A new amendment to the Financial Transaction Tax Act, effective 1 January 2026, limits the tax to legal entities and foreign company branches.
The National Council of the Slovak Republic has passed an amendment to Act No. 279/2024 Coll. on the Financial Transaction Tax (FTT), bringing several significant changes into effect on 1 January 2026.
Sole traders or self-employed individuals will no longer be liable to pay this tax. The Financial Transaction Tax will now apply only to legal entities and foreign companies operating in the Slovak Republic, with clarified rules on permanent establishments, tax scope, procedural deadlines, and stricter penalties for incorrect transactions.
The update also introduces a more apparent distinction between taxpayers with limited and unlimited tax obligations, provides precise definitions for terms such as transaction account, permanent establishment, and payment card usage, and establishes a definition for cost reallocation.
Earlier, the Slovak Republic’s Ministry of Finance was consulting on a draft bill to narrow the scope of taxpayers for the Financial Transactions Tax (FTT), effective April 2025. The draft bill exempted foreign subsidiaries/branches with prior taxable income of less than EUR 100,000 and individual entrepreneurs from the financial transactions tax.
