Consolidation package III.

On September 24, 2025 the Slovak Parliament approved the third package of measures to consolidate public finances. The measures mainly concern higher taxation and levies, as well as other changes such as the obligation to introduce cashless payments or the cancellation of selected public holidays. The measures will be effective from January 1, 2026. Practical overview of the most significant changes, with examples and comparisons is as follows:

Personal income tax

Increasing the progressivity of taxation of individuals 

With effect from January 1, 2026, the higher income will result to the higher personal income tax. 

The increase in progressive taxation shall apply on employment income, income of self-employed entrepreneurs, income from rental, income from artistic activities (unless taxed with withholding tax), and income classified as other. Capital gains income taxation remains unchanged.

New tax rates for individuals of 30% and 35% are being introduced together with a reduction in the threshold of the tax base from EUR 48 000 to EUR 44 000, for the application of the increased tax rate of 25%. 

The consolidation introduces the following tax rates and corresponding thresholds. The comparison of the currently valid tax rates with the new tax rates and thresholds valid from 2026 you can find in the overview below:

Please note that in case of self-employed entrepreneurs the progression applies only if total taxableincome (revenues) exceeds EUR 100 000. Provided total taxable income (revenues) of self-employed entrepreneurs does not exceed EUR 100 000 the tax rate of 15% applies to the tax base.

Taxable income for self-employed entrepreneurs means total invoiced income which is subject to tax and is not exempt. 

The tax base is taxable income reduced by contributions, non-taxable part of the tax, and other expenses.

Social and health contributions

Employees 

• Increase in health contributions for employees – health contributions for employees will rise by 1 percentage point from 4% to 5%.

• Income contributions during leave – currently, contributions are not paid on the remuneration received by an employee during parental leave or maternity or sick leave. This is because parental leave, maternity or sick leave are considered periods when the exclusion of the current obligation to pay insurance premiums in addition to receiving sickness benefit. From 2026 this will be cancelled and the contributions will also be paid on income received during sick leave and maternity leave.

• The state will not pay social contributions to parents during maternity and parental leave.

Employers

• Salary compensation during disability – extension of the period in which the employer pays salary compensation during disability for work from 10 to 14 days. The social insurance company will pay the sickness benefit only from the 15th day of the employee's disability for work.

• Amending the definition of dependent work and increasing sanctions for illegal employment.

Practical example

Comparison of calculation of net income in 2025 and 2026 after including consolidation changes

Employees originally supposed to get a higher net income from January regardless of whether the employer increased their gross salary. The reason is the growth of the non-taxable part of the tax base every year. However, this is changing with the increase in health contributions and the employee's net salary will be lower compared to 2025.

This means that in case of employees whose gross monthly salary is higher than EUR 4 282 (in 2025 this corresponds to a net monthly salary of approximately EUR 3 000) will be subject to an increased income tax. Please note that only income above specified thresholds should be taxed at this higher tax rate.

Please find below overview of the monthly and annual difference of the net income of employees in the year 2025 comparing to the year 2026:

Self-employed and self-payers

• Increase in health contributions – health contributions for self-employed will rise by 1 percentage point from 15% to 16%. 

• Minimum assessment basis for self-employed persons will increase from 50% to 60%.

• Minimum social security contributions will increase by 20%.

• Shortening the social insurance contribution holidays for new entrepreneurs – instead of the previous twelve months, there will be only five months. The obligation to pay contributions will arise from the first day of the sixth month of performing business.

• The income threshold is being abolished from the moment a self-employed person starts paying contributions. Each person will pay contributions, even with a low income.

Corporate income tax

New minimum tax band for companies with taxable income higher than EUR 5 million

A new minimum tax band of EUR 11 520 has been added for companies whose taxable income in 2025 will be higher than EUR 5 million and report a lower tax liability or tax loss than the minimum tax.

Overview of valid minimum tax bands:

Value added tax

Increase of applicable VAT rate from 19% to 23% on foods with increased sugar and salt content 

Increase of VAT will concern sweet snacks, such as chocolate, biscuits or candied fruit, ice cream, jams, sweetened soft drinks; and salty snacks, such as chips or bars.

The VAT increase will not affect the raw materials - sugar and salt; and baby food, milk drinks, yoghurts, 100% juices without added sugar or DIA foods will also be exempted.

