At a press conference on 17 September 2024, members of the Government of the Slovak Republic informed about measures to consolidate the public finances, the so-called consolidation package for the next year, which is expected to bring 2.6 – 2.7 billion euros to the state coffers.

VAT rates, tax bonus parameters will change, and several new taxes will be introduced. The information below is preliminary, all changes must be approved by the Parliament.

Higher levies and income tax rates for large companies and some employees

As part of the consolidation package, measures will be introduced, that will affect large companies or certain employees, namely:

  • • increase in the special levy for energy companies in regulated industries
  • • introduction of a special levy for refineries (production and processing of crude oil)
  • • increase in the special levy for mobile operators
  • • taxation of large companies: Corporate income tax rate of 24 % for companies with taxable income over 5 million EUR. For other companies, the corporate income tax rate remains unchanged at 21%
  • • increase in social contributions for high-income employees who have an income of more than 11 times the average wage

Changes to VAT rates from 2025

The following VAT rates will be introduced in the Slovak Republic from 01.01.2025:

  • • the basic VAT rate will be increased to 23 % (the current rate is 20 %)
  • • reduced VAT rate of 19 % will be applied to foodstuffs (excluding foodstuffs included in the 5 % tax rate) and electricity
  • • reduced VAT rate of 5 % is introduced on selected foodstuffs, textbooks, medicines and medical supplies, the rate remains on rental housing

Child tax bonus

The tax bonus will decrease with increasing income, and this change will affect those who earn more than 2,480 euros per month. Parents who earn more than 3,632 euros will lose their right to the tax bonus completely. Parents of children who reach the age of 18 will also lose it. Until now, entitlement ceases only when compulsory schooling is completed or at the latest by the age of 25.

Change for small businesses

Increasing the threshold of taxable income from EUR 60,000 to EUR 100,000.

Reduction of the Corporate income tax rate from 15% to 10%.

Change for self-employed persons / sole traders

Increasing the threshold of taxable income from EUR 60,000 to EUR 100,000.

Maintaining the Personal income tax rate of 15%.

Change of the dividend tax rate

Reduction of dividend withholding tax rate from 10 to 7%.

Toll increase for trucks

From 1.7.2025 an increase in tolls for trucks is proposed.

Reduction of motor vehicle tax for trucks to the level of minimum rates. However, the motor vehicle tax for the personal vehicles of entrepreneurs will be increased.

Increase in the price of certain types of highway vignettes

Specifically, the annual one will be more expensive by 30 EUR (from 60 to 90 EUR) and the one-day one will increase to 8.10 EUR. The monthly vignette will remain at 17 EUR and the ten-day vignette will go down from 12 to 10.80 EUR.

Financial transaction tax

A financial transaction tax is introduced for entrepreneurs – natural persons and for business entities. The tax will be deducted by the bank from each transaction to the paying entity and also from ATM withdrawals. The preliminary tax rate is 0.40 % of each bank transaction (0.80 % for each cash withdrawal), max. 40 euros per transaction. An annual fee of € 2 is also introduced for the use of the payment card.