Slovak Republic’s parliament passed a government bill on 3 October 2024 introducing a new tax on financial transactions and amending several acts, including VAT and income tax rates.
The key details of the bills are as follows:
Financial transaction tax
The financial transaction tax applies to individual entrepreneurs, legal entities, and branches of foreign entities that utilise payment service providers for financial transactions.
The parliament has approved the following final tax rates:
- a 0.40% fee on debit financial transactions, capped at EUR 40 per transaction;
- a 0.8% charge on cash withdrawals;
- a 0.40% tax on recharging costs, and;
- an annual fee of EUR 2 for payment card use.
The financial transaction tax will take effect on 1 January 2025.
Corporate income tax (CIT)
The parliament has approved amendments to the Income Tax Act, raising the corporate tax rate from 21% to 24% for companies with taxable income exceeding EUR 5 million. The initial proposal suggested a corporate tax rate of 22% for taxable income over EUR 1 million.
The proposed amendments will take effect on 1 January 2025.
Value added tax (VAT)
The parliament has approved the proposed amendments to the VAT law, set to take effect on 1 January 2025.
The amendments include revised lists of goods and services subject to reduced VAT rates of 19% and 5%.
Electricity and certain food items will be taxed at 19%. In comparison, the 5% tax rate applies to essential items such as basic foods, books, newspapers, catering services, medicines, tourism accommodations, and sports venue entry.
Special contribution to business in regulated industries
The parliament approved amendments to the Law on exceptional contributions for regulated industries, effective 31 December 2024. The parliament rejected the proposed increase in monthly levies for energy companies and distributors.
Solidarity contribution on surplus profits
The Parliament has approved amendments to the Law on solidarity contributions for the crude petroleum, natural gas, coal, and refinery sectors, effective 31 December 2024.
The bill must be signed by the President and published in the Collection of Laws for it to become law.
