The upcoming Financial Transaction Tax Law marks a significant change in the taxation of financial operations in Slovakia. The tax will apply to all outgoing payments, including transfers between accounts, payments from bank accounts, cash withdrawals, and transactions made using payment cards. Each such debit operation on an account will be subject to the respective tax, which will subsequently be transferred to the state budget. This measure aims to enhance transparency and regulation in the financial sector while increasing state tax revenues.
What is subject to the tax?
The subject of the tax is:
- Financial transactions resulting in the deduction of funds from a taxpayer's account.
- Use of a payment card linked to a transactional account for financial transactions.
- Allocated costs related to financial transactions associated with a taxpayer's activities in Slovakia.
However, transactions related to the payment of government taxes, payments for securities, or transactions related to government and international grants and grants-in-aid are not subject to the tax.
Who is liable for the tax?
The taxpayer can be:
- A payment service provider established in the country.
- An organizational unit of the provider, if located domestically.
- A tax payer without an organizational unit in the country, if he is a client of a provider established outside Slovakia.
- A taxpayer who is recharged for costs related to the execution of financial transactions in the domestic country.
- A taxpayer conducts financial transactions in a non-transactional account.
Tax Rates
- Debit transactions: 0.4% of the transaction value, with a maximum of 40 euros per transaction.
- Cash withdrawals: 0.8% of the withdrawal amount, without maximum limitation.
- Payment card usage: Annual fee of €2 for each card used at least once.
- Recalculation of costs: 0.4% of the allocated amount, without a maximum limit.
Key Points to Know
- Tax Administration: Banks are responsible for calculating, collecting, and remitting the tax, simplifying the process for taxpayers.
- Transition period: The first taxable period begins in April 2025.
- Intra-account transfers: Businesses will pay tax even on transfers between their accounts.
- Foreign accounts: Businesses with accounts abroad must calculate and remit the tax themselves for transactions related to their Slovak activities.
Impact and Preparation
The new financial transaction tax may significantly affect daily business operations, especially for companies conducting high transaction volumes. Proper preparation and expert guidance will ensure a smooth transition to the new rules.
Prepare early, stay informed, and operate with confidence in 2025 and beyond!
Subscribe to the news
Be the first to know about the latest information from the world of taxation, accounting and auditing.
Oops! Something went wrong while submitting the form.
