign employer is also important.
You can find the full article at pravnenoviny.sk: https://bit.ly/3leRGfW
Frequently asked questions
Where is my salary taxed if I work for an employer based in Austria?
If the employment is carried out in Austria, the salary, wage or other remuneration may be taxed in Austria. The Double Taxation Treaty governs where the taxation is to take place.
Does taxation cause a problem when a Slovak company employs Slovak citizens?
No. Where a Slovak company employs Slovak citizens, no problem arises regarding taxation or the question of where social or health contributions should be paid.
Which rule governs the taxation of wages between Slovakia and Austria?
Decree No. 48/1979 Coll., the Double Taxation Treaty, which in its Article 15 governs the taxation of salaries, wages and other remuneration.
Besides the place of work, what else matters for determining taxation?
The nature of the employee's work under the employment contract concluded with the foreign employer is also important for determining the decisive fact in relation to active income.