Doing Business 2018 Slovak Republic Economy Pro le of Slovakia Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Slovak Republic Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region OECD high income DB 2018 Rank 190 1 Slovak Republic Income Category High income 39 Population 5,428,704 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 16,810 0 100 74.90 City Covered Bratislava DB 2018 Distance to Frontier (DTF) 0 100 77.46: Regional Average (OECD high income) 76.27: Czech Republic (Rank: 30) 74.90: Slovak Republic (Rank: 39) 72.70: Italy (Rank: 46) 72.39: Hungary (Rank: 48) Page 3   68.70: Albania (Rank: 65) aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Slovak Republic Ease of Doing Business in Region OECD high income DB 2018 Rank 190 1 Slovak Republic Income Category High income 39 Population 5,428,704 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 16,810 0 100 74.90 City Covered Bratislava DB 2018 Distance to Frontier (DTF) 0 100 77.46: Regional Average (OECD high income) 76.27: Czech Republic (Rank: 30) 74.90: Slovak Republic (Rank: 39) 72.70: Italy (Rank: 46) 72.39: Hungary (Rank: 48) 68.70: Albania (Rank: 65) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Slovakia 1 1 7 28 42 49 57 55 55 83 84 82 91 89 Rank 109 136 163 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Slovakia 100.00 100 91.00 86.95 80.31 79.88 80 67.82 66.08 65.00 58.63 60 53.33 DTF 40 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:0.00 Change:0.00 Change:0.00 Investors Change:0.00 Borders Change:+1.85 Change:-4.45 Change:+0.05 Permits Change:0.00 Change:0.00 Change:0.00 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:0.00 Change:0.00 Change:0.00 Investors Change:0.00 Borders Change:+1.85 Change:-4.45 Change:+0.05 Permits Change:0.00 Change:0.00 Doing Business 2018 Slovak Republic Change:0.00 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Slovak Republic Standardized Company Legal form Spolocnost s Rucenim Obmedzenym (s.r.o.) Paid-in minimum capital requirement EUR 2,500 City Covered Bratislava OECD high OECD high Indicator Slovak Republic income income Overall Best Performer Procedure – Men (number) 7 4.9 4.9 1.00 (New Zealand) Time – Men (days) 12.5 8.5 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 1.1 3.1 3.1 0.00 (United Kingdom) Procedure – Women (number) 7 4.9 4.9 1.00 (New Zealand) Time – Women (days) 12.5 8.5 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 1.1 3.1 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 17.2 8.7 8.7 0.00 (113 Economies) Figure – Starting a Business in Slovakia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 91.49: Albania (Rank: 45) 91.35: Regional Average (OECD high income) 89.42: Italy (Rank: 66) 87.60: Hungary (Rank: 79) 87.44: Czech Republic (Rank: 81) 86.95: Slovak Republic (Rank: 83) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Slovak Republic – Procedure, Time and Cost Time Cost 1.2 12 1 10 ost (% of income per capita) 0.8 8 Time (days) 6 0.6 4 0.4 Page 6   starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Slovak Republic Figure – Starting a Business in Slovak Republic – Procedure, Time and Cost Time Cost 1.2 12 1 10 Cost (% of income per capita) 0.8 8 Time (days) 6 0.6 4 0.4 2 0.2 0 0 1 2 3 4 5 6 *7 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Slovak Republic – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Check the uniqueness of the proposed company name Less than one day EUR 3 for research in Agency : Commercial Register held by the District Court (online procedure) the Commercial Register The cost of the certi cate is EUR 3. The cost of a certi cate issued in electronic form is EUR 0.33. An online check without charge is possible, but the information on the online website of the Commercial Register (www.orsr.sk) is not legally binding and usable for legal acts. 2 Notarize articles of association and related documents 1 day see procedure Agency : Notary Public details The fee for the veri cation of a signature at a Notary Public is EUR 1.99 (excluding VAT), i.e., EUR 9.95 (excluding VAT) for the veri cation of ve signatures. The fee for the veri cation of a signature at the Registrar´s O ce is EUR 1.50, i.e., EUR 7.50 for the veri cation of ve signatures. Both options are commonly available and used in practice. The Registrar's O ce of a municipality and the District Authority are authorized to verify signatures pursuant to Act No. 599/2001 Coll. on the Veri cation of Documents and Signatures on Documents by District O ces and Municipalities, as amended. The fee for the veri cation of a signature is stipulated in Act No. 145/1995 Coll. on Administrative Fees, as amended. 3 Pay capital contributions and receive an a davit from a custodian of 1 day no charge funds Agency : Bank or Trustee The minimum shareholder´s contribution is EUR 750. Before registering a Page 7   company, at least 30% of each shareholder´s contribution and 50% (EUR (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Slovak Republic Details – Starting a Business in Slovak Republic – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Check the uniqueness of the proposed company name Less than one day EUR 3 for research in Agency : Commercial Register held by the District Court (online procedure) the Commercial Register The cost of the certi cate is EUR 3. The cost of a certi cate issued in electronic form is EUR 0.33. An online check without charge is possible, but the information on the online website of the Commercial Register (www.orsr.sk) is not legally binding and usable for legal acts. 2 Notarize articles of association and related documents 1 day see procedure Agency : Notary Public details The fee for the veri cation of a signature at a Notary Public is EUR 1.99 (excluding VAT), i.e., EUR 9.95 (excluding VAT) for the veri cation of ve signatures. The fee for the veri cation of a signature at the Registrar´s O ce is EUR 1.50, i.e., EUR 7.50 for the veri cation of ve signatures. Both options are commonly available and used in practice. The Registrar's O ce of a municipality and the District Authority are authorized to verify signatures pursuant to Act No. 599/2001 Coll. on the Veri cation of Documents and Signatures on Documents by District O ces and Municipalities, as amended. The fee for the veri cation of a signature is stipulated in Act No. 145/1995 Coll. on Administrative Fees, as amended. 3 Pay capital contributions and receive an a davit from a custodian of 1 day no charge funds Agency : Bank or Trustee The minimum shareholder´s contribution is EUR 750. Before registering a company, at least 30% of each shareholder´s contribution and 50% (EUR 2.500) of the minimum registered capital must be paid. The capital contribution is paid to the trustee, which is one of the founding shareholders. The founding shareholders can decide that a bank will be the trustee. The trustee is obliged to issue an a davit concerning the paid in capital contribution in written form. The a davit has to be attached to the application for registering a company. (Sec. 60 of the Act No. 513/1991 Coll. the Commercial Code). 4 Obtain at the tax authority o ce a form showing the partners tax 5 days no charge arrears Agency : Tax Authority O ce According to the Amendments Act no. 246/2012, e ective on October 1, 2012, to start up a limited liability company, it is necessary to obtain at the tax authority o ce a form showing the partners tax arrears. If the tax debits of each partner exceed EUR 170, it is not possible to start up a limited liability company. 5 Apply at the One-stop shop for trade license, register for income tax and 3 days EUR 5 - standard with the District Court trade license + 150 Agency : One-stop shop for Court Registration The One-stop shop created the Trade Licensing O ces, where it is possible (electronic) to apply for trade licenses, income tax and health insurance with one application form. An individual, who is already registered in the system of Page 8   mandatory health insurance, submits with the application for trade license of each partner exceed EUR 170, it is not possible to start up a limited liability Doing company. Business 2018 Slovak Republic 5 Apply at the One-stop shop for trade license, register for income tax and 3 days EUR 5 - standard with the District Court trade license + 150 Agency : One-stop shop for Court Registration The One-stop shop created the Trade Licensing O ces, where it is possible (electronic) to apply for trade licenses, income tax and health insurance with one application form. An individual, who is already registered in the system of mandatory health insurance, submits with the application for trade license also the name of the insurance company, where he/she is registered. The hardcopy application for a standard trade license is EUR 5 and for a regulated or craft trade license EUR 15. The electronic application for a regulated or craft trade license signed with a secure electronic signature is reduced to 1/2 of the standard fee is EUR 7.50. According to Act No. 455/1991 Coll. Trade Licensing Act, it is possible to apply for trade licenses at the One-stop shop. Similarly, according to Act No. 563/2009 Coll Tax Code, it is possible to apply for income tax registration at the One-stop shop. As per Act No. 530/2003 Coll. on Commercial Register, paragraph 5b, sub- paragraph 1 of the Slovak Republic, application to the Commercial Register can be registered at One-stop-shop. Then, the one-stop-shop ensures this application is electronically delivered to Registry Court. The Registry Court must le new company's entry, or changes to the Commercial Register within 2 working days (Act No. 530/2003 Coll. on Commercial register, paragraph 8, subparagraph 1). New 2 days term has been introduced as of January 1, 2014 (amending Act. No 547/2011 Coll., article XVI, subparagraph 1). 