Business and Corporate Taxation – Slovakia

For companies with taxable revenues up to €100,000 per tax period. Previously uniform rate, now tiered system. Applies to majority of Slovak companies. Competitive with regional rates. Loss carryforward up to 4 years with limitations. Quarterly advance payments required.

For companies with taxable revenues €100,000 - €5,000,000. Introduced tiering to tax larger companies more. Three percentage point increase over small business rate. Still competitive internationally. Represents middle tier in new structure.

Completely new provision from 2026 consolidation. Applies only to companies with taxable revenues exceeding €5,000,000. Tripled from previous €3,840. Ensures largest companies pay minimum tax regardless of deductions or losses. Anti-avoidance measure. Major impact on multinationals and large domestic groups.

For self-employed with revenues under certain threshold. Simplified accounting and tax calculations. Can use lump-sum expenses 60% (max €20,000) instead of actual expenses. Accelerated depreciation available. Full loss deduction in first year. Must meet various conditions. Attractive for small entrepreneurs and freelancers.

Reduced taxation on income from intellectual property rights. Encourages R&D and innovation. Must meet conditions: own patents, utility models, software copyright. Nexus requirement: connection between R&D expenses and IP income. Effective tax rate can be significantly reduced. Requires proper documentation and transfer pricing.

Tax relief for qualifying investments in production, technology centers, shared service centers. Income tax holidays for certain periods. R&D deductions increased. Regional incentives in less developed areas. Must create jobs and meet investment minimums. Deduction period extended to 9 years in 2026.

Increased from 20% to 23% in 2025. Among highest in EU. Reduced rate 19% for certain goods (food, books, medicine). From 2026: high sugar/salt foods moved to 23% (chocolate, sweets, chips, sugary drinks). Cashless payments mandatory from March 2026 for services. Registration threshold approximately €50,000.

Major change from 2026: VAT deduction for company cars used also for private purposes limited to 50%. Applies to purchase, leasing, and all operating costs (fuel, repairs, insurance). Previous 80% flat deduction for fuel abolished. 100% deduction only if exclusively business use with strict documentation. No more mileage logbook requirements for 50% method.

General tax amnesty for 6-month period. Pay tax arrears or declare additional tax without penalties or late-payment interest. Applies to: income tax, corporate tax, VAT, excise duties, motor vehicle tax, insurance tax. Must pay/declare by June 30, 2026. One-time opportunity to regularize tax position. Encouraging compliance and boosting revenue.