Blog

7.10.2025

Forthcoming Changes to the Slovak Income Tax Act from 1 January 2026

From the beginning of 2026, several significant amendments to the Slovak Income Tax Act (No. 595/2003 Coll.) will come into force. These changes will impact the non-taxable portions of the tax base, the progressive income tax rates for individuals, and the minimum tax for corporate entities. The primary aim of these measures is to increase state budget revenue whilst adjusting the tax burden in line with income levels.

‍

Adjustments to the non-taxable allowance per taxpayer:

A reduction in the value of the non-taxable allowance is being introduced by limiting the multiples of the subsistence minimum used for its calculation:

Per taxpayer: From 1 January 2026, the value of the non-taxable allowance will be derived from 91.8 times the subsistence minimum, instead of the current 92.8 times.
Per spouse: The calculation will be based on 154.8 times the subsistence minimum, replacing the former 176.8 times. Furthermore, the previous formula of 63.4 times the valid subsistence minimum plus one quarter will be amended to 70.8 times the subsistence minimum plus one third.

‍

Increased progressivity in income tax for individuals on earnings from employment (§ 5), rental income (§ 6 par. 3), and income from the use of artistic works and performances (§ 6 par. 4):

‍

‍

Increased progressivity in income tax for individuals engaged in business or other self-employment activities (§ 6 par. 1-2):

‍

‍

Changes to the minimum corporate tax from 1 January 2026:

Under the Slovak law, the minimum tax is payable by a taxpayer whose tax liability for the tax period is lower than the statutory minimum, provided they have generated taxable income.

‍

These measures are designed to boost public finances, yet they will concurrently place a greater tax burden on higher-income groups and large corporations. It will be crucial for both entrepreneurs and employees to prepare for these new regulations during 2025 and incorporate them into their tax planning.

Subscribe to the news

Be the first to know about the latest information from the world of taxation, accounting and auditing.

Ďakujeme za vyplnenie, potvrďte email vo vašej schráke.

Oops! Something went wrong while submitting the form.

Blog

Read other news as well.

Slovakia's Third Consolidation Package: What Changes to Expect?

October 2, 2025

Slovakia faces major legislative changes in 2025-2026. We've prepared a summary of the key updates in taxes, VAT, contributions, and the Labour Code.

Micro-taxpayer: conditions and tax advantages

September 26, 2025

The micro-taxpayer status in Slovakia brings significant tax advantages. Find out if you qualify and how to use accelerated depreciation or full loss deduction.

Purchasing an EV for a company: Tax reliefs and financing options

September 19, 2025

Considering an EV for your Slovak company? It offers significant tax relief beyond green benefits. Here's an overview of depreciation, taxes, and financing.

Contribution Capital Fund in Slovakia: How It Works and Why to Use It?

September 9, 2025

Are you considering other forms of financing for your company in Slovakia? The contribution capital fund is an effective tool for strengthening its stability and credibility without additional loans.

Special VAT exemption scheme for small enterprises (special SME scheme)

September 5, 2025

From 1 January 2025, small enterprises with a turnover of up to €100,000 can use the special VAT exemption scheme in the EU. Simplify your administration and avoid registrations in other Member States.

Top-up Tax in Slovakia: Key Information and Obligations

September 2, 2025

A new top-up tax is in effect in Slovakia, which also brings new tax returns and notification obligations. Find out what rules and deadlines apply and whether they also concern you.

How to Prepare an Annual Report Correctly

September 2, 2025

Is your annual report complete? Check the mandatory requirements in Slovakia, avoid common mistakes, and find out if new ESG reporting rules apply to you.

How to Legally Avoid Tax When Selling a Company: Holding Structure and Exemption under Section 13c of the Income Tax Act

September 2, 2025

Selling a company can represent a high tax burden. However, Slovak legislation allows for a tax exemption under Section 13c of the Income Tax Act. To apply it, it is necessary to meet conditions such as the holding period of the share and proving that it is not a shell company.

Tax Offences: When can a breach of tax obligations lead to criminal liability?

