Marcel Muráni, Tax Advisor
As part of the consolidation package, the Act on Financial Transaction Tax will come into effect on January 1, 2025, and will apply to both legal entities and individuals engaged in business activities. The financial transaction tax will function as a new form of tax. The bank will collect the tax similarly to how bank fees are deducted from the taxpayer’s account, and it will be considered a tax-deductible expense for the company.
The taxpayer (the bank, or the taxpayer to whom the obligation of the taxpayer is transferred) must pay the tax no later than the end of the month following the tax period, which is a calendar month. The tax will be paid once a month, with the first tax period beginning in April 2025.
The Act on Financial Transaction Tax will apply to:
- legal entities,
- organizational units, and
- entrepreneurs. It is not yet specified whether it will apply to all activities under Section 6 of the Income Tax Act. The explanatory report refers to the definition of an entrepreneur according to the Commercial Code, which considers as an entrepreneur a person registered in the Commercial Register, a person who operates based on a trade license, a person who operates based on a license other than a trade license (this would include, for example, psychologists, doctors, lawyers, notaries, financial intermediaries, artists, writers, etc.), or a natural person who engages in agricultural production.
The new tax does not apply to non-business individuals, state budgetary and contributory organizations.
Who will be the taxpayer?
The taxpayers will include banks and, in some selected cases, entrepreneurs who are required to have a transaction account set up, from which the tax will be deducted.
Currently, not every entrepreneur has a dedicated business account and may conduct business transactions through their personal bank account. According to the Income Tax Act, an individual entrepreneur will be required to establish a separate business account (a transaction account distinct from personal bank accounts) no later than March 31, 2025.
Taxpayers will include banks and payment service providers based in Slovakia, as well as branches of foreign banks operating in Slovakia.
A taxpayer may also become liable for the tax if:
- they make payments from accounts located outside Slovakia that are related to their activities in Slovakia,
- they are invoiced for costs by a person who makes payments on their behalf for activities carried out in Slovakia,
- they conduct transactions related to their business on an account other than the designated transaction account.
If you’re unsure whether the financial transaction tax will apply to you, or if you have further questions, please contact a tax advisor or reach out to us directly at office@emineopartners.sk.
What will the tax rate be?
- Standard debit transactions: 0.40% of the transaction amount. If the transaction is made through a bank based in Slovakia, the maximum tax amount is capped at 40 EUR per transaction. If the transaction is made from an account held abroad, the tax amount is not capped.
- Cash withdrawals from the transaction account: 0.80% of the withdrawal amount, with no cap on the maximum tax.
- Recharging of costs: 0.40% of the amount of recharged costs, with no cap on the maximum tax.
- Use of payment cards: 2 EUR annually for each card, if the card was used at least once during the year.
The first tax period will begin in April 2025, and entrepreneurs will be required to pay the tax monthly, based on the transactions conducted. If you have a good accountant, they should be able to prepare for these changes in time.
Transactions subject to the tax:
- deduction of payments from the taxpayer’s bank account,
- cash withdrawals,
- recharging of costs for payments made on behalf of the taxpayer by another person.
The new transaction tax will also apply to funds that have already been taxed, such as salary payments, dividend distributions, etc. The tax will also apply to loan repayments.
Transactions not subject to the tax:
- payments of taxes and levies,
- card payments (whether made via a physical terminal or online payment gateway), and others.
The current version of the act contains ambiguities, undefined terms, and raises many questions. We will continue to monitor the situation and will be happy to provide additional information in case you have any questions.
The information above on this website is intended to give you a basic overview of tax, accounting, and legal regulations. They do not in any way serve as a guide for their application in practice, which may differ significantly from the legislation in force at the time. The information on this website does not guarantee legal, accounting, tax or other professional advice or services. As such, information should not be taken as a substitute for professional consultations with accountants, tax, legal or other advisors. EMINEO PARTNERS shall not be liable and shall not be liable for any discrepancies, omissions or results obtained from the use of this information. All information and examples are provided without any guarantee of their applicability in practice. EMINEO PARTNERS is not obliged to reflect the applicable legislation on the information and examples provided on this website.
If you have more questions, please don’t hesitate to contact us
