Tax License 2024: Minimum Tax Returned
Author
Published
April 14, 2025
Share the article
From January 1, 2024, it was reintroduced in Slovakia minimum tax for legal entities, also known as tax license. This institute was previously in effect from 2014 to 2017. The aim of its reintroduction is to increase state budget revenues and combat tax optimization by companies.
What is the minimum corporate tax?
Minimum corporate tax represents the minimum amount of income tax that a legal entity must pay for each tax period, regardless of the profit or loss made. If the tax liability calculated in the tax return is lower than the specified minimum tax, the company is obliged to pay this minimum amount. This mechanism also applies to companies that have reported a tax loss.
When does the minimum tax start to be paid?
Minimum tax shall first apply to the tax period beginning on the earliest January 1, 2024. For companies with a calendar year tax period, this means that they will pay the minimum tax for the first time in 2025 based on the 2024 tax return.
Minimum tax amount
Minimum tax amount ranges from 340 euros to 3,840 euros, depending on the taxable income of the taxpayer achieved in the tax period.
- Taxable income up to 50,000 euros: minimum tax 340 euros
- Taxable income over 50,000 euros up to 250,000 euros: minimum tax 960 euros
- Taxable income over 250,000 euros up to 500,000 euros: minimum tax 1,920 euros
- Taxable income over 500,000 euros: minimum tax 3,840 euros
Half minimum tax
Legal entities whose average registered number of employees with disabilities is at least 20 % of the total number of employees are entitled to half the minimum tax.
Who is exempt from paying the minimum tax?
- Newly established legal entities in the first year of their existence (with the exception of legal successors of companies dissolved without liquidation),
- Civic associations, foundations, non-profit organizations, municipalities, budgetary and contributory organizations,
- Public companies,
- Taxpayer operating a sheltered workshop or sheltered workplace
- Taxpayers from the date of entry into liquidation or declaration of bankruptcy
- Land communities with taxable income not exceeding 10,000 euros from agricultural activity
- Taxpayers who have received a notice of commencement of company dissolution proceedings
Adjustment of minimum tax for a shorter tax period
If a company has a tax period of less than 12 months, the minimum tax is reduced proportionally. It is calculated as 1/12 of the annual minimum tax multiplied by the number of months of the tax period.
Example:
The company ceased to exist on April 1, 2024. Its tax period lasted 3 months (January 1 - March 31, 2024). With taxable income of EUR 30,000, it is subject to an annual minimum tax of EUR 340. The proportional part of the minimum tax is:
| 340 / 12 x 3 = 85 |
The company will pay a minimum tax of 85 euros.
Conclusion
The introduction of a minimum corporate tax is intended to ensure that companies contribute to the state budget and eliminate tax optimization. Companies should take this obligation into account in their financial planning and prepare for the possible impacts on their finances.