Parliament has approved another amendment to the Slovak Bank Transaction Tax Act. The purpose of this amendment is to incorporate several changes related to the abolition of this tax for selected groups – self-employed (entrepreneurs) – upon fulfilment of specific conditions.
We present below a summary of the key information contained in this amendment. All additional details can be found on our website Moore BDR I News.
- Addition of new definitions
Recharged expense (cost)
Following extensive public discussion and the recommendations of experts and the Slovak Chamber of Tax Advisers, a long-awaited definition of a recharged expense has been successfully incorporated into the legislation. A recharged expense represents:
- the amount of a financial transaction carried out on behalf of a taxpayer by a person other than the taxpayer; in the case of a taxpayer with limited tax liability, this financial transaction must be connected with the taxpayer’s activity in the Slovak Republic
Permanent establishment
The Slovak Bank Transaction Tax Act also adopts the definition of a permanent establishment in line with other tax laws to ensure a unified interpretation. This definition, already included in the Guidance of the Ministry of Finance on the application of the Act (available in Slovak language only), is now codified by law.
A permanent establishment shall mean:
- a fixed place or facility through which a taxpayer with limited tax liability (so-called tax non-resident) wholly or partly carries out its business activity in the Slovak Republic. This includes, in particular, a place from which the taxpayer’s activities are organised, a branch, office, workshop, workplace, sales outlet, technical installation, or a site for the exploration or extraction of natural resources. A place or facility shall be regarded as fixed if it is used on a continuous or recurring basis. In the case of a one-off activity, the place or facility in which the activity is carried out shall be considered fixed if the activity exceeds 15 days within a tax period.
Under the amended Act, a permanent establishment shall also include:
- a construction site where the taxpayer’s activity exceeds 15 days during a tax period,
- the provision of services by a taxpayer exceeding 15 days during a tax period,
- a person acting on behalf of a taxpayer with limited tax liability who continuously or repeatedly negotiates, concludes, intermediates, or plays a principal role in concluding contracts,
- an insurance risk located in the Slovak Republic in connection with the activity of a taxpayer with limited tax liability,
- an organisational unit registered in the relevant Slovak register.
With regard to the time condition of exceeding 15 calendar days during a tax period, the criterion is that the taxpayer must perform the activity for at least 15 days, which need not be continuous.
Clarification of the Term “Taxpayer”
To ensure more accurate interpretation and application of the Act, the definition of taxpayer has been refined as follows:
| Taxpayer | Type of taxpayer and its criteria | |
| Taxpayer with unlimited tax liability (so-called tax resident) | A legal entity with its registered seat in Slovakia | |
| Taxpayer with limited tax liability (so-called tax non-resident) | A legal entity without its registered seat in Slovakia | |
BUT | ||
| Maintains a payment account in Slovakia | Conducts business in Slovakia through a permanent establishment | |
Based on this amendment, all self-employed – entrepreneurs – are excluded from taxation under the bank transaction tax, without exception or income threshold.
his exemption will apply as of the tax period beginning January 2026.
The original threshold of revenues up to EUR 100,000 has been completely removed from the final version of the amendment. Henceforth, the Act shall apply only to legal entities meeting the above definitions.
- Allocation of a tax bank account
The amendment also clarifies the situation in which a taxpayer has not been assigned a personal taxpayer account for the payment of the financial transaction tax. In such cases, a special payment deadline applies – within 8 days of receipt of the notification from the tax authority.
- Penalties
A significant change introduced by the amendment is the linkage between breaches of obligations under the Financial Transaction Tax Act and the Tax Procedure Code. If a taxpayer executes a financial transaction on a special account that is not subject to taxation, they may be liable to a fine of:
- From EUR 30 to EUR 3 000.
The rule remains that no fine may be imposed after five years from the end of the tax period to which the fine relates. The amendment to the Financial Transaction Tax Act shall enter into force on 1 January 2026.
