The Slovak Republic government approved a draft legislation on 18 September 2024 amending various tax measures to consolidate the country’s public finances.
Taxation of high-income groups: The main changes include increased special levies for energy companies, refineries, and mobile operators and raising the corporate income tax rate from 21% to 22% for high-income taxpayers whose taxable income exceeds EUR 5 million.
Value added tax (VAT): The standard VAT rate will rise from 20% to 23%, while reduced VAT rates will change from 5% and 10% to 5% and 19%.
Taxation of financial transactions: Effective 1 April 2025, a new tax will be introduced on transactions by legal entities and individual entrepreneurs. The tax will apply to bank transfers (0.35%, up to EUR 30), cash withdrawals from banks/ATMs (0.7%), company payments card usage (EUR 2 annual fee), loan interest payments, securities purchases, commissions and fees.
Taxation of small businesses and self-employed individuals: The changes include reducing the corporate income tax rate from 15% to 10% for taxpayers with incomes up to EUR 100,000. Proposals have also been put forward to increase the taxable income threshold for the 15% personal income tax rate to EUR 100,000 and to lower the withholding tax on dividends from 10% to 7%.
