Slovak Republic

As a member state of the Organisation for Economic Co-operation and Development (OECD), the Slovak Republic’s (Slovakia's) system of corporate taxation generally follows OECD guidelines and principles.

The corporate income tax (CIT) applies to the profits generated by all companies, including branches of foreign companies.

Slovak tax residents are taxed on their worldwide income. Slovak tax residents may utilise a method of elimination of double taxation if their income is taxed abroad. The exemption or credit method can be used to eliminate the double taxation, depending on the relevant double tax treaty (DTT) and the type of income.

Slovak tax non-residents are taxable in Slovakia on their Slovak-source income only. Slovak-source income is defined by local tax law and includes, inter alia, the business income of permanent establishments (PEs) and passive types of income, such as royalties, interest, and income from disposal of assets.

The standard CIT rate for 2024 was 21%. The reduced CIT rate for 2024 at 15% is applicable for corporate taxpayers and entrepreneurs and self-employed individuals that achieve taxable income (revenues) up to 60,000 euros (EUR) (previously EUR 49,790) for the relevant tax period.

From 1 January 2025, the following CIT rates apply to legal entities:

• A 10% CIT rate (instead of the previous 15%) applies to legal entities whose taxable income does not exceed EUR 100,000 in the tax period.
• A 21% CIT rate applies to legal entities whose taxable income is in the range from EUR 100,000 to EUR 5 million.
• A 24% CIT rate applies to legal entities whose taxable income exceeds EUR 5 million.

Also, legal entities are required to pay a minimum CIT, regardless of actual results. Annual minimum required CIT amount are prescribed as follows:

• EUR 340 for legal entities with taxable income up to EUR 50,000.
• EUR 940 for legal entities with taxable income from EUR 50,000 to EUR 250,000.
• EUR 1,920 for legal entities with taxable income from EUR 250,000 to EUR 500,000.
• EUR 3,840 for legal entities with taxable income exceeding EUR 500,00.

Entrepreneurs and self-employed individuals who achieve taxable income (revenues) up to EUR 100,000 (previously EUR 60,000) will keep the 15% tax rate for 2025.

A 10% WHT rate that applies to certain taxable dividend payments to individuals from 1 January 2025 reduced to the previously applicable 7% WHT rate.

Further, some income, such as interest or royalties, may be subject to a 19% WHT rate. A specific 35% WHT rate applies for payments to taxpayers from non-cooperative jurisdictions (i.e. where no DTT or tax information exchange agreement [TIEA] exists, the taxpayer is from a jurisdiction that is listed in the EU's List of Non-Cooperating Countries or a state that does not apply CIT, or a zero CIT rate applies) or where the beneficial owners of the income cannot be identified, including payments of taxable dividends.

Local income taxes

Slovakia does not have local, state, or provincial CIT.