6 Register with pension, sickness, and disability insurance and 1 day no charge unemployment insurance at the local social insurance company (Socialna poistovna) Agency : Local social insurance company For social security, the company must register itself as an employer within eight days following the day it started to employ at least one employee; it must also register all new employees with the Social Insurance Company before they begin to work. However, in practice, the Social Insurance Company will not accept an application for the registration of an employee if the company itself is not yet registered. As of January 1, 2013, the employer is further obliged to register for social insurance certain categories of employees working on the basis agreements outside an employment relationship. The category of social insurance for which these employees must be registered depends in particular on the type of agreement and salary. 7 Register for VAT 1 day No charge Agency : Tax Authority O ce According to the Sec. 4(1) og the Act No. 222/2004 Coll. on the Value Added Tax as amended (https://www.slov-lex.sk/pravne- predpisy/SK/ZZ/2004/222/20170101), a company is obliged to register for VAT if the company reaches turnover at least EUR 49,790.In addition, in practice companies usually register for VAT voluntarily, in conformity with Sec. 4(2) of the same act, as soon after registering into the Company Register as possible in order to satisfy their business needs. Page 9   Applies to women only. which these employees must be registered depends in particular on the type Doing of agreement Business and salary. 2018 Slovak Republic 7 Register for VAT 1 day No charge Agency : Tax Authority O ce According to the Sec. 4(1) og the Act No. 222/2004 Coll. on the Value Added Tax as amended (https://www.slov-lex.sk/pravne- predpisy/SK/ZZ/2004/222/20170101), a company is obliged to register for VAT if the company reaches turnover at least EUR 49,790.In addition, in practice companies usually register for VAT voluntarily, in conformity with Sec. 4(2) of the same act, as soon after registering into the Company Register as possible in order to satisfy their business needs. Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) Page 10   - Will be 150 meters (492 feet) from the existing water source and sewer Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Slovak Republic Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 11   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Slovak Republic Standardized Warehouse Estimated value of warehouse EUR 728,246.20 City Covered Bratislava OECD high OECD high Indicator Slovak Republic income income Overall Best Performer Procedures (number) 10 12.5 12.5 7.00 (Denmark) Time (days) 286 154.6 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 0.1 1.6 1.6 0.10 (5 Economies) Building quality control index (0-15) 10.0 11.4 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Slovakia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 75.14: Regional Average (OECD high income) 67.93: Hungary (Rank: 90) 67.82: Slovak Republic (Rank: 91) 67.26: Italy (Rank: 96) 66.27: Albania (Rank: 106) 62.77: Czech Republic (Rank: 127) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Slovak Republic – Procedure, Time and Cost Time Cost 0.06 250 0.05 Cost (% of warehouse value) 200 0.04 Time (days) 150 0.03 100 0.02 50 0.01 0 0 1 2 *3 4 *5 6 *7 8 9 10 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 12   component indicators. Doing Business 2018 Slovak Republic Figure – Dealing with Construction Permits in Slovak Republic – Procedure, Time and Cost Time Cost 0.06 250 0.05 Cost (% of warehouse value) 200 0.04 Time (days) 150 0.03 100 0.02 50 0.01 0 0 1 2 *3 4 *5 6 *7 8 9 10 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Slovak Republic and comparator economies – Measure of Quality 14 13.0 13.0 12.0 12 11.0 11.4 10.0 10 Index score 8 6 4 2 0 Slovak Republic Albania Czech Republic Hungary Italy OECD high income Details – Dealing with Construction Permits in Slovak Republic – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain certi cate of ownership of the land 1 day EUR 8 Agency : Real Estate Registry The certi cate of ownership must be recent (at most 3 months old). 2 Request and obtain a location permit from the Municipality 150 days EUR 17 Agency : Municipality Design plans and documentation submitted to the Municipality must show dimensions, basic layout and an architectural concept of the building, description of impact that the building will have on the environment, information on the intended use of the building (e.g., production, storage), and information on the intended utility connections (water, sewage, Page 13   Slovak Republic Albania Czech Republic Hungary Italy OECD high income Doing Business 2018 Slovak Republic Details – Dealing with Construction Permits in Slovak Republic – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain certi cate of ownership of the land 1 day EUR 8 Agency : Real Estate Registry The certi cate of ownership must be recent (at most 3 months old). 2 Request and obtain a location permit from the Municipality 150 days EUR 17 Agency : Municipality Design plans and documentation submitted to the Municipality must show dimensions, basic layout and an architectural concept of the building, description of impact that the building will have on the environment, information on the intended use of the building (e.g., production, storage), and information on the intended utility connections (water, sewage, electricity etc.). State and municipal authorities and companies involved include the public health department, re department, labor inspection, environment department and water company. These organizations provide clearances and approvals. The location permit determines the requirements for the utility connections (water, sewerage, roads, and so forth). The agencies may conduct on-site inspections. Generally, these are conducted only when the documentation does not provide su cient information for the agencies to issue the required clearances and approvals. The location permit is valid for two years (unless a longer period is stipulated by the municipal authority) during which the builder must apply for a construction permit. 3 Obtain consent from water and sewage provider and request water and 26 days EUR 332 sewage connection Agency : Bratislava Water Company, Plc. (Bratislavská vodárenská spoločnosť , a.s.) To apply for the construction permit, the builder needs a statement from utility providers on the possible impact of the construction activity on existing utility networks and on future supply of the utilities and agrees on the terms under which the facilities would be granted. The terms are speci ed by the utility providers. During construction, the utility providers are requested to also inspect the site at the stages speci ed in the terms. 4 Request and obtain the construction permit from the Municipality 80 days EUR 116 Agency : Municipality An application for the construction permit must be accompanied with detailed design plans of the building, consents and statements of authorities commenting on speci c aspects of the construction process and operation of the building (e.g., water and sewage provider), documents showing ownership title of the builder to the land or other title allowing to build on third party´s land (e.g., lease), and minutes of meetings with other parties to the construction proceeding if they took place prior to submitting the Page 14   During construction, the utility providers are requested to also inspect the Doing site 2018speci at the stages Business ed in the Slovak terms. Republic 4 Request and obtain the construction permit from the Municipality 80 days EUR 116 Agency : Municipality An application for the construction permit must be accompanied with detailed design plans of the building, consents and statements of authorities commenting on speci c aspects of the construction process and operation of the building (e.g., water and sewage provider), documents showing ownership title of the builder to the land or other title allowing to build on third party´s land (e.g., lease), and minutes of meetings with other parties to the construction proceeding if they took place prior to submitting the petition. The construction o ce schedules a public hearing where all parties concerned (e.g., owners of neighboring land) may raise their objections. An on-site inspection is also performed. The permit is valid for 2 years during which the construction must commence, unless a longer period is stipulated by the municipal authorities. 5 Receive on-site inspection before construction 1 day no charge Agency : Construction Authority The Construction Authority sets up an inspection date, and all interested parties and authorities are invited. This procedure is not mandatory but is commonly done in practice. 6 Obtain water and sewage connection 7 days no charge Agency : Bratislava Water Company, Plc. (Bratislavská vodárenská spoločnosť , a.s.) If the technical conditions on the construction site of the building are met, the utility provider must connect the building to the utility system, based on terms and conditions speci ed in the contract drafted by the provider. 7 Request occupancy permit 1 day no charge Agency : Municipality The building can be used only after issuance of the occupancy permit. The builder may le the request for the proceedings in advance, indicating the contemplated nal completion date, so that the authority is able to start the proceedings without undue delay after the completion of construction. The authority noti es the involved parties of the hearing and of the on-site inspection 10 days in advance. 8 Receive nal inspection from the Municipality 1 day no charge Agency : Municipality An nal inspection and a hearing involving the parties concerned are always carried out before the occupancy permit is granted. 