Overview of Income Taxation

Income taxation in Slovakia is primarily governed by Act No. 595/2003 on Income Tax.

Tax year (§ 2)

Note: § means an Article in Slovak legislation.

In Slovakia the tax year corresponds to the calendar year, which runs from January 1 to December 31. Income tax payments are typically made monthly as a tax advance.

Tax Residency Determination (§ 2)

It is essential to determine the tax residency status, as it affects both the tax obligations and rights.

Slovak tax residents are taxpayers with unrestricted tax liability. A person qualifies as a tax resident if he/she meets one of the following criteria:

• • permanent residence in Slovakia;
  • habitual stay in Slovakia for at least 183 days (i.e. 6 months) within a calendar year, whether continuously or in several periods;
  • residence availability: having a dwelling place in Slovakia that is not used solely for occasional purposes, indicating strong personal and economic ties to the country.

Such a taxpayer must pay taxes in Slovakia on income earned in Slovakia as well as any income from abroad, unless a Double Tax
Treaty states otherwise.

A taxpayer with a restricted tax liability is a person who is not a taxpayer with an unrestricted tax liability (i.e. e.g. a person without a permanent residence or domicile in Slovakia, a person who usually stays in Slovakia for less than 183 days in a calendar year or who often stays in Slovakia only for the purpose of studies or enters Slovakia daily (or occasionally) only for the purpose of employment). Such a taxpayer pays in Slovakia only the tax from income received in Slovakia for his/her period of employment in Slovakia.

Ultimately, Slovak tax residents are taxed on their worldwide income, while non‑residents are taxed only on Slovak‑source income.

The tax residence may also be determined by bilateral Double Tax Treaties, if relevant, especially in case the person is considered as a tax resident under several tax systems. For details see the International income taxation guiding principles for Slovakia - NAVIGATION.

Employment income (§ 5)

Employment income in Slovakia is primarily governed by Article 5 of the Slovak Income Tax Act. Employment income includes sala‑ ries, wages, bonuses, and any other similar remuneration received by an employee for work performed under a labour relation‑ ship or similar agreement. This includes any income from current or past employ‑ ment where the employee must follow the employer’s instructions.

Salary

• Super gross salary or cost of labour represents the sum of the employer’s costs per employee. The price of labour can be (in general) obtained by: the employee’s gross salary + employer’s contributions to the health insurance company (usually 11 % of the assessment  base, i.e. in general gross salary), contributions to the Social Insurance Company (typically 25,2 % of the assessment base, i.e. in general gross salary, unless specific conditions apply), mandatory contributions to old‑age pension savings paid by the employer, if applicable.
• Gross salary is typically a contractual wage.
• Net salary is the amount that an employee receives after deducting and paying all contributions, such as health insurance (4 % of the assessment base) and social insurance (sickness insurance 1.4 %, old‑age insurance, 4 %, invalidity insurance 3 %, unemployment insurance 1 % of the assessment base), tax advance, supplementary pension insurance, if applicable. The amount of the net salary is also affected by the number of dependent children and whether the non‑taxable amount is applied.

You can refer to different salary calculators or consult official sources for more information. For example: https://www.platy.sk/en/calculator

Tax rate (§ 15) and non‑taxable amount (§ 11)

The income tax is paid monthly in the form of a tax advance. In general, 19 % tax rate is applied to the tax base not exceeding 176.8 times the amount of the subsistence minimum and 25 % tax rate is applied to the tax base exceeding 176.8 times the amount of applicable subsistence minimum (this sum is equal to 47 537,98 € for 2024 — based on the subsistence minimum of 268,88 €/month valid from 1. 7. 2023 to 30. 6. 2024 and 48 441,43 € for 2025 — based on subsistence minimum of 273,99 €/ month valid from 1. 7. 2024 to 30. 6. 2025). The tax base corresponds to the amount of gross salary (to put it in a simplified way) reduced by all the contributions to compulsory insurance funds and a non‑taxable amount (exempt from taxation).

A non‑taxable amount (personal allowance) can be fully applied if the annual tax base of a taxpayer does not exceed 92.8 times the subsistence minimum valid as of January 1 of the relevant tax period (24 952,06 € for 2024 and 25 426,27 € for 2025). Then the non‑taxable amount corresponds to 21-times of the applicable subsistence minimum (i.e. 5 646,48 € for 2024 and 5 753,79 € for 2025).

If the tax base of a taxpayer exceeds such annual limit, the non-taxable amount (personal allowance) is reduced to nil progressively, based on a defined formula.