VAT deduction limit of 50% on motor vehicles and motorcycles

From 2026, a flat VAT deduction of 50% will apply to motor vehicles in category M1 and motorcycles in categories L1e and L3e ("vehicles") that are used not solely for business purposes, but also for private purposes. 

This restriction will apply to the vehicles acquired, leased and used from January 1, 2026 to June 30, 2028. The limitation will also apply for costs related to the operation of these vehicles i.e. fuel, repairs, spare parts, maintenance costs, etc. This deduction also applies to vehicles acquired or leased before the end of 2025, regardless of the actual usage ratio of the vehicle, even if the VAT payer proves a different ratio.

The VAT deduction limitation will neither apply to vehicles used exclusively for business purposes, nor to vehicles and motorcycles purchased for resale, rental or leasing, short-term rental, nor ones used to transport passengers for consideration, including taxis, practice rides in driving schools, or replacement of vehicles that are being serviced. 

In case the company decides to use vehicles exclusively for business purposes, the VAT payer will have to keep detailed electronic records (“logbook”) with the requested information about each vehicle separately and inform the tax authorities that the vehicle will be used exclusively for business purposes. 

Un-deducted VAT will not be considered as tax expense from an income tax perspective.

The European Commission approved this special measure allowing this change until June 30, 2028, with the option to extend it upon a further request from the Slovak Republic. 

Other changes

General tax amnesty 

The general tax amnesty introduces the possibility of additionally declaring and paying tax or paying tax arrears to the tax or customs office, without imposing a fine, charging interest on late payment, and with the possibility of waiving the unpaid penalty associated with the tax paid.

The regulation stipulates that this consolidation measure will be available to all taxpayers who, within the so-called "substitute" period from January 1, 2026 to June 30, 2026, pay tax arrears or additionally declare and pay tax.

If the tax arrears registered as of September 30, 2025 are paid within the “substitute” period, the existing arrears in fines or interest on late payment that are due for this tax will expire on September 30, 2026. If a fine or late payment have not yet been imposed, the tax administrator will not impose them.

If, during the “substitute” period, the taxpayer files a tax return or additional tax return, for which the deadline for filing expired on September 30, 2025, and pays the tax levied or the difference in the amount of tax during the same period, the tax or customs office will waive the imposition of a fine.

The regulation was approved and entered into force on October 1, 2025. It applies to income tax, value added tax, excise duties, motor vehicle tax and insurance tax. However, it will not apply to the payment of tax advances, tax instalments, special levy for doing business in regulated sectors, solidarity contribution or local taxes and fees.

Practical examples

Example 1 – payment of tax arrears

As of September 30, 2025, a taxpayer has a tax arrears on corporate income tax of EUR 1 000. This tax is subject to a fine of EUR 100 (Article 155 of the Tax Code) and late payment interest of EUR 75 (Article 156 of the Tax Code).

If the taxpayer pays the entire tax arrears of EUR 1 000 on April 15, 2026, the fine (EUR 200) and the interest (EUR 150) will be waived. The taxpayer will therefore pay only EUR 1 000, without any further penalties.

In another case, if the taxpayer has already been fined EUR 100 and has not paid it, i.e. is a tax arrears and the taxpayer pays the arrears of EUR 1 000 on April 15, 2026, the arrears of the fine of EUR 100 will expire on September 30, 2026.

Example 2 - tax return and additional tax return

The taxpayer did not file a corporate income tax return for 2024 within the due date of March 31, 2025. The tax return will be filed on March 15, 2026 and the assessed tax of EUR 1 000 will be paid on March 20, 2026.

Since the taxpayer has used the general tax amnesty option, the tax administrator will not impose a fine for late filing of the tax return and will not charge late payment interest. The taxpayer will therefore only pay the additionally tax of EUR 1 000.

Mandatory digital payments

From March 2026, retailers, restaurants, and service providers must accept QR payments or card payments.  

Further changes:

• Increase in insurance tax on non-life insurance from 8% to 10%.

• Increase in the special levy rate on collective investmentfrom 4.36% to 15% per year.

• Higher gambling taxation:

  • increase in online gaming levy from 27% to 30%,

  • increase in taxation of casinos and gaming halls,

  • taxation of bank fees for card deposits into gambling games.

• Abolition of public holidays - May 8^th and November 17^th. September 15 will be abolished only in 2026.

• Abolition of ban on sales during public holidays from 2026 – exceptions are Christmas (December 24 after 12:00, December 25, December 26), New Year's (January 1), and Easter.