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 49,790 EUR) for the relevant tax period.

From 1 January 2025 the following CIT rates applies to the taxpayers-legal entities:

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

Legal entities whose taxable income in the tax period exceeds EUR 5,000,000 will pay income tax at an increased tax rate of 24%.

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

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

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

A 10% WHT rate, which 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.