Global Daily Tax News, Slovakia Announces Austerity Tax Measures, (Sep 12, 2025)

Slovakia's Government has announced a package of tax reform changes, including higher minimum taxes on large companies and two new personal income tax bands.

In the area of personal income tax, a 19 percent rate of personal tax will apply to annual income up to EUR44,000; a 25 percent rate will apply therefrom on income up to EUR60,000; a 30 percent rate will apply therefrom on income to EUR75,000; and a 35 percent rate will apply on income exceeding EUR75,000.

The introduction of a four-rate regime marks a significant departure from the current regime, aimed at increasing progressivity, with the current regime featuring a 19 percent rate on income up to EUR48,441.43 and a 25 percent rate thereafter.

Meanwhile, the Government has announced a hike to the tax license for the country's largest companies. The levy functions as a minimum tax. A new band is being introduced for companies with turnover exceeding EUR5m, who must pay a rate of EUR11,520, up substantially from EUR3,840. The other rates remain unchanged.

The special levy on entities engaged in collective investment is being raised to 15 percent, up from 4.36 percent.

The Government has also recently announced plans to introduce a digital services tax.

VAT on certain foods with high sugar or salt content will be raised to 23 percent, up from 19 percent, and the VAT deductibility of vehicles used for private purposes as well as business purposes will be capped at 50 percent.

Other changes include hikes to gambling levies, with the rate on online gambling rising from 27 percent to 30 percent, on casinos to 14.3 percent, and gambling halls to 16.9 percent.

The non-life insurance tax rate will rise from eight percent to 10 percent, and the health contribution from employees will increase by one percentage point.

Finally, the Government has announced plans for a tax amnesty scheme, enabling taxpayers to settle taxes due under concessionary terms during the period January 1, 2026, to June 30, 2026. It will cover income tax, VAT, excise taxes, motor vehicle tax, property tax, and insurance premium tax.

The amnesty will not cover tax instalments, advance tax payments, special business levies in regulated sectors, the solidarity contribution, or local taxes and fees.