The Slovak Republic government enacted a bill on 18 October 2024 to improve the state’s public finances by amending several tax measures and introducing a new financial transaction tax.

Corporate tax rates

The corporate tax rate has been increased from 21% to 24% for incomes over EUR 5 million.

Corporate tax rate for small taxpayers

The corporate tax rate for small taxpayers has been reduced from 15% to 10%, and the taxable income threshold for this rate is raised from EUR 60,000 to EUR 100,000.

VAT

The standard VAT rate has been increased from 20% to 23%. The reduced VAT rate will increase from 10% to 19%, except for a 5% rate on essential foods, medicines, newspapers, books, accommodation, catering, and sporting events. The 19% rate will apply to other food items and electricity.

Withholding tax rate

The withholding tax rate on dividends for individuals has been reduced from 10% to 7%.

Financial transaction tax

The financial transactions tax applies to transactions conducted by legal entities and individual entrepreneurs, and the rates will be determined based on the type of transaction:

  • Debit transactions: 0.40% fee, max EUR 40 per transaction
  • Payment card use: EUR 2 annually
  • Cash withdrawals: 0.8% fee
  • Recharging costs: 0.40% of overcharged amount

The new amended tax measures and the newly introduced financial transactions tax will take effect on 1 January 2025.