Newsletter
Entrepreneurial obligations and selected legislative changes from 2025
Financial transaction tax, new VAT rates (23 % / 19 % / 5 %), motor vehicle tax, annual tax reconciliation, and financial statements. An overview for Slovak company directors at the start of 2025.
Dear clients,
We would like to inform you about upcoming obligations for entrepreneurs as well as selected recently approved changes in tax legislation relevant from 1 January 2025.
Below is an overview of the most important points you should not overlook.
1. Financial transaction tax — amendment to the Act
As of 1 January 2025, a new financial transaction tax under Act No. 279/2024 Coll. is in effect. It applies to all financial transactions involving the debit of funds from taxpayers' accounts.
Taxpayers include entrepreneurs (individuals), legal entities with accounts in Slovakia or carrying out activities in the Slovak Republic, and foreign entities meeting these criteria. Non-profit organizations are exempt in many cases.
Expansion of the taxable subject
The tax base also includes a financial transaction related to a taxpayer's activity carried out in Slovakia, executed by another entity (e.g., a central parent company), which the taxpayer subsequently re-posts in accounting. A rate of 0.4 % applies, with a maximum of €40 per transaction (for transactions up to €10,000). The taxpayer must be able to provide evidence of the transaction — if not, the €40 limit does not apply.
Tax rates
- 0.4 % on debit transactions (max. €40 per transaction)
- 0.8 % on cash withdrawals (no limit)
- €2 per year for using a payment card (a single annual amount per card)
Reporting obligations
- Taxpayers must inform banks of those accounts from which transactions not subject to tax will be carried out.
- If a legal entity is not a taxpayer (e.g., a non-profit organization), it must inform its bank of this fact.
Exemptions
Transactions related to tax and levy payments, transfers between accounts at the same provider (for the same taxpayer), and certain specific operations (e.g., of non-profit organizations or consolidated accounts) are not subject to tax.
Who remits the tax
Primarily banks and payment service providers operating in Slovakia. For foreign accounts, the responsibility lies with the taxpayers themselves.
Tax period
Calendar month (first period: April 2025); for payment cards, the calendar year.
What needs to be done
- All sole proprietors must set up a transaction account by 31 March 2025 and actively use it from this date onward.
- Calculate and remit the tax yourselves (through your accountant) for all bank accounts outside Slovakia — foreign banks will not calculate and remit the tax (unlike Slovak banks).
2. VAT changes from 1 January 2025
From 1 January 2025, new VAT rates and rules for their application come into force.
New rates:
- Standard VAT rate: increased from 20 % to 23 %.
- New reduced VAT rate: a 19 % rate introduced for selected items.
- Lowest VAT rate: reduced from 10 % to 5 % for selected goods and services.
Examples by rate
| Rate | Goods and services |
|---|---|
| 23 % | Alcohol, tobacco, electronics, clothing, regular goods and services |
| 19 % | Other foods (except basic ones), electricity, non-alcoholic beverages in restaurants |
| 5 % | Bread, milk, meat, medicines, books, accommodation, meals in restaurants |
Determining the correct rate
Based on the date the tax liability arises:
- Goods / services delivered by 31 December 2024: old VAT rate applies.
- Goods / services delivered from 1 January 2025: new VAT rate applies.
Advance payments before delivery
- Payment received in 2024 is subject to the old rate, even if delivery takes place in 2025.
- Payment received in 2025 is subject to the new rate.
Practical examples
- Goods delivered 30 December 2024, invoice issued 3 January 2025 → 20 % rate.
- Goods delivered 2 January 2025 → 23 % rate.
- Restaurants: meals 5 %, non-alcoholic beverages 19 %, alcohol 23 %.
- A deposit for goods in December 2024 is subject to the 20 % rate. The remaining amount for delivery in January 2025 is subject to 23 %.
- Returned goods — when correcting the tax base, the original rate valid at the time of delivery applies.
Recommended steps for entrepreneurs
- System preparation — update billing systems or eKasa for the new rates.
- Review contract terms, especially clauses on changing VAT rates.
- Communicate with partners and customers about the impact of rate changes on prices.
- Internal procedures for invoicing at year-end.
- Employee training on proper VAT application.
