Slovakia Corporate Tax Guide 2026 — CIT 21%, 10% Micro-Enterprise

Q: What qualifies as a micro-enterprise for the 10% CIT rate?

Turnover below EUR 250,000, profit below EUR 100,000, and no related-party relationships.

Q: Is there a withholding tax on dividends paid to EU shareholders?

Standard 7% rate, but EU Parent-Subsidiary Directive may allow 0% for qualifying EU parent companies.

Slovakia's corporate income tax (CIT) is 21% standard, with a reduced 10% rate for micro-enterprises with annual turnover below EUR 250,000 and taxable profit below EUR 100,000. The accounting period is typically the calendar year. Dividends paid to shareholders are subject to a 7% withholding tax.

CIT applies to all legal entities resident in Slovakia (worldwide income) and non-resident companies with a permanent establishment in Slovakia (Slovak-source income). The tax authority is the Finančná správa (Financial Administration). Advance tax payments are required for companies with prior-year tax liability exceeding EUR 5,000. Corporate tax returns are due by March 31 (or extended to June 30 with a tax advisor).

Example: A micro-enterprise with turnover of EUR 200,000 and taxable profit of EUR 50,000 pays CIT at 10% = EUR 5,000. After-tax profit of EUR 45,000 distributed as dividends incurs 7% WHT (EUR 3,150). Total tax burden: EUR 8,150.

CIT Rates 2026

Standard rate: 21% on taxable profit for most companies
Micro-enterprise rate: 10% for companies with annual turnover below EUR 250,000 and taxable profit below EUR 100,000, provided they are not related parties (certain conditions apply)
Dividend withholding tax: 7% on dividends paid to shareholders (both resident and non-resident)
Interest and royalty WHT: 19% on interest and royalties paid to non-residents (reduced under tax treaties)

Taxable Income and Deductions

Taxable income is calculated as accounting profit adjusted for tax purposes. Key deductible expenses include:

Operating expenses: Rent, salaries, utilities, marketing, and other business costs
Depreciation: Buildings (20 years), vehicles (4-5 years), machinery (6-12 years), computers (4 years)
Interest expense: Deductible subject to thin capitalisation rules (debt-to-equity ratio of 4:1 for related-party loans)
R&D super-deduction: 100% additional deduction (200% total) for qualifying R&D expenses
Tax losses: Can be carried forward for up to 4 years (limited to 50% of the tax base per year)

Tax Compliance

Companies must file an annual CIT return by March 31 (or June 30 with a tax advisor) of the following tax year. Advance payments are made quarterly (semi-annually or monthly for larger taxpayers) based on the prior year's tax liability. VAT returns are filed monthly or quarterly. Financial statements must be prepared in Slovak and filed with the Register of Financial Statements.

FAQs

What qualifies as a micro-enterprise for the 10% CIT rate?

A micro-enterprise must have annual turnover below EUR 250,000, taxable profit below EUR 100,000, and not be a related party to another entity. The beneficial rate is optional — companies may elect to pay the standard 21% rate instead.

Is there a withholding tax on dividends paid to EU shareholders?

The standard rate is 7%. Under the EU Parent-Subsidiary Directive, qualifying EU parent companies may benefit from 0% withholding on dividend distributions, subject to minimum holding requirements.

Can foreign companies claim a reduced CIT rate?

Non-resident companies with a permanent establishment in Slovakia are subject to the same CIT rates as resident companies, including the micro-enterprise rate if conditions are met.

Disclaimer

This guide is for informational purposes only and does not constitute tax advice. Corporate tax planning requires professional advice. Consult a qualified Slovak accountant (účtovník) or tax advisor for advice tailored to your business.