Tax deductibility of expenses for COVID testing

The Financial Administration of the Slovak Republic issued information for employers on the tax aspects of the obligation to provide testing of employees for COVID-19.  

During the pandemic period, testing expenses, including those related to the provision of testing for COVID-19, are tax deductible if they are incurred: 

• by employers for an employee, including testing of a related person living in the same household with the employee, 
• by taxpayers with income according to Section 6 par. 1 and 2 of the ITA (self-employed individuals) for own testing, including testing of a related person living with the taxpayer in the same household, 
• by taxpayers on testing of individuals who carry out activities for the taxpayers at the place of their business. 

The costs for testing could be treated as tax deductible also if the obligation to test employees is not imposed by special regulations. This means that the costs incurred in situations such as voluntary testing of vaccinated employees by employer or more frequent testing of employees than prescribed by a special regulation could be treated as tax deductible. In addition, costs related to testing such as protective equipment, disinfection and the disposal of waste generated during testing are also considered as tax deductible.  

The costs of testing secured by the employee from other testing provider could be also treated as tax deductible by the employer on the basis of the documentary proof submitted by the employee. Such compensation is not considered as the employee’s taxable income during the pandemic period.