Income taxes

Last reviewed 08 Dec 2023

Tax rate

Tax rate of 19 %; tax rate of 25 % applicable to the tax base which exceeds 176.8 times the subsistence minimum (for 2025: tax base exceeding EUR 48,441.43 per year), i.e. this applies if the gross income exceeds approx. EUR 55,937 per year or approx. EUR 4,661.41 per month; tax rate of 15% applicable to entrepreneurs with taxable income (revenues) not exceeding the amount of EUR 100,000; tax rate of 7 % on dividends (dividends received from SK companies or contracting states from profit generated for tax periods from 2017 to 2023 and from profit generated for tax periods started from January 1,2025), tax rate of 10% on dividends (dividends received from SK companies or contracting states from profit generated for tax period 2024) or 35 % on dividends (dividends received from non-contracting states). Separate tax rate of 19% on certain types of capital income.

Special tax rates

N/A

Tax liability

Unlimited

Natural persons, with their residence (other than occasional accommodation available) or their habitual abode in Slovakia, on worldwide income (except as provided under applicable DTA)

Limited

Natural persons, who have neither their residence nor their habitual abode in Slovakia, or who is considered as tax resident according to DTA in another contracting state, on Slovak sourced income

Tax assessment period

Calendar year

Income categories

Income from

1. Employment
2. Self employment (including income from rental and leasing, and agriculture and forestry)
3. The special tax base from capital assets
4. Other income (sale of shares, sales of securities, sale of immovable properties, cryptocurrency income, etc.)

Accounting

Double or single-entry bookkeeping

Simplified tax records possible

Loss set-offs

Losses may be set off only within and between business and self-employment income categories

Loss carryback

N/A

Loss carryforward

Unlimited as to time for business income and self-employment income, provided loss calculated on the basis of generally accepted accounting practices.

no carryforward / set-off restrictions

Operating expenses

Expenses incurred to procure, secure or maintain business taxable income, and recorded in the tax-payer’s books and records; expenses with character of personal consumption spent also for private purposes tax-deductible to a limited level, either in form of fixed expenses of 80 % or at documented level

Tax allowable expenses

None except for statutory social insurance

Lump sum option

Taxpayers with income from business and self-employment income categories, use of the work of art and art performance: flat rate deduction of 60 % for business expenses is possible, however, only up to the amount of EUR 20,000 per year

Only if not registered for VAT or registered only part of the taxation period

Motor vehicles

Depreciation over 2 (electric cars) or 4 years

Acquisition cost: EUR 48,000 – restriction for tax depreciation

Social insurance

deductible

Withholding tax

As a general principle, a DTA can provide for a lower rate of taxation, and relief at the level of beneficial owner of the income is generally by applying (i) credit of tax withheld abroad or (ii) tax exemption of income already taxed abroad. Evidence of tax residence and beneficial ownership required.

Interest

19 % or applicable DTA

Royalties

19 % or applicable DTA

Dividends

Tax rate of 7 % is applicable when dividends are distributed from Slovak entities from profit generated for tax periods from 2017 to 2023 / tax rate of 10 % is applicable for tax period 2024/ tax rate of 7 % is applicable on dividends from profit generated for tax periods starting from January 1, 2025 or applicable DTA rate applies. Tax rate of 35% applies when dividends are distributed to non-contracting states or when beneficial owner of the dividend income cannot be proved.

The above applies to dividends from profits generated since 2017 (for prior years, specific rules apply).