9 Obtain an occupancy permit from the Municipality 29 days EUR 66 Agency : Municipality The construction o ce examines whether the building was erected in compliance with the documentation approved by the construction o ce in the construction proceedings and whether the terms determined in the land-use decision and the construction permit have been complied with. The occupancy permit will be granted after the veri cation and the inspection are successfully completed. 10 Register the building with the Real Estate Registry 18 days EUR 115 Page 15   An nal inspection and a hearing involving the parties concerned are always Doing carried 2018 the out before Business occupancy Slovak permit is granted. Republic 9 Obtain an occupancy permit from the Municipality 29 days EUR 66 Agency : Municipality The construction o ce examines whether the building was erected in compliance with the documentation approved by the construction o ce in the construction proceedings and whether the terms determined in the land-use decision and the construction permit have been complied with. The occupancy permit will be granted after the veri cation and the inspection are successfully completed. 10 Register the building with the Real Estate Registry 18 days EUR 115 Agency : Real Estate Registry The request for registration can be submitted electronically to speed up the process at a charge of EUR 130.00. However, if notice of intended entry is given, then the charge is reduced by EUR 15.00. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Slovak Republic – Measure of Quality Answer Score Building quality control index (0-15) 10.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 0.0 Which third-party entities are required by law to verify that the building plans are in By law, there is 0.0 compliance with existing building regulations? (0-1) no need to verify plans compliance; Civil servant reviews plans. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 Page 16   Takes place simultaneously with previous procedure. Doing Business 2018 Slovak Republic Details – Dealing with Construction Permits in Slovak Republic – Measure of Quality Answer Score Building quality control index (0-15) 10.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 0.0 Which third-party entities are required by law to verify that the building plans are in By law, there is 0.0 compliance with existing building regulations? (0-1) no need to verify plans compliance; Civil servant reviews plans. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency; Yes, in- house engineer submits report for nal inspection. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the Page 17   supervision; Liability Doing 2018 regimes and insurance Business index Slovak (0-2) Republic 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the supervision; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 2.0 What are the quali cation requirements for the professional responsible for verifying Minimum 2.0 that the architectural plans or drawings are in compliance with existing building number of years regulations? (0-2) of experience; University degree in architecture or engineering; Being a registered architect or engineer; Passing a certi cation exam. What are the quali cation requirements for the professional who supervises the Minimum 0.0 construction on the ground? (0-2) number of years of experience; Passing a certi cation exam. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. Page 18   obtaining final supply - Is a new construction and is being connected to electricity for the rst certi cation exam. Doing Business 2018 Slovak Republic Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the Official costs only, no bribes warehouse is located and requires works that involve the crossing of a 10- meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 19   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Slovak Republic Standardized Connection Price of electricity (US cents per kWh) 12.9 Name of utility Západoslovenska distribucna, a.s. City Covered Bratislava OECD high OECD high Indicator Slovak Republic income income Overall Best Performer Procedures (number) 5 4.7 4.7 2 (United Arab Emirates) Time (days) 121 79.1 79.1 10 (United Arab Emirates) Cost (% of income per capita) 50.8 63.0 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 8 7.4 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Slovakia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.33: Czech Republic (Rank: 15) 85.27: Italy (Rank: 28) 84.44: Regional Average (OECD high income) 80.31: Slovak Republic (Rank: 57) 63.26: Hungary (Rank: 110) 48.31: Albania (Rank: 157) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Slovak Republic – Procedure, Time and Cost Time Cost 120 45 40 100 Cost (% of income per capita) 35 80 30 Time (days) 25 60 20 40 15 10 20 Page 20   5 getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Slovak Republic Figure – Getting Electricity in Slovak Republic – Procedure, Time and Cost Time Cost 120 45 40 100 Cost (% of income per capita) 35 80 30 Time (days) 25 60 20 40 15 10 20 5 0 0 1 2 3 *4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Slovak Republic and comparator economies – Measure of Quality 9 8 8 8 7.4 7 7 7 6 Index score 5 4 3 2 1 0 0 Slovak Republic Albania Czech Republic Hungary Italy OECD high income Details – Getting Electricity in Slovak Republic – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application, await technical study and sign connection contract 24 calendar days EUR 1,398 Agency : Západoslovenska distribucna, a.s. The application for connection can be submitted via mail or in person. Documents attached to the application: technical drawings of the area, property license (proof of ownership). The documents do not need notarization. The request for connection is the base for the Agreement for Connection, a contract de ning technical details and conditions of the connection. It is updated annually. Zapadoslovenska distribucna a.s. provides the customer with an agreement for connection within 30 days of receipt of request for Page 21   connection. Slovak Republic Albania Czech Republic Hungary Italy OECD high income Doing Business 2018 Slovak Republic Details – Getting Electricity in Slovak Republic – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application, await technical study and sign connection contract 24 calendar days EUR 1,398 Agency : Západoslovenska distribucna, a.s. The application for connection can be submitted via mail or in person. Documents attached to the application: technical drawings of the area, property license (proof of ownership). The documents do not need notarization. The request for connection is the base for the Agreement for Connection, a contract de ning technical details and conditions of the connection. It is updated annually. Zapadoslovenska distribucna a.s. provides the customer with an agreement for connection within 30 days of receipt of request for connection. On LV side connection fees are: EUR 6.99 per 1A, therefore 3 phase 200 A x EUR 6.99 = EUR 1,398 (without VAT 20%) This fee covers construction of the related grid equipment and electrometer installation. The fee has to be paid once the connection agreement is signed. The customer has 75 days to sign the connection agreement and deliver it to Zapadoslovenska distribucna, a.s. The applicant has to pay the estimate at the bank and show proof of the payment at the utility. 2 Obtain design of external connection and internal wiring and await 30 calendar days EUR 0 approval Agency : Západoslovenska distribucna, a.s. After the connection agreement is signed the customer prepares a design of the construction project which also includes the design of the external connection and internal wiring. Západoslovenska distribucna, a.s. examines the project and issues a statement specifying in detail what is required for the connection. The design of the construction project including the design of the external connection and the approval statement from Západoslovenska distribucna, a.s. is then submitted by the applicant to the building authority so he can receive a building permit. 3 Await completion of external works by electrical contractor 60 calendar days EUR 6,000 Agency : Západoslovenska distribucna, or electrical contractor In the case of the connection to low voltage the customer is in charge of the external works. Zapadoslovenska distribucna, a.s. will install the meter. The building permit includes the works related to the electricity connection and in addition, for the excavation of the road, prior consent of the road administrator (usually a municipality) is required. In case of a simple hook up customer needs to buy material only for his/her share of the grid (that begins behind the o -take point of the connection/electrometer). The material is available more than 50% of the time. Any licensed electrician can work on the internal wiring. A technical expert who is hired by the warehouse owner, inspects the electricity wiring in the building, prepares a report and the report is then submitted to the O ce for Page 22   inspection of the safety. The O ce for inspection of the safety issues its a.s. is then submitted by the applicant to the building authority so he can Doing receive 2018 permit. a building Business Slovak Republic 3 Await completion of external works by electrical contractor 60 calendar days EUR 6,000 Agency : Západoslovenska distribucna, or electrical contractor In the case of the connection to low voltage the customer is in charge of the external works. Zapadoslovenska distribucna, a.s. will install the meter. The building permit includes the works related to the electricity connection and in addition, for the excavation of the road, prior consent of the road administrator (usually a municipality) is required. In case of a simple hook up customer needs to buy material only for his/her share of the grid (that begins behind the o -take point of the connection/electrometer). The material is available more than 50% of the time. Any licensed electrician can work on the internal wiring. A technical expert who is hired by the warehouse owner, inspects the electricity wiring in the building, prepares a report and the report is then submitted to the O ce for inspection of the safety. The O ce for inspection of the safety issues its statement on the status of the electricity wiring in the building and this statement is then submitted by the warehouse owner to the Building O ce during the proceedings to obtain the occupancy permit. The technical expert is liable that the internal wiring is in compliance with applicable rules and regulations. 