The 2026 public finance package introduces a sharply increased minimum corporate tax for large companies, raises VAT on high-sugar and high-sodium foods, and limits VAT deductions on motor vehicles to 50% between 2026 and 2028.

Regfollower Desk

The Slovak Republic has enacted Law 261/2025, dated 24 September 2025, as published in the Official Gazette, establishing measures to implement the public finance consolidation package for 2026.

The key tax measures include:

Minimum corporate tax changes

One of the main components of the public finance consolidation package for 2026 is the revised minimum tax for legal entities, which is based entirely on an entity’s taxable revenues for the taxable period.

The top annual license fee (minimum corporate tax) will rise from EUR 3,840 to EUR 11,520 for companies earning over EUR 5 million, while fees for smaller companies remain unchanged.

Effective for taxable periods starting no earlier than 1 January 2026, the minimum tax rates are scaled significantly:

  • taxable income not exceeding EUR 50,000 – EUR 340
  • taxable income exceeding EUR 50,000 up to 250,000 – EUR 960
  • taxable income exceeding EUR 250,000 up to 500,000 – EUR 1,920
  • taxable income exceeding EUR 500,000 up to 5 million – EUR 3,840
  • taxable income exceeding EUR 5 million – EUR 11,520

VAT changes

The VAT on high-sugar and high-sodium foods such as sweets, sweetened drinks, and salty snacks will rise from 19% to 23%, with certain items excluded from the reduced 19% rate.

The 50% VAT deduction rule for motor vehicles

Between 1 January  2026 and 30 June 2028, a taxpayer who acquires or uses an investment asset classified as a personal motor vehicle under a long-term lease must limit their VAT deduction to 50% of the tax payable on the car. Furthermore, for vehicles used for both business and non-business purposes, the VAT deduction for related services or goods (excluding investment assets, such as fuel, maintenance, or repairs) acquired during the 2026–2028 period will be limited to 50%.

Introduction of progressive personal income tax rates

The changes also revise the structure of income tax calculation, potentially affecting both corporations and self-employed individuals. The progressive tax rates are:

  • Up to EUR 44,000 (154.8 times subsistence minimum): 19%
  • EUR 44,001 – EUR 60,000 (212.4 times subsistence minimum): 25%
  • EUR 60,001 – EUR 75,000 (264 times subsistence minimum): 30%
  • Above EUR 75,000: 35%

The measures will take effect from 1 January 2026.