Tax rates and legal forms in Slovakia in 2023.
If you find yourself enticed by the emerging business prospects in Central and Eastern Europe (CEE), Slovakia should certainly be a top choice in your list of potential destinations. The enduring political stability, advantageous geographical position, adoption of the common European currency, favorable tax structure, and a proficient workforce, combined with the already established international business network, position Slovakia as one of the most appealing nations in the CEE area.
Corporate Income Tax Rates in Slovakia – 2023.
Earnings and Capital Gains in Slovakia
Corporate income tax is imposed at a rate of 21%. Individuals with taxable revenues not surpassing € 49,790 per tax period are eligible to apply a reduced tax rate of 15%. In certain instances, this constitutes the final tax burden for corporate profits in 2023, as dividends disbursed from 2023 profits are not subject to taxation for shareholder corporations based in countries other than non-cooperating states.
Withholding Tax on Domestic Payments
A withholding tax of 19% is imposed on income from participation certificates, specific debentures, vouchers, and investment coupons, as well as interest from bank deposits and general current accounts. A withholding tax of 7 % applies to dividends paid out of profits generated from January 1st, 2017 by domestic companies to individual shareholders.
Value-Added Tax (VAT) – Tax Rates in Slovakia – 2023.
The standard VAT rate is 20%, while a reduced rate of 10% is applicable.
Goods and services exported are subject to a zero VAT rate. Intra-Community supplies of goods may also be zero-rated under specific conditions.
Legal forms of business in Slovakia in 2023.
In Slovakia, you can do business using several legal forms, either as a company or as a natural person. Below is an overview of the basic legal forms of companies, the amount of their share capital and tax rates.
| Legal form EN | Legal form SK | Base capital | Tax rates |
| General Partnership | Verejná obchodná spoločnosť (v.o.s.) | – | 15 % / 19 % / 25 % or 15 % / 21 %. |
| Limited Liability Company (LLC) | Spolončosť s ručením obmedzeným (s. r. o.) | 5.000 € | 15 % / 21 % |
| Limited Partnership | Komanditná spoločnosť (k. S. ) | 250 € / minimum deposit of limited partner. | 15 % / 19 % / 25 % or 15 % / 21 %. |
| Joint stock company | Akciová spoločnosť (a.s.) | 25.000 € | 15 % / 21 % |
| Simple joint stock company | Jednoduchá spoločnosť na akcie (j. S. a.) | 1 € | 15 % / 21 % |
| Cooperative | Družstvo | 1250 € | 15 % / 21 % |
| Sole trade | Živnosť | – | 15 % / 19 % / 25 % |
Autor článku: Mgr. Dominik Ondrišeje
Dominik is co-founder of the SetupMART project. Dominik is responsible for corporate services and implementation of modern technologies in our services at SetupMART. Dominik is dedicated to the sale of ready-made companies since 2011. Dominik studied law at the Pan-European School of Law.