Big tax changes in Slovakia
From 1 January 2025, the so-called consolidation package will come into force in Slovakia, which contains a number of significant changes:
- a new corporate income tax rate of 24% for persons with taxable income above EUR 5 million
- reduction of the tax rate from 15% to 10% for legal entities (taxable incomes up to 100 000 EUR)
- reduction of dividend withholding tax for individuals from 10% to 7%
- increase in the standard VAT rate from 20% to 23%
- increase in the first reduced VAT rate from 10% to 19% (the second reduced rate of 5% remains)
- increase in the highest amount of the assessment base for social security contributions from EUR 9 128 to EUR 15 730
Other significant changes concern the taxation of bank transfers and business withdrawals – the so-called financial transaction tax. The tax rates will be as follows:
- 4% on transfers of funds from a bank account
- 8% on cash withdrawals
- 4% on recharges from another person who has made payments related to its activities in Slovakia on behalf of the taxable entity
- 2 EUR/year for the use of a payment card for a company account
The first tax period will be April 2025. The tax period will be a calendar month and the tax will be due by the end of the following month. A notification of the amount of tax will be submitted to the tax authorities within the same period of time.
If you would like an advice on this or would like us to deal with these legal obligations for you, please do not hesitate to contact us.