Starting January 1, 2025, the rules for the tax bonus on children are changing, bringing significant adjustments for parents, entrepreneurs, and employees. These modifications aim to simplify the process of claiming the bonus while also taking into account the age of the children eligible for the benefit. Here is an overview of the key changes.
Key Changes Effective January 1, 2025
Tax Bonus Only for Children Under 18
- The tax bonus will only apply to dependent children younger than 18 years.
- The bonus can be claimed for the last time in the month when the child turns 18.
- No bonus will be applicable for older children, regardless of their dependent status.
Amount of the Tax Bonus
- €100 per month for a child younger than 15 years.
- €50 per month for a child aged 15 to 18 years.
Eligibility Conditions
The tax bonus can be claimed by a taxpayer who:
- Has taxable income from employment, business, or other self-employment activities.
- Supports a dependent child living with them in a shared household.
Income and Tax Thresholds
Income Share
- The taxpayer is eligible for the bonus if at least 90% of their total income is earned in Slovakia.
- If income from abroad exceeds 10%, the eligibility for the bonus ceases.
Tax Base Limit
- If the annual tax base exceeds €25,740 (1.5 times the average annual salary for 2023), the bonus is reduced.
- The same rule applies if the monthly tax base exceeds €2,145.
Tax Base Share by Number of Children
The bonus amount also depends on the number of dependent children and a percentage share of the tax base:
- 29% of the tax base for one child.
- 36% for two children.
- 43% for three children.
- 50% for four children.
- 57% for five children.
- 64% for six or more children.
These increased percentage thresholds result in a higher tax bonus for parents with multiple children. The percentages have risen by 9% across all categories compared to 2023 and 2024, providing additional benefits to parents with lower incomes.
Reduction of the Bonus for Higher Incomes
If a taxpayer exceeds the specified limits, the bonus for each child is reduced. The calculation is based on the difference between the tax base and the set limit. The higher the income, the greater the reduction in the bonus. For very high incomes, the bonus may be eliminated entirely.
Examples for Better Understanding
1. Parent with three children (gross salary €816/month, tax base €706.66):
- Children's ages: 6, 12, and 16 years.
- Bonus by age of children:
- For children under 15: 2 × €100 = €200.
- For a child aged 15–18: €50.
- Total bonus: €200 + €50 = €250.
- Eligibility based on tax base: €706.66 × 43% = €303.86.
- Granted bonus: €250 (maximum amount).
2. Self-Employed Individual (Tax Base for 2025: €28,000)
- Children's ages: 8 and 10 years.
- Bonus by age of children: 2 × 12 × €100 = €2,400.
Reduction due to exceeding the income limit:
- Annual tax base (€28,000) exceeds the 1.5× average annual salary (€25,740) by €2,260.
- Tax bonus per child:
- €1,200 − (1/10 × €2,260) = €974.
Granted bonus:
- For both children: €974 + €974 = €1,948.
3. Parent Working Abroad (Income: €1,800/month abroad, €200/month in Slovakia)
- Total income: €2,000.
- Share of income from Slovakia: 10%.
- Eligibility for bonus: No entitlement, as income from Slovakia is less than 90% of total income.
Key Takeaways
These new rules aim to better tailor the tax bonus to family incomes and the ages of children. Parents with higher incomes should be prepared for potential reductions in the bonus.
To correctly apply the bonus, it is important to monitor your income and any exceeding of the set limits. If you are unsure, consult an expert or tax advisor.
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