TKEG Expat ™ Slovakia Corporate Tax Guide

Corporate Income Tax Rates (2025):
As of 1 January 2025, Slovakia applies a three-tier CIT rate structure for legal entities:

1. 10% for taxable income up to EUR 100,000.
2. 21% for taxable income between EUR 100,000 and EUR 5 million.
3. 24% for taxable income exceeding EUR 5 million.

A minimum CIT applies regardless of actual results (EUR 340 to EUR 11,520 depending on income bracket). Entrepreneurs with taxable income up to EUR 100,000 keep the 15% rate since 2025.

In the Slovak Republic, the personal income tax (PIT) rate is set at 25%. Individuals must file their PIT returns by March 31 each year, with the final payment also due on the same date. Income tax for employees is withheld monthly at the source from their employment income, ensuring steady contributions to the national tax revenue. This structured system allows the Slovak Republic to efficiently manage personal tax obligations across its workforce.

The withholding tax (WHT) rates in the Slovak Republic vary depending on residency status and the type of income, such as dividends, interest, and royalties. Residents are subject to rates ranging from 0% to 19%, while non-residents may face rates from 7% to 35%. These rates are applied depending on the specific type of income and any applicable treaties or exemptions. Withholding taxes in the Slovak Republic are essential for managing cross-border income flows and ensuring compliance with international tax agreements.

The Slovak Republic implements a standard VAT rate of 20% on most taxable supplies, with reduced rates of 10% and 5% applied to select goods and services, including certain medical products and building supplies supported by state programs. VAT registration is mandatory for businesses with a turnover exceeding EUR 49,790 over the previous 12 months. Additionally, foreign entities conducting business in the Slovak Republic must register for VAT if they engage in taxable activities. The VAT system in the Slovak Republic also accommodates VAT groups for businesses meeting specific conditions, simplifying tax reporting and compliance.

In the Slovak Republic, an insurance premium tax (IPT) of 8% is levied on non-life insurance premiums. This tax is payable by insurance companies, which are responsible for collecting and remitting it to the authorities. The IPT applies to various insurance services, excluding life insurance, ensuring that the Slovak Republic generates tax revenue from the insurance sector while maintaining exemptions for life-related policies.