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This tax will apply to various financial operations, such as bank transfers, cash withdrawals, card payments, and expense reallocations. All these transactions will be subject to the new tax.
The financial transaction tax will affect all entrepreneurs, meaning it applies to individuals (sole proprietors - SZČO), legal entities, both large and small companies, single-member limited liability companies (SRO). It will also apply to payments made by foreign entrepreneurs related to activities in Slovakia.
New provisions also require that entrepreneurs open a business account, where all transactions related to their business will be directed. This account must be opened by March 31, 2025, at the latest.
In addition to the basic information provided in our previous article, we bring you answers to less common questions about the transaction tax.
The subject of the tax includes financial transactions in which funds are withdrawn from the taxpayer's account, the use of payment cards, and the reallocation of costs related to transactions in Slovakia.
A financial transaction is a payment service defined in the Slovak Payment Services Act, which is performed based on the taxpayer's instruction or consent.
A taxpayer may be an individual entrepreneur, a legal entity, or a branch of a foreign entity using payment services or realize business transactions in Slovakia.
A taxpayer under the law is also a legal entity or a branch of a legal entity with its registered office or place of business in Slovakia, which has a payment account with a payment service provider based in Slovakia or conducts business in Slovakia. If a foreign legal entity has a payment account in Slovakia and conducts financial transactions from it, it is subject to the tax according to the law.
Entities such as the Social Insurance Agency, the Slovak Academy of Sciences, municipalities, civic association and other public organizations are exempt from the tax obligation. However, many of them are required to notify the bank that they fall under the exemption.
For regular transactions, the taxable period is one calendar month. For payment card usage, the taxable period is the calendar year in which the card was used.
The sender of the payment is responsible for paying the tax. Therefore, if an individual or legal entity (taxpayer) makes a payment subject to the financial transaction tax, the sender of the payment will be responsible for paying this tax. The recipient of the payment is not obligated to pay the tax.
Yes, if the self-employed individual (SZČO) conducts payments in cash or by card in Slovakia that are subject to the tax, it is recommended to open a business account at the same bank as their personal account. In this case, internal transfers between the two accounts are not subject to taxation.
A self-employed individual (SZČO) is required to open a business account if they conduct financial transactions related to their business. If this obligation is not met, the self-employed individual commits an administrative offense based on Tax Code. In that a case, a fine ranging from 30 to 3,000 euros may be imposed.
Cash withdrawals from ATMs or bank branches are subject to taxation. The difference is that cash transactions do not have a maximum tax limit, whereas non-cash transactions do.
Only if the accounts belong to the same client and are held at the same bank.
Yes, this legal entity is considered a taxpayer for the financial transaction tax. According to the law, a taxpayer is also one who conducts financial transactions on accounts that are not transaction accounts. This applies to accounts held abroad as well.
According to the law, only individuals (entrepreneurs) are required to conduct financial transactions on a transaction account. For legal entities, every account is considered a transaction account, regardless of whether it is held in Slovakia or abroad.
Since the legal entity has a permanent establishment in Slovakia, it conducts business in the country, including paying Slovak employees, which involves financial transactions subject to the transaction tax. Therefore, it is recommended to open a bank account in Slovakia through which it will conduct these financial transactions, otherwise the obligation to calculate and pay tax will be on the entity (not a bank).
If a foreign entity is only paying its employee in Slovakia and the employee does not negotiate or conclude contracts on its behalf in Slovakia, the performance of activities in Slovakia is not considered. Therefore, the foreign company does not need to pay the transaction tax.
The financial transaction tax will still apply to transactions if the company performs business activities within the territory of Slovakia. However, in this case, the company must calculate and pay the tax itself.
When a bulk payment order is generated, where all transactions are summarized into a single line (for example, when generating a payroll payment order, where sensitive data is hidden and only a summary line is displayed), the 0.4% transaction tax applies to each transaction. This means that the 40-euro limit applies to individual payments, not the total amount.
