Obligations arising from the transaction tax

Ing. Marcel Muráni, LL.M
Tax advisor

Starting from April 1, 2025, a new financial transaction tax will come into effect, which generally applies to payments made. In this article, we would like to remind you and briefly summarize the obligations that arise for you in connection with the introduction of this new tax by law.

Who is affected by the financial transaction tax?

The tax on completed payments generally applies to all “entrepreneurs,” whether they are legal entities or self-employed individuals, including organizational units of foreign entities operating in Slovakia.

Factors such as size, turnover, whether or not they are VAT payers, or how they apply tax-deductible expenses for income tax purposes do not influence the obligation to pay the transaction tax.

This tax generally does not apply to the so-called third sector, which includes entities like civic associations, foundations, non-profit organizations, religious communities, and churches, regardless of whether they also carry out taxable activities in addition to their main activity. It also does not apply to certain other selected entities (e.g., the Social Insurance Agency, municipalities, budgetary or contributory organizations). The tax does not apply to individuals who do not engage in business, individuals with income from other self-employment activities, such as authors, experts, interpreters, personal assistants, or athletes and sports professionals who do not have a business license. It also does not apply to individuals who have income from the rental of real estate without a trade license.

If you are among the entities to which the financial transaction tax does not apply, and therefore will not be subject to this tax, make sure to inform your bank in advance about this, to avoid the situation where the bank begins to deduct the transaction tax from the payment transactions you carry out from your bank account.

If you have doubts about whether the transaction tax applies to you, we will be happy to assist you in assessing your specific situation.

What the financial transaction tax applies to  

This tax applies to payments made from “business” bank accounts.

The financial transaction tax will be calculated as a certain percentage of the amount of almost every debit payment, whether it is for:

• invoice payments
• salary payments
• other bank transfers
• use of a payment card
• cash withdrawals
• cost allocations

However, the financial transaction tax will not apply to:

• payments for taxes, customs duties, contributions to the state budget, contributions to the Social Insurance Agency and health insurance companies
• payment operations between accounts of the taxpayer held in the same bank
• payment operations made with a payment card, except for cash withdrawals
• specific payment operations, such as payments to court bailiffs and bankruptcy trustees, eKolok service

For “regular” entrepreneurs, the following is important:

• If they transfer money between their own accounts in the same bank, such payments will not be subject to the transaction tax. However, if they transfer their own funds between accounts held in different banks, the transaction tax will be deducted from such a payment operation.
• If they use a payment card for cashless payments, the transaction tax will not be deducted from that individual payment. However, if they withdraw cash using the payment card, the cash withdrawal will be subject to the transaction tax.

Who will report, collect, and pay the financial transaction tax

In most cases, the transaction tax will be deducted by your bank from your bank account and paid by the bank. The total monthly amount of the transaction tax paid will be shown in your bank statement.

However, in some cases, it will be the responsibility of the “business entity” as the taxpayer to declare, report, and pay the tax, for example:

• if you use a bank account held abroad
• if you use alternative payment service providers such as Revolut
• if someone “abroad” makes a payment on your behalf that relates to your activity carried out domestically, and these costs are re-invoiced to you
• if you make a “business” payment from an account that is not identified as a “business account”

Amount of the financial transaction tax

Different types of payments and payment methods are subject to varying tax rates. Card payments are not taxed individually, but for the use of a payment card, the bank will deduct and pay on your behalf a flat annual amount of 2 euros per card that is held by the business in the respective bank and linked to the business account. On the other hand, the highest tax burden will apply to cash withdrawals.

Conclusion

The above information on this website is intended to give you a basic overview of tax, accounting and legal regulations. It is in no way intended as a guide to their application in practice, which may differ significantly from the legislation in force at any given time. The information on this website does not guarantee legal, accounting, tax or other professional advice or services. As such, the information should not be taken as a substitute for professional consultation with accounting, tax, legal or other advisors. EMINEO PARTNERS shall not be responsible or liable for any discrepancies, omissions or results obtained from the use of this information. All information and examples are provided without any warranty as to their applicability in practice. EMINEO PARTNERS is not obliged to reflect the applicable legislation on the information and examples provided on this website.