Slovakia reduces income tax

Slovakia plans to support small business through tax incentives

Since January 2020 the tax burden on small business in Slovakia has decreased: legal entities and sole proprietors with income less than 100 thousand euros are to pay income tax at the rate of 15% now.

At the same time, it is important to keep in mind that the limit threshold of 100 thousand for application of the reduced rate will be based on profit (income minus expenses). If this sum is exceeded, the company income will be liable to tax according to the standard rate of 21%, for sole proprietors – 19%. At that, the standard rate will apply to all the profit, not only to the part that exceeds 100 thousand euros.

It is supposed that the new incentives will be available to approximately 2/3 of all Slovak entrepreneurs.

The tax system of Slovakia is one of the most favorable for running business. In particular, this is reflected in the fact that the country has no specific capital gain tax – it is included into the base of profit tax.

25.11.2019

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