Taxation of Financial Transactions in Slovakia from 2025

This tax will apply to Slovak legal entities, Slovak branches and Slovak self-employed individuals and their outgoing bank payments, including cash withdrawals and card payments, as well as recharged expenses related to financial transactions. Some payments, such as tax, social security or transfers between own bank accounts in the same bank shall be exempt.

Tax is designed to be a levy on debits from bank accounts, meaning that with each payment, the tax will be withheld by the bank. The tax cannot be avoided by use of foreign bank accounts or accounts held by third parties. Transactions done abroad using foreign bank accounts or even transactions using third parties, shall be reported by the taxpayer, themselves, with monthly tax returns.

Received payments shall not be taxed.

The tax base will be the total amount of each individual financial transaction or recharged expense with the following tax rates:

• 0,40% on outgoing payments, capped at 40EUR per transaction
• 0,80% on cash withdrawals, no cap
• 0,40% on recharged expenses, no cap
• 2EUR annually on card payments (all payments included).

Key takeaway

New tax on financial transactions will add additional costs to the tax burden of Slovak entrepreneurs. The longer the supply chain in Slovakia, the higher the costs can be expected. Enterprises currently benefiting from cash pooling and any payment schemes abroad may want to revise these policies to minimise tax burden and benefit from caps granted by use of own bank accounts in Slovakia.

Reference

279/2024 Z.z. - Zákon o dani z finančných transakcií a o zmene a doplnení niektorých zákonov