Slovak Republic

Individual - Significant developments

Last reviewed - 10 February 2022

An amendment to the Income Tax Act (“ITA”) effective from 30 December 2020 has introduced the following changes. In certain cases, the effectiveness is postponed until 1 July 2021, or from 1 January 2022:

  • As part of the Slovak financial administration activities against tax evasion, the rules for taxation of controlled foreign companies (“CFC”) will be extended to natural persons.
  • Tax exemption of income (up to EUR 500) for payments by an employer to an employee for work during summer and Christmas holidays (so-called 13th and 14th salary) has been abolished.
  • The non-taxable personal allowance for spa care has been cancelled and may be applied for the last time for the tax period of 2020.
  • As of 1 January 2022, the amount of the tax bonus for each dependent child aged at least six, but under 15 will increase to 1.85-times the basic amount of the tax bonus (EUR 41,01 per month from 2022), and this amount will be applied per month since January 2022.

As of 1st March 2021, an amendment to the Labour Code (the “Amendment”) entered into force, which extends the possibilities for employers to provide the financial contribution (cash) for meals to employees (rather than meal vouchers).

Note that the tax legislation in Slovakia is subject to frequent amendments and new official interpretations; consequently, it is advisable to contact PwC Bratislava for up-to-date information.