September 2, 2025

An overview of tax offences according to the Criminal Code. Find out when an error becomes a criminal offence and what its legal consequences are.

How are cryptocurrencies taxed in 2025?

September 2, 2025

Do you own cryptocurrencies and are considering selling them in 2025? Different taxation rules apply to natural persons, sole traders, and companies. Get an overview of rates, contributions, and expenses, and optimise your tax liability.

Super-deduction of research and development expenditures: How to legally reduce your tax liability

September 2, 2025

Learn how to use the super-deduction of research and development expenditures to effectively reduce your tax base. An overview of the conditions, eligible costs, and procedures necessary for its successful application.

New VAT Return Form Valid from 1 July 2025

September 2, 2025

Overview of changes in the new VAT return form (model DPHv25_1), valid from 1 July 2025. Find out what is changing in the structure, lines, and self-assessment of imported goods.

Posting of an Employee vs. a Business Trip to the EU: A Guide to Employer Obligations

September 2, 2025

When your employee is temporarily working in the EU, ensure they remain insured in Slovakia. This will help you avoid potential penalties from foreign institutions. We've summarized everything you need to remember.

Mandatory e-invoicing from January 1, 2027: What you need to know?

September 2, 2025

From January 1, 2027, mandatory e-invoicing is planned for VAT payers in Slovakia. Find out what this change, according to the draft law, means for your business.

The Invoice: Your Key to Proper Accounting and Taxes

The invoice is one of the most important documents for every entrepreneur. In this article, you will learn what elements it must contain, what forms it can take according to the VAT Act, and what to look out for when issuing and archiving it.

DAC7: The Financial Administration is Already Auditing Income from OnlyFans, Sashe, YouTube, and Airbnb. Have You Declared Yours?

Earning on digital platforms like YouTube, Airbnb, or OnlyFans? The DAC7 directive gives the Financial Administration access to your income data. Learn about your tax obligations and how to legally optimize them.

Startups and Taxes: The Most Common Questions for New Entrepreneurs

Want to start a business? Find out which legal form to choose, what tax and accounting obligations await, and what to watch out for right from the start. An overview of key information for sole proprietors, startups, small businesses, and new entrepreneurs.

Foundations and Statutory Obligations: What Not to Forget and How to Keep Track of Deadlines

An overview of key obligations for foundations, including the annual report, tax returns, record-keeping for the 2% tax designation, and audit conditions. Navigate deadlines and legal limits without unnecessary errors.

The Most Common Accounting Deficiencies Revealed During an Audit: What to Watch Out For?

Overview of the top 5 accounting deficiencies found during an audit – from outdated contracts and missing policies to weak controls and incorrect asset records.

How Much Does an Audit Cost? Factors influencing the price of an audit in a company.

What will be the cost of an audit? It depends on several factors, especially turnover, the nature of the business, and the complexity of accounting processes. However, based on specific examples, you can estimate the approximate costs in advance.

3 Mistakes to Avoid in Audit Preparation That Will Save You Hundreds of EUR

Proper audit preparation can significantly shorten the entire process and save a company hundreds of euros. This article highlights the three most common mistakes that unnecessarily prolong the audit and increase its cost and offers specific tips on how to avoid them.

Social Insurance Agency and Contributions: Correct Procedure for Contributions and Avoiding Penalties

Overview of employer responsibilities regarding contributions to the Social Insurance Agency and tax payments. Learn how to correctly set deadlines, avoid penalties, and comply with statutory periods for contributions and advance payments.

Paperless Accounting: The Path to More Sustainable Business – How Switching to Digital Documents Reduces Costs and Increases Efficiency.

A practical guide for companies looking to switch to paperless accounting – covering benefits, legislation, technologies, and tips for smooth implementation.

Company Merger: The Benefits of Consolidation for Cost Optimization and Process Efficiency

A brief and practical guide to company mergers – why choosing a merger over liquidation makes sense, what benefits it brings, and why cooperation with an auditor is essential.

