Taxes and changes affecting entrepreneurs in 2025

The year 2025 will bring several tax-related changes for entrepreneurs in Slovakia. These legislative adjustments aim to improve tax compliance, increase state revenues, and support sustainable economic growth. Below, we take a closer look at the key changes affecting entrepreneurs.

Reintroduction of tax licenses
One of the main changes will be the reintroduction of tax licenses for businesses. This obligation was previously abolished but will return in 2025 in the form of an annual minimum tax payment. The goal of tax licenses is to prevent tax evasion by companies that report zero profit while being economically active.

The tax license amount will be determined based on the type of business entity and its annual turnover. For instance, micro-enterprises are expected to pay approximately €500 per year, while larger companies may face payments of up to €5,000.

Increase in VAT
An increase in value-added tax (VAT) is also expected in 2025. The standard VAT rate will rise from the current 20% to 22%. This change is justified by the need to strengthen the state budget and secure funding for the pension system and healthcare.

While this increase will primarily impact consumers, entrepreneurs must adapt their pricing strategies to maintain market competitiveness. The reduced VAT rate of 10% will remain in effect for certain goods and services, such as food, books, and medicines.

Introduction of a financial transaction tax
A new addition to the tax system will be the introduction of a financial transaction tax. This tax will apply to selected financial operations, such as trading in stocks, bonds, or derivatives. The tax rate will be set at 0.1% of the transaction value.

The main objective of this tax is to regulate financial markets and limit speculative trades that often lead to market instability. Entrepreneurs participating in financial markets will need to incorporate this tax into their investment and trading strategies.

New corporate income tax rates
As of January 2025, changes to corporate income tax rates will come into effect. The amendment to the Income Tax Act introduces new rates based on the size of the company and its income:

• 10% – for taxable income (revenues) up to €100,000.
• 21% – for income over €100,000 and up to €5 million.
• 24% – for income exceeding €5 million.

These changes aim to support small and medium-sized enterprises while increasing the contribution of large companies to public finances. Additionally, for smaller businesses, the tax rate will decrease from 15% to 10%, potentially resulting in significant cost savings.

The tax system changes taking effect in 2025 will place new demands on entrepreneurs. The reintroduction of tax licenses, VAT increases, transaction tax, and new corporate income tax rates require careful preparation and adjustments to business strategies. It is essential for entrepreneurs to monitor legislative changes and implement them promptly to avoid complications and leverage the new rules to their advantage.