4 Sign supply contract with electricity retailer 3 calendar days EUR 0 Agency : Electricity supplier The customer needs to select an electricity supplier and sign a supply contract before meter is installed by the utility. 5 Await and receive meter installation and electricity ow 7 calendar days EUR 0 Agency : Západoslovenska distribucna, a.s. Západoslovenska distribucna, a.s. installs the meter after the contract has been signed. Before Západoslovenska distribucna, a.s can connect the customer to electricity it will need approval statements from the Building Authority which visits the site to inspect completed external connection works, internal wiring, gas connection and etc. The Building Authority checks whether all the work is completed according to the guidelines issued by all the electricity, gas, water and telecommunications utilities. After the supply contract is concluded, the meter is installed, and approvals from the Building Authority are received, Západoslovenska distribucna, a.s could turn on the power. Takes place simultaneously with previous procedure. Details – Getting Electricity in Slovak Republic – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 8 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.8 System average interruption frequency index (SAIFI) 0.5 Page 23   What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Takes place simultaneously with previous procedure. Doing Business 2018 Slovak Republic Details – Getting Electricity in Slovak Republic – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 8 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.8 System average interruption frequency index (SAIFI) 0.5 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://www.zsdis.sk/ sk/O- spolocnosti/Informa cny-servis/Cenniky Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 24   If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Slovak Republic Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value EUR 728,246.20 City Covered Bratislava Page 25   OECD high OECD high Doing Business 2018 Slovak Republic Standard Property Transfer Property value EUR 728,246.20 City Covered Bratislava OECD high OECD high Indicator Slovak Republic income income Overall Best Performer Procedures (number) 3 4.6 4.6 1.00 (4 Economies) Time (days) 16.5 22.3 22.3 1.00 (3 Economies) Cost (% of property value) 0.0 4.2 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 26.5 22.7 22.7 29.00 (Singapore) Figure – Registering Property in Slovakia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 91.00: Slovak Republic (Rank: 7) 81.70: Italy (Rank: 23) 80.09: Hungary (Rank: 29) 79.68: Czech Republic (Rank: 32) 76.81: Regional Average (OECD high income) 59.28: Albania (Rank: 103) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Slovak Republic – Procedure, Time and Cost Time Cost 0.045 16 0.04 14 0.035 Cost (% of property value) 12 0.03 10 Time (days) 0.025 8 0.02 6 0.015 4 0.01 2 0.005 0 0 1 2 3 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 26   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Slovak Republic Figure – Registering Property in Slovak Republic – Procedure, Time and Cost Time Cost 0.045 16 0.04 14 0.035 Cost (% of property value) 12 0.03 10 Time (days) 0.025 8 0.02 6 0.015 4 0.01 2 0.005 0 0 1 2 3 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Slovak Republic and comparator economies – Measure of Quality 30 26.5 26.0 26.5 25.0 25 22.7 20 Index score 15.5 15 10 5 0 Slovak Republic Albania Czech Republic Hungary Italy OECD high income Details – Registering Property in Slovak Republic – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Each party obtains extracts from the commercial register held by the Less than a day Commercial Register respective court (online procedure) of the Slovak Agency : Respective District Courts Republic: - paper form - 13€ (2 Parties obtain the Extract from the Commercial Register of the Slovak extracts at 6.50€ Republic held by the respective District Court, for each party. Extract for legal each) purposes can by in paper form or in electronic form signed with certi ed - electronic form - electronic signature. Extracts from commercial register for legal purposes can be obtained either from the District Courts or from a notary. There are 0.66€ (two extracts at circa 330 notary o ces in Slovak Republic. A notary is attached to the Central 0.33€ each) Portal of Public Administration with certi ed electronic signature. After identifying of a notary and entering the requirement, the system generates Notaries: Page 27   the required extract from commercial register. The notary prints the extract - paper form 1 page - Slovak Republic Albania Czech Republic Hungary Italy OECD high income Doing Business 2018 Slovak Republic Details – Registering Property in Slovak Republic – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Each party obtains extracts from the commercial register held by the Less than a day Commercial Register respective court (online procedure) of the Slovak Agency : Respective District Courts Republic: - paper form - 13€ (2 Parties obtain the Extract from the Commercial Register of the Slovak extracts at 6.50€ Republic held by the respective District Court, for each party. Extract for legal each) purposes can by in paper form or in electronic form signed with certi ed - electronic form - electronic signature. Extracts from commercial register for legal purposes can be obtained either from the District Courts or from a notary. There are 0.66€ (two extracts at circa 330 notary o ces in Slovak Republic. A notary is attached to the Central 0.33€ each) Portal of Public Administration with certi ed electronic signature. After identifying of a notary and entering the requirement, the system generates Notaries: the required extract from commercial register. The notary prints the extract - paper form 1 page - on paper and certi es it. This extract is also usable for legal purposes Since 1.33€ per 1 page + July 2010 all notaries are connected on-line with Commercial Register of the fee for the operation Slovak Republic. of the information - 2 page extract - 2.66€. (This does not include 20%VAT.) Post: 9€ (2 extracts at 4,50€ each) 2 Con rm the signature authenticity of the seller before applying for 1 day 6 € (4 signatures at registration 1,50 € at registrar´s Agency : Notary or Registrar´s o ce office; 7,96 € (4 signatures In order to le an Application for registration of the transfer (the Proposal at 1,99 € each) at for Entry into the Cadastre) it is necessary to submit: notary office - 1 piece of Application and 2 copies of the contract for the transfer to the 3.75€ at the respective district District O ce Cadastral Department. Assuming there will be only one executive manager acting on behalf of each party (company), a integrated service notary or Registrar´s O ce have to verify 2 signatures (signatures of the points. person acting on behalf of the seller). Veri cation: - the notary fee is 2.87€ per signature - or at the Registrar´s O ce for a fee of 1.50 € per signature. There are three possibilities for drawing up the contract in Slovakia. The contract for a property with the value of 702,701.00€ can be drawn up: - by clients themselves (no costs i.e. 0.00€) - by a notary (the fee for a notary is 992.00 € (excl. 20% VAT)) - by a lawyer (the fee for a lawyer is 1827.57 € (excl. 20% VAT The District O ce Cadastral Department does not require that the contract to be drawn up either by a notary or by a lawyer. The contract is still valid if drawn by the parties themselves. 3 Submit the application for registration of the transfer (the proposal for - 30 days (standard Registration in paper entry into the cadastre) with the competent district land registry procedure) form: fee 66€ Agency : District O ce Cadastral Department (standard procedure Page 28   - 20 days (standard - 30 days or 20 days), to be drawn up either by a notary or by a lawyer. The contract is still valid if Doing drawn by the Business themselves. parties Slovak 2018 Republic 3 Submit the application for registration of the transfer (the proposal for - 30 days (standard Registration in paper entry into the cadastre) with the competent district land registry procedure) form: fee 66€ Agency : District O ce Cadastral Department (standard procedure - 20 days (standard - 30 days or 20 days), 2 transfer contracts are attached to the "Application for registration of the procedure if the fee 266€ (speed up transfer". After the persons authorized by law to act on behalf of the contract is in the procedure - 15 days). companies sign the transfer contract, the "Application for registration of the form of a notarial Registration in transfer" is submitted for the registration and for the transfer of the ownership right to the respective District O ce Cadastral Department. deed or the electronic form: fee Registration is executed by the respective District Cadastral Registry, contract is certified 33€ (standard according to the location of the property. The "Application for registration of by a lawyer) procedure - 30 days the transfer" includes the data prescribed by law. The Application for or 20 days), fee 133€ registration is - in paper form, and also enclosures (contracts) have to be in - 15 days (fast (speed up procedure paper form, - or in