- Transitional situations — for mixed supplies, follow the date the tax liability arises.
3. Motor vehicle tax
Filing the tax return for 2024
By 31 January 2025, all taxpayers are required to file a motor vehicle tax return for the previous calendar year.
Who is a taxpayer
- An individual or legal entity registered as the vehicle holder in the vehicle registration certificate.
- An employer who pays travel allowances to an employee for the use of a vehicle not designated for business.
Tax payment
The tax is also due by 31 January 2025.
Tax rate
- For passenger vehicles in category M1, the annual tax rate ranges from €50 to €218 depending on engine displacement.
- For a category M1 vehicle powered solely by electricity, the tax rate is €0.
- For HEV (hybrid) or PHEV (plug-in hybrid): the rate may be reduced by 50 %.
- The rate is further adjusted based on the age of the vehicle.
4. Employee annual tax reconciliation (RZD)
Practical steps
- The employee submits a request by 17 February 2025.
- The employer performs the reconciliation by 31 March 2025.
- End of April 2025 — the employee receives confirmation of the completed reconciliation.
Settlement
- Overpayment: refunded no later than with the April 2025 payroll, payable by end of May 2025.
- Underpayment: deducted from the salary.
Other important points
- The employer may perform the reconciliation only for an employee not required to file a tax return under § 32 of the Income Tax Act.
- By 17 February 2025, the employee must submit a written request and all necessary documents (proof of income, children's birth certificates, proof of interest paid on loans, documents for the third pension pillar). If missed, the employee must file a Type A tax return by 31 March 2025.
- If the employee worked for multiple employers, they must submit proof of income from all of them.
- Former employees may also request a reconciliation from their last employer.
5. Financial statements, tax return, and approval by the general meeting
Financial statements for 2024
Deadline for preparation: no later than the deadline for filing the 2024 tax return.
Content: income statement (profit and loss), balance sheet, notes to the financial statements.
Filing the 2024 income tax return
- Corporate income tax returns: must be filed by 31 March 2025, unless extended to 30 June 2025 (in special cases to 30 September 2025).
- Personal income tax returns (for sole proprietors): must be filed by 31 March 2025, unless extended.
The extension notice must be submitted no later than 31 March 2025 (except for companies in liquidation or bankruptcy).
Tax license (minimum tax)
Legal entities must pay a minimum tax if operating at a loss or if their tax liability does not reach the minimum tax amount:
| Annual taxable income | Minimum tax |
|---|---|
| Up to €50,000 | €340 |
| €50,000.01 – €250,000 | €960 |
| €250,000.01 – €500,000 | €1,920 |
| Above €500,000 | €3,840 |
Example: If a company's revenues are €40,000 and its tax liability is €200, it must pay a minimum tax of €340 (instead of the calculated €200).
Corporate income tax rates
For the 2024 tax return:
- 15 % if taxable income does not exceed €60,000
- 21 % if taxable income exceeds €60,000
From 1 January 2025, rates change (relevant for the 2025 tax return, filed by 31 March 2026):
- 10 % for taxable income up to €100,000 inclusive
- 21 % for taxable income from €100,000 to €5,000,000 inclusive
- 24 % for taxable income above €5,000,000
Corporate income tax prepayments
- No prepayments: if the 2024 tax liability does not exceed €5,000.
- Quarterly prepayments: if between €5,000 and €16,600 — at 1/4 of the last known liability, payable by end of quarter.
- Monthly prepayments: if above €16,600 — at 1/12 of the last known liability, payable by end of month.
A legal entity may request the tax administrator to set prepayments differently — under § 42(10) of Act No. 595/2003 Coll.
Approval of annual financial statements by the general meeting
- Commercial companies are required to have the financial statements approved by the general meeting.
- Deadline: no later than one year after the end of the accounting period. For example, statements as of 31 December 2024 must be approved by 31 December 2025.
- After approval, a notice must be submitted within 15 working days.
Recommended procedure:
- Preparation of annual financial statements and tax return
- Approval by the general meeting
- Simultaneous submission of approved statements and the tax return to the Financial Administration
We are here for you
Capila is ready to help you implement these changes — expert consulting, tax planning, and accounting system updates.
Book a 30-min call or email us at info@capila.io.
Sincerely, The Capila team