What you should know about the minimum tax – tax license for companies in Slovakia
From 1 January 2024, the obligation to pay the minimum tax for Slovak legal entities – formerly known as the tax license – is returning to the Slovak tax system. You can find it in the Income Tax Act under § 46b. This is a tax that a company must pay even if it is in a loss or its standard tax liability is lower than the statutory minimum.
Who must pay the Slovak minimum tax?
The minimum tax (so-called Slovak tax license) must be paid primarily by legal entities, i.e., entrepreneurs registered in the Commercial Register – mainly limited liability companies, joint-stock companies, and other business corporations, except for general partnerships. Sole traders do not pay this tax because it applies exclusively to legal entities.
A company must pay the minimum tax if:
- it reports a loss, or
- its tax, after taking into account allowances and the crediting of foreign tax, is lower than the statutory minimum.
What is the amount of the Slovak tax license – minimum tax?
The amount of the minimum tax depends on the annual turnover (taxable revenues) achieved by the company:
| Turnover (revenues) | Amount of minimum tax |
|---|---|
| up to €50,000 | €340 |
| €50,001 – €250,000 | €960 |
| €250,001 – €500,000 | €1,920 |
| over €500,000 | €3,840 |
If the company does not operate for the entire year (e.g., changes its accounting period, ceases to exist, or is established during the year), it pays only a proportional part of the tax.
Exceptions – who does not have to pay the Slovak minimum tax?
Not all companies are required to pay the minimum tax. Exceptions apply, for example, to:
- new companies filing their tax return for the first time (except those that have taken over assets of another dissolved company),
- companies entering liquidation or bankruptcy,
- sheltered workshops and workplaces,
- land associations with income up to €10,000,
- companies employing at least 20% of people with disabilities (in such cases, the tax is reduced by half).
When must the minimum tax be paid in Slovakia?
Companies established no later than 31 December 2023 must pay the minimum tax for the first time in 2025 – together with filing the tax return for 2024. The standard payment deadline is 31 March 2025, or later if the taxpayer extends the filing deadline (for example, until 30 June 2025). In contrast, companies established during 2024 will pay this tax only in 2026, i.e., for their first full taxable period.
Special situations
If a company undergoes changes (e.g., through a merger or cross-border amalgamation), or switches from a calendar year to a fiscal year, it must calculate the minimum tax proportionally and state it in the tax return in the section for special notes. The tax return form from 2022 and 2023 (DPPOv22) does not yet reflect the new rules, so it must be calculated manually and entered in fields 1050 and 1080 of the return.
Conclusion
The minimum tax introduced from 2024 is intended to bring greater fairness among companies that until now have paid very low taxes or have not reported a profit. Therefore, even if you are in a loss or “at zero,” the law may require you to make a minimum contribution to the state budget. We recommend not neglecting this obligation and incorporating it into your tax planning in a timely manner – ideally in cooperation with an accountant or tax advisor.
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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.