Effective January 1, 2011, capital gains in Slovakia are subject to social security charges at progressive rates. Also effective January 1, 2011, worldwide income earned by Slovak tax residents who are subject to the Slovak social security system is subject to health insurance contributions. Specifically, dividends are now subject to health insurance contributions at a rate of 10% on the difference between the dividends received and €3,948.72. In addition, capital gains are subject to a 14% rate on the difference between sales proceeds and the actual acquisition costs connected with the sale. Certain types of income (e.g., income that is subject to withholding tax as well as income from contracts on work outside of an employment arrangement) are not subject to the new health insurance contributions.