As of 2025, Slovakia has implemented changes to its Personal Income Tax (PIT) system aimed at stabilizing public finances and promoting fairness. This article provides an overview of the current PIT structure, including tax rates, taxable income categories, deductions, and recent legislative amendments.
Tax Residency and Scope of Taxation
Individuals who are tax residents of Slovakia are subject to taxation on their worldwide income. Tax residency is determined by having a permanent residence, a habitual abode exceeding 183 days in a calendar year, or a real residence indicating an intention to stay permanently. Non-residents are taxed only on their Slovak-source income, such as income from work performed in Slovakia or income from Slovak-based assets.
Personal Income Tax Rates
The PIT rates in Slovakia are progressive, meaning that higher income levels are taxed at higher rates. The current rates are as follows:
- 19% Rate: Applies to the portion of the tax base up to EUR 48,441.43.
- 25% Rate: Applies to the portion of the tax base exceeding EUR 48,441.43.
These thresholds are linked to the subsistence minimum, which is periodically adjusted. For 2025, the subsistence minimum is set at EUR 273.99, making the threshold for the higher tax rate 176.8 times this amount.
Taxation of Specific Income Types
Employment and Self-Employment Income
Income from employment and self-employment is subject to the standard progressive tax rates. However, for self-employed individuals (including sole proprietors), a reduced tax rate of 15% applies if their annual taxable income does not exceed EUR 100,000. If the income surpasses this threshold, the standard rates of 19% and 25% apply accordingly.
Capital Income
Income from capital assets, such as interest and other investment returns, is taxed at a flat rate of 19%. Notably, starting from January 1, 2025, interest income from government bonds and treasury bills issued by Slovakia, other EU member states, or EEA countries is exempt from tax for individuals, provided these are not part of the individual's business property.
Dividend Income
Dividends are subject to varying tax rates depending on the period in which the profits were generated:
- 7% Rate: Applies to dividends from profits before 2004, between January 1, 2017, and December 31, 2023, and from January 1, 2025, onwards.
- 10% Rate: Applies to dividends from profits generated in 2024.
A higher rate of 35% applies to dividends received from foreign sources in non-cooperative jurisdictions.
Deductions and Allowances
Basic Personal Allowance
Taxpayers can claim a basic personal allowance, which reduces their taxable income. For 2025, the allowance is EUR 5,753.79 for individuals with an annual net active income up to EUR 25,426.27. For higher incomes, the allowance is reduced progressively and is eliminated when income exceeds EUR 48,441.43.
Dependent Spouse Allowance
An allowance of up to EUR 5,260.61 can be claimed for a dependent spouse with no taxable income, provided the taxpayer's annual net active income does not exceed EUR 48,441.43. This allowance phases out as income increases and is unavailable when income surpasses EUR 69,483.86.
Tax Bonus for Dependent Children
From January 1, 2025, the tax bonus amounts are:
- EUR 100 per month: For each child under 15 years old.
- EUR 50 per month: For each child aged 15 to 18 years.
The bonus is subject to income limits and phases out for higher-income taxpayers.
Recent Legislative Changes
Several amendments have been introduced to the Income Tax Act effective from 2025:
- Electric Vehicles: To promote electromobility, the non-cash income for employees using employer-provided electric or hybrid vehicles for private purposes is reduced to 0.5% of the vehicle's entry price.
- Maximum assessment base for social insurance has increased up to 11 times of average salary, i. e. EUR 15,730.
- Parental Tax Benefit: Taxpayers can allocate 2% of their paid personal income tax to their parents who are recipients of old-age or disability pensions, up to a maximum of 4% (2% per parent, it is not possible to cummulate the percentage to one parent), provided each allocation is minimum EUR 3.
- Recreational voucher may by used also by the parents of the employee.
- Sports vouchers: It is mandatory to provide sports vouchers to children on sports activities to employees who has more than 24 months of employment by employers with more than 49 employees . Similarly to recreational vouchers the employer should pay 55% of the eligible cost up EUR 275.
Compliance and Filing Obligations
Taxpayers had to file an income tax return by March 31 of the year following the tax year or it is possible to extend the deadline until 30 June (provided the notification to the Tax Authorities is filed). Extension of the deadline until September may be granted under certain conditions. In the case where the individuals have only employment income, they may request the employer to prepare annual reconciliation (no tax return filing is necessary). Employers are responsible for withholding and remitting taxes on employment income.
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