Moreover, if a spouse lives with the taxpayer in the common household and is taking care of a dependent child, or receives a cash allowance for nursing, or is registered with an employment centre and is actively seeking a job, is considered a disabled/severely disabled individual, a non‑taxable amount can also be applied to the spouse, considering the level of both incomes. A tax non‑resident in Slovakia can claim the spouse allowance only if 90 % of his/her worldwide income comes from Slovak sources.

Tax exceptions (§ 5), (§ 9)

The following types of income are examples of income exempt from taxation or not subject to taxation:

Scholarships and Grants:

• scholarships provided e.g. from the state budget (including PhD scholarships), or by higher education institutions or similar benefits provided from abroad, corporate scholarships provided to university students, financial support from foundations or non‑profit organisations except for remuneration for carrying out employment or business activities,
• financial resources from grants provided upon international treaties, by which Slovakia is bound;

Benefits, e.g.:

• benefits from health and social insurance, including old‑age savings,
• per diems/travel allowance (employer’s financial contribution to the board of an employee during a business trip) up to
  the amount set by law;
• the value of meals provided by the employer to the employee for consumption at the workplace or the financial contribution for meals;
• the amount spent by the employer on employee’s training.

Child Tax Allowance/Tax Bonus (§ 33)

While not direct income, the child tax allowance can reduce a taxable income for the parent of a dependent child staying with him/her in the same household, thus providing a financial benefit without being classified as taxable income.

As of January 1st, 2025, child tax allowances will no longer apply to children over age 18, marking a change from previous rules where entitlement ceased upon completing compulsory schooling or reaching age 25. Additionally, the child tax bonus decreases with increasing income; parents earning more than 3 632 € per month lose their right to this bonus entirely.

The amounts of the child tax bonus for dependent children living with the taxpayer in the same household is:

• • EUR 100 per month for a dependent child below 15 years of age
  • EUR 50 per month for a dependent child between 15 and 18 years of age. 

The tax bonus is not only available to individuals with taxable income from employment or entrepreneurship that are Slovak tax residents but also Slovak tax non-residents (taxpayer with a limited tax liability) that have at least 90% of their worldwide income from Slovak sources.

Tax procedures (§ 32, § 38, § 49)

The income taxation procedure in Slovakia involves several key steps.

Annual Tax Settlement

Employees who have received taxable income only from employment may request an annual tax settlement from their employer by February 15 of the following year. If they do not request this or if they have income originating from sources from abroad, they must file the tax return themselves. The employer can perform an annual settlement of tax advances on behalf of an employee from income coming also from other employment (other job contracts) provided the employee has submitted the necessary documents for the annual settlement within the established deadline of February 15.

Tax return

In general a taxpayer needs to file a tax return for a tax period if, during the tax period, he/she has achieved taxable income exceeding 50 % of the amount defined as the non‑taxable amount (i.e., 2 823,24 € for 2024 and 2 876,89 € for 2025), unless the annual tax settlement is performed by the employer. As mentioned above, in case the taxpayer needs to declare income originating from abroad (Slovak tax resident), he/she has to file the tax return him/herself.

The tax return form and instructions for its completion can be downloaded from the portal of the Tax Section of the Financial Directorate of the Slovak Republic (portál Daňovej sekcie Finančného riaditeľstva SR) - https://www.financnasprava.sk/sk/elektronicke-sluzby/verejne-sluzby/katalog-danovych-a-colnych/katalog-vzorov-tlaciv.

Deadline:

The deadline for submitting the annual tax return is March 31 of the following year.

However, taxpayers can request an extension of this deadline, in general for up three months by notifying the tax office. If the taxpayer has taxable income from sources abroad this deadline could be extended by a maximum of six months.

In both cases, the notification of the tax office needs to be carried out on a speciailsed form provided by the tax authorities and the new deadline needs to be filled in by the taxpayer himself/herself within those maximum limits.  In such case, thiform needs to be submiited to the tax office by March 31.

Tax Return Submission:

Tax returns can be filed in either written or electronic form. Tax payers must complete the appropriate tax return form based on their income type:

• • Form A is used for income solely from employment
  • Form B is applicable if there are other sources of income, such as business income or capital gains

All taxable income must be reported in the tax return, including any foreign income in case of Slovak tax residents. If applicable, supporting documents proving tax payments abroad (authentic certificate(s) of taxation of income from abroad) should be attached as well as the explanatory calculations.

Tax Payment:

Any taxes owed must be paid by the deadline for filing the tax return. If there is a tax overpayment (based on tax advances), it will be calculated while filling the tax return.

It is recommended to consult the competent tax authority for any tax issues.