Employment vs. Self-Employment: When Is It Dependent Work and When Is It Business?

The blog explores the differences between employment and self-employment, explains the characteristics of dependent work and sole proprietorship, and highlights the risks of illegal employment through the Švarc System. It provides an overview of legal consequences, penalties, and recommendations on how to stay compliant with the law.

The Most Common Mistakes in Filing Personal Income Tax Returns and How to Avoid Them

The blog focuses on the most common mistakes in filing personal income tax returns and how to avoid them. Its goal is to help taxpayers prevent penalties and issues with the tax authorities.

Tax residency in Slovakia

The blog discusses the importance of tax residency and its impact on income taxation. It explains who is considered a tax resident in Slovakia, how dual residency is addressed, and what criteria are used to determine the correct tax residency.

Silent Partnership: How a Silent Partner Works and What It Brings to Your Business

A silent partnership is an effective way to obtain capital without losing control over the company. A silent partner invests funds in exchange for a share of the profits without participating in management. This blog explains their rights, tax aspects, and benefits for entrepreneurs.

Changes in the minimum wage in Slovakia from 2025

The blog provides an overview of changes to the minimum wage in Slovakia since 1 January 2025, including new rates, impact on employees' net wages, deductions, employer costs and work surcharges.

Tax Optimization vs. Tax Evasion: How to Differentiate a Legal Strategy from a Risky One?

Discover the difference between legal tax optimization and risky tax evasion. Learn how to effectively reduce your tax burden while staying compliant with the law.

Tax Bonus from 2025: Key Changes

Starting January 1, 2025, the rules for the tax bonus on children are changing. The updates include age limits, bonus amounts based on the child’s age, and new income threshold conditions. This article provides an overview of the key changes, calculations, and practical examples to help you better understand how these updates will impact your finances.

Tax Inspection in Slovakia: What You Need to Know and How to Prepare for It

This blog provides a comprehensive overview of a tax audit—why it occurs, how it is conducted, and how to prepare for it effectively. You will learn about your rights and obligations during the audit, common mistakes made by entrepreneurs, and practical advice on how to avoid problems and manage the audit without stress.

How to Invoice at the Turn of the Year? A Practical Guide for 2024/2025

A practical guide to year-end invoicing for 2024/2025, helping entrepreneurs navigate VAT rate changes and tax liability rules. Learn how to correctly handle invoicing, process advances, adjust documents, and update invoicing systems to avoid mistakes and ensure compliance with legislation.

When do you need to have financial statements certified by an auditor?

In this blog you will learn when the verification of financial statements by the auditor is mandatory, what conditions must be met, the amount of possible fines for non-compliance and the practical benefits that the audit brings.

Consolidation measures: income tax rates for companies from 1 January 2025

The article informs about changes in taxes from 1 January 2025. Income tax rates for lower-income businesses are reduced and withholding tax on dividends falls to 7%. Includes an overview of the new rates and a comparison with 2024.

Financial Transaction Tax from 2025: What individuals - entrepreneurs should know

This article provides an overview of the new financial transaction tax that will come into force from 1 April 2025. It focuses on what individual entrepreneurs (sole traders) need to know, including rates, exemptions, obligations and practical tips on how to prepare for these changes and avoid penalties.

Financial Transaction Tax (2025): Practical Information for Entrepreneurs

Changes to the VAT Act from January 1, 2025: What You Need to Know

Act No. 251/2024 Coll. on the Tax on Sweetened Non-Alcoholic Beverages

The Difference Between an Accountant and a Tax Advisor: Who’s Who?

Transition from a natural person to a limited liability company in 2024: What do you need to know?

Many entrepreneurs in Slovakia are considering whether it is worth changing the form of business from a natural person (FO) to a limited liability company (s.r.o.).

Voluntary VAT Registration: When and Why Is It Worth It?

If you are an entrepreneur and you have not yet reached a turnover of €49,790 in the last 12 months, you may be wondering whether it is worth registering for value added tax (VAT) voluntarily.