electronic form, and also the enclosures (contracts) have procedure) - 15 days). to be in electronic form. Enclosures have to be signed by certi ed electronic signature. The District O ce Cadastral Department shall decide on the Application for the registration of the transfer within the period of 30 days (standard Procedure) or within 15 days (speed up Procedure). If the contract is in form of public notary´s deed or deed authorized by the lawyer (advocate), the registration has to be processed within 20 days. After the property transfer is nished, the seller has to pay 21% the income tax to the Tax O ce. Real estate transfer tax is no longer claimed in Slovakia. Takes place simultaneously with previous procedure. Details – Registering Property in Slovak Republic – Measure of Quality Answer Score Quality of the land administration index (0-30) 26.5 Reliability of infrastructure index (0-8) 7.0 What is the institution in charge of immovable property registration? District O ce Cadastral Department Bratislava In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: District O ce Cadastral Department Bratislava In what format are the majority of maps of land plots kept in the largest business city— Computer/Fully 2.0 in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Di erent 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases but or in separate databases? linked Page 29   Takes place simultaneously with previous procedure. Doing Business 2018 Slovak Republic Details – Registering Property in Slovak Republic – Measure of Quality Answer Score Quality of the land administration index (0-30) 26.5 Reliability of infrastructure index (0-8) 7.0 What is the institution in charge of immovable property registration? District O ce Cadastral Department Bratislava In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: District O ce Cadastral Department Bratislava In what format are the majority of maps of land plots kept in the largest business city— Computer/Fully 2.0 in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Di erent 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases but or in separate databases? linked Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 the same identi cation number for properties? Transparency of information index (0–6) 5.5 Who is able to obtain information on land ownership at the agency in charge of Freely accessible 1.0 immovable property registration in the largest business city? by anyone Is the list of documents that are required to complete any type of property transaction Yes, on public 0.5 made publicly available–and if so, how? boards Link for online access: Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: https://www.slov- lex.sk/pravne- predpisy/SK/ZZ/1 995/145/2016010 1 Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Page 30   995/145/2016010 Doing Business 2018 Slovak Republic 1 Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: http://www.zako nypreludi.sk/zz/1 995-162 Is there a speci c and separate mechanism for ling complaints about a problem that Yes 1.0 occurred at the agency in charge of immovable property registration? Contact information: Geodesy, Cartography and Cadastre Authority of the Slovak Republic - Control Department, Chlumeckeho 2, Bratislava, tel:  421 2 2081 6005. It is based on the Law on Complaints 9/2010. Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2015: Who is able to consult maps of land plots in the largest business city? Freely accessible 0.5 by anyone Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and if so, how? Link for online access: https://www.slov- lex.sk/pravne- predpisy/SK/ZZ/1 995/145/2017020 1.html Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 speci c time frame—and if so, how does it communicate the service standard? Link for online access: https://www.slov- lex.sk/pravne- predpisy/SK/ZZ/1 995/162/2016070 1.html#predpis.c ast-siesta Is there a speci c and separate mechanism for ling complaints about a problem that Yes 0.5 occurred at the cadastral or mapping agency? Contact information: Geodesy,Cartogr aphy and Cadastre Page 31   Authority of the Is there a speci c and separate mechanism for ling complaints about a problem that Yes 0.5 occurred Doing at the cadastral Business or mapping 2018 Slovak agency? Republic Contact information: Geodesy,Cartogr aphy and Cadastre Authority of the Slovak Republic - Control Department, Chlumeckého 2, P.O.Box 57 820 12 Bratislava 212 Tel: +4212 2081 6002 Based on Act. on Complaints No. 9/2010 Geographic coverage index (0–8) 8.0 Are all privately held land plots in the economy formally registered at the immovable Yes 2.0 property registry? Are all privately held land plots in the largest business city formally registered at the Yes 2.0 immovable property registry? Are all privately held land plots in the economy mapped? Yes 2.0 Are all privately held land plots in the largest business city mapped? Yes 2.0 Land dispute resolution index (0–8) 6.0 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary; Lawyer. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary; Lawyer. Is there a national database to verify the accuracy of identity documents? Yes 1.0 For a standard land dispute between two local businesses over tenure rights of a Bratislava property worth 50 times gross national income (GNI) per capita and located in the District Court largest business city, what court would be in charge of the case in the rst instance? How long does it take on average to obtain a decision from the rst-instance court for Between 1 and 2 2.0 Page 32   Is there Doing a national Business database 2018 to verify Slovak the accuracy of identity documents? Republic Yes 1.0 For a standard land dispute between two local businesses over tenure rights of a Bratislava property worth 50 times gross national income (GNI) per capita and located in the District Court largest business city, what court would be in charge of the case in the rst instance? How long does it take on average to obtain a decision from the rst-instance court for Between 1 and 2 2.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies Page 33   where the law does not allow nonpossessory security interests in movable Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Slovak Republic Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. OECD high OECD high Indicator Slovak Republic income income Overall Best Performer Strength of legal rights index (0-12) 7 6.0 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 6 6.6 6.6 8.00 (34 Economies) Page 34   Credit registry coverage (% of adults) 3.2 18.3 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Slovak Republic OECD high OECD high Indicator Slovak Republic income income Overall Best Performer Strength of legal rights index (0-12) 7 6.0 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 6 6.6 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 3.2 18.3 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 79.4 63.7 63.7 100.00 (23 Economies) Figure – Getting Credit in Slovakia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 75.00: Hungary (Rank: 29) 70.00: Albania (Rank: 42) 70.00: Czech Republic (Rank: 42) 65.00: Slovak Republic (Rank: 55) 63.03: Regional Average (OECD high income) 45.00: Italy (Rank: 105) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Slovak Republic and comparator economies 12 10 10 8 8 Index score 7 7 6.0 6 4 2 2 0 Slovak Republic Albania Czech Republic Hungary Italy OECD high income Details – Legal Rights in Slovak Republic Strength of legal rights index (0-12) 7 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a speci c description of collateral? Page 35   Slovak Republic Albania Czech Republic Hungary Italy OECD high income Doing Business 2018 Slovak Republic Details – Legal Rights in Slovak Republic Strength of legal rights index (0-12) 7 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds No or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically Yes and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency Yes procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? Yes Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Slovak Republic and comparator economies 8 7 7 6.6 6 6 6 5 Index score 4 2 0 Slovak Republic Albania Czech Republic Hungary Italy OECD high income Details – Credit Information in Slovak Republic Page 36   0 Slovak Republic Doing Business 2018 SlovakAlbania Republic Czech Republic Hungary Italy OECD high income Details – Credit Information in Slovak Republic Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? No No 0 Are both positive and negative credit data distributed? Yes No 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more Yes No 1 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes No 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes No 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes No 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 6 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 3,040,000 0 Number of firms 0 121,985 Total 3,040,000 121,985 Percentage of adult population 79.4 3.2 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 37   transactions; Available legal remedies (damages, Percentage of adult population 79.4 3.2 Doing Business 2018 Slovak Republic Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. OECD high OECD high Indicator Slovak Republic income income Overall Best Performer Extent of conflict of interest regulation index (0- 4.7 6.4 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 6 6.4 6.4 Page 38   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Slovak Republic OECD high OECD high Indicator Slovak Republic income income Overall Best Performer Extent of conflict of interest regulation index (0- 4.7 6.4 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 6 6.4 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Slovakia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 71.67: Albania (Rank: 20) 63.93: Regional Average (OECD high income) 58.33: Czech Republic (Rank: 62) 58.33: Italy (Rank: 62) 53.33: Slovak Republic (Rank: 89) 50.00: Hungary (Rank: 108) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Slovak Republic and comparator economies – Measure of Quality the Slovak Republic 6 4 3 6 6 7 Albania 8 7 9 6 6 7 Czech Republic 5 6 2 7 6 9 Hungary 7 4 2 5 6 6 Italy 8 4 7 4 6 6 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 0 5 10 15 20 25 30 35 40 45 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Slovak Republic – Measure of Quality Answer Score Page 39   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Slovak Republic Details – Protecting Minority Investors in Slovak Republic – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 4.7 Extent of disclosure index (0-10) 3 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) CEO alone 0.0 Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) No disclosure 0.0 obligation Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- Disclosure on 1.0 2) the transaction only Extent of director liability index (0-10) 4 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if negligent 1.