The new regulations aim to streamline processes, address fiscal challenges, and impact both individual taxpayers and businesses.
1. CORPORATE INCOME TAX (since 1 January 2025)
1.1 Taxable costs from usage of company car
The income of an employee when using a company car for business purposes will now be considered to be only 1% or 0.5% of the purchase price of a car classified by source of energy as:
- electricity
- hybrid drive (combined drive of electricity and internal combustion engine)
In addition, such income (resulting from use of electric / hybrid company car) taxed by the employer will be considered as a tax-deductible cost.
1.2 Depreciation method changes
When changing the depreciation method, depreciation group, depreciation period, annual depreciation rate or coefficient, the taxpayer is also obliged to make changes to the assets that were depreciated according to the regulation effective until 31 December 2024 - while the already applied depreciation is not retroactively adjusted.
1.3 Income tax rate changes
The threshold for application of the reduced tax rate for individuals and legal entities is increased from the current EUR 60 000 up to EUR 100 000.
Also, income tax rates change as follows:
| Income threshold | Original rate | Amended rate (2025) |
| Incomes up to EUR 100 000 | 15% | 10% |
| Incomes from EUR 100 000 to EUR 5 000 000 | 21% | 21% |
| Incomes from EUR 5 000 000 | 21% | 24% |
| Withholding tax on dividends | 10% | 7% |
1.4 Amendment of fuel costs calculation
The new method of fuel costs calculation added the method according to the average monthly fuel prices in the Slovak Republic announced by the Statistical Office of the Slovak Republic for electricity consumed during charging.
2. PERSONAL INCOME TAX (since 1 January 2025)
2.1 Tax allowance on children
Tax allowance on children will be not more applicable to children over the age of 18.
The calculation of the tax allowances will be also changed as follows - using a percentage determined for the number of children:
- EUR 50 for a parent with a child over 15 but under 18
- EUR 100 for a parent with a child under 15
| Number of children | Percentage coefficient for decrease of tax base |
| 1 | 29% |
| 2 | 36% |
| 3 | 43% |
| 4 | 50% |
| 5 | 57% |
| 6 and more | 64% |
Tax allowances will be also decreased if the parent´s tax base is higher than 1.5 times the average monthly wage in the Slovak economy (when income exceeds EUR 3632 – the entitlement for allowance ceases).
3. TRANSACTION (BANK) TAX (since 1 April 2025)
3.1 Taxpayer and subject of tax
Generally, the transaction tax will be imposed on banks and financial institutions performing financial transactions in Slovakia. However, the companies and self-employers fall under the tax if they use foreign bank accounts (and the bank has no seat / branch in Slovakia).
Transaction tax will apply on the following transaction (financial operation):
- Any transfer of money for the bank account or withdrawal money from ATM
- Loan / mortgage payment (including interest)
- payment of bank fees or interest
- salary payment
- transfer of costs for performing a payment operation on behalf of another person
3.2 Exemptions
Transaction tax will not apply on:
- income of money on the bank account
- payment by debit card
- postal payment services, exchange services
- transfer between several bank accounts within one bank
- cashpooling
- offsetting of receivables or liabilities (does not apply to cashpooling)
- payment of tax, social and health insurance levy
3.3 Tax rates
The transaction tax rates are following (min tax rate is EUR 0.01):
| Tax rate | Tax base | Way of transaction |
| 0.4% (max. EUR 40) | From amount of money debited from bank account | By wire transfer (use of debit card) |
| 0.8% | By cash transfer | |
| 0.4% | From amount of recharged costs related to the execution of the financial operation and related to the taxpayer's activity in Slovakia | |
| EUR 2 | Payment by card regardless of the number of payments | |
3.4 Tax period
Since the tax will apply from 1 April 2025, the tax period is set as follows:
| Tax period | Due date for tax payment |
| Wire or cash transfer | Each month following after tax period (e.g. firstly by 31 May 2025) |
| Debit card payment | End of calendar year (e.g. 1 January 2026) |
| Account cancellation by 31 March 2025 | No tax obligation |
| Account cancellation between 1 April 2025 – 31 May 2025 | 31 July 2025 |
The companies are required to set up a business bank account by 31 March 2025 and use the business account exclusively. Transaction tax is treated as a tax-deductible cost.
Should you be interested in understanding how these changes may affect the operation of your business, please feel free to contact us.
