Effective January 1, 2025, income tax rates in Slovakia will change.
These changes are part of consolidation measures aimed at supporting the business environment and providing taxpayers with more favorable conditions.
Tax rates for sole proprietors and legal entities:
- Sole proprietors:
- Taxpayers with taxable income up to 100,000 EUR will pay a tax rate of 15%.
- Taxpayers with taxable income over 100,000 EUR will pay a tax rate of 19% or 25%, depending on the tax base.
- Legal entities:
- Taxpayers with taxable income up to 100,000 EUR will pay a tax rate of 10%.
- Taxpayers with taxable income from 100,000 EUR to 5,000,000 EUR will pay a tax rate of 21%.
- Taxpayers with taxable income exceeding 5,000,000 EUR will pay a tax rate of 24%.
Reduction in withholding tax on dividends
Alongside the new tax rates, the withholding tax on dividends will be reduced from 10% to 7%. The reduced rate will apply to dividends paid from profits earned in 2025 and later.
Distribution of dividend taxation by year:
- Dividends paid from profits prior to and for the year 2023:
These will be taxed at the reduced rate of 7%.
- Dividends paid from profits for the year 2024:
These dividends will still be subject to a 10% tax rate.
- Dividends paid from profits for the years 2025 and later:
These dividends will be taxed at the reduced rate of 7%.
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