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0 to Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by No 0.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Only in case of 0.0 fraud or bad faith Ease of shareholder suits index (0-10) 7 Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without Yes 1.0 identifying speci c ones? (0-1) Page 40   Can the plainti directly question the defendant and witnesses at trial? (0-2) Preapproved 1.0 Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 Doing Business 2018 Slovak Republic document Can the plainti request categories of documents from the defendant without Yes 1.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Preapproved 1.0 questions only Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 6 Extent of shareholder rights index (0-10) 6 Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected No 0.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new No 0.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 6 Is it forbidden to appoint the same individual as CEO and chair of the board of Yes 1.0 directors? Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0 Page 41   Buyer pay declared MustBusiness Doing dividends 2018 Slovak within a maximum period set by law? Republic Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve Yes 1.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 6 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? No 0.0 Must Buyer disclose information about board members’ primary employment and No 0.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? No 0.0 Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on No 0.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, Page 42   and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Slovak Republic Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. OECD high OECD high Indicator Slovak Republic income income Overall Best Performer Payments (number per year) 8 10.9 10.9 3 (Hong Kong SAR, China) Page 43   return, but within the tax assessment period. Doing Business 2018 Slovak Republic OECD high OECD high Indicator Slovak Republic income income Overall Best Performer Payments (number per year) 8 10.9 10.9 3 (Hong Kong SAR, China) Time (hours per year) 192 160.7 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 51.6 40.1 40.1 18.47% (32 Economies) Postfiling index (0-100) 87.17 83.45 83.45 99.38 (Estonia) Figure – Paying Taxes in Slovakia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 83.07: Regional Average (OECD high income) 79.88: Slovak Republic (Rank: 49) 79.26: Czech Republic (Rank: 53) 71.49: Hungary (Rank: 93) 68.29: Italy (Rank: 112) 63.94: Albania (Rank: 125) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Slovak Republic and comparator economies – Measure of Quality 100 90.75 87.17 90 83.45 80 70 63.94 Index score 57.61 60 52.39 50 40 30 20 10 0 Slovak Republic Albania Czech Republic Hungary Italy OECD high income Details – Paying Taxes in Slovak Republic Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate (% of Notes contribution (number) Payments (hours) tax rate Tax base profit) on TTR Page 44   Social security 1 online 62 35.2% gross salaries 39.70 Doing Business 2018 Slovak Republic Figure – Paying Taxes in Slovak Republic and comparator economies – Measure of Quality 100 90.75 87.17 90 83.45 80 70 63.94 Index score 57.61 60 52.39 50 40 30 20 10 0 Slovak Republic Albania Czech Republic Hungary Italy OECD high income Details – Paying Taxes in Slovak Republic Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate (% of Notes contribution (number) Payments (hours) tax rate Tax base profit) on TTR Social security 1 online 62 35.2% gross salaries 39.70 contributions Corporate income tax 1 online 46 22% taxable profit 10.53 Waste collection 1 online 16.59% kg of non-toxic 0.52 waste collected Tax on interest 1 Withheld 19% interest income 0.49 by bank Property tax 1 0,90% area of land not 0.30 adjusted occupied by building Motor vehicle tax 1 online Fixed fee 0.09 Employee paid - Social 0 jointly 13.4% gross salaries 0.00 not security contributions included Fuel tax 1 Part of 0.00 not fuel price included Value added tax (VAT) 1 online 84 20% value added 0.00 not included Totals 8 192 51.6 Details – Paying Taxes in Slovak Republic – Tax by Type Taxes by type Answer Profit tax (% of profit) 10.5 Labor tax and contributions (% of profit) 39.7 Other taxes (% of profit) 1.4 Page 45   Totals 8 192 51.6 Doing Business 2018 Slovak Republic Details – Paying Taxes in Slovak Republic – Tax by Type Taxes by type Answer Profit tax (% of profit) 10.5 Labor tax and contributions (% of profit) 39.7 Other taxes (% of profit) 1.4 Details – Paying Taxes in Slovak Republic – Measure of Quality Answer Score Post ling index (0-100) 87.17 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process None Percentage of cases exposed to a VAT audit (%) 50% - 74% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 5.0 90 Time to obtain a VAT refund (weeks) 24.1 59.58 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax audit (hours) 2.0 99.08 Time to complete a corporate income tax audit (weeks) No tax audit per 100 case study scenario Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border recent compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The mostPage 46   round of data collection for the project was completed in June 2017. See the methodology for more information. a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Slovak Republic Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while largest value (price times quantity) of auto parts. It is assumed each shipment is en route economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 47   of agriculture or industry, national security agencies and any other Doing Business 2018 Slovak Republic government authorities. OECD high OECD high Indicator Slovak Republic income income Overall Best Performer Time to export: Border compliance (hours) 0 12.7 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 0 149.9 149.9 0.00 (19 Economies) Time to export: Documentary compliance 1 2.4 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 0 35.4 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 0 8.7 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 0 111.6 111.6 0.00 (27 Economies) Time to import: Documentary compliance 1 3.5 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 0 25.6 25.6 0.00 (30 Economies) Figure – Trading across Borders in Slovakia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 96.29: Albania (Rank: 24) 93.92: Regional Average (OECD high income) 100.00: Czech Republic (Rank: 1) 100.00: Hungary (Rank: 1) 100.00: Italy (Rank: 1) 100.00: Slovak Republic (Rank: 1) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Slovak Republic – Time and Cost Time Cost 1.2 1.2 1 1 1 1 0.8 0.8 Time (hours) Cost (USD) 0.6 0.6 0.4 0.4 0.2 0.2 0 0 0 0 0 0 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Page 48   Doing Business 2018 Slovak Republic Figure – Trading across Borders in Slovak Republic – Time and Cost Time Cost 1.2 1.2 1 1 1 1 0.8 0.8 Time (hours) Cost (USD) 0.6 0.6 0.4 0.4 0.2 0.2 0 0 0 0 0 0 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Slovak Republic Characteristics Export Import Product HS 85 : Electrical machinery and equipment and parts thereof; sound recorders and HS 8708: Parts and reproducers, television image and sound recorders and reproducers, and parts and accessories of motor accessories of such articles vehicles Trade partner Germany Germany Border Slovak Republic- Czech Republic border crossing Slovak Republic- Czech Republic border crossing Distance (km) 65 65 Domestic 2 2 transport time (hours) Domestic 85 85 transport cost (USD) Details – Trading across Borders in Slovak Republic – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 0.0 0.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 0.0 0.0 Import: Clearance and inspections required by customs authorities 0.0 0.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 0.0 0.0 Page 49   (USD) Doing Business 2018 Slovak Republic Details – Trading across Borders in Slovak Republic – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 0.0 0.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 0.0 0.0 Import: Clearance and inspections required by customs authorities 0.0 0.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 0.0 0.0 Details – Trading across Borders in Slovak Republic – Trade Documents Export Import CMR Waybill CMR Waybill Commercial invoice Commercial invoice Packing list Packing list Intrastat Intrastat Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Page 50   Intrastat Intrastat Doing Business 2018 Slovak Republic Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value EUR 28,108.00 Court name Bratislava District Court (I-V) City Covered Bratislava OECD high OECD high Indicator Slovak Republic income income Overall Best Performer Time (days) 775 577.8 577.8 164.00 (Singapore) Cost (% of claim value) 30.6 21.5 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 11.5 11.