Transaction taxwill not be paid by sole traders (živnostníci) in Slovakia starting January 1, 2026.
A group of SNS party members submitted a bill before the summer break. It was first planned to exempt both sole traders and small companies with a turnover of up to 100,000 euros from the tax. The changes were supposed to take effect in October 2025. However, the Ministry of Finance rejected this initiative, citing the risk of reduced state budget revenue.
After this, further negotiations took place with the Ministry of Finance. As a result, a compromise was reached: the exemption will only apply to natural persons – sole traders. Small companies, registered as legal entities, will continue to be required to pay the tax.
The coalition agreed that the new rule could not be introduced immediately. Therefore, the effective date was moved to the beginning of next year. This decision will help entrepreneurs while preserving state budget income.
Sole traders have long emphasized that the transaction tax is an unnecessary burden for them. Many welcome the changes, as the tax exemption should make doing business easier and create a more stable environment for entrepreneurship.
The state will simultaneously maintain a source of income from larger businesses that operate as legal entities. In this way, sole traders will be freed from an obligation that previously complicated their financial transactions.
