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.

On 20 July 2016, the draft budget for 2017 was agreed upon. Compared with the budget for 2016, liabilities increase by 0.9% and reduction of payments by 7.0%.

The council wants to maintain the particularly high level of support that is provided since 2015 to help the Member States who protect the EU's external borders and fight against organized crime and terrorism.

In the last quarter of last year, the Slovak economy increased its tempo. Compared to the same period in 2014, the GDP (gross domestic product) increased by 4.2% in the fourth quarter of 2015

Slovak economy reached the fastest tempo in five years. The best analysts estimated the GDP to 3.9%. They were mistaken. QoQ growth of the Slovak economy belonged to the strongest within the EU members, which provided its data. On the other hand, the QoQ economy decreased in Greece (-0.6%) and in Finland (-0.1%).

Since the Slovak Republic split with the Czech Republic, the Slovak economy is doing better because it has bigger performance than the Czech one!

In 1993, the Slovak economy performance reached approx. 60% of the Czech economy performance. Well, in 2011, the Slovak economy reached 90% of the Czech economy and in 2012 it was even up to 94%. In the last twenty years, on average, the Slovak economy has been growing by 4.4% at constant prices while the Czech only by 2.8%.

Companies’ taxes are decreasing to 22%! But at the same time, next year we are expecting tax licenses, which were introduced only recently. The specific amount cannot be determined exactly since the amount of tax depends on the company's sales and on the fact, whether the company is or is not VAT (value added tax) payer.

Example: VAT not-payer with sales up to €500,000 will pay €480, a taxpayer with sales up to €500,000 will pay €960 and when it comes to entities with sales over €500,000, the Act determines the amount of tax license for €2,880.