If these companies offer services repeatedly in Slovakia in the form of mediation of transport and accommodation, they will need to register as a permanent operation. These measures have been taken to prevent any outflow of profits outside Slovakia; the Finance Minister was quoted by the Dennik N Daily saying. He added that it is worthwhile to note that Slovakia is the first country that has taken the bold step to deal with the taxation of this type of modern businesses.
Well, if the provider of the quoted services fails to register its permanent operation in Slovakia, withholding tax will then be applied. A withholding tax of between 19-35% will be paid by any business in Slovakia on the fees they are supposed to pay a foreign company. The tax imposed will be based on where the beneficiary actually seats. According to the minister, the tax obligation will be on the particular driver in case of transport services. In the case of accommodation, the obligation will be on a specific accommodation facility using the services of unregistered foreign portals.