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Slovakia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 73.75: Hungary (Rank: 13) 66.76: Regional Average (OECD high income) 58.63: Slovak Republic (Rank: 84) Page 51   of judicial processes Quality Business Doing index (0-18) 2018 Slovak Republic 11.5 11.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Slovakia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 73.75: Hungary (Rank: 13) 66.76: Regional Average (OECD high income) 58.63: Slovak Republic (Rank: 84) 58.21: Czech Republic (Rank: 91) 54.79: Italy (Rank: 108) 53.66: Albania (Rank: 120) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Slovak Republic – Time and Cost Time Cost 1200 1120 40 34.9 33.8 35 1000 30.6 Cost (% of claim value) 30 775 800 23.1 Time (days) 21.5 25 611 605 577.8 600 525 20 15.0 15 400 10 200 5 0 0 Albania Czech Republic Hungary Italy OECD high income Slovak Republic Figure – Enforcing Contracts in Slovak Republic and comparator economies – Measure of Quality the Slovak Republic 2 3 3 3.5 Albania 1.5 1.5 1 2 Czech Republic 2 3 3 1.5 Hungary 3 4 2.5 4.5 Italy 3 4 3 3 OECD high income 2.5 2.9 2 3.6 0 2 4 6 8 10 12 14 Page 52   16 0 0 Albania Czech Republic Hungary Italy OECD high income Slovak Republic Doing Business 2018 Slovak Republic Figure – Enforcing Contracts in Slovak Republic and comparator economies – Measure of Quality the Slovak Republic 2 3 3 3.5 Albania 1.5 1.5 1 2 Czech Republic 2 3 3 1.5 Hungary 3 4 2.5 4.5 Italy 3 4 3 3 OECD high income 2.5 2.9 2 3.6 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Slovak Republic Indicator Time (days) 775 Filing and service 70 Trial and judgment 525 Enforcement of judgment 180 Cost (% of claim value) 30.6 Attorney fees 14 Court fees 6.6 Enforcement fees 10 Quality of judicial processes index (0-18) 11.5 Court structure and proceedings (-1-5) 3.5 Case management (0-6) 3.0 Court automation (0-4) 3.0 Alternative dispute resolution (0-3) 2.0 Details – Enforcing Contracts in Slovak Republic – Measure of Quality Page 53   Alternative dispute resolution (0-3) 2.0 Doing Business 2018 Slovak Republic Details – Enforcing Contracts in Slovak Republic – Measure of Quality Answer Score Quality of judicial processes index (0-18) 11.5 Court structure and proceedings (-1-5) 3.5 1. Is there a court or division of a court dedicated solely to hearing commercial cases? No 0.0 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, automatic 1.0 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 3.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? No 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) Yes 1.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the Yes 1.0 competent court? 5. Are there any electronic case management tools in place within the competent court No 0.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by lawyers? Court automation (0-4) 3.0 1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 54   1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 Businesscourt? the competent Doing 2018 Slovak Republic 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? Yes 1.0 4. Publication of judgments 1.0 4.a Are judgments rendered in commercial cases at all levels made available to the Yes general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.0 1. Arbitration 0.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public Yes order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? No 2. Mediation/Conciliation 1.5 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., Yes if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 55   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Slovak Republic Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) OECD high OECD high Indicator Slovak Republic income income Overall Best Performer Recovery rate (cents on the dollar) 47.3 71.2 71.2 93.1 (Norway) Time (years) 4.0 1.7 1.7 0.4 (Ireland) Page 56   Cost (% of estate) 18.0 9.1 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Slovak Republic OECD high OECD high Indicator Slovak Republic income income Overall Best Performer Recovery rate (cents on the dollar) 47.3 71.2 71.2 93.1 (Norway) Time (years) 4.0 1.7 1.7 0.4 (Ireland) Cost (% of estate) 18.0 9.1 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 1 .. .. .. concern) Strength of insolvency framework index (0-16) 13.0 12.1 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Slovakia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 76.97: Italy (Rank: 24) 76.69: Czech Republic (Rank: 25) 76.12: Regional Average (OECD high income) 66.13: Albania (Rank: 41) 66.08: Slovak Republic (Rank: 42) 54.75: Hungary (Rank: 62) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Slovak Republic – Time and Cost Time Cost 4.5 25 22.0 4.0 4 3.5 18.0 20 17.0 Cost (% of estate) 3 Time (years) 14.5 15 2.5 2.0 2.1 2.0 2 10.0 1.8 1.7 9.1 10 1.5 1 5 0.5 0 0 Albania Czech Republic Hungary Italy OECD high income Slovak Republic Figure – Resolving Insolvency in Slovak Republic and comparator economies – Measure of Quality the Slovak Republic 4 3 3 3 Page 57   0 0 Albania Czech Republic Hungary Italy OECD high income Slovak Republic Doing Business 2018 Slovak Republic Figure – Resolving Insolvency in Slovak Republic and comparator economies – Measure of Quality the Slovak Republic 4 3 3 3 Albania 6 3 2 3 Czech Republic 5.5 2.5 2 3 Hungary 5 2.5 2 0.5 Italy 5.5 3 2 3 OECD high income 5.4 2.8 2.3 1.9 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Slovak Republic and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 80 71.2 70 67.0 64.6 60 47.3 50 43.7 41.6 40 30 20 10 0 Slovak Republic Albania Czech Republic Hungary Italy OECD high income Details – Resolving Insolvency in Slovak Republic Indicator Answer Explanation Proceeding liquidation Mirage's management will file for reorganization in order to save the hotel. As BizBank holds (after an 74% of the debt, a reorganization plan cannot be approved without BizBank's consent. attempt at BizBank will most likely vote against reorganization, so that it could receive repayment of the reorganization) loan as soon as possible from the sale of assets in liquidation. If reorganization is not approved, the proceedings will be converted into liquidation. Outcome going concern The most likely outcome is that the hotel will be sold as a going concern to a new owner in the course of the liquidation proceedings. Time (in years) 4.0 At the beginning, the debtor filing for restructuring (reorganization) (in our case the Mirage ´s management) instructs an insolvency representative to prepare a restructuring opinion. Once the positive restructuring opinion is prepared, the debtor shall file for restructuring Page 58   within 30 days. The court commences restructuring proceedings within 15 days of the filling Slovak Republic Albania Czech Republic Hungary Italy OECD high income Doing Business 2018 Slovak Republic Details – Resolving Insolvency in Slovak Republic Indicator Answer Explanation Proceeding liquidation Mirage's management will file for reorganization in order to save the hotel. As BizBank holds (after an 74% of the debt, a reorganization plan cannot be approved without BizBank's consent. attempt at BizBank will most likely vote against reorganization, so that it could receive repayment of the reorganization) loan as soon as possible from the sale of assets in liquidation. If reorganization is not approved, the proceedings will be converted into liquidation. Outcome going concern The most likely outcome is that the hotel will be sold as a going concern to a new owner in the course of the liquidation proceedings. Time (in years) 4.0 At the beginning, the debtor filing for restructuring (reorganization) (in our case the Mirage ´s management) instructs an insolvency representative to prepare a restructuring opinion. Once the positive restructuring opinion is prepared, the debtor shall file for restructuring within 30 days. The court commences restructuring proceedings within 15 days of the filling of the petition and publishes a notice in the Commercial Journal (within 2-5 working days). Then the court approves the restructuring within 30 days of the commencement and notice is published in the Commercial Journal and an insolvency representative who prepared the opinion is appointed as trustee. Creditors shall submit proofs of debt within 30 days of the approval of the restructuring. Within 10 days after the deadline of the submission of proofs of debt, the trustee prepares a list of creditors. Then the 30-day period for rejection of claims runs after the deadline of the submission of proofs of debt. The trustee convenes the first Creditors´ Meeting (which is to elect a Creditors’ Committee) within 30 days of the court´s approval of the restructuring. The meeting should take place between the second and the seventh day after the deadline for the rejection of proofs of debt. The restructuring plan is being prepared and has to be submitted to the Creditors´ Committee (CC) for approval within 90 days of the approval of the restructuring by the court. This deadline may be extended by 150 days. A creditors´ committee may ask the debtor or trustee to modify the plan within 15 days of receipt. If the CC does not approve the plan, the trustee has to file for bankruptcy. If the plan is approved by the CC, the Approving Creditors´ Meeting votes on the plan within 30 days from the receipt of the request to vote on the plan. Then the court approves the plan within 25 days of its approval by Approving Creditors´ Meeting. Again, the court may reject the plan and then the proceeding is converted into bankruptcy. In its decision on the declaration of bankruptcy, the court also appoints the trustee and the decision is published in the Commercial Journal. Creditors submit proofs of claim to the trustee and the court within 45 days of the declaration of bankruptcy. The trustee convenes the first Creditors´ Meeting within 55 days of the declaration of bankruptcy. The meeting should take place between the 15th and 20th day after the lapse of the 30-day period for registration of claims. The bankruptcy proceedings usually take from one to several years. The longest part of liquidation proceedings will be sale of the assets. Cost (% of 18.0 Major expenses include attorneys' fees (around 3%), remuneration of the insolvency estate) representative (up to 6%), auctioneer's fees (up to 2.5%) and payments to other professionals involved in the insolvency proceedings (up to 6%), other expenses can be up to 3%. Recovery rate (cents on the 47.3 dollar) Details – Resolving Insolvency in Slovak Republic – Measure of Quality Answer Score Page 59   Strength of insolvency framework index (0-16) 13.0 dollar) Doing Business 2018 Slovak Republic Details – Resolving Insolvency in Slovak Republic – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 13.0 Commencement of proceedings index (0-3) 3.0 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (a) Yes, a creditor 1.0 may le for both liquidation and reorganization What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 4.0 Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit No 0.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0 assigned to post- commencement creditors Reorganization proceedings index (0-3) 3.0 Which creditors vote on the proposed reorganization plan? (b) Only creditors 1.0 whose rights are a ected by the proposed plan Does the insolvency framework require that dissenting creditors in reorganization Yes 1.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization Yes 1.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 3.0 Page 60   Does the insolvency framework require that dissenting creditors in reorganization Yes 1.0 receive Doing at least as Business much as 2018 what they Slovak would obtain in a liquidation? Republic Are the creditors devided into classes for the purposes of voting on the reorganization Yes 1.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 3.0 Does the insolvency framework require approval by the creditors for selection or Yes 1.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to Yes 1.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost Page 61   (i) notice period for redundancy dismissal; (ii) the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Slovak Republic Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Slovak Republic Answer Hiring Page 62   Fixed-term contracts prohibited for permanent tasks? No days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Slovak Republic Details – Labor Market Regulation in Slovak Republic Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single xed-term contract (months) 24.0 Maximum length of xed-term contracts, including renewals (months) 24.0 Minimum wage applicable to the worker assumed in the case study (US$/month) 502.1 Ratio of minimum wage to value added per worker 0.3 Maximum length of probationary period (months) 3.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 20.0 Premium for work on weekly rest day (% of hourly pay) 0.0 Premium for overtime work (% of hourly pay) 25.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 25.0 Paid annual leave for a worker with 5 years of tenure (working days) 25.0 Paid annual leave for a worker with 10 years of tenure (working days) 25.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 25.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? Yes Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? Yes Page 63   Third-party Doing approval Business 2018 if nine workers Slovak are dismissed? Republic No Retraining or reassignment obligation before redundancy? Yes Priority rules for redundancies? No Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 8.7 Notice period for redundancy dismissal for a worker with 5 years of tenure 13.0 Notice period for redundancy dismissal for a worker with 10 years of tenure 13.0 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 11.6 Severance pay for redundancy dismissal for a worker with 1 year of tenure 0.0 Severance pay for redundancy dismissal for a worker with 5 years of tenure 8.7 Severance pay for redundancy dismissal for a worker with 10 years of tenure 13.0 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 7.2 Job quality Equal remuneration for work of equal value? Yes Gender nondiscrimination in hiring? Yes Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 238.0 Receive 100% of wages on maternity leave? No Five fully paid days of sick leave a year? No Unemployment protection after one year of employment? No Minimum contribution period for unemployment protection (months)? 24.0 Business Reforms in Slovakia In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Slovakia implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Enforcing Contracts: The Slovak Republic made enforcing contracts easier by adopting a new code of civil procedure that introduces pre-trial conference as part of the case management techniques used in court. DB2017 Paying Taxes: The Slovak Republic made paying taxes less costly and easier by reducing the motor vehicle tax and the number of property tax payments. Page 64   Minimum contribution period for unemployment protection (months)? 24.0 Doing Business 2018 Slovak Republic Business Reforms in Slovakia In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Slovakia implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Enforcing Contracts: The Slovak Republic made enforcing contracts easier by adopting a new code of civil procedure that introduces pre-trial conference as part of the case management techniques used in court. DB2017 Paying Taxes: The Slovak Republic made paying taxes less costly and easier by reducing the motor vehicle tax and the number of property tax payments. DB2016 Starting a Business: The Slovak Republic simpli ed the process of starting a business by introducing court registration at the one-stop shop. Paying Taxes: The Slovak Republic made paying taxes easier for companies by introducing an electronic ling and payment system for VAT—and made paying taxes less costly by reducing the corporate income tax rate and making medical health insurance tax deductible. At the same time, the Slovak Republic reduced the limit on losses carried forward. DB2015 Starting a Business: The Slovak Republic made starting a business easier by reducing the time needed to register with the district court and eliminating the need (and therefore the fee) for the veri cation of signatures by a notary public. Getting Credit: The Slovak Republic improved its credit information system by implementing a new law on the protection of personal data. DB2014 Starting a Business: The Slovak Republic made starting a business more di cult by adding a new procedure for establishing a limited liability company. Paying Taxes: The Slovak Republic made paying taxes more costly for companies by increasing the corporate income tax rate and by adjusting land appraisal values. Labor Market Regulation: The Slovak Republic reduced the maximum cumulative duration of xed-term contracts, reintroduced the requirement for third-party noti cation when terminating an employee, reintroduced mandatory severance pay for workers with more than 2 years of service in the company and increased the minimum wage. DB2013 Starting a Business: The Slovak Republic made starting a business easier by speeding up the processing of applications at the one-stop shop for trading licenses, income tax registration and health insurance registration. Paying Taxes: The Slovak Republic made paying taxes easier for companies by implementing electronic ling and payment of social security and health insurance contributions. Enforcing Contracts: The Slovak Republic made enforcing contracts easier by adopting several amendments to the code of civil procedure intended to simplify and speed up proceedings as well as to limit obstructive tactics by the parties to a case. Resolving Insolvency: The Slovak Republic improved its insolvency process by rede ning the roles and powers of creditors and trustees, strengthening the rights of secured creditors and rede ning rules for the conversion of restructuring into a bankruptcy proceeding. Labor Market Regulation: The Slovak Republic increased the maximum duration of xed-term contracts, eliminated noti cation requirements to third parties in case of redundancy dismissals and reduced redundancy costs. Page 65   trustees, strengthening the rights of secured creditors and rede ning rules for the conversion of restructuring into a bankruptcy proceeding. Doing Business 2018 Slovak Republic Labor Market Regulation: The Slovak Republic increased the maximum duration of xed-term contracts, eliminated noti cation requirements to third parties in case of redundancy dismissals and reduced redundancy costs. DB2012 Getting Credit: The Slovak Republic improved its credit information system by guaranteeing by law the right of borrowers to inspect their own data. DB2011 Labor Market Regulation: Slovak Republic reduced the maximum duration of xed-term contracts. DB2010 Trading across Borders: The Slovak Republic reduced the time for trading across borders by introducing more electronic systems for customs administration. DB2009 Starting a Business: The Slovak Republic made starting a business easier through its one-stop shop, which merged 4 procedures into 1 and reduced costs. Page 66   Starting a Business: The Slovak Republic made starting a business easier through its one-stop shop, which merged 4 procedures into 1 and Doing reduced costs. Business 2018 Slovak Republic Page 67