taxes in Slovakia
taxes in Slovakia

In Slovakia, there is 19% natural person income tax rate. From the point of view of Europe, Slovakia has a standard tax system.

Income Tax Act controls the income tax, where there is a difference between a natural person and legal entity (hereinafter only "LE"). It follows that these two entities have different taxes. Payment of income tax is the duty of every citizen who achieved income above a certain threshold within the calendar year. For the year 2016 it's valid that in 2015, incomes had to be higher than €1,901.67.

As for natural persons (hereinafter only "NP"), it is the most frequently paid tax in Slovakia. For the year 2016, valid threshold is €1,901.67of incomes in 2015. Overall incomes of NP include any achieved income which is not tax-exempt. Most often it is self-employment tax (traders). Income tax is divided into two kinds of percentages. The first type is assigned to the base rate where income tax is 19% and applies to income not exceeding 179 times the subsistence minimum. The increased rate of income tax is 25%, which applies to income that exceeded the already mentioned threshold.

Trader (self-employed) must file a tax return through the form which the final date is the last day of March of the year following the period for which the tax return is filed. For NPs and entrepreneurs is valid following - if the amount of the final tax liability exceeded €2,500, they are required to pay advance payments based on the amount of tax liability.

When it comes to LE, it's mostly Ltd, but according to the Act, an association of natural and legal persons, an association of property, local authorities and other entities such as non-profit organizations are also considered to be LE. In 2016, the rate of 22% is single for all of the LEs. If LE is not the VAT payer and has a turnover of up to €500,000, the amount of tax license is €480. If LE is the VAT payer and has a turnover of up to €500,000, the amount of tax license is up to €960. If the turnover is increased to over  €500,000, regardless of whether the VAT is paid or not, the tax licenses is €2,880. LEs must keep double-entry bookkeeping where the legal entity files the tax return form, which is given